Industry Veteren, T V Mohandas Pai proclaimed that big IT companies have ganged up to keep freshers’ salary low. Due to over supply of entry level engineers, IT companies have taken advantage to keep the salary bracket low as respect to freshers.
Mohandas Pai announced this publicly to PTI that the problem with the present IT industry is that, they have kept the salary bar of freshers low on purpose. Infact big companies are walking hand in hand to not let the salary increase for the entry level engineers.
Reports say that about two decades earlier, average salary of a fresh engineer was 2.25 lakhs/annum. At present the fresher’s salary has only incremented to 3.5 lakhs/aanum. This throws a very poor reflection on increment of real wages from an inflation adjusted perspective.
Mohandas Pai had been the Chief Financial Officer, in Bangalore Headquarted Infosys ltd from 1994 to 2006. He is not happy with the present scenario where big IT companies have joined hands to keep salary low. He said, ‘It’s not a good sign for the Indian IT industry. They must break away. That too big IT services companies.”
Mohandas is currently the Chairman of Manipal Global Education Services and Arin Capitals. He added that IT companies must increase freshers’ salary and reduce the compensation of top notch employees. He said, ‘if we do not increase the entry level salary, good and bright people will not come.” He said most of the freshers in IT companies come from Tier 2 colleges. They are no doubt smart but the industry needs employees from Tier 1 colleges also. Therefore if the entry level salary is restricted, then students from Tier 1 colleges cannot be lured to join Indian IT industry.
He said that this practise of low salary has been in continuation for almost 8 years. Therefore the attrition rate is also high. Freshers agree to join as they are desperate for jobs as beginners. But within three years they leave as they get highly dissatisfied with the payment.
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