Mohandas Pai, an IT industry veteran has made a bold statement about why the salary of the freshers is low in the big IT companies. Pai said, “India’s big IT services companies have ganged up to keep salary of freshers low.” Hearing it straight from the horse’s mouth, the words seem true.
Pai told PTI, “Indian IT is not paying its freshers well. India’s big IT services companies have ganged up to keep salary of freshers low taking advantage of the oversupply of software engineers at the entry level.”
Mohandas Pai has served as Chief Financial Officer at Infosys Limited from 1994 to 2006 and is currently the Chairman of Manipal Global Education Services and Aarin Capital.
“IT companies must increase freshers’ salaries, and reduce top people’s compensation. Because if we don’t increase salaries, bright talent will not come,” Pai strongly feels.
According to the reports, as against offers of Rs 2.25 lakh per annum that used to go out for freshers two decades ago, they have risen only to Rs 3.5 lakh now, which highlights a massive decrease in real wages from an inflation-adjusted perspective.
“It’s not a good sign for the Indian IT industry. They must break away. That too, big services companies. Services companies talk to each other, not a good sign, they must break away from this, because people are unhappy with payment,” Pai further added.