While salaries of entry-level employees in the information technology (IT) space in India have grown faster than that of mid-level professionals since 2017, it is reported that the trend is all set to continue. Not only are IT companies gearing up to hire more fresh graduates, they also plan to pay them more. TCS and Cognizant will be hiring more freshers and hiking their salaries by about 30 per cent. HCL Technologies, on the other hand, may even be doubling the salaries of the fresh graduates at entry level in FY21 even while focussing on doubling campus hiring.
While 2017 to 2019 saw the salaries of freshers growing almost 15 per cent, the salaries of mid-level employees, that is those with about seven to 15 years of experience, grew only by 11 per cent during the same period, as was gathered from data examined by TeamLease. In the case of temporary hires, companies paid even higher, with salaries growing 26 per cent for freshers and 19 per cent for mid-level employees.
It is reported that Infosys hired about 7,000 freshers in the December quarter, whereas Wipro hired about 5,800 freshers. Looks like the IT sector will continue to focus on fresh hiring in FY21, as predicted by brokerage company, Emkay Global.
Companies are keen to not just hire fresh graduates but also ensure that they stay with them longer by giving them better incentives. Infosys, for instance, will be trying to reduce subcontractors and hire more people on the rolls to spend better. Wipro has already reduced its subcontracting costs from 16.7 per cent to 14.7 per cent of IT services revenues, while Infosys and TCS spend about six to eight per cent.