Wednesday, July 11, 2007
IT jobs pay, but not 'that much'
A report in the Economic Times notes: IT sector is generally seen as among the best paymasters in India. Often, parents tell their kids that it is one of the faster ways to become a ‘lakhpati’. However, the reality is that only a minuscule number get into the magic circle with six figure monthly salaries.
Only 0.5% of the employees at TCS, Wipro and Infosys draw a salary of more than Rs 2 lakhs p.m. or Rs 24 lakhs per annum. Specifically, of 85, 582 employees at TCS 221 earn above Rs 2 lakhs p.m.
At Infosys of 72, 241 persons in FY07 531 (0.73%) belong to the 2 lakhs a month club. 32 Infoscions draw over Rs 50 lakhs (0.04% of the employee base).
Over and above salary high performers get ESOPs and bonuses which could be 40-50% in addition to salary.
Kya yeh kam hai?
The salary skews are actually not at all surprising. After all, these companies are very 'young'. They have bloated in size only recently.
In March 2005 TCS had a mere 36,000 employees. Around the same time Infosys had 49, 422.
All these companies have undertaken massive recruitment at entry level . The average age of the IT company employee is 26. Which means the average salary at an IT company - assuming people join at age 22 and get 12-15% increments a year - would be around Rs 5 lakhs.
The report estimates it will take 'more than a decade' to reach the 2 lakhs p.m. salary figure.
The use of those words is telling. Not 'only a decade' but more than a decade. As if doosri jagahon par people achieve 2 lakhs a month salaries in far less time.
Take even your average IIM MBA. Leave aside the guys who get placed abroad for dollar salaries, how many others can expect a 24 lakhs a month at age 26?
At IIM A - from campus placement - perhaps 2 or 3. These would be the studs who join private equity firms. And they would be around 28 years of age, most likely CAs or from an IIT.
The average IIM MBA would take 5-7 years to reach the 2 lakhs a month bracket. A bit earlier, if you're in banking, finance or with a major consulting company.
The bottomline is there is no quick and easy route to a 2 lakhs p.m. paycheck. Many different roads lead you there. It's also important that you enjoy the drive - and the scenery!
Only 0.5% of the employees at TCS, Wipro and Infosys draw a salary of more than Rs 2 lakhs p.m. or Rs 24 lakhs per annum. Specifically, of 85, 582 employees at TCS 221 earn above Rs 2 lakhs p.m.
At Infosys of 72, 241 persons in FY07 531 (0.73%) belong to the 2 lakhs a month club. 32 Infoscions draw over Rs 50 lakhs (0.04% of the employee base).
Over and above salary high performers get ESOPs and bonuses which could be 40-50% in addition to salary.
Kya yeh kam hai?
The salary skews are actually not at all surprising. After all, these companies are very 'young'. They have bloated in size only recently.
In March 2005 TCS had a mere 36,000 employees. Around the same time Infosys had 49, 422.
All these companies have undertaken massive recruitment at entry level . The average age of the IT company employee is 26. Which means the average salary at an IT company - assuming people join at age 22 and get 12-15% increments a year - would be around Rs 5 lakhs.
The report estimates it will take 'more than a decade' to reach the 2 lakhs p.m. salary figure.
The use of those words is telling. Not 'only a decade' but more than a decade. As if doosri jagahon par people achieve 2 lakhs a month salaries in far less time.
Take even your average IIM MBA. Leave aside the guys who get placed abroad for dollar salaries, how many others can expect a 24 lakhs a month at age 26?
At IIM A - from campus placement - perhaps 2 or 3. These would be the studs who join private equity firms. And they would be around 28 years of age, most likely CAs or from an IIT.
The average IIM MBA would take 5-7 years to reach the 2 lakhs a month bracket. A bit earlier, if you're in banking, finance or with a major consulting company.
The bottomline is there is no quick and easy route to a 2 lakhs p.m. paycheck. Many different roads lead you there. It's also important that you enjoy the drive - and the scenery!
Labels: IT, MBA. salaries
# posted by Rashmi Bansal @ 2:55 PM 
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An interesting post, but I wish you would have justified why is the "2 lakh per month" salary figure so important.
When I had finished my BE in 2004, I was recruited by TCS at 2 lakhs an annum, the standard entry level figure, and I was happy with that - because thats as much as I would get if I became a lecturer in an engg college, (and hopefully get more increments in TCS than in Mumbai University colleges)
Also, your statistics talk about the top-top TCS/Inforsys people only - am curious what the average IT person earns after 5 years in the industry - as compared to say doctors, or scientists, or teachers, or the media people.
