Business

Big IT Companies Take Advantage Of Engineers 'Over-Supply', Claims Mohandas Pai

AASTHA SINGAL | 0
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| December 27 , 2017 , 19:38 IST

Ever since the advent technical era, India has been over-flowing with engineers decreasing the employment opportunities in the sector. The lack of jobs in IT sector has prompted the ambitious youngsters to take up whatever the recognised Indian firms have to offer.

Engineering freshers are falling prey to the cartel formed by big Information Technology companies by accepting the lower salaries than their calibre, claims IT industry veteran T V Mohandas Pai. Infosys Co-founder N R Narayana Murthy has earlier raised a similar point.

Pai has agreed to Narayan's statement confirming that the salaries of entry-level employees have remained stagnant in the last seven years whereas, senior-level employees' salaries have grown multi-fold in the software industry.

The former CFO of Infosys has called this act conducted by the big sharks of software industry of taking advantage of the "over-supply" of engineers as "wrong". "There is a cartel...there has been a cartel, there is no doubt. They (big IT companies) talk to each other, sometimes tell each other not to increase, that's been there for a long time," Pai said.

"I know that people (of big IT companies) used to get together and tell each other not to raise (entry-level) salary. If one took into effect inflation, the remuneration of freshers in the IT industry has, in fact, come down by 50 percent in the last seven years," he said.

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"They (big IT companies) can afford to pay better salary. They have to make sure they don't pay more at the top, and they pay more at the bottom. They have to learn to adjust," Pai said.

"To me, it's an ethical, fairness issue; they can afford to pay more. (Not raising entry-level salary is) ethically and morally wrong," Pai said. He prompted the bigwigs like TCS and Infosys to take the lead in giving better opportunities to freshers.

"People who are paid low should get more. Best guys don't want to come and join the industry. It's important for them to raise the salary, make sure people at the bottom feel much more comfortable", Pai said.

"It's very depressing (freshers not getting good salary). What to do? Supply is more." Pai added, "Also, education that they get is not good enough to get the job straight away. They have to be trained."

The IT companies' claim of spending lakhs of rupees on training freshers but Pai advocates that the change of scenario should be taken into consideration as the recent phenomenon has changed. "They should pay more because people need to live properly, they don't get enough money to live," he said.

 Pai warned the big IT companies that if should consider spending more money on recruitment otherwise they will end up becoming training ground for other companies, who will refrain from hiring freshers and recruit only trained people for saving on training costs. "It's bad for big IT companies themselves," he said.