The salaries of engineers working on emerging technologies in information technology (IT) services companies have soared by up to 40%.
The higher wages in the sector are propelled by the prospects of growth in emerging technologies, according to various human resource executives.
“The thing is that we are seeing these technologies doing well in the near future. So the developers working on such emerging technologies, who are rare to hire, are seeing a windfall rise in their salaries,” an HR executive of a Bengaluru-based MNC told DH on condition of anonymity.
Among the top five sectors that are seeing the rise in salaries are cloud computing, data analytics, digital technologies and mobility. Salary has risen in these segments by 25%-40%.
“We have seen a rise of salaries by 25%-40% in these segments. The only difference is that some companies are giving it on the variable component, while others give it on the fixed component,” another industry source told DH.
The IT services companies, off late, have seen an added focus on their digital revenues. For TCS, 25% of their revenues in the Q1 of FY 19 came from digital business, while for Bengaluru-based Infosys, the number stood at 28.4% in the same period.
In fact, digital growth is a key component in the roadmap for Infosys, given by its CEO and MD Salil Parekh.
These sectors, that constitute over 40% of the workforce in the Tier-I IT services companies, are expected see the rise in the salaries in the coming years as the companies are focussing to increase their share from the digital revenues, according to industry sources.
Experts suggest that it’s the dearth of requisite skill sets that is causing such hikes in the salaries of emerging technologies professionals.
“There are lot of digital technologies that are in high demand and salaries are obviously very high for the people who are qualified for these job. At the end of the day it’s about supply and demand,” CEO, Magna Infotech, the provider of technology staff augmentation & solutions
According to the experts, this high growth is expected to continue for the next three to four years, as yet another disruptive technology is going to take over the space.
“Wherever there is a shortage of talent, you will see this 35%-40% growth in the segment, else the conventional 10%-15% is there to stay for a long time,” said Lohit Bhatia, CEO, IKYA Human Solutions.