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
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