New grads reluctant to join It firms

“Effort and reward are two sides of the same coin,” I often say at CodeQuotient School of Technology, where we cultivate the next generation of software engineers.

The IT industry, a crucible of innovation and growth, is witnessing a peculiar trend: a growing reluctance among new graduates to join IT services firms. This hesitation isn’t just about financial aspirations; it’s a deeper issue rooted in a mismatch of expectations and reality.

Many young aspirants dream of substantial pay packages but often lack the foundational skills and industry insights. They are influenced by the glamorous portrayals of tech roles on social media, yet many are not ready to confront the demanding nature of these jobs.

In this blog, I aim to unpack these complexities, offering insights from my years leading CodeQuotient Academy and guiding our future tech leaders towards making informed career choices.

The Current Landscape of IT Services Firms

In my role at CodeQuotient Academy, I’ve closely observed the IT services sector, a powerhouse in the global economy, constantly evolving with technological advancements.

However, it currently faces a dichotomy in perception among new graduates. 

Many view these firms as traditional and less innovative compared to the allure of product-based companies. This perspective, I believe, stems partly from a lack of exposure to the diverse and challenging roles that IT services companies offer.

It is also rooted in a desire for higher salaries, perceived as more readily available in product-based companies. Many graduates, lured by the glamour of hefty packages, overlook the effort required to secure such roles.

Furthermore, a gap in practical skills is evident when fresh graduates struggle with basic programming questions, highlighting a disconnect between academic learning and industry requirements.

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Key Reasons for This Reluctance

Understanding the reluctance of new graduates to join IT service firms requires a multi-faceted perspective. Here are five key reasons:

  • Seeking More Than Just a Job: Today’s graduates desire more than a paycheck; they seek meaningful work and learning opportunities. They want roles that not only provide a livelihood but also align with their personal and professional aspirations.
  • Desire for Innovative and Creative Roles: Many perceive IT services firms as less conducive to innovation compared to product-based companies. This belief shapes their career choices as they yearn for roles that offer creative freedom and technological breakthroughs.
  • Influence of Social Media and External Opinions: Graduates today are significantly influenced by the portrayal of IT service firms on social media and by online ‘gurus’. This external influence often shapes their perceptions and career decisions, leading them to undervalue the opportunities in service-based companies and overemphasise certain drawbacks.This skewed view can result in a reluctance to join these firms despite the valuable experiences and learning opportunities they offer.
  • Misalignment with Industry Realities: There’s a gap between graduates’ expectations and the actual demands of the industry. Influenced by social media and external opinions, they may not have a clear understanding of the real work and opportunities in IT service firms. This misalignment can lead to reluctance to join these companies.

The Reality Behind the Myths

The perception of IT service firms as a career dead-end is a myth that needs addressing. In reality, these companies offer dynamic opportunities for innovation, skill development, and career advancement.

The argument that one’s career might stagnate in such firms is unfounded. Nobody is tethered to a single company for life. Starting in a service-based firm can be a strategic move. It’s a chance to build a robust skill set within 1-2 years, after which shifting to a product-based company becomes easier.

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Far from ruining careers, service-based firms often lay the foundation for them. It’s up to each individual to seize these opportunities, upskill, and adapt as needed.

Besides, it offers multi-fold opportunities, including:

  • Skill Development: Exposure to a range of technologies and projects that enhance technical skills.
  • Career Progression: Opportunities for career advancement within the company, including leadership roles.
  • Diverse Experience: Working with various clients and industries, offering a broad perspective.
  • Innovation: Participation in emerging technology projects and innovation drives.
  • Professional Networking: Connections with industry experts and professionals.
  • Learning and Development: Access to training programs and certifications.
  • Global Exposure: Potential for working on international projects or with global teams.
  • Job Stability: Often more stable job security compared to startups.
  • Work-Life Balance: Many firms are now focusing on employee well-being and balanced work hours.
  • Career Flexibility: Skills gained can be transferable to other tech sectors, including product-based companies.

Advice for Students: Building a Strong Foundation

A solid base in fundamentals opens up more doors in the future than any prestigious job title might.

As students embark on their tech careers, I always emphasise the significance of strong fundamentals in software engineering. It’s essential to evaluate job offers not just based on the company’s brand or the job title but on the learning opportunities they present.

In the early stages of your career, focus on roles that strengthen your core skills and knowledge. These foundations are crucial for long-term success and adaptability in the industry. Here are some tips for students focusing on building a strong foundation:

  • Choose job roles that enhance your skills and knowledge, not just the ones with prestigious titles.
  • Dive deep into understanding the technologies you work with, not just surface-level learning.
  • Develop strong problem-solving skills; they are invaluable in any tech role.
  • Embrace a variety of projects to broaden your technical horizons.
  • Stay flexible and open to learning new technologies and methodologies.
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Final Thoughts

The reluctance of new graduates to join IT service firms is multifaceted. It stems from misconceptions about these companies’ innovation, work culture, and career growth opportunities. Students are advised to focus on building strong fundamentals in software engineering, valuing the learning opportunities over brand names. Service-based firms offer valuable experiences that can be stepping stones to diverse tech careers.

Embracing a growth mindset, staying adaptable, and focusing on skill development are key. I encourage students to keep an open mind, understand the industry’s realities, and make informed decisions for their long-term career growth. Remember, every role is a chance to learn, grow, and shape your future.


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