It looks like IT companies. are hiring many new people. Many things haven’t changed a lot in a decade about joining CTCs even in 2022.
Never before has Mr Fresher been so important to India’s IT industry, but now he is more critical than ever. You see, Mr Fresher is an essential person in the current scheme of things. If you work for an IT company, he’s necessary. He’s at the top of the pyramid, but for a long time, he’s been sad.
People who work for IT companies don’t want them until they have worked there for at least six months, their jobs are the first to be cut when automation frees up skilled workers for other jobs, and their pay hasn’t changed for almost a decade. To put things into perspective,
But recently, there has been a significant rise in the number of people looking for new jobs, which has led to a lot of rethinking at all levels.
They’ve hired many new people in IT after a long time of not doing so. The market intelligence firm UnearthInsight says that in FY22, as many as 360,000 new employees will be hired. Changes have been made so this can work. Clients have had to be willing to hire new people on their projects, companies have had to run off-campus hiring drives almost every day, and the way they train has also had to change.
But the salaries haven’t changed.
How long will this “welcome” of the IT newcomer last? Will they ever get a raise? Is there anything new?
This time, things are different.
The Indian IT industry has a long history with freshers.
Chandrasekaran is the former CEO of Tata Consultancy Services and now the chairman of Tata Sons. He began his career at the Mumbai-based IT services company as an unknown.
It hasn’t been nearly a decade since we’ve seen new hiring booms like the one we’re seeing now. In the past, hiring booms sometimes led to a big bust.
It usually takes a year for new employees to be hired, so the number of hires is traditionally based on how much demand IT companies think there will be in the future.
This is an example: In the first quarter of FY19, Infosys said only two things about hiring new employees. Both times, the company talked about hiring new employees in the United States. 15 times in the first three months of FY22, freshers were talked about.
TCS has met or exceeded its goal of hiring new employees for the last two quarters.
Too hire so quickly, IT companies have changed how they do things.
In the past, IT companies used to go to different engineering schools (TCS itself had about 300 institutes it visited). There will be an online test for engineering students across the country called the National Qualifier Test in 2019. TCS has been using this test for the last two years. All new hires have to take a test online, and those who do well get the job offer. But TCS has had to do more tests to meet its needs.
“We still use our National Qualifier Test to hire new people.” However, we’ve made it more often because we’ve been hiring so much, said Milind Lakkad, the global head of HR at TCS, in a post-earnings conference call.
The way you think has changed.
They even have clients who aren’t used to having new people on their projects.
There were about 50 new employees on a project that we worked on. The clients took care of them without a hitch. The demand has just risen, and the talent has to come from somewhere. Kamal Karanth, the co-founder of Xpheno, says this: “I think everyone knows that the talent has to come from somewhere.”
If IT companies and their clients had not hired new employees, they would have had a hard time putting together projects for them. There aren’t enough new employees because of decisions made in the last few years to cut back on hiring.
It usually takes four to six years for a new employee to become skilled in a particular technology. Because fewer new employees were hired in the past, there is less talent now.
So, a business decision made then, which was to cut back on hiring based on projected demand, has led to a lack of talent now.
“Fundamentally, this industry needs new people to help it grow. According to Nilanjan Roy, the chief financial officer of the software company Infosys: “If you don’t, it’s a zero-sum game. Somebody else’s attrition is my lateral, and my attrition is someone else’s.”
Show them the cash.
In light of how essential freshers are in the current situation, some people might hope that their job offers come with extra money added to their cost to the company.
Not at all.
There have been a lot of new employees making between $3.5 million and $4.5 million a year since 2018. For the five years before that, the salaries of new employees were between INR3.1 lakh and INR3.3 lakh. Even the INR4.5-lakh wage is only for new employees with different certificates showing well at a particular technology.
“We always keep an eye on that (raising salaries for new employees). We need to be competitive at all times, and we still have four months of virtual training before people start working on the production.” Roy from Infosys says that all of this is part of the company’s overall value proposition for new hires.
They say that IT companies will pay you more money, about INR7 lakh, if you have full-stack digital skills. It’s just that these are usually a few hundred hires made at top-tier schools, and it takes at least four years to earn that much money from a Tier II college.
When you get a job, you are so happy that you don’t notice how little the pay is. I work from home now, which means I don’t have to pay rent, but it will be very hard if they move me to a bigger city. Rohit, who started at Infosys this year as a new employee, says that.
However, he doesn’t get paid for how much his training programme will help him as Roy does.
At TCS, the work for new employees starts even before they are paid. New employees at TCS have to go through an online training programme called Xplore before working there. This programme has training modules and tests that new employees have to pass before starting working. The company calls this person “project-ready.”
People don’t want to raise their salaries because there is no reason to do that. Every year, about 1 million engineers of different quality get their diplomas.
In the past, when there was a slowdown in hiring new IT workers, many engineering schools closed down. These were undoubtedly low-quality institutions, but the lack of jobs had made it impossible for them to stay open.
There are still more than 600,000 people out there, even though 360,000 new graduates were hired this year. Far more than people want, there is more than enough.
Even though the cost of skilled workers is going up because of the recession, clients aren’t going to raise the pay of new employees.
Clients don’t want to pay for training, and there is a lot of pressure to keep prices and wages low for new employees. People who are just starting are likely to earn less money than people who have been working for a long time. “We will only see modest increases for people who are just starting,” says Peter Bendor-Samuel, CEO of an IT consulting firm. He says that clients already accept an “aggressive mix” of newer people and aren’t likely to receive more.
It’s essential to find a job that.’
After taking inflation into account, the pay of the new students is going down. Even though they don’t get any more money than before, they still have jobs and will likely have them for a long time.
People who start working for an IT company get paid so tiny that it doesn’t make sense to get rid of them when there is a change in the company. But a bigger question is: Is this kind of hiring going to be sustainable?
IT fresher protests took place in 2013. Companies tried to postpone the start dates of new employees because there was not enough demand for the jobs offered (a post which the salaries become payable).
This year, the Noida Police had to get involved in a protest outside an HCL Technologies office to calm people who said they had been waiting for a year to join the company. Some companies pushed back the start dates for new employees by a quarter or two.
Demand forecasts didn’t work out for the industry, and there was a new glut of food.
… but this time, things may be different!
A few years down the road, this will be a big thing. And young people have more ability to learn. That kind of technology is a big help, says an IT service company executive.
The pay will be low for people who are just starting, but the work will be good.
edited and proofread by nikita sharma