Electricity was invented in later part of 19th century. Today, it is impossible to believe in a world without electricity. Hundreds of engineers in India got jobs easily till 1970. What is the situation today? We have not stopped using electricity – instead its demand is increased manifolds, but are any there electrical engineering jobs created? Today thousands of electrical engineers pass out each year. How many of them get a job at an electrical company? Not even 1%.
Hundreds of cars and other four and two wheelers from various companies are running on Indian roads. Competition is fierce among different companies and is growing day by day. After Tata’s, Bajaj have tied up with Nissan for small car manufacturing. Everyday new and innovative models are coming out. How many mechanical and automobile engineers take a job in this industry? Forget about taking jobs, are there any vacancies existing despite so many companies getting into car and two wheeler manufacturing? All that is required is a group of mechanics.
All our mechanical and automobile engineers either join the software industry, or go for higher studies like MBA, again to join the software/consultancy industry.
Eternal truth is that every industry has a saturation level. There can be no continuous creation of wealth, opportunities and jobs in any sector. As the electrical, telecom, mechanical and automobile industry have tasted the saturation levels, so will the software industry. When will it happen, no one knows.
Nothing comes for free – even if you work for a software industry with a fat pay package, your salary will not rise consistently with a double digit. If you get a 30% appreciation in your salary, the real estate prices and/or cost of living will appreciate by much more amounts, nullifying your hike.
Instead, just observe how many people end up becoming a fool in the name of software job. Real estate price hike has given us nothing but unaffordability due to sky-rocketing prices. Builders quote anything and everything – they know that people from IT industry have deep pockets and no knowledge of money and markets – create a hyper atmosphere of non-availability of land and intimidate these smart IT professionals about no future supply, and the builder can get what he wants.
A friend of mine went to take an affidavit: for a 50 Rs. stamp paper affidavit, the price quoted for him was 250 Rs., because the notary had first asked him what he does. Just because he said that he is a software engineer, 250 was quoted. That too this gentleman tried to negotiate and the response came that “Despite being a software engineer and earning so much, how can you negotiate?”. Finally he paid 250.
I too went to the same notary for an affidavit for a new vehicle purchase, and got things done in 120. I too was asked the same question about my profession, but I said I’m a retailer.
An automobile engineer if fired from his job will not hesitate to open a garage, he has expertise in it. A mechanical engineer can put up a furnace and continue his living if he looses his manufacturing job. An electrical engineer working in a government electricity board can take up repairing. What are the IT pros gonna do if they are sacked unfortunately? Can they develop products on their home computers and sell?
I’m not quoting all of the above because I want to intimidate anyone. All I want to convey is that PLAN YOUR FINANCES PROPERLY. Before getting into 15/20/25 years long commitments of house loan, car loan, share trading and other obligations, think twice. Think about whether your job will continue forever, whether you will be able to keep on getting the salary hikes consistently, whether your salary will be sufficient to repay your EMI and manage your family’s cost of living in a metro. Then and only then get into any financial commitment.
Link to previous article Effect of forex rate on industry
Have questions, please read the comments and post your views and queries in the comments section which helps in open discussion and avoids duplicity of questions.
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9 comments:
I think article should me renamed :
"Software Industry and Indian Engg's"
I agree to what ever is said in the article. Also being into a good Software Company is more of a disgrace these days ... when you are always asked to pay double or triple the amount to what every you try to buy!
If today I move out of my office campus with laptop and try to catch an auto - thats it. Demand is either - "Double the meter" or "multiples of 100" even though you have to go just some 5km!!
And no one knows till when these MNC's will keep on filling our pockets (& we will keep paying 33% to Govt of India)....I don't see a job security!!
This can be looked as pain of a Software Engg :((
yes man.. i dont get why the title is "Investing in Indian Market and Indian Growth story".
Shobit,
You are right about most of the people getting into IT and related fields from other branches of engineering. I don't think there is much scope for so called IT Pros. I work for a MNC only, I know the truth about my MNC. MNC's are in India for the reason that the man power is cheaper than their own country and the resources are available easily. A year ago the situation was different, now my company has opened a branch in China and most of the work is already gone there.. MNC's claim so many factors for coming to India and other developing nations, but I feel its only money that matters, how to decrease the cost and how to increase the profits.. Hope India remains cheaper to MNCs else the India's growth will be hampered to a certain extent. Nothing comes for free and software engineers are paying a heavy price for it already..
