The Economics of Professions
Software Engineers
How software engineering became India's most popular professional career, why pay varies hugely between service firms and product companies, and the effects of AI.
Software engineering is a huge career in India.
Employers
- IT services: TCS, Infosys, Wipro, HCL.
- Product companies and startups.
- GCCs of global firms.
Pay gap
Fresher salaries at IT services firms stayed relatively flat for years, while top product firms pay far more.
Skills
Pay depends heavily on skills and the college attended.
Not a licensed profession
Unlike doctors, software engineers need no licence; skills are tested in interviews.
AI
AI coding tools may change entry-level work.
The two offers
A graduate gets offers from an IT services firm and a product startup, with very different salaries.
Thinking all software jobs pay alike
Pay varies hugely.
Key takeaways
- IT services, product firms and GCCs hire engineers.
- Fresher pay at services firms stayed flat.
- No licence is required.
- AI may change entry-level work.
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