$160 BILLION WORTH IT INDUSTRY IS UNLIKELY TO WITNESS ANY SALARY HIKE FOR FRESHERS!
Students who have just passed out of their engineering are finding it difficult to land in a good job in India’s IT industry. To make things worse for them, the salaries that freshers are getting at present will not see any hike in near future. They will have no choice but to accept the salaries offered to them, which are stagnated a decade ago.
IT, which is today a $160 billion industry, is unlikely to witness any salary hike for freshers. This is confirmed by HR Heads of top reputed IT giants like Infosys, Wipro, TCS. The main reason is that IT customers like General Electric and Citigroup are not willing to spend much and IT firms are finding it hard to maintain their profit margins in middle of rising and cross-currency fluctuations. Thus, freshers’ salaries are expected to be stuck at 3-3.5 lakh p.a. level only.
Also, there exists a huge supply-demand gap, where there is more supply of engineers being churned out each year out of our education system, as compared to the number of jobs available in the market for freshers. Out of 15 lakhs engineers produced each year, there are only 2-3 lakh jobs present in the job market, according to Nasscom. A few years back the situation was better, when there were almost equal no. of jobs as compared to the engineers passed out of colleges. However today, with increasing number of engineering colleges mushrooming up and rapid changes in the technologies, supply is 5 times the demand. It is inevitable that salaries will not rise, when 5 candidates are struggling for 1 position.
There could be some minor hikes here and there, from 3.05 lakhs to 3.35 lakhs p.a., however, the overall situation is not very favourable for IT freshers out there. These entry-level salaries are stagnant since 2007-2008 and will continue to be for some more time. This will also have a negative impact on mid-level and senior level compensations. Also, due to increased automation in IT industry, many engineers are feared to lose their jobs and not get jobs at all.
However, our motive is not to discourage students to enter the IT world, instead we would like to direct them on the right path. IT has a bright future, a very bright one! However, whether engineers or non-engineers, they need to be aware of which emerging technologies will make them more employable and job-ready! Only those candidates will succeed in the rapidly changing IT world, those who are ready to learn constantly!
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