TechnoparkToday.com(Feb, 2017) > The IT industry expert TV Mohandas Pai says, IT companies in india is ganging up to keep the freshers salary low. This is because of the oversupply of software engineers in entry level.
He also accuses that, companies are not paying its freshers well. and the companies are together deciding not to hike the pay for freshers. IT industry reports indicate that the average salary of the freshers today in 2017 is 3.5 Lakhs / Annum, thats much better than the standard 2.5 lakhs in early 2000. but that’s not an increase when we consider the inflation of money.
Pai, who served as Chief Financial Officer at Infosys Ltd from 1994 to 2006, said it’s a very sad fact that big companies are talking to each other not to increase freshers’ salaries. “It’s not a good sign for the Indian IT industry. They must break away.
People are desperate for jobs. That’s why in one to three years, there is high attrition (young engineers leave within three years). The high attrition is because people are unhappy with payment (salary),” he said.
Comparing to metros, the freshers in other tier 3/4 cities are getting lesser packages, there are some other arguments like, if companies keep the freshers salary high, it will create a cascading impact on the salaries of the all levels up, that may not be good for the industry.