American IT giant Cognizant has been under recent criticism for offering a comparatively low annual salary package of Rs 2.52 lakh to fresh graduates from the 2024 batch. This announcement of off-campus hiring for this package has triggered a wave of discontent among job seekers and other industry observers.

Defends Cognizant’s low salary offer

Amidst the controversy, tech entrepreneur Vatsal Sanghvi jumped in defense of Cognizant’s move. Sanghvi termed the low salary justified and referred to it as a ‘training stipend’ rather than a full-fledged salary. He said that the quality of fresh graduates who are coming into the job market is “bad,” most of whom are not imbued with key professional skills. He says that most freshers lack in the fundamentals of communication, professional behavior, and coding skills for which he feels that an increased starting salary is not justified.

1. The quality of freshers is often so bad that even ₹20k/mo is over spending
– most don’t know how to communicate professionally
– most can’t code properly
– most don’t know how to behave professionally
2. It is a training stipend
3. It is an open market – Don’t apply if… https://t.co/27dLq6NzTo

— Vatsal Sanghvi (@Vatsal_Sanghvi) August 14, 2024

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Sanghvi goes on to say that if people are not getting the kind of package they want, they are free to leave. He also tells them, as much as working at this company can make a difference, working on one’s skills will definitely help get a better opportunity and growth in the future.

Cognizant Low Salary: Sanghvi’s defense under fire

The defense of Sanghvi shared on X (formerly Twitter), hasn’t quite agreed with a lot of users. Critics say that ‘training stipend’ is a fancy term for the salary. Whatever the tag may be, they argue that it still denotes a low CTC and that the training, most often than not, does not include skills or technologies relevant to one’s career.

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One of them commented that the salary they offer is too less compared to the current market given the inflation over the years and the company should spend on training freshers rather than paying them such a low salary. Yet another suggested that companies could partner with colleges to provide refresher courses and better prepare students for the industry.

Other feedback noted that the salaries are too low, even to live in Bengaluru. It is argued that a salary of Rs 20,000 per month is not able to sustain basic living expenses and pointed out that the rise in cost of living is much more compared to when similar packages were offered earlier. The following perspective presents a case for a more holistic approach toward compensation—one that takes into account current economic realities.

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