New-Breed Companies Lure IT Talent With Big Bucks

BANGALORE: The IT industry always has a few surprises to offer. It comes out with better innovated software that will replace human labor, thus challenging the jobs of software engineering aspirants. Now there is a new twist to the tale where new breed companies are looking out for talents and are ready to pay huge money for them. This challenges the traditional IT companies that have played a huge role in the software world for a long time paying their employees huge wages, which are now peanuts before new breed company’s offers.

The trick with these new breed companies is that they look for fewer employees with skills that can do the work of many people but at the same time don’t mind paying huge salaries. It has come to light that these companies are paying freshers up to Rs.20 to Rs.40 lakhs. This pay scale is much higher than the pay given by prominent IT companies that offer around Rs.3.5 to Rs.6 lakhs per annum for freshers.  The margin of pay difference is huge and this is becoming a growing trend.

The new reed companies functioning in this manner are DevFactory, Informatica, Exponential, Royce Rolls, and American Express. DevFactory R&D is paying freshers Rs.24 lakhs per annum, while also offering Rs.1 lakh as a joining bonus. This is unheard off especially when this company is not as big as the traditional ones. DevFactory also calls itself the World’s First Software Factory. In order to select software engineers, DevFactory ran a coding challenge on HackerEarth, through which they selected six programmers. 

“They are looking at hiring problem solving skills and a team player besides looking at programming skills”, said Debrabat Mishra, director of Firm Hay Group India, as reported by Times of India. They are looking at only 5 percent of the pool talent that really matters to them. They will go searching for the best of the best and hire them no matter what the price for their software skills are.

Companies like SAP Labs, Walmart, eBay, and Yantra, to name a few, offer salaries close to Rs.13 to Rs.22 lakhs, which is still less compared to the offers by the new breed companies, reported a research by HackerEarth.

Indian startup companies offer Rs.7 to Rs.14 lakhs to freshers and mid level programmers. This is still better than the salary given by traditional companies such as Infosys, Wipro, Accenture and IBM. So the change in salary structure will only make young aspirants notch up their skills and look to be placed with the New Breed Companies. They function with a motto that says fewer employees, with the best skills to do more jobs, with the highest pay.

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