The fact of entry-level salaries in big IT companies being low was a known fact. But the fact of a cartel being in existence to ensure that they remain so is surprising but it is true. IT industry veteran T V Mohandas Pai revealed the fact in his talk to PTI.
Pai, a former CFO of Infosys disclosed that heads of big IT companies would ensure between themselves that there would be no raise in the entry-level salary of freshers and stated that this was going on for a long time. If one were to consider inflation the salaries of IT industry freshers have in fact reduced by 50% in the past seven years. He stated that this was one of the reasons for high rate of attrition in the industry in the initial five years and further added that this was also one of the reasons stopping bright freshers from joining the IT industry.
He felt that this was not ethically and morally right as the big IT companies could afford to pay better salaries and said that lead in this regard should be taken by top companies like TCS and Infosys.
The situation was quite depressing, he felt but seemed helpless as the supply was more and taking advantage of this fact, the big IT companies were commanding the market. He further clarified that freshers needed to be trained due to their insufficient education and IT companies were justifying their stand as they had to spend lakhs of rupees on their training. However, he rebutted their stand stating that this scenario existed since the past 20 years.
He felt bad that freshers did not get sufficient money for a decent living and disclosed that if IT companies did not improve the entry-level salaries then they too would be at a loss. The IT companies would become training ground for other companies who would hire trained people as their staff and save costs of training employees.