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The year 2012-13 saw the lowest employee hiring (net) by both Infosys and Wipro in the last five years. In fact, the hiring during the year was even lower when compared with 2009-10, which was considered to be the worst year for the software industry due to then global economic meltdown.
“Global economic uncertainties remain challenging for the IT industry,” said S. D. Shibulal, CEO and Managing Director, Infosys, said in a release, indicating the low employee hiring.
However, for the industry leader Tata Consultancy Services, there was no looking back. Its employee hiring in 2012-13 was higher than the previous year, but lower than 2010-11 when the industry bounced back strongly post the recession year (2009-10).
Recruitment by IT companies is based on the projections and estimation of business as they mostly follow a linear business model. IT majors who have better visibility continue to maintain the hiring momentum. Some of the IT majors are experiencing a shaky recovery in business demand and they are taking a very cautious approach on recruitment. “We expect the growth in the Indian IT industry to be polarised,” said E. Balaji, CEO, Randstad India, a recruitment company.
Companies anticipated a higher business momentum in the last two quarters and had recruited based on this outlook. “However, in the last few months we have seen companies resorting to arecruitment freeze and cost cutting. Voluntary attrition due to lack of salary hikes were filled through the bench staff, to improve productivity. Also, most IT majors have weeded out around 3 per cent to 5 per cent of the under-performers post appraisals,” he said.
TCS trained and integrated over 69,000 professionals (gross additions) during 2012-13. “With business demand continuing to be robust, we have made almost 25,000 fresh offers on engineering campuses for trainees who will join us from the second quarter of this fiscal year.” said Ajoy Mukherjee, Executive Vice President, Head, Global Human Resources, in a statement.
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