T.V. Mohandas Pai, renowned startup investor and ex-Infosys director has recently lashed out at the Indian IT companies by saying that they are exploiting freshers for the last 10 years and paying their senior employees extensively compared to freshers.
The chairman of Aarin Capital, Pai said that the IT companies are making an increase of 13 to 14 percent revenue due to a depreciation of the Indian Rupee,
“They have 13-14 per cent increase in revenue due to rupee depreciation. IT companies are making good money and they are paying senior people very high salaries. Why not pay the junior people too?”
Pai’s comments were followed by various reports that state how several top Indian IT companies are paying massively to their CXOs.
HCL Tech’s latest annual report reveals that its CEO, C Vijaykumar is taking INR 123 crore home annually.
As per Infosys’ latest annual report, the salary of its CEO Salil Parekh has been hiked by 88 percent – increasing his annual salary from INR 42 crore to 79 crore.
Besides this, Thierry Delaporte, CEO of Wipro is also taking home INR 79.8 crore annually according to a report by the US Securities and Exchange Commission (SEC).
“The IT industry has been exploiting freshers from the last ten years. There has been no increase in compensation, freshers are being paid the same Rs 3.5 – 3.8 lakh which the companies were paying in 2008-09.” – said Pai
It is also worth noting that top IT companies including Infosys, Tata Consultancy Services (TCS), and Wipro are postponing or reducing the variable payout to employees after reporting tight margins.
“If any sacrifices need to be made, senior people should make them.” Pai added, “How can a senior person take a hike in salary when you aren’t paying juniors more? Treat them like human beings, not like midgets.” – he stressed
Last week, Rishad Premji, the executive CEO of Wipro in a tweet said, tweeted about moonlighting,
“There is a lot of chatter about people moonlighting in the tech industry. This is cheating – plain and simple.”
The term ‘Moonlighting’ states taking up other jobs and assignments while working full-time in an organisation.
Highlighting Premji’s point on moonlighting, Pai in a conversation on BQ Prime with Muralidhar Swami, said,
“I think Rishad must have meant that people were using company time and getting company’s money and doing moonlighting for somebody else which is cheating, that I agree,”
“but beyond that (company’s time and clients) no.” – Pai concluded
Pai emphasized that if Indian IT firms do not bring change in their policies then they will turn into mercenary organisations like that of the US which work only for money.
“This is an industry that put people first, which took care of everybody. Over the last 10 years, the idea of looking out for the people at the bottom of the pyramid has gone. The human spirit is what made these companies great. This industry was built with great human culture, if they diverge from that, they would turn into mercenary organisations.” said Pai