Facing a significant backlash over reported salary offers to freshers, IT giant Cognizant issued a detailed statement on Sunday to clarify the situation. The company emphasized that the widely circulated ₹2.52 lakh annual salary offer was meant for non-engineering graduates with three-year undergraduate degrees, not for engineering graduates. This distinction had been lost in the public discourse, leading to misunderstandings about Cognizant’s compensation practices.
Clarification on Fresher Salaries
In a PTI report, Surya Gummadi, Executive Vice President and President of Cognizant Americas, explained, “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 ₹2.52 lakh annually, was only for candidates with a three-year undergraduate degree and not for engineering graduates.”
Engineering graduates, on the other hand, are offered starting salaries ranging from ₹4 lakh to ₹12 lakh per annum, depending on their skill sets and certifications. “The compensation we offer for engineering graduates is highly competitive within the IT services peer group,” he added.
Ongoing Employee Compensation and Future Hikes
Addressing concerns about future salary hikes, Cognizant pointed out that the company has been consistent in rewarding its employees. Although there was criticism regarding salary increments as low as 1%, Cognizant clarified that this figure represents the lower end of a 1-5% range.
These increments are determined based on individual performance and broader industry trends. The company also emphasized that the recent pay hike is the fourth for most associates over the past three years. Cognizant reiterated its commitment to offering competitive salaries in the future, despite challenging market conditions.
Gummadi highlighted that Cognizant is one of the few IT companies in India to deliver increments and bonuses this year, showing its dedication to its workforce. “The merit increases for this cycle are tied to both individual performance and macro industry dynamics,” the company noted, indicating that future hikes will continue to align with these principles.
Cognizant’s Long-Term Investment in India’s Talent
India remains a focal point for Cognizant, with over 70% of its global workforce based in the country. Gummadi described India as “the heart of Cognizant and its largest talent hub,” noting recent expansions in Bhubaneshwar, Indore, and Hyderabad.
These expansions are part of Cognizant’s strategy to bring offices closer to its employees and continue investing in their development.
Cognizant is also committed to long-term employee growth, providing extensive training in advanced digital technologies, sponsoring higher education, and offering leadership development programs. This approach ensures that employees are well-prepared for future opportunities and promotions within the company.
