Hiring by top IT firms dips 36 percent

Hiring by top IT firms dips 36 percent

By SiliconIndia   |   Thursday, 30 October 2008, 04:08 Hrs   |    4 Comments
Printer Print Email Email
New Delhi: The downturn hit IT companies have rigorously decelerated their hiring trend with the top five IT companies in India posting a 36 percent decline in their rate of manpower addition. As a whole, Tata Consutancy Services (TCS), Infosys, Wipro, Satyam and HCL Technologies hired 17, 000 employees in the recent quarter against 26, 500 employees hired during the same quarter in 2007.

"The overall recruitments are lower for the industry this time as companies remain cautious amid the global financial crisis," said D. K. Srivastava - Global Head HR, HCL, as reported by Business Line. While TCS hired 5328 employees compared to 9268 employees in 2007, Wipro hired 1877 people compared to 6096 people in 2007. Infact, Satyam, which have 1814 employees, has slashed its hiring targets by around 33 percent, which is between 8000 and 10, 000 recruitments for the entire year. But TCS has plans to add 30,000-35,000 people during FY09.

Moreover, the slowing recruitments have slowed the attrition rates too. While Infosys' attrition dropped from 14.2 percent to 12.8 percent between the September 2007 and September 2008 quarters, Satyam's fell from 13.89 percent to 12.27 percent in the same period. Infact, it was only TCS which saw a surge in the attrition from 11.5 percent to 13.2 percent.

Write your comment now
Submit Reset
Reader's comments(4)
1: The article seems quite an interesting piece of information, however, i would like to know the methodology used to derive these conclusions. Are the numbers derived only by the number of people added in the current quarter or the number of people who have been offered jobs by the companies have also been taken into consideration.

Other than this the companies like TCS and Infosys are claiming that there are no layoffs due to global slowdown or economic/financial turmoil. These companies are still hiring but at a slower rate.

Another important point that is to be highlighted, people are taking drop in the attrition as a positive sign. Although, there is a dip in the rate of attrition, but it is merely because of lack of opportunities in the market.
Posted by:Gaurav Chawla - 31 Oct, 2008
2: I think what Silicon India ought to do is make an analysis of the quarterly financial reports of these companies to understand what portion of the revenue is being generated from overseas.

The meltdown in the US is massive.Germany & UK too are badly hit. There is surely a correlation between the volume of FDI pullout from the Indian Equity Marketin the past month.

Numbers employed today, really means precious little. If the markets dry up, throwing out these fresh intakes will take no time and subsequently opportunities at least in the short term will be non-existant.
Posted by:Arindam Dutta - 29 Oct, 2008
3: How credible is this data? This is my Question to Silicon Indian if some one can answer me back. How reliable are all these numbers that you have mentioned above? or its just to catch visitor attention
Posted by:shankar - 28 Oct, 2008
4: How long will this continue.
Posted by:prachi - 28 Oct, 2008