Why salaries for IT workers in India might decrease this year?

I regret to inform you that the following news may not sit well with Indian IT employees or those seeking opportunities in the sector. According to reports, pay packages for IT professionals are expected to decrease by up to 40% this year. This means that if a senior from college was offered one lakh per month when joining an IT firm on campus last year, their offer letter may now read only 60,000 rupees per month. Although unfair, this is the current reality as the job market is not in great shape.

There are numerous factors contributing to this decline in pay packages. Firstly, demand versus supply plays a significant role. During the COVID-19 pandemic, both IT and non-IT companies hired massively due to increased reliance on technology worldwide; however, with the pandemic coming to an end and companies finding themselves overstaffed across verticals such as marketing and human resources, layoffs have become inevitable.

Additionally, while there has been no drop in college graduates entering the workforce each year — quite the opposite — western economies (where many Indian IT professionals work) have been struggling economically. As a result of reduced wages going hand-in-hand with recessionary periods such as that recently experienced by UK businesses and corporations alike are being forced into making redundancies at all levels of seniority.

Furthermore, automation is also taking its toll on employment opportunities within India’s tech industry as more jobs are eaten away by artificial intelligence (AI). Companies laying off staff members often post ads for workers skilled in AI programming — something which few recent graduates can claim expertise in — further reducing employment prospects for new entrants into this field.

While it may seem like there is little hope amidst these challenging times for those working within or hoping to join India’s tech industry — I urge you not to give up just yet! There will always be exceptions made for exceptional talent regardless of economic circumstances; Google famously offered one employee a whopping 300% hike despite them lacking skills related directly or indirectly connected with AI programming.