According to the research of Nasscom, as major IT players like Infosys and TCS are focusing on more automatic and so they are hiring lesser number of employee, due to this IT industry will 20% less recruitment this year than earlier.
In last June, it was predicted by the IT industry body that the $143-billion domestic software industry might hire nearly 2.75 lakh people in the year 2016-17 more from about 2.3 lakh during last fiscal.
According to CP Gurnani, whp is the chairman of Nasscom and also the chief executive to TechMahindra, there would no impact on revenue growth due to drop in recruitment which is pegged at 10-11 percent in the current financial year.
Gurnani said that “I think we are still maintaining that in this year overall industry will grow at 10-11 percent.. The hiring will not be much linier in comparison to which we have seen in the past time. The digital world leads to automation and automation also leads to relatively lesser communication. Secondly, digital also means to get more closer to the customers”.
The more statement which Gurnani said that “I think in comparing with last year, you will more recruitment getting slower down. I think it will relatively lesser down upton 15-20 percent in headcount. But, it will not impact on the revenue. Gurnani said all these here to PTI on the sideline of “Global In-House Centers Conclave”.
A recent report which has been given by Mumbai based Centrum Broking has said that the big five software who are Infosys, HCL, Wipro, Congnizant and TCS, together added exactly 24 percent less employees in the year 2015 at 77,265 and this is really thanks to their automation drive.
The Chennai based Congnizant has let the massive plunge in net addition (down 74.6 per cent from 2014 and HCL (down 71 per cent) which has been focusing through automation on improving utilization very keenly. It has been said by Centrum.
The report noted that “Vendors of software across the pack are mainly focusing on automation and it is our belief that year 2015-2016 will be an inflection point. As a result, these five companies Wipro, Congnizant, HCL, Infosys and TCS have net added 24 per cent less employees in the year 2015”. adding this came at a time when such companies combined grew 9.8 per cent dollar revenue.
In the earlier this week, it has been announced by the TCS that it too would be hiring fewer number of employees or freshers.
During the fourth quarter, only 22,576 has been added by the TCS to take its total workforce to over 3.53 lakh but N Chandrasekaran who is chief executive said that in this fiscal, the gross hiring will be ‘much lower’ than 90,000 in the year 2015-216 on better productivity, lowering attrition and depending automation drive.
Also, for the player the attrition level are stabilizing with TCS and it is saying that at the end of the fiscal, it has come down to 14.7 percent, which is better than its immediate rival who is Infosys, which had also reported an improvement which is still at a higher 17 per cent.
It has been expected by the TCS that 32,000 freshers to join its benches from the 45,000 offers which was made at various campuses all across the country.
Last week, Infosys has said that in the March Quarter, its total headcount was stood at 1,94,044 which is up from 1,76,187 a year back. In the quarter, the net additions stood at 661 people. But, company never or did not ever revealed its plans for hiring candidate for their company.
Gurnani said while replying to a query that the failing prices of oil may have some impact on the domestic IT industry as the economies who are oil dependent are reeling under pressure. But, he didn’t do any delay and was very quick to say that the impact would be minimal.
Gurnani also said that “If I look at member companies, and also at our global innovation centers, very less people among them are from West Asia, while from America, about 60 per cent people comes and 25 per cent people from Europe. So, I think the impact will be much minimal”.
On the impact of outcome of US election, Gurnani said that some of the US senators should answer if India need US more or US need India more.
He also said that “I think we need each other, then there will be much impact (on our IT industry of US elections)”.