Top IT companies won’t offer any salary hikes to fresh engineering graduates this year
Advertisement
Advertisement
As if finding a job in India's $160-billion IT industry wasn’t hard enough, fresh engineering graduates would have to deal with another disappointment this year. If reports are to be believed, they would not get to see any hike in their starting salaries anytime in the near future.ET talked to human resources heads of top IT companies like TCS, Infosys and Wipro, as well as several IT recruiters and experts, and reported that these firms are unlikely to revise fresher-level wages amidst declining spending and struggles to protect their profit margins, and not to forget the rising inflation and cross-currency fluctuations.
However, a huge demand-supply imbalance can’t be ignored when it comes to the country's largest software services firms taking the liberty of not offering any hikes to freshers, since the dearth of jobs has led to one job being available for every five fresh engineering graduate.
Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More
Presently, India produces over 1 million engineering graduates every year, however, the number of jobs available in the IT industry is somewhere around 200,000-300,000, as per Nasscom data.
"Ten years ago, the supply-demand situation was neck to neck -- the number of engineers graduating was roughly similar to the number of jobs in the IT industry. That has changed drastically -- as of now, supply is 5 times as much as demand. When you have five people competing for one position, you don't have any incentive to raise salaries," said Achyuta Ghosh, head of research at Nasscom.
Advertisement
Image source
Advertisement
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- 9 health benefits of drinking sugarcane juice in summer
- 10 benefits of incorporating almond oil into your daily diet
- From heart health to detoxification: 10 reasons to eat beetroot
- Why did a NASA spacecraft suddenly start talking gibberish after more than 45 years of operation? What fixed it?
- ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore