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Home » News » IT cos to go slow on hiring

IT cos to go slow on hiring

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Posted : Sunday, July 6, 2008

BANGALORE: As the first quarter results for FY09 start pouring in from IT companies, starting with Infosys Technologies on July 11, expectations on the human resources front would be very muted.

Despite being one of the largest employers of formal education sector, the mood in the Indian IT industry is frozen in terms of hiring, on account of weak economic signals from US, its largest market.

It is expected there will not be any �big� hiring numbers for the first quarter from the large IT services companies. The curiosity in hiring numbers is because any organisation�s revenue growth is directly related to number of people employed.

Some of the HR belt-tightening steps that large IT firms are keenly following are lower increments, slimmer bench (as low as 5 per cent in many cases against an average 20 per cent in the heydays), greater operational efficiencies in hiring and, in some extreme cases, even outplacements.

HR industry watchers say companies are not rushing to hire and are keeping an external bench instead. For instance, if a project requires 1,000 people over a period, they would hire 300 and guage the progress.

In the meantime, they would engage recruitment agencies to keep a database for the remaining numbers for hiring at short notice.


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