Retaining India’s competitive edge in IT market – Cost of employee
Once again in 2010 and 2011, IT industry seems to be getting bullish in India. There are a lot of talks about more and more and more freshers being hired and skilled resources being plucked away from rival companies at premium. This trend is a far cry from 2007-08 when every IT professional was scared to death about the prospect of being laid off. Some companies did not resort to open layoff because of the fear of media backlash and their nicely manicured image being smashed by laying off in conservative Indian environment. It was no wonder though that every company had a share to add to the list of unemployed IT professionals in the recession time.
The fresh hiring taking place and high salaries being talked about so quickly is something to worry if India has to retain its competitive edge. The start realities of market is that it is just India, China, Russia, and Brazil who are growing at a pace better than normal but their growth has very large element of contribution from the countries who are no more growing or having recessionary effects still going on. This one way growth cannot be sustained for too long. Adding to this issue, salaries in India seems to be growing once again partly due to effects of inflation and partly due to issues of demand and supply.
I happened to go through a blog in SiliconIndia.com (http://www.siliconindia.com/shownews/Highest_paid_IT_jobs_in_demand_for_2011-nid-75480.html/1/2?utm_source=clicktrack&utm_medium=banner&utm_campaign=mostcommented
). While the blog mentioned the right salary standards which are available in market and needs to be paid for skills mentioned, there have been several reactions from the readers (apparently job seekers themselves) who openly thrash this salary standard and appeared very bullish on future outlook and talked of very high salary standards.
It is certain that with such expectations and companies who help generate such expectations just because they like to play short term and get desperate to get business from clients at “any cost” we are not going too far.
It is therefore very important to look IT salaries in the range which is sustainable and does not end up in job losses and impacts society in a larger way. IT industries must set standards which are in line with long term play and keeps India on the cost benefit radar.