"Many new graduates lack proper coding skills, according to a Bengaluru entrepreneur, who claims that paying them even ₹20,000 a month is 'overspending.'"

The debate over salaries in the Indian IT sector has intensified after Cognizant's recent off-campus recruitment drive, where the company offered fresh graduates an annual compensation package of ₹2.5 lakh, or ₹20,000 per month. Bengaluru-based tech entrepreneur Vatsal Sanghvi defended this package, arguing that the quality of fresh graduates often does not justify higher salaries. Sanghvi criticized the skills of many graduates, pointing out that they often lack essential abilities like professional communication and coding proficiency. He referred to the package as more of a "training stipend" rather than a full salary, suggesting that those unhappy with the pay should improve their skills and seek better opportunities. His comments, shared on X, sparked a strong response online.

Critics questioned why companies do not invest in training freshers during their college years instead of complaining about their lack of skills. Some suggested that companies could partner with colleges to offer refresher courses, benefiting both students and employers. Others highlighted the disparity between the offered salary and the cost of living, especially in cities like Bengaluru, where ₹20,000 per month is seen as insufficient to cover basic expenses. Critics also noted that this salary package has remained unchanged since 2006, despite significant inflation.

Cognizant’s job posting, targeting the 2024 graduating batch, featured the ₹2.5 lakh package for candidates with any three-year full-time degree program. The announcement received immediate backlash, with one user commenting that the salary was "barely enough to cover a year's rent in a village and a few packets of Maggi," implying that Cognizant was testing if people could survive on "chai and hope."