Cognizant has recently addressed the backlash regarding its fresher salary structure, particularly focusing on the controversy surrounding the reported annual package of Rs 2.5 lakh for new hires. The company clarified that this figure applies only to candidates with a three-year undergraduate degree from non-engineering disciplines. Engineering graduates, on the other hand, receive significantly higher compensation. Surya Gummadi, EVP and President of Cognizant Americas, elaborated on the company's compensation strategy in a detailed statement provided to India Today Tech.
Gummadi clarified that the annual compensation for fresh engineering graduates at Cognizant ranges from Rs 4 lakhs to Rs 12 lakhs, depending on several factors such as the category of hiring, specific skill sets, and the presence of advanced industry-accredited certifications. He emphasized that these salary ranges are highly competitive within the IT services sector, reflecting the company's commitment to attracting and retaining top engineering talent.
In addition to competitive salaries, Cognizant makes substantial investments in its associates. The company allocates approximately Rs 2 to 3 lakh per associate during their initial years for training, mentoring, and upskilling in advanced technologies. This investment applies equally to both engineering and non-engineering associates, ensuring that all employees are equipped with the skills needed to thrive in a rapidly evolving technological environment.
Cognizant has also been expanding its footprint in India, opening new centers in Bhubaneshwar and Indore while expanding its existing operations in Hyderabad. These expansions are part of the company’s broader strategy to bring its offices closer to where its employees are based, enhancing convenience and accessibility.
Addressing concerns about pay hikes, Cognizant highlighted its commitment to remaining competitive with its compensation strategy. The company has implemented merit-based salary increases this year, reflecting both individual performance and broader industry trends. This pay adjustment marks the fourth increment for most Cognizant associates over the past three years. The company noted that it remains among the few IT firms in India that have delivered increments and bonuses this year. Cognizant emphasized that these salary increases are just one component of its comprehensive total rewards package, which includes a range of benefits designed to support and reward its employees.
Overall, Cognizant's response seeks to clarify the context of its compensation structure and highlight its ongoing efforts to invest in and support its workforce, amid recent criticisms and discussions.
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