IT hiring and salaries

A few “salary” related searches have been landing on this blog, thanks to my post about TOI’s sensational numbers.

I am not the only one to know that mention of IT salaries attracts a lot of readers. TOI is the master here, they make it a point to remind us all about IT salaries at least once a month. This month I came to know that entry level salaries have risen to 2.4 – 2.8 lakh levels.

The number does sound realistic, so I wont beat up TOI again. Putting the number in perspective, we are talking about around US $6000 an year for entry level IT jobs. Compare that to $60000 an year an entry level guy could get in the US. Clearly, there is room for growth.

My theory is that the salaries will eventually fall in line with the PPP (purchasing power parity) factor. Applying PPP factor of eight, entry level salaries could soon rise to 4.8 lakh an annum [60000 x 8]. That is double the number as of today.

While I make that prediction sound simple, things are anything but simple when it comes to IT hiring in India. It is a mad mad world out here these days.

Infosys said they will hire 25000 this year. Assuming Wipro, TCS, Satyam etc to add similar numbers, domestic service players could be talking about hiring 75000 or so this year. IBM, Accenture had recently announced numbers like 14000-15000 each for themselves.

Where will these many people come from? They may pull it off if new hires are going to be all fresh engineering grads – the pool is said to be 1,75,000. How about the quality though? We are talking about massive investments in training these folks, 30-40% of the pool can’t be all good guys. Clearly, IT training would be a good business to get into right now.

Hiring experienced professionals is where the problem is. And it is reflected by the fact that salaries at that level are already approaching or over the PPP factored numbers. Applying eight again, the equation is US $100000 versus Rs 8 lakh per annum.

Instead of all these CEOs sitting together to sign agreements or steps to curb lateral hiring or poaching, they are pushing each other on salaries. This can’t go on for long. Eventually, something has got to give.

The impact, I predict, will first be seen on quality of deliverables. Look up any Indian job site, and you will see openings for “architects” that say 4-5 years of experience is enough. Thank god there is no solid and proven way of measuring quality in IT world. And even if there is one, as long as you are getting 60% of the quality expected, at one third to half the price, chances are you wont complain.

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8 Responses

  1. I see that Business Today ( or is it the business magazine from Outlook) has a cover story on the ‘Great Manpower Shortage’ likely to hit India this year.

    Secondly, totally agree with you regarding the line “somethings gotta give”. It will be India’s competitive edge as far as costs are concerned! Perhaps then we will see a lot of sanity/realism in several sectors, including real estate, for one!

  2. Thanks Ravi. One thing though is that with the number advantage that we have, there may not be a shortage on paper. Two types of problems are more likely.

    1) Quality issues as IT service cos will be forced to do work with less experienced engrs.

    2) Shortage of experienced/skilled folks may make life difficult for companies with small captive setups in India. Salaries + attrition + operational overheads will add up to a significant number.

  3. I read these articles with a lot of interest. I am an IT professional in England and I’ve done quite a lot of research already and I’m planning to move to Bangalore early next year to work. I’ve over 12 years experience implementing CRM solutions. I’m hoping the Rs. 8 lakh figure will be realistic as most job sites I visit in India don’t disclose the actual salary as they do in the UK. I’ve already visited India and I love the place so it makes sense for me to come and work in Bangalore. Can do recommend some agencies in Bangalore that may be able to help my job search? I’ve seen properties to rent in Bangalore for Rs 6500 per month but have no idea what the location is like. Can you recommend anywhere for me to live in Bangalore. Thank you. Kevin Harrison

  4. Kevin, Try this. Post your resume on indian jobsites (monsterindia, naukri) and then contact the headhunters who will send you automated emails based on your resume. Your profile (UK, CRM) could interest many, try apply directly at infosys, wipro, tcs etc.

    About the salary, there is a big range based on skills and experience you have. 12 years CRM, you could be looking at 15-20 lakhs – just a guess.

    About where to live in Bangalore, I would say first fix up on a job. And then decide on a a nearby locality to live. That way you save on the commute. And many times, your employer will help you find a place to rent.

    6500 Rs a month – given your first world roots, I dont know if you will be able to survive in those. Keep aside Rs 10000+ for renting a decent apartment.

    If I was of help here, save your first month’s india salary for me. Just kidding!

  5. Many thanks for your reply – that’s very useful information you have given me. I think 15-20 lakh maybe a little of the high side as I’ve worked mainly on mid-size CRM implementations, upto 400 user systems but including big clients such as Siemens. And I haven’t got Oracle CRM or SAP CRM experience. I’ve used CRM software in the mid-range market such as Unitrac, SalesPage, OnContact and Saleslogix. In my opinion though all CRM products are similar and can be learnt quickly. I could study for Oracle CRM or SAP CRM certification but not sure at the moment if I want to. I’ve a lot of general experience or Oracle and SQLServer but strength really lies in configuring and implementing CRM. Thanks the advise on those websites, I’ll try posting my CV on those you mentioned and see what happens! Who are least headhunters you mentioned in your message? If you live in Bangalore or plan to visit Leeds in the UK, I’ll gladly take you out for a meal…If I do land a 20 lakh job – I’ll be in touch! Thanks again.

  6. I live right here in Bangalore Kevin, and I will take you up on your meal offer!

    You have one skill that Indian services companies desire – direct experience with customers in the west. And if you have decent CRM skills, whatever the package, Indian services firms will lap you up. Apply directly at those 3 cos I mentioned, good chances that you will hear back.

    I got your email id, will mail over contacts of some headhunters I know.

  7. Thanks for your reply.

    It’s very useful actually having a reliable source on the ground who knows the current situation.

    I agree with you in terms of Indian companies requiring people with CRM skills who have dealt directly with customers in the west and it’s good to hear it from someone else who has experience of Bangalore. I also have a degree – suppose this always helps.

    I very serious about this move. I loved India when I was there earlier this year and I have no real commitments in the UK so it seems the right move. I’ve already resigned from my current job and finish in November. I’ve a few things to wrap up and I intend starting a serious job search in November and plan to move to India next year as soon as I get something fixed up work-wise.

    If you want to email me across some headhunter details, my new email address is <…>. This would be really appreciated. I’ll also try those firms you mentioned and I’ve already looked on monsterindia and it looks the best job so far I’ve seen for India.

    Thanks again for your help and I’ll definately take you out for a night out when I make it to India – I’m sure you will know some high quality places!

    Are you an American? I’m just guessing based on your writing. Just curious that’s all!

    Cheers.

  8. Dear Skillsboard,

    I’m posting my CV on monsterindia and naukri today. Please can you recommend any other websites that could be worth a go.

    Also, how do I let the headhunters know about my plans to move to Bangalore?

    Apologies for the American slur in my previous post.

    How’s the market in Bangalore an the moment for experienced IT professionals with a wealth of experience dealing with western companies.

    Kind Regards,
    Kevin Harrison esq.

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