Information Technologies (IT) sector, which used to be the largest recruiter of freshers from engineering colleges offering them competitive salaries, seems to be losing its edge to non-IT sectors, which are offering better pay packets to these campus recruits. According to a report by JM Financial, over the past 10 years, the average campus salaries from mass hiring by IT firms have grown at a compound annual growth rate (CAGR) of just 3 per cent as compared to 8 per cent increase by the non-IT companies. Consequently, more engineering graduates are getting attracted to non-IT companies as start-ups and global companies offer more jobs at higher salaries.
According to Pankaj Kapoor, research analyst at JM Financial, campus salaries have had a spiralling impact on the total manpower costs (that are 50 per cent of revenues) for IT firms. A survey of 44 engineering colleges indicates that the average campus salaries offered by mass-hiring IT companies in 2018 was at least 30 per cent lower than that of non-IT companies. IT firms have also increased hiring from average inistitutes and reduced hiring from non-IT branches.
On the other hand, increasing number of global companies and start-ups are hiring and attracting talent at campuses with their higher salary offer
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