Saravanan.
Hi Invest&Trade,
I have been an avid reader of your blogs and I must personally thank you for having imparted a tremendous amount of GYAAN to me over the past few months, in matters of investment and finance.
I am responding to two specific points that you have mentioned in your present blog, viz., engineering students opting for software jobs and a general reluctance among software employees to work for Indian customers.
I am an Engineer by qualification and had subsequently completed my MBA from one of the IIMs and am currently working in software, so I personally have the background like the people you have mentioned in the blog.
Prior to entering the software industry, I was running a business in India, which was into hard-core manufacturing. I was in this business for close to 10 years. I quit this and came to software almost nine years back and I know how much money I made during those ten years of "business" in India and in comparison to what I have managed to earn in the past nine years in the software job. There is simply no comparison.
Looking back, I wonder what had prompted me to get into business in India and practically throw away ten precious years of my career !!
What I have learnt and experienced in these two very different experiences is that, Indians generally have very little or no respect for other Indians. We treate each other with disdain and contempt, at a very basic level. I have often wondered where this attitude comes to us from. I could think of several sources, but still, it is a very interesting as well as a puzzling question.
I have had the good fortune of living in Western Europe for five years now and I can assure you that human beings in this part of the world treat other human beings (regardless of race, nationality or colour of skin) with a lot more respect and sensitivity than what I have experienced in India. We somehow reserve a very special contemptible treatment for our own brethern (but show an undue reverence to any foreigner who may come into our midst)
Added to this, I have seen that Indians have total contempt for all rules. We look for any and every opportunity to break rules and violate mores and norms. This perhaps stems from our inherent contempt and disdain for our fellow Indians. (Simple examples, standing in a queue for buying anything, parking under a NO PARKING sign, driving through a NO ENTRY road, stopping at the RED light in a traffic signal, the list is endless) The reason why our politicians take the general public for a ride - ALWAYS - is also perhaps a result of this contempt.
You might imagine that I am an "India Hater" but that is not the case. I think India can be a heavenly place to live in if we develop a healthy respect for other Indians. That is the fundamental switch that one has to switch on, in order to make India a really developed world. I would welcome your replies / responses at vasuerfolg(AT)gmail.com
Hi Shobhit,
thanks for good article. my experience of people who sit abroad and talk about india, discipline, rules and other things, don't follow it themselves when they are back home.
Please post decent comments.
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This blog allows you to make anonymous comments. But kindly leave your name when you want to ask a question or contradict someone's view or disagree with other readers' comments.
Please be decent in posting your thoughts.
Thanks!
Sachin and Nilesh,
Thanks for your feedback. :-)
The title of this post was selected because this blog is about investments and trading, and the article was based on job and investments in Indian markets with assumptions on Indian Growth story. I have tried to touch all the aspects of the Indian growth story and the remaining will be covered in a forthcoming article.
Keep posting.
Thanks.
Hi Vasudevan,
I totally agree with you on the behaviour of we Indians in India.I also have an engineering background, working in IT and living in Europe for 7 years.The same opinion cross my mind everytime I visit India that why can't we have respect for each other.
Just a small example, if I am carrying an infant with me here in Europe,they will book a front seat(which has got more room space) in advance for us without me even telling them.In India, I had to argue and fight on the airline counter everytime I fly to any city within India, even though I try to book the front seat 48 hours in advance and nobody would believe that they do it for no specfic reason.Perhaps, they like ppl pleading them for a small thing.Strange :-(
Hi Investment n Trading,
Thanks for your nice article. I am working in software (MNC) and agree what you told. Really young people get more salary but dont have the knowledge of managing money or dont know the value of money...so what we earn is going to auto, broker, rent even Doctor/hospital..ie these people charge more for software people.
One more thing i like to tell you, what Vasudevan told is correct. WE (including myself) dont have social discipline... that is the main root cause for our growth. If company pays for 8 hours work one should work for 8 hours - how many have this feeling in government sector? they think they have been granted for doing nothing .... etc etc... ok...now i see articles here and there India is growing... india will be overtaken europiaen countries in 20xx... etc etc... eventhough God gives us lot of opportunities if we have the capability then only we can use that opportunities...like if one person got 1 crore rs in lotter do u think that person can manage? What i am saying is we have to learn,teach to think others perception...to help our fellowcitizens... otherwise ...growth is only for limited person not for our INDIA.
Poov.
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