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04-28-2012, 10:33 AM #1
Indian IT firms to create 2,00,000 jobs in FY13 despite slowdown
Indian IT firms are planning to increase their headcounts despite the global gloom and fears of a looming recession notwithstanding. At a time when banking and financial services firms are laying off personnel or taking a cautious outlook on hiring, the National Association of Software and Services Companies has predicted that the IT sector will create 2,00,000 jobs in FY13, and also projected 11 to 14 per cent revenue growth for the current fiscal.
For IT companies, hiring will be in line with their growth expectations for the year. "For us, it's not speculative hiring. We are expecting a 20 per cent growth in revenues (in dollar terms) this year, which is better than industry expectations. And, we would need personnel to support this growth," R.V. Ramanan, executive director and president (global delivery), Hexaware Technologies, told Mail Today. It plans to add another 1,500 personnel in 2012, out of which 650-700 would be freshers, Ramanan said adding, the Mumbaibased IT firm had 8,624 employees as on March 31, 2012, and has 11 per cent attrition rate.
The country's $100 billion outsourcing sector, which gets majority of its revenues from overseas clients, is staring at a slowing demand from foreign clients and intense global competition. Highly volatile currency markets also have their impact on prospects of the sectors, analysts said.
Tata Consultancy Services (TCS) plans to hire 50,000 employees in the financial year ending March 2013 in view of "excellent growth in North American and UK markets". "It will continue to hire in overseas markets," its chief executive officer (CEO) and managing director N. Chandrasekaran said. TCS had a total headcount of 2.38 lakh with an attrition rate of 12.2 per cent.
Ajoy Mukherjee, executive vicepresident, head, global human resources, TCS, said: "With business demand continuing to be robust, we have made 43,600 campus offers to trainees to join us from the second quarter of this fiscal year."
"The company's headcount guidance for FY13 is a sign of the good business environment for the firm," Ankita Somani, IT and telecom analyst with Angel Broking, said. Infosys Ltd will hire about 35,000 personnel this financial year out of which 13,000 will be for its business process outsourcing (BPO) operations, Infosys chief financial officer V. Balakrishnan said in an earnings call.
"For the next year, we have given a guidance of eight to 10 per cent in dollar terms for revenue growth and four to six per cent EPS growth in dollar terms," he added. While Wipro did not provide any manpower guidance for the year, Tech Mahindra Ltd and Satyam Computer Services Ltd, which are in the process of a merger, aim to hire up to 10,000 staff for the combined entity in 2012/13. The hiring by the merged firm is to meet to an expected rise in demand for technology services, Tech Mahindra CEO Vineet Nayyar said in a press conference.