Is Peanuts what you will be paid for IT job?

One may boast of being employed in IT in the current scene, however they have to work twice as much for getting an interview and the annual salary is peanuts compared to earlier days. A worsening economic crisis, increased availability of skilled workers and lower demand for software services have brought down the entry-level salaries for IT professionals in the country by up to 20 percent, according to experts tracking the sector.

Every year, around 3,00,000 computer science and engineering graduates seek employment with hundreds of tech firms, including big names such as Tata Consultancy Services (TCS), Infosys and Wipro. This year, more than half of them were left unemployed because tech firms were already finding it tough to manage resources sitting on the bench, according to Economic Times.

"The entry-level salaries are down by at least 10-16 percent. Last year, a number of companies gave away offer letters but did not recruit. On top of that, there is a new pool of qualified professionals being churned out this year - all this has created an oversupply in the entry-level IT job market where salaries typically sway between Rs. 3 lakh per annum and Rs. 5 lakh on the higher side," said GC Jayaprakash, Principal Consultant of Stanton Chase International.

Until two years ago, almost all computer and engineering graduates were absorbed by India's outsourcing industry, comprising top tech firms such as TCS, Infosys, Wipro and many others. However, as customers delayed and shelved outsourcing projects, these tech firms also postponed campus hirings. Many students had to approach potential employers directly, since companies did not visit their campuses for placements. "We formed groups and toured companies, and agreed to settle at lower salaries because it's better to be employed at lower salary than having no job at all," said Srilekha Varma, who recently accepted a job offer from a Chennai-based IT firm specializing in banking software.

In a normal year, computer science graduates were offered entry-level salaries of Rs. 3.5-5 lakh. However, companies are now hiring freshers at Rs 1.7-3.5 lakh. However, human resources heads at tech firms, including Wipro, India's third-largest software exporter, say professionals have become more realistic about what they want from their employers. "I don't think salaries have come down, but the environment has indeed helped us in containing salary hikes," Pratik Kumar, Head of Human Resources at Wipro said.

But few companies have not forgotten the offers made. TCS said it would do new campus hiring in January 2010 and will honor all 24,000 offers made for financial year (FY09). "Around 1,800 graduates have joined us in second quarter (Q2) and another 8,000 will join in Q3, rest of the graduates will join based on the demand," a TCS spokeswoman said. Infosys said for FY10, it has made 20,000 campus offers and expects an 80 percent conversion rate i.e. 16,000 of these offers to join the company. "We are honoring all our hiring commitments," an Infosys spokeswoman said.

Agencies