Cognizant Technology Solutions is facing a backlash over its decision to offer a starting salary of ₹2.52 lakh per annum to fresh graduates from non-engineering backgrounds. This, coupled with reports of some employees receiving a paltry ₹1 annual pay hike, has sparked widespread outrage and criticism.
The IT giant’s mass hiring drive, promising a ₹2.52 lakh package to trainee IT programmers, has been met with disbelief. Social media erupted with comparisons to entry-level salaries from decades ago, highlighting the stark contrast between the meagre offer and the escalating cost of living in Indian metros.
While Cognizant has clarified that engineering graduates are offered higher compensation packages, ranging from ₹4 lakhs to ₹12 lakhs annually based on factors such as hiring category, skill set, and certifications, the company’s starting salary for non-engineering roles remains a subject of contention. This discrepancy has raised questions about equitable compensation practices within the organisation.
Further intensifying the controversy, reports surfaced of minimal salary hikes for some employees, with instances of individuals receiving as little as a ₹1 increase.
This revelation has sparked accusations of corporate disregard for employee welfare, with critics contending that such negligible adjustments fail to acknowledge the rising cost of living and the company’s financial performance.
The IT industry is undergoing a period of rapid transformation. Advances in technology, particularly artificial intelligence, are reshaping business models and operational processes. While these developments offer significant opportunities for growth and innovation, they also present challenges such as job displacement and the need for evolving skill sets.
The IT industry has witnessed a significant uptick in layoffs as companies navigate a challenging economic landscape. In an effort to maintain competitiveness, organizations are reassessing their workforce needs and implementing cost-cutting measures.
India’s leading IT services firms, including TCS, Wipro, and Infosys, have collectively reduced their employee count by tens of thousands in response to declining IT spending. This trend underscores the broader industry challenges and the pressure companies face to adapt to evolving market conditions.
This trend is mirrored globally. Tech behemoths like Cisco, Dell, and Intel have also announced job cuts to streamline operations and focus on emerging technologies such as AI.
The industry is undergoing a period of rapid transformation, with companies prioritising cost-cutting measures and investing in areas with higher growth potential.