IT may be India’s biggest job provider, but the industry is facing tough competition from the financial services sector in tapping the right talent according to software giants in India.
There is competition for the best of the best in the job market at the entry level and the financial services industry could lure them with higher salaries and a better glamour quotient.
The entry level salaries at the technology major Infosys are being raised from Rs 240,000 per annum to Rs 270,000 per annum for the next year and this could go up further by 10% after that.
Analysts believe that the higher salaries being offered in the IT space and the recent wage hikes announced by the likes of Infosys is also being influenced by other industries, in addition to the other players within the information technology sector.
The entry level wages in the country are being influenced by only two industries â€” IT and financial services. Adding these two are driving up the demand for entry level people with IT industry hiring the largest number of people.
While IT industry could hire about 380,000 people this year, there would be 75,000 to 100,000 new recruits in the financial services space.
While both the industries are competing for best talent, the financial services could offer a slightly higher wage to grab them.
And certainly the glamour quotient of financial service industry is getting higher, because of the investment banking space and huge income earned by them.
Analysts and industry experts believe that Infosys’ decision to raise the salaries might have been influenced by other industries and players as they seek people at the entry level.
It could be much more challenging for other industries in the country to get right talent going forward, as they could find it hard to match the soaring wage levels and competition offered by the financial services and IT sectors.
Right now, the retail industry is hiring but they are not able to get employees.
The construction industry is not getting people because all the engineers want to join IT and the situation cannot get any more difficult for the manufacturing industries.
The Infosys CEO expects this situation to lead to a new phenomenon called the “right-skilling” in the next three-four years, when companies would start identifying people for the right time and not getting over qualified people to do the work.
This would be in contrast to the current trend where Indian industry has been traditionally a place where over-qualified people are hired to do more mundane work. â€œRight-skillingâ€? is a solution for the whole industry to get the talent they require.