Concerning Divide in the Indian IT Industry

by admin, September 16, 2019

The Indian 21st Century IT infrastructure & software capabilities is well known worldwide, with digital technologies emerging for the future bring AI, Analytics, Automation, cloud, cyber-security, mobile and so forth, all forecasting a GROSS VALUE ADDITION of over $205 Billion in 2025 or roughly twice of $117 achieved in 2017-18. (Figures estimated from MeITy)

On the flip side, we have our IT professionals dealing with the demand with multiple offers. The latest technologies being Python, Angular/Node.js or Open Source technologies are far outpacing the need of the market. Never has been a scenario wherein a 5 year experienced resource in the above latest technology demands for anywhere from 10L to 16L salary per annum. Some quit jobs with a one or two month notice period and start hunting the market – they start giving interviews, take offers and look for another and again bargain for another hike. 3-4 such hikes is common as ask any IT professional with 5-6 years plus talentful of proven experience and if he is searching he would have at least 2-3 options at hand for certain, still ready to look for more. This way, they end with an offer 50-70% higher than their last pay hike. Is this justified? Shouldn’t there be a controller to this mess – as clients worldwide especially of SMEs are fed up with this acrimonious scenario, where professionals tend to get greedy, accept offers and do nothing. As a lawyer said, we can’t do much until the laws are changed, “law backs the employee, but the employer faces most of the flak as he ends up losing faith with his customer for inability to hire personnel at the right time. As a Sr. VP (Ops) of an SME stated, “our challenge to hire Developers will grow manifold unless there are regulations and laws to protect employers.

We have all push for increasing revenues by the Government and its backing to NASSCOM (Trade Association of IT/BPM Industry) to reach higher targets, however there aren’t any worthy means / efforts to increase demand and streamline the industry. IT Professionals have become kind of weary and aware that negotiations pay back and keep hunting and rejecting offers and picking new ones at all times. My own company found 60% of our Developer positions taken for ransom by these so called professionals, as they take and reject till the last minute. Here, the law has to make quicker amends to change the system as it has to be more a matter of morals hereby enabling SME’s at large to fill positions without much amiss. The struggle to identify and close talent will make it more challenging in days and months to come, unless the need of the market is met and a facilitation of trust is build in. Very soon if we delay, our business prospects will go to other emerging countries which have cost & talent advantage.  End to end supply needs to get more enabling for the industry to confidently take more challenges of the market which seems to be growing but still stagnant due to pressurized costs. Governments worldwide are more sensitive to ensure such instances of imbalance does not ruin the prospecting of future business in the country.


Views from Rajeeb Ghosh,

Having 25 + years in the IT Industry, currently Heads a SME IT company in Pune

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