IT Freshers’ Salary Is Same Since 7 Years; Most Unemployed IT Employees From Tier 2, Tier 3 Cities

IT Employees' salary is stagnant since 7 years
IT Employees’ salary is stagnant since 7 years

Amongst all the financial problems burgeoning the country, all eyes are set on the new Finance Minister Nirmala Sitharaman. She carries the load of issues such as farmer distress, sluggish investment cycle, increasing exports and much more runs. The most pertaining and ‘need of the hour’ problem underlying her vision is the employment crisis in India.

More and more individuals are graduated each year and unfortunately, enough deserving jobs in the said fields of every graduate, is badly lagging behind. This also has to do with the graduates today lagging the needful technical and soft skills.

Is it The Best Time to be a Techie?

Seeing the current condition of country in terms of employment, you need to sincerely be good at communication and technical skills in order to score a pretty decent and average job package. Based on a survey by IT staffing firm Teamlease services, its is estimated that for freshers of FY2020, the average job package will come out to be 1.95 lakh, across eight tier I cities and 19 sectors.

In IT, BPO, e-commerce and start up domains, job creation is about 30,000. It is estimated that major mass recruiting IT firms will hire about 70,000 to a lakh graduates, as estimated on the basis of figures for FY2018. The scenario although, is not very brightly painted. The landscape looks drier than usual. The major problem here is that the industry has more graduates than needed.

Some Major Problems for Graduates to Land up Jobs

Swathi Moorthy from Moneycontrol writes that about 10 lakh engineers graduated in the 2017-18 batch. (According to a report published by the Ministry of Human Resources and Development in 2017)

On comparing the number of students graduating from engineering colleges every year, to the number of total jobs available, a massive ratio is bound to obtain. Obviously, there will be a chunk of graduates not getting the desired jobs.

Moreover, it is not just the fact that there is a lack of employment options, with such a large number of students graduating each year, a major part of the crowd lack necessary skillset for technical jobs. The market today is changing at a very fast pace; naturally, students are expected to match up this pace and develop the desired shifting skills. Reports have found out that most of the unplaced students fall under rural or semi-urban areas of the country, where they lack communication and technical skills.

As a result, due to quality education and access to resources, graduates from tier-1 cities likely manage to settle themselves the IT jobs. Campus hiring majorly looks for soft skills and basic tech knowledge.

The Fresher Salary Package Hasn’t been Revised Since 7 Years

There is another problem that envelopes the whole situation. Apparently, the basic salary paycheque for a fresher scoring a standard IT jobs in one of the MNCs of the country, still gets about Rs.3.25lakh p.a. or Rs 3.5 lakh p.a. This number was the same 7 years back too. The currency values have shifted to unbelievable levels in these 7 years, while freshers are still continued to be paid the same.

The stagnation has more to do with the over-supply of engineers and the lack of skilled talents that are in huge demand now. At the same time, freshers who are skilled in the latest technology such as cloud, artificial intelligence or machine learning can earn up to Rs 6.5 to Rs 8 lakh p.a.

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