Tech giants and IT firms operating in India have formed a cartel to keep the salary of the entry-level engineers low. The allegations have been made by former Infosys board member TV Mohandas Pai. The veteran techie further alleged that the practice that is followed by these tech companies is ‘morally’ and ‘ethically’ wrong. He further added that this happens due to the over-supply of the engineers in the country and therefore bright minds do not join the IT industry.
“There is a cartel…there has been a cartel, there is no doubt. They (big IT companies) talk to each other, sometimes tell each other not to increase, that’s been there for a long time, I know that people (of big IT companies) used to get together and tell each other not to raise (entry-level) salary. If one took into effect inflation, the remuneration of freshers in the IT industry has, in fact, come down by 50% in the last seven years,” he said. “That’s why attrition in the first five years is very high,” Pai was quoted as saying by The Hindu.
Pai has also urged companies like Infosys and TCS to pay better salaries to freshers. Pai explained that some companies should take a leap in this league as they can afford to pay better salaries. “They have to make sure they don’t pay more at the top, and they pay more at the bottom. They have to learn to adjust,” Pai was quoted as saying.
Further explaining the hazards inflicted by the IT cartels Pai said that fresh young talent do not want to join the industry because they do not get paid well and the nation loses a lot of resources which could have contributed in nation-building. Pai also commented that the salaries of freshers in the industry had not risen but had actually declined by half in the last seven years. This is a huge discouragement to the young talent.