Our Focus Has Shifted To Mid-sized Companies For Hiring: Masai School CEO

How is the drop in Tech hiring from large cap companies affecting Masai School? 

Drop in tech hiring is very momentary and it will not last long. On the other hand, we believe that the next decade is going to be promising for the tech ecosystem. In fact, tech roles would be most in demand, as compared to any other roles. The pause is from a very macro perspective, we found that until last year, 90 per cent of our alumni would land jobs in startups, and the remaining 10 per cent bagged roles in big or mid-sized service-based companies. 

Lately, we have figured that startups are also not hiring alongside the large IT firms. Therefore, our focus has shifted to mid-sized companies based out of cities like Ahmedabad, Surat and Indore which is our identified new market to continue hiring. We are still placing 300-400 students every month in the tech space in these companies and our dependencies are completely gone from the challenging markets where the tech hiring is not happening. 

Is it safe to say that Masai believes that small tech companies are going to take the lead in the hiring segment?

Yes, smaller companies based out of Tier 2 cities are promising due to their substantial and stable client base. They have a decent team size and make up to Rs 100-150 crore annually. Unlike many big players that indulged in a hiring frenzy in 2021, causing system bloat, the smaller caps stood impressive and by seeking external funding they built a solid business foundation. This approach was reflected in their stock market performance, which remained robust. In contrast, biggies over-expanded their hiring and are now trimming their employees, while those who have pursued sustainable growth continue to have consistent hiring needs.

All large players in IT have talked about slower hiring, few say they will not visit campuses in coming quarters. How will this impact to be-professionals and Masai?

No, not necessarily. Our current reliance on larger corporations is relatively low, so the industry's shift away from on-campus hiring practices is unlikely to significantly affect us. It's worth noting that some major IT firms have mentioned their preference for off-campus recruitment, while others, like TCS, continue to engage with colleges to hire fresh talent. However, this shift in the hiring landscape is expected to impact colleges more than it will affect Masai. This is because our students, with intensive eight-month training, aren't considered typical freshers in the job market; they're often par above excellence with those having a year of experience. Our trained talent tends to outperform many others, so we don't anticipate a substantial impact.

What is the average CTC of recruited candidates via Masai in FY24? How does it compare to FY23?

In the previous year, certain startups offered higher salaries, with an average CTC (Cost to Company) of around Rs 6.9 lakh per annum. However, in the current financial year, this figure has decreased to Rs 6.1 lakh per annum, which is still relatively higher compared to the majority of IT companies in India.

CTC decides how much Masai gets paid after a candidate's selection. How has this been impacted in FY23? How do you see this playing out in the coming quarters?

We have ambitious growth plans for this financial year, aiming for a revenue increase of close to 150 per cent compared to the previous year. Additionally, the CTC plays an important role in our fee structure. To provide some insight into our fee model, if a student secures a job with an annual salary between Rs 3,50,000 to Rs 5,00,000, they pay us Rs 2,50,000. For salaries between Rs 5,00,000 to 10,00,000, the fee is Rs 3,50,000 and for offers exceeding Rs 10,00,000, we are paid Rs 4,50,000. We have a tiered pricing structure in place. From a revenue perspective and in terms of quarter-to-quarter (QoQ) growth, we are consistently doubling down with each passing quarter.

What roles are in vogue or does Masai seem to be doing better at than others? 

Indeed, Masai takes a unique approach compared to other platforms like Naukri and LinkedIn. We don't focus on lead generation or inundating candidates with countless leads. Instead, we provide them with the right skill profiles and competency graphs of individuals, making the hiring process more efficient.

Regarding the prominent roles in the tech ecosystem in India, two areas stand out: full stack development and data analytics and data science. These roles are set to play vital, particularly with the advent of AI. The impact of AI will significantly enhance productivity in these areas, making them consistently in demand.

How are you helping candidates upskill on AI?

We offer a five-week course curriculum. This program is designed to train individuals to become proficient in generative AI, which differentiates them from traditional developers. While typical developers focus on specific languages and frameworks, prompt engineers are versatile. They can code in multiple languages and work with various frameworks, giving them the flexibility to tackle a wide range of roles in the market. This diversity is crucial and our curriculum is dedicated to teaching our students to excel in the field of generative AI.

Have the demands from companies undertaking hiring changed since November 2022? 

The way software development role’s function is undergoing a transformation, it typically starts with the role of a Software Development Engineer 1 (SD1). After a couple of years in that position, individuals usually advance to SD2, or Software Development Engineer Level 2, which is a standard progression globally. However, due to the influence of generative AI, the industry's expectations are evolving. There's a growing demand for SD1 to have a broader skill set. Beyond just coding, they are expected to have knowledge in areas like product management and UI/UX design. This expanding set of requirements is likely to blur the lines between SD1 and SD2 roles. We can anticipate a new category of software developers, perhaps something akin to SD 1.5, where individuals are closer to the SD2 level in terms of skills and capabilities. Even if organisations continue to designate them as SD1, the industry's expectations will lean more toward the SD2 level in the future.

What's the demand for Masai candidates amongst Cybersecurity companies/ positions/roles?

As such, there is no significant demand at the moment. Cybersecurity adoption in India is currently not widespread, with only a few companies specialising in this field. Demand for cybersecurity roles in India isn't growing rapidly at the moment. However, in the US markets, cybersecurity is a critical role and it's in high demand. It's anticipated that over the next few years, the importance of cybersecurity will increase in India and the field is likely to gain prominence.

What is your overall outlook on hiring in FY24 and predictions for FY25?  

Our plan involves becoming one of the largest players in the tech hiring space within the next two to three years. We aim to challenge leading platforms like Knock and further expand our tech hiring efforts through Level Up. This is our overarching goal and objective.

How would you describe ‘LevelUp’ by Masai School?

LevelUp by Masai School is a game-changer in tech hiring, as it challenges traditional credentials with a focus on skill-based assessments, saving valuable time and resources by reducing interviews and hiring days by 50 per cent. It introduces an intelligent matchmaking system that combines AI-enhanced expert evaluations and competency mapping to candidate-company matchmaking, benchmarking hiring criteria and leveraging data-driven insights to align candidates with company requirements, including location, talent density and salary offerings, for ideal matches. LevelUp unequivocally stands as the foremost and indispensable solution to tackle the inherent challenges in the hiring process. Employers can now seek individuals with future-ready skill sets, encompassing in-demand proficiencies such as advanced technological tools, big data analytics, and change management.