The highly skewed demand supply ratio for IT software professionals has led to many job seekers in the two to eight years of work experience bracket, misquoting current compensation packages.

The victims -- small and medium size IT companies -- in their desperate attempt to attract talent, succumb to the monetary pressures. Larger players have structured compensation packages at the entry to middle levels and deviation from the normal is rare. Also, they bank on their brand to attract talent, which lesser known companies cannot offer as an intangible benefit to potential recruits.

Industry players point out that while a software professional can play around with the basic component of his salary by about 10 per cent, it is the incentives which can be misquoted significantly. This way he can even double his present salary. Says Ms Deepa Murthy, marketing and business development head, CRV Consultants, "One can quantify perks like car, PC, stocks and mobile phone. Two years ago if one got a PC for 50,000, but its current market value is 30,000, one will quote the higher figure."

According to IT firms, such a scenario leading to irrational salary hikes while swtiching jobs is partly due to large scale recruitment in the IT sector which is marked by a high employee turnover. With more players entering the market, there is an ever increasing demand for software professionals. Says Mr Kishore Mandayam, managing director of the 170-people Ampersand Software Applications Ltd, "Let's face it. There is a paucity of resources with very few four to eight year experience candidates." The company did a turnover of Rs 25 crore during 1999-2000 and expects to touch Rs 35 crore in the coming fiscal.

Further, there are no designated salary structures to be followed, especially in the case of small and medium sized companies. Says Mr Anjan Dutta, owner, Career Graph, which places people in the IT industry, "People simply go by word of mouth. It is very difficult to keep a check. That is why there is potential for a lot of wrong happening in the industry."As a result, the bottom of a resume may not carry the `true figure' of last salary drawn and the consequent salary expectations. While deciding the remuneration package much depends on the negotiations skills. And the employers don't seem to mind. Says Mr M S Sidhu, managing director, Apara Design Automation, "Even if the employee has quoted a wrong salary at the time of interview, we have no regrets as along as he performs well." The Rs 25 crore Apara has an employee strength of 75 and expects to cross Rs 75 crore in 2000-2001.

The IT industry can absorb such costs since it operates on high margins. While every recruitment has to make financial sense, the IT industry is very heavily market driven and the market is mostly overseas. HR professionals claim salaries jump to the extent of 40-70 per cent when an employee changes his company. Also, every year, most IT companies raise salaries by 30 to 50 percent.

The problem occurs in the case of a non-performer. While all companies have 4-5 screening tests, none can give 100 per cent assurance. Adds Ms Murthy, "Three out of 10 cases may be bad. But you have no choice."