Something interesting is happening in the IT industry.
Something that has not happened in the last 10 years.
Do you know what?
Entry level salaries are actually rising after being at the same level for a decade now.
HCL is raising fresher salaries from Rs 3.65L to Rs 4.25L.
And for some skillsets like analytics and digital content, salaries could go as high as Rs 6 Lakhs.
Whats causing this?
The great resignation.
Attrition rates have shot up over the last two years for most IT companies.
Infosys attrition has grown from 15% to 27%.
Attrition at TCS has grown from 7% to 17%.
They are all facing challenges in retaining talent.
And business is booming. Because of covid, demand for IT services is at an all time high.
And HCL, which hired 23000 freshers last year, plans to hire double that number - 45000 this year.
So IT companies are in a situation of booming demand & a severe talent shortage to deliver on that demand.
Good time to be an IT engineer.
And this is going to affect margins of IT companies as salaries will rise across the board.
That's why the stock market analysts are wary of IT now.
What do you think will happen next?
Will TCS, Infosys, Wipro follow HCL's strategy?