Despite the current less positive feelings in the job market, many students still see the IT services sector as an attractive option to kickstart their careers. However, a persistent issue has been the relatively low salaries offered to entry-level employees, known as freshers.
Concerns Raised in December Quarter Earnings
In the recent quarter earnings report, major IT services companies like TCS and Infosys showed a decline in their workforce. In response to this, CNBC-TV18 sought an explanation from TCS regarding the ongoing trend of freshers receiving salaries in the ₹3-4 lakh per annum range.
TCS’ Response
Milind Lakkad, TCS’ Chief Human Resources Officer (CHRO), explained that the company determines salaries based on individual talent. He emphasized TCS’s commitment to attracting talent at various skill levels. Despite the apparent stagnation in starting salaries, Lakkad highlighted a significant increase in salaries for employees involved in digital roles.
Salary Doubling for Digital Roles
Lakkad disclosed that TCS has doubled the salary for employees engaged in digital roles. Innovators in the company are now earning close to ₹10 lakh annually. He mentioned that TCS is actively recruiting from esteemed institutions like NIITs and IITs, where the company offers considerably higher salaries.
Consistency in Freshers’ Salaries
When asked about the starting salary for freshers, Lakkad acknowledged that it remains the same as it has been for several years. However, he emphasized the importance of understanding the career path within the company. According to him, by choosing the right path, freshers can expect their salaries to double after joining TCS.
