Home » Education » employment » Mohandas Pai Opens Pandora’s Box – Claims IT Firms Ganged Up To Keep Fresher’s Salaries Low!
Last updated: February 22, 2017 at 16:54 pm

Mohandas Pai Opens Pandora’s Box – Claims IT Firms Ganged Up To Keep Fresher’s Salaries Low!


If you a fresher, and seeking a job in IT industry, then take this information with a pinch of salt: There is very high chance that you will get a salary which won’t satisfy you, and the reason behind this is a deep-rooted conspiracy by leading IT firms.

TV Mohandas Pai, the legendary educationist, founder of Manipal Global Education and ex-Board Member of Infosys, has opened a Pandora’s box, when he claimed that leading IT firms in India have ganged up, and are deliberately keeping the fresher’s salaries low to make more profit.

Now, this revelation is crucial, because earlier, Pai used to head Administration, Education and Research, Financial, Human Resources dept in Infosys, and also used to head Infosys Leadership Institute.

Hence, such a strong claim by Pai clearly means that the conspiracy is real. And freshers in India are being taken for granted.

Why Mohandas Pai’s Revelation Makes Sense?

20 years ago, the starting salary for a fresher in any good, reputed IT firm used to be in the range of Rs 2-2.25 lakh per annum, which is now in the range of Rs 3.5 lakh.

Thus, the salary of a fresher has only incremented by Rs 1-1.5 lakh in last 20 years, and this is not something which will cheer up an engineering or management student, who is dreaming of working in an IT firm.

In Hyderabad, Pai said, “That’s the problem with Indian IT (industry). Indian IT is not paying its freshers well. And in fact, big companies are coming together talking to each other not to increase their salary,”

Confirming that IT firms conspire within themselves, and force one another to keep the salaries low for freshers, he said, “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..”

Why This Conspiracy Is Working Smoothly?

As per Pai, this conspiracy is working fine since last 10 years, mainly because of one reason: Surplus supply of resources via Tier 2,3 colleges.

He said that tons of new engineering colleges have opened all across India, which are delivering thousands of IT freshers, who have less expectations and are willing to work at cheaper rates.

This tendency and imbalance in demand and supply is forcing students from Tier 1 colleges to opt for other jobs.

However, unlike Capgemini India CEO, who dismissed 65% of IT employees by stating they are untrainable, Pai said that the students coming from Tier 2, 3 colleges are good, but their capabilities are not enough.

Pai attributed the high attrition rate in IT industry to this very fact of lowering freshers’ salary, as he said, “They are not raising because there is surplus capacity. People are desperate for jobs. That’s why in one to three years, there is high attrition (young engineers leave within three years). The high attrition is because people are unhappy with payment (salary)..”

As a consolation for freshers, here is another fact: Such ganging up by firms to keep salaries low is not an India-only phenomenon. In Silicon Valley too, this has happened, which was revealed in 2014. As per reports, Apple, Google and other leading tech companies made a secret pact to keep the salaries of engineers low, and thereby saved billions of dollars.

Don’t you think that it is an unethical and anti-free-market tactics? Don’t you think it is unfair for the freshers? Do share your opinions by commenting right here!

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