TOP Indian IT companies are set to award more promotions and bigger salary hikes in 2011 as they make a determined effort to retain the best talent amidst intense competition from their domestic and multinational rivals.

Coming out of last years recession when these tech firms trimmed their payroll and tightened perks to cope with the crisis,the top three software exporters alone plan to add nearly 1,00,000 new staff in 2011,much higher than the just 20,000 they added last year.

TCS,the countrys biggest software exporter,plans to double the number of promotions next year;both Infosys and Wipro are set to dole out at least 100% variable pay along with double-digit salary hikes to their staff in 2011.Double-digit wage inflation is set to make a comeback next year for the first time since 2005-2007 when the industry offered 13-15 % increases.

Its a dog fight,and its no more about fresher hiring anymore.We want employable engineers,ideally with 1-3 years experience double digit salary hike is set to become hygiene next year, said the CEO of one of the top ten Indian tech firms.

Over the next 12 months,Indias IT industry,including the top three,is expected to hire another 2,00,000 new staff,much higher than the nearly 80,000 gross employee additions the industry reported last year.

TCS has already kicked off an initiative to significantly increase the number of promotions the company would announce next year,especially for midlevel grades where attrition is critical.

TCS could double the number of promotions,the details are being fleshed out, said a person familiar with the companys HR strategy.TCS declined to offer any comments.