Is hiring in Indian outsourcing sector a sign of revival ?
A recent news article in economic times, a leading Indian newspaper talks about a statistics that Indian IT vendors may hire around 80,000 people in 2010 (LINK). Key emphasis I would put on is the word ‘may hire’.
A number of the large vendors during their earnings calls have talked about large hiring numbers. TCS has made 24,000 offers and Infosys has upped its offer to 20,000 from their earlier estimate of 18,000.
Question is does this mean growth and back to business as usual. We believe that it’s not the case. A number of these hires or proposed hires for this fiscal year by the firms is to ‘honor’ their commitments for hiring they have made vs a growth because of demand from clients.
A number of these companies continue to show a cautious growth ( if any) for the coming quarters and are still focused on cost levers to maintain their margins. Hiring trends indicated in the earnings report and the market place showcase still a very cautious approach.
Steve Ballmer in a recent address to business leaders in Korea indicated that he believes the events of last year are once in a life time ( We hope!) and that the spending levels will not come back in IT to the levels they were pre recession.
Does that mean people will leverage outsourcing to stretch the dollars they have with them or will it mean a slow down in overall outsourcing is still to be seen ? There is no black and white answer for this.
So hiring for fresh recruits will turn slightly positive coming quarters. For the middle managers and people with experience the markets will continue to be employer friendly for some time with limited growth.
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