Why is there such a huge pay difference between IT and Mechanical/auto industries? Many people in IT are getting 3xx salary hikes, but here I am struggling to get more that 20-30% hikes. Sure the skills are much more demand in IT field, but the discrepancy is too much. Is it due to most of the work are outsourced to consultancy/service based companies by the OEM? Or is there simply too much candidates available?

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This is my opinion from my experience. I feel the pay scale is all determined by what businesses need now to grow further. Be it any business.

Software tools have become very powerful to run businesses in almost all domains. I have seen that companies in my domain invest/pay 1Cr for software license. And also companies like FORD paying more to data analytics people now than ppl working at manufacturing plants.

And also it depends on demand supply ratio. Ppl/skills needed for manufacturing plants/mech design have been there for some time and are available easily. That too, they are more than demand right now I feel. Where as ppl/skills needed to do business analytics using data and predict business in future are available only from few years and right now much in demand for businesses to run. So our own OEMs pay them more than core engineers. This is just 1 example to data/business analytics.

If you take big IT companies which use number of software tools and continuously provide 24/7 support to all types of business, then obviously IT will earn more as software tools move business plan and increase profit while core engineers just apply them.

When core engineers are not available in required numbers to apply what is planned then only our pay scale might increase!!!

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