Over-supply keeps salaries in check
Starting salaries in the IT industry have not seen much growth over the last six years. A fresher from an engineering college can hope to get a job at up to `3.5 lakh per annum (LPA). The IT sector’s growth has been phenomenal in the last two decades. The industry, despite a downward slide over the last couple of years, is still one of the most flourishing businesses in the country. As such the salary structure, especially at entry point, remains a bit perplexing.
Around 20 years back, engineering students picked up from college campuses were offered up to `2.25 LPA. By most standards, the growth of salary structure in the intervening years has been dismally low. One of the main reasons for this is the number of fresh graduates stepping out of engineering colleges now.
Due to the oversupply of engineers, companies don’t have to worry about entry level hiring any longer. Picking and selecting the creme de creme is as per the employers’ choice. According to a chief placement officer in a leading engineering college, this salary package has been steady for the last six years.
Ranga Pothula, president of HYSEA (Hyderabad Software Enterprises Association), stated that the volume of hiring at entry level has shot up with some companies recruiting up to 200 freshers from a single college alone.
“It is not possible for companies to offer big packages to all. However, they are not shying away from giving higher salaries of up to `6 lakh to outstanding candidates”, he said.
G.R. Reddy, industry expert, stated that the IT business had undergone some drastic changes with increased costs as an integral part of it compelling them to go slow on salary at entry level.
“Earlier clients used to pay IT firms $100 per hour for offshore projects. Today, companies rarely get even $50 per hour for offshore projects,” he pointed out.
The other end of the spectrum are the techies with over 10 to 20 years of work experience and upgraded technical knowledge. These techies can hope to get salaries of `20 LPA or more with their knowledge.