Cognizant says entry-level annual salary for engineers is Rs 4-12 lakh; best in the industry

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Facing criticism on social media over offering ₹2.52 lakh annual salary for freshers, IT giant Cognizant on Sunday (August 18, 2024) said it offers ₹4-12 lakh salary to fresh engineering graduates, and the salaries quoted on social media are for non-engineering bachelor’s degree holders.

The company also faced ridicule on social media for giving annual salary increments as low as 1%, but what is being quoted is the lower band of 1-5% annual salary increments that the company has given based on individual performance.

Cognizant hires fresh engineers and non-engineering/IT graduates every year for various roles.

With both recruitments running almost parallel, hiring for three-year non-engineering/IT graduate degree holders increased and was widely shared as Cognizant’s salary packages for freshers.

“Our recent job posting for talents from non-engineering backgrounds with a 3-year bachelor’s degree has been misrepresented. This job posting with an annual compensation of ₹2.52 lakh was only for candidates with a 3-year bachelor’s degree and not engineering graduates.

“Our annual salaries for fresh engineering graduates range from Rs 4 lakh to Rs 12 lakh, depending on the category of placement, skill set and advanced industry-recognised certifications,” said Surya Gummadi, executive vice president and president, Cognizant Americas.

Cognizant hires non-engineering graduate degree holders for administrative and other roles and invests substantial time and money in upgrading their skills and IT training, after which they are placed in various roles.

“The salaries we offer to engineering graduates are highly competitive among the IT services peer group,” he said.

Cognizant’s salary package for engineering graduates is one of the best in the industry and at some levels, even higher than its peers.

Mr. Gummadi said, “We are recruiting and upskilling new students from engineering institutes as well as colleges offering degrees in science, arts and commerce. Today, when AI is rapidly empowering modern businesses, we are creating new avenues for developing talent in India’s technology industry.”

Mr Gummadi – who joined Cognizant as a fresher two-and-a-half decades ago and has now risen to head Geography, which accounts for three-fourth of Cognizant’s revenues – said the firm has a robust training programme, which has benefited all freshers.

He added, “When we hire for entry-level roles, we invest around ₹2 to 3 lakh per associate for training, mentoring and upskilling in advanced technologies in the initial years. This is for both engineering and non-engineering associates. Hundreds of our associates, who joined us with 3-year graduate degrees, are today holding key positions in the company, from managers to assistant vice presidents.”

Regarding annual salary increases, Cognizant said it works diligently to remain competitive in its remuneration strategy.

“The merit increases for this cycle are linked to both individual performance and macro industry dynamics. This year, we are one of the few IT companies in India to have given salary hikes and bonuses to employees. This recent salary hike is the 4th one that most of Cognizant’s associates have received in the last 3 years. Moreover, these hikes are just one component of the broader total rewards,” it said.

‘A company that puts people first’

Mr. Gummadi said Cognizant is a people-first company.

He added, “India is the heart of Cognizant and its largest talent hub – over 70% of its 3,36,000-plus global workforce is located in key metros and tier-2 cities across the country.”

“To bring our offices closer to where our associates live, we have recently opened new centres in Bhubaneswar and Indore and expanded operations in Hyderabad. Everything we do is built on the quality, dedication and scale of our talent.” Over the past decades, the firm has continued to unlock the full potential of the rich talent pool in India.

“We continuously invest in training and skilling our associates in advanced digital technologies, sponsoring 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,” he added.

He said Cognizant is recruiting and upskilling new students from engineering institutes as well as colleges offering degrees in science, arts and commerce.

He said, “Today, as AI is rapidly empowering modern businesses, we are creating new avenues for developing talent in India’s technology industry.”

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