Salary offers to IT professionals plummet up to 40%: Report

Amid global macro-economic headwinds and IT sector slowdown, the salary offers to Information Technology professionals have plummeted 30-40%, from about Rs 1 crore per annum received last year.

Information Technology Salary

As per The Economic Times, the trend kicked off a few months ago with some of the big tech companies seeking to rationalise their workforce. The report quoted Venture Capitalists, recruitment services and executive and said that, after Covid-19 the lower pay-packets are becoming the new normal. Most of the hiring is currently being done by early-stage startups after their series A funding. The report further added that the IT sector employees mostly taking a cut on their variables, which account for nearly 30% of the total compensation

Also Read: IT hiring plummets to 14% over the last year, Here's why

“These are mostly CXOs and senior tech talent who have been laid off in the last few months and have worked with large technology organisations as well as startups,” Ratna Gupta, senior partner, ABC Consultants, an executive search and talent advisory firm told The Economic Times.

Startup hiring

As per the latest Nasscom report, the IT sector is likely to grow at 3.8% in 2023-24, much slower than 8.1% in the previous financial year. Major Tech companies have been reducing the headcount largely in the past year or so.

Meanwhile, Startups are hiring experienced professionals given the softness with global tech companies. As per The Economci Times, Recruitment services firm Michael Page India is currently helping a few startups, including an edtech firm, find suitable professionals for leadership roles in technology.

We are currently in conversations with candidates who have been laid off and have worked with both big tech companies as well as startups,” Pranshu Upadhyay, regional director, head of India technology practice, Michael Page told The Economic Times. “They are ready to take a cut of up to 30%.”