Cognizant to pay higher salary to freshers

France based IT behemoth Cognizant has set a new benchmark for freshers and entry-level engineers, by raising the bar for their first salaries. Now, all freshers whom Cognizant hires will get upto 18% more salary starting from June 2020 as indicated by Karen McLoughlin, Chief Financial Officer at Cognizant.

The company currently anticipates 2019 revenue to grow 3.9-4.9% in constant currency terms. It had previously forecast a growth of 7.0-9.0%.

As of now, freshers’ salary in Cognizant is Rs 3.3 to Rs 3.6 lakh on an average, which will be now increased to Rs 4 lakh per year. The offer letter for freshers and entry-level engineers joining next year with 18% more salary will be offered in August-September this year.

There are close to 2 lakh employees in Cognizant’s India offices, and they normally hire 15,000 to 20,000 freshers every year.

“Our pyramid is top-heavy. This does not mean there will be layoffs of thousands of people but there are quick actions that we can take,” Karen McLoughlin, chief financial officer at Cognizant, told analysts at a conference in New York. 

The reason for salary increase is the rise of new, advanced advances, and Cognizant needs the top ability for the equivalent. A year ago, Cognizant re-skilled and re-prepared 1.5 lakh representatives with more current advances, for example, AI, Machine Learning, Big Data and so on. 

Presently, in the event that they can contract freshers with the information of these new age advanced advances, at that point they don't have any issue paying 18% additional pay.

A spokesperson from the company said, “In line with that, we have decided to increase the compensation of entry-level engineering graduates, as digital technologies have become an integral part of engineering curricula in progressive institutions from where we recruit talent.”

Last year TCS had also decided to double the salary of freshers so may be this has triggered other major IT hubs like Cognizant considering that these skills are most important for the growth of the company.

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