After facing social media backlash, Cognizant clarifies salary range for freshers

Cognizant said the social media row surrounding the CTC (cost to company) for freshers was far from the truth and “grossly misrepresented” the firm.

The tech giant also faced social media backlash for doling out annual salary hikes of as low as 1 percent, but what is being quoted is the lower band of the 1-5 percent annual increments that the company has dished out based on individual performance, as per reports.

Cognizant, which annually hires fresh engineers and non-engineering/IT graduates for varied roles, said with the two recruitments running almost parallel, hiring for three-year non-engineering/information technology undergraduate degree holders picked up and was widely shared as Cognizant's salary package for freshers.

Clarifying the freshers' salary issue, Cognizant Americas' EVP and President, Surya Gummadi, said, "Our recent job posting for talent from non-engineering backgrounds, with a three-year undergraduate degree has been grossly misrepresented. This job posting, with compensation of Rs 2.52 lakhs annually, was only for candidates with a three-year undergraduate degree and not for engineering graduates."

"Our annual compensation for fresh engineering graduates ranges from Rs 4 lakhs to Rs 12 lakhs annually, depending on the category of hiring, skill set, and advanced industry accredited certifications," Gummadi added.
 
The firm hires non-engineering undergraduate degree holders for administrative and other roles and invests substantial time and money in upgrading their skills and IT training, after which they get absorbed in various roles, according to top officials of the company.

"The compensation we offer for engineering graduates is highly competitive within the IT services peer group," Surya Gummadi said.

Noting that Cognizant's salary package for engineering graduates matches the best in the industry, and at some levels, it is even higher than peers, Gummadi said, "We have been recruiting and upskilling freshers from engineering institutions as well as colleges offering degrees in science, arts, and commerce. Today, as AI increasingly powers modern businesses, we are creating new pathways for talent to thrive in India's technology industry."

"When we hire for entry-level roles, we invest approximately Rs 2 to 3 lakhs per associate in the initial years to train, mentor and upskill in advanced technologies. This is for both engineering and non-engineering associates," he added. "Hundreds of our associates, who joined us with a 3-year undergraduate degree, today hold key positions from manager to assistant vice president across the company."

Commenting on the annual increments issue, the American IT firm said it works diligently to be competitive in its compensation strategy.

"The merit increases for this cycle are tied to both individual performance and macro industry dynamics. This year, we are one of the few IT companies in India that have delivered increments and bonuses for employees. This recent pay hike is the 4th that most Cognizant's associates have received in the past three years. Moreover, these hikes are just one component of the comprehensive total rewards," the company said.

Noting that Cognizant is a people-first company, Gummadi said, "India is the heart of Cognizant and its largest talent hub - with over 70 percent of its over 3,36,000 global workforce - based in major metros and Tier-2 cities, across the country."

"We continuously invest in training and upskilling our associates in advanced digital technologies, sponsor higher education and leadership development programmes with top institutions so that our people are empowered to be at the forefront of innovation, learn the latest technologies, work with global clients and accelerate their career growth," Gummadi -- who joined the firm as a fresher two-and-half-decades back and rose through ranks to now head geography, which forms three-fourths of Cognizant's revenues -- said.  .

Noting that Cognizant has been recruiting and upskilling freshers from engineering institutions as well as colleges offering degrees in science, arts, and commerce, he said, "Today, as AI increasingly powers modern businesses, we are creating new pathways for talent to thrive in India's technology industry."