BENGALURU: Indian IT services firms, which have stepped up hiring from the US campuses are paying salaries of $55,000-65,000 to fresh computer science graduates, more than the average local salaries for freshers, as they look to replicate their pyramid model in their main market.
This will be nearly 20-30% in lower wages than they would have paid to send engineers to America on H1B Visas. In Indianapolis, where Infosys has committed to recruit 2,000 people, average fresher salaries for computer science engineers is $51,800, according to US labour department data.
The university graduates in the US are “offered $55,000 per year on an average” and the wage vary from city to city, Krishnamurthy Shankar, group human resource development head at Infosys, told ET.
Fresh graduates recruited by Indian companies from institutions such as University of North Texas, Purdue University, University of Rhode Island have received annual compensation of between $55,000 and $65,000.
For nearly two decades, Indian outsourcing firms harnessed the H1B visas to send experienced engineers on projects to the US offering them comparable local wages.
These firms — anticipating increased protectionism after a diktat by the Donald Trump administration that there would be more scrutiny for H1B visas — had drawn up a strategy to hire fresh graduates instead of sending them from India.
They also want to replicate in the US, a successful model they pioneered in India of hiring freshers in hundreds and training them before deploying on projects. Median salaries for H1B visa holders in the US has increased from $69,455 to $80,000 between 2007 to 2016, according to Pew Research Centre Analysis in August 2017. A Purdue University spokesperson told ET that the average wage offered to computer science graduates by these companies stood at $67,000 based on last three years’ data. “We have responses of five alums who went to work for either Infosys or Tata Consultancy (Services) from the May 2017 class,” said the spokesperson, who did not have detailed data ready on total number of job offers made.
Infosys chief operating officer Pravin Rao said the company has hired 800 fresh graduates from local US universities and 60-65% of them have been deployed on projects during the last six months. The firm plans to hire over 10,000 people in the US by 2021.
TCS declined comment, citing its quarterly result is due on April 19. HCL did not respond to mails and calls seeking comment as of press time Monday. ET did not receive any reply to queries sent to University of North Texas and University of Rhode Island either as of press time.
Analysts said hiring local graduates maybe a good step, but they canot replace the effort of experienced engineers for projects with clients.
Source: Economic Times