Indian IT where's the money

Behind all the hype and hoopla it is quite evident now India's offshoring giants are struggling in competing against MNC's for good talent Economic times reports today that Top four IT players lose 10K employees in Q1. TCS lost over 2500 employees,Infosys lost over 2000 employees while Wipro lost 3500 employees in just 3 months. 

 In their quest to become big and hire huge number of employees they have turned their companies into software factories paying their employees average wages while making huge profits on the dollar exchange.An article from economic times tell the bitter truth that though IT firms are suppose to be best paymasters only .73% or 571 of Infosys employees and only 306 employees or .45% in Wipro and only 221 employees or 0.25% of TCS employees get into the lakhpati range salaries (Rs 2lakh per month or 5000 dollars per month) This comes when most of these companies charge between 20-30 dollar per hour from a client or on an avg 5000 dollars per month for a very low level software programmer.Most of those who manage to reach into such levels are a combination of engineers and MBA's and have a some special skills as reported in economic times here

This is the reason why these IT firms have the worst images in India's Top engineering and business schools.In IIT's the joke is "study or you will land in Infosys" . In IIM's last year Satyam came with an offer laughingly of 6.0 lakhs which is below the minimum levels of a bschool  and as expected was not even called up for final placements and a company like Cognizant has a better business school reputation than these 3.The topmost offers in IT come from the like of Google,Yahoo,Adobe,Oracle and a long list of other top notch MNC's  and it is these companies which are becoming aspirational for the people.

However all is not lost for Indian companies as one of the American outsourcer pointed out to me  "Unless you're doing something that requires REALLY good code like google then don't worry about it. Just get it done under budget - that's the whole point of offshore." and that is why many offshorers keep up with these companies despite the quality which at times can be atrocious .Most of these companies are still dream  companies for many people when they youths who start off after engineering from lower rung colleges however reality strikes when they enter the company that the truth remains that money is not there in these companies and the fabulous facilities that they rave about is offered by other companies also and so they really don't have any differentiating factor which should force people to join them and this forces them to go for MS from abroad or an MBA or they move on to greener pastures with the MNC's and this is what is that we see in attrition figures for Quarter 1 for these companies.