When I had finished my BE in 2004, I was recruited by TCS at 2 lakhs an annum, the standard entry level figure, and I was happy with that - because thats as much as I would get if I became a lecturer in an engg college, (and hopefully get more increments in TCS than in Mumbai University colleges)
Also, your statistics talk about the top-top TCS/Inforsys people only - am curious what the average IT person earns after 5 years in the industry - as compared to say doctors, or scientists, or teachers, or the media people.
I guess you missed one more, shall I say shorter?, route.
Go to US anyhow (for MS, on-site, anything) and get a job there. It pays a lot. And your savings converted into INR make you super rich.
Tho' it wasn't a sure shot way for everybody until few years back, every tom-di*k-and-harry now goes this way.
May be you can do a survey on this aspect too.
Go to US anyhow (for MS, on-site, anything) and get a job there. It pays a lot. And your savings converted into INR make you super rich.
Tho' it wasn't a sure shot way for everybody until few years back, every tom-di*k-and-harry now goes this way.
May be you can do a survey on this aspect too.
The reporter who thought up this big news needs to get a life. How much does he or she earn as a journo I wonder. How many journalists make anything more than 25000 per month?. The whole tone of the article reeks of ignorance and envy.
If everyone in India or the eastern world earned Rs 2 lakhs pm, we would all be living in zimbabwe with 1500% inflation.
Also , the 'average' salary is such an useless number. The right figure to look for is the median salary as anyone who studied mimial high school statistics will know
If everyone in India or the eastern world earned Rs 2 lakhs pm, we would all be living in zimbabwe with 1500% inflation.
Also , the 'average' salary is such an useless number. The right figure to look for is the median salary as anyone who studied mimial high school statistics will know
5 Figure, 6 figure or any no. of digits may it be !! salaries are gonna be salary (pagaar to put it in desi terms), i know of people who have had mediocre education coming from not so affluential SEC (socio economic classes), who have started making money from the age of 17 or 18, by doing small businesses and have created "wealth" mind you "wealth" is different from "savings", it is 1something which overflows after you are done with savings, White collar knowledge worker is a bit diff from Blue collared Tuf guy only in some aspects, may be you'll get a fancy cubicle and dignified lingo around with English four letter popular galis, I am tired of hearing this Cliche called "Package", I too am A BE Prod from Mumbai Univ, My work too was to stick to Computer screens 8-10 hr a day, ...the result i developed sore bones, i had to quit my job, just to stay healthy, furthermore i never wanted to do such work again. i was fortunate to have options wherin extensive IT work was'nt involved but more of common sense and people skills were required....people have earned 22-30 lacs pa much before this terminology of "Packages" or "Salary" or "JObs" have existed, the thing is our gen has not been in direct contact with such legends, what benchmarks we see before us are more or less the same when they would have been our age, some Pro leader, some Team Lead or some VP or some fancy designation....There are so many other ways to reach riches, but sadly including me at some time or other are not able to think beyond Jobs, and such mundane terms asscociated with em......a job is as good a s Bl*w job if it traps u, moreover it traps your freedom, freesom to think and feel beyond "Packages"...
You know the inside stuff about TCS, I believe you are a TCSer just like me. Its quite true IT is not what it used to be few years back and has lost its charm to some extent, but it still continues to remain a promising career path for many.
Interesting! Though the phrase 'Not that much' sounds very subjective.
Are we saying 'not AS MUCH AS ... '? How about a comparitive study of various sectors?
Also "The salary skews are actually not at all surprising. After all, these companies are very 'young'"
Is the author of the opinion that 'young' companies pay lesser as compared to 'old' companies??Take a closer look ..
Are we saying 'not AS MUCH AS ... '? How about a comparitive study of various sectors?
Also "The salary skews are actually not at all surprising. After all, these companies are very 'young'"
Is the author of the opinion that 'young' companies pay lesser as compared to 'old' companies??Take a closer look ..
I am a TCSer myself , since ages ago.I've been with TCS since 8 years and havent worked in any other company since I was a young lad of 21.Since what you earn in the focus of this post , I will share with you guys what I earn. Adding VA , Skill based incentive and stuff , I still dont draw a 6 figure salary at the end of 8 years. I get about 80K a month and with tax planning manage to bring home about 62 K. Rupees. Does this piece of information suit you guys.Obviously I cant disclose my identity.I am a senior and lead a huge team.Just stumbled upon this blog while surfing.
Great post, thanks for the information, I had great luck finding a New Career at http://www.careermatches.org/index.php?id=New
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