US-based IT major Cognizant, which has nearly two lakh employees in India, has planned to boost the salary package for entry-level employees joining next year to Rs 4 lakh annually, according to industry sources.
The company will offer over 18 per cent higher pay packages to engineering students graduating in June 2020 from Rs 3.38 lakh per annum to Rs 4 lakh, news agency PTI quoted industry sources as saying.
Confirming the salary hike, a Cognizant spokesperson reportedly said the company already offers higher packages for employees who possess cutting-edge digital skills.
"In line with that, we have decided to increase the compensation of entry-level engineering graduates, as digital technologies have become an integral part of engineering curricula in progressive institutions from where we recruit talent," the spokesperson told the news agency.
As per placement officers, Cognizant hires about 15,000-20,000 freshers on an average every year, with starting salary of around Rs 3.30-3.60 lakh.
It is noteworthy that this development comes at a time when the company has announced a "realignment program" under which the "management is currently evaluating various strategies, including additional employee separation programmes". The company intends to bring cost structure closer in line with the revised revenue expectations.
For the quarter ended March 31, 2019, Cognizant has reported over 15 per cent drop in net income at $441 million as against $520 million in the corresponding quarter last year. The revenue rose 5.1 per cent year-on-year to $4.11 billion. The company lowered its full-year revenue growth outlook to 3.6-5.1 per cent in constant currency, much lower than 7-9 per cent projected previously.
Indian IT major Tata Consultancy Services (TCS) has also offered higher packages for engineering graduates. The company offered the recruited graduates a pay packet of about 6.5 lakh with premium skills in digital technologies.
The entry-level salary of Indian engineers in the IT industry has been stuck at about Rs 3.5 lakh per annum for the past decade.
(With PTI inputs)
Edited by Chitranjan Kumar
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