BENGALURU: For the first time in several years, India's top software services companies are raising salaries for fresh graduates recruited from campuses, as they look to revive a lukewarm relationship while adjusting to cost pressures and competition from talented startup firms, reports ET.

According to executives and placement officers aware of development, several weeks before the campus hiring process could begin, Tata Consultancy Services, one of India's biggest software companies, made a surprise visit to some of the top engineering campus college. Besides guaranteeing the best pick of entry-level talents, they also raised salaries for engineering fresher up to 10pct. Cognizant, a U.S based firm that has a good 218,000 employees in India, is yet another company to increase salaries for fresh graduates.

Time has certainly changed as rewinding five years back; Indian information technology companies were considered the top priority for young graduates seeking rewarding careers. However, over the years, companies are finding it difficult to manage growth momentum while automation is altering the way software is developed and distributed. Furthermore, graduates have now turned towards startups that are growing with cash as their path leads to excitement, money and prestige. On the other hand, companies like TCS, that have enjoyed the spotlight for years while picking up the best talents, are also showing sign of desperation as they are seen making attempts to scoop up best talents while they struggle to maintain their position.

Kawaljeet Saluja and Jaykumar Doshi of Kotak Institutional Equities in a September report said "TCS and Cognizant have increased compensation offered at engineering campuses by up to 10% to a range of Rs 335,000-350,000 per annum. This increase in entry-level wages comes after a gap of seven years. Increase in entry-level compensation is surprising noting significant surplus of engineering talent”.

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