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'Reduction of hiring is not due to slowdown only'
By siliconindia
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Thursday, 13 November 2008, 16:43 IST |
11 Comments
Pune: Decline in hiring is not only due to the global economy slowdown. Ganesh Natrajan, Chairman, Nasscom believes that there are other reason too for the companies to reduce their hiring plans. "Since March 2008, there has been a tightening of the utilization of personnel. Moreover, most of the companies are hiring personnel who are immediately put on the projects, and not for the bench. Another reason of course is the five to six percent lower growth rate," Ganesh told Business Line.
Meanwhile he categorically stated that the reduction in employees in any one company might be due to tweaking of their policies.
He said that most of the campus offers were being honored. "However, for the graduates of next year, it would be a difficult phase as the hiring process would be a little slow," he mentioned.
Fresh hiring in the IT and ITes is estimated to come down to two lakh this fiscal when compared to 2.76 lakh employed last year.
According to Ganesh the areas that would take a hit of slowdown include new application development, ERP implementation, outbound voice, and brand marketing while the captive industry, financial accounting and banking would see more jobs being done out of India. The area that might remain flat include traditional application segment and infrastructure.
He also pointed out that it was the time for the companies to look at other geographical locations. "For the next 12 months, the traditional markets of the U.S. and the UK would remain flat and even the Continental Europe would not see much movement," he said. He foresees that the growth markets would be the APAC, South Africa and in more medium term Latin America. The new segments for capitalizing opportunities according to him include mobile gaming, animation, utilities and new product development.
"Industry is in a watchful phase and companies which had a good value proposition did not have to worry about the global meltdown. It is only those companies which are doing undifferentiated work which would suffer this meltdown and these would have to choose their strategy if they have to keep themselves above the slowdown," he added.
