MNCs step up hiring in India to boost offshoring

MNCs step up hiring in India to boost offshoring

By SiliconIndia   |   Wednesday, 28 January 2009, 13:29 Hrs   |    8 Comments
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MNCs step up hiring in India to boost offshoring
Bangalore: At a time when Indian software services companies are increasingly cutting down their hiring targets due to slowdown, MNCs seem to be on a hiring spree in India. Global players such as IBM, Accenture and Cap Gemini are all set to increase their hiring in the country, reported The Economic Times.

Accenture has decided to increase its workforce in India from around 37,000 to almost 50,000 in one year. Atos Origin, a European IT firm is looking to double its India headcount from 3,300 to 6,000 by 2010.

Seeing offshoring a better option to cut cost amidst downturn, Tesco, the world's second largest retailer, which has around 3,000 employees at its captive in Bangalore currently, is planning to hire few hundred more people. "We want this centre to become the engineering hub for us, and there is a lot of scope for scale expansion," said Mike McNamara, Operations and Information Technology Director, Tesco. The company is saving around $60 million every year by outsourcing to India.

As MNCs offer attractive opportunities to the skilled professionals working in Indian IT firms, the attrition rates of Indian firms would cross 11-13 percent and even more. "Our attrition rate is still around 11 percent, which is not significantly down," said Pratik Kumar, Executive Vice-President (HR), Wipro.

GC Jayaprakash, Principal Consultant, Stanton Chase International, opined that current openings in the IT industry have more to do with specific skills and for professionals who have five to seven years of experience.

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Reader's comments(8)
1: MNCs are cutting expensive Western salaries which can hire up to five or ten individuals here. Their biggest concerns however, is the ability of the five to ten here to perform as well as the one salary there. It is important to assure quality and adherence to deadlines to maintain growth in India. Don't expect your job here to be any safer if you don't provide the highest level of professionalism, treat your company and yourself as partners in growing the business, and work as part of a team. As a foreigner working here, I typically see potential staff expecting a lot from the company without making themselves economically viable.

The MNCs will be very careful who they hire and vetting staff prior to hire will be handled by teams of Indian HR staff with foreign oversight, especially with companies that have lost intellectual property, customer databases, etc. at their Indian affiliates (fast becoming the largest issue against outsourcing to this country - no ethics).
Posted by:professional - 29 Jan, 2009
2: Yes its very true in India MNC's are hiring people and expanding there offshore activities as step for cost cutting.
Posted by:Kinjalk - 28 Jan, 2009
3: I don't believe this news. This cannot be true.
Posted by:Majeed - 28 Jan, 2009
4: From where this new are getting ..whose is the writer,because media are making popular and people to fool.Let them promise first no layoff in future.Then they can say hiring the people.
Posted by:Elayaraja - 28 Jan, 2009
5: Should we believe in this?
Posted by:Jogi - 28 Jan, 2009
6: Isnt this Contradictory? The article below states that IBM is cutting jobs quietly... and it is mentioned here that they are on an hiring spree... they are hiring only for the niche skills, and not in huge numbers...
Posted by:Lalitha M - 28 Jan, 2009
7: Seems the Foreign players have able to get a better hand over the Indian companies in their own turf. Well its seems that some of the Indian IT companies are gonna wither and some may survive and some may emerge victorious. Time is the deciding factor
Posted by:Anand - 28 Jan, 2009
8: Indian cos should also follow this.
Posted by:Ranji - 27 Jan, 2009