The Hindu Business Line : Rising rupee impacting bench size at IT cos

‘Large companies have not been actively hiring for the bench for the last few weeks. Companies will bank more on fresher hiring in the next few months’.

Anjali Prayag

Bangalore, Aug 2

Are benches getting cold? IT majors in the country are reported to be trimming down their bench strength to battle the rising rupee.

According to IT recruiters, bench strength in large majors have reduced by 20-25 per cent. Mr Kris Lakshmikanth, Managing Director, Headhunters India, a Bangalore-based recruitment firm, says there has been a slowdown since May this year and ‘Just in time hiring is the only way they can battle the strengthening rupee and the rising wage costs.

’ Companies are also going slow on lateral hiring, he says.

According to Mr Gautam Sinha, CEO, TVA Infotech, an IT recruitment firm, large companies have not been ‘actively hiring,’ for the bench for the last few weeks. Companies will bank more on fresher hiring in the next few months, he says.

Rupee impact

While HR managers agree that the size of the bench is directly proportional to business projection, it is yet to be impacted by the rising rupee, they say.

Mr K.P.M. Das, Head - HR, Aztecsoft Ltd, says “If the rupee continues to strengthen, then flow of business could slow down and this would in turn impact the bench.” He, however, argues that in the short term, most companies (including Aztec) are able to get higher rates from customers to offset the current rupee appreciation.

“But, everyone will be cautious not to overstaff the bench in case there is continued decline of the dollar,” he explains.

Aztec has a bench strength of 25-30 per cent and has made adjustments to the bench in Q1 but ‘does not see any reduction in the coming months.’

Mr Puneet Jetli, Vice-President and Head, People Function, MindTree Consulting, says that they ‘will continue to hire as per plans but the sharp rupee appreciation has put additional pressure on us to run a tight ship in terms of operations.’

MindTree is running at a utilisation of about 65 per cent currently has ‘sufficient bench strength to support new business opportunities.’

“It’s not about working six days a week or working hard, but about working smart,” says Mr Elango R., Head, Human Resources, MphasiS EDS.

“Companies that were callous will now bring in efficiency and start seeing who’s sitting where.’ This will also temper some of the irrational exuberance in wage increases, he says.

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