Mumbai: India’s biggest software exporter, Tata Consultancy Services Ltd, plans to hire about 30,000 people in the next financial year starting 1 April, confirming the buoyant mood among the country’s information technology (IT) companies emerging from the global slump.
The hiring plan is backed by the firm’s current estimate of business prospects for the next fiscal, chief executive N. Chandrasekaran said on Wednesday. Large corporations in the US, from where TCS earns about 52% of its revenue, finalize their IT budgets in January-February.
Buoyant mood: TCS chief executive N. Chandrasekaran. Abhijit Bhatlekar / Mint
Majority of the firm’s US clients have drawn up spending plans for the next fiscal, and even though these are flat in absolute numbers compared with the current year, TCS remains positive as the “addressable pie” for the firm will be larger, Chandrasekaran said.
The announcement comes after the country’s second largest IT exporter Infosys Technologies Ltd said that it plans to hire about 6,000 people in the three months to March and about 24,000 for the next fiscal.
Industry observers are backing TCS’ contention that volumes would pick up as the year progresses.
“Much of the spend that was curtailed last year will start coming back now, and the demand pickup we have seen during the last quarter will accelerate further,” said Partha Iyengar, vice-president and regional research director at the Indian arm of global technology research firm Gartner Inc.
The Indian IT sector, which is expected to close the current fiscal with export revenue of $49.7 billion (Rs2.31 trillion), saw slow hiring for most part of the fiscal, but this picked up a little in the December quarter, a momentum that is expected to continue in the last quarter to March. The economic crisis sharply reduced the demand for IT services offered by Indian companies, as clients tried to cut costs.
Industry lobby group National Association of Software and Services Companies estimates the current fiscal’s number of additional jobs created at 90,000, compared with 200,000 in the year-ago period. For the current fiscal, the total employment in the IT sector has been estimated at 2.3 million.
Until the end of December, TCS had hired a net 5,266 employees in the nine months ended December. For the rest of the current fiscal, it plans to hire around 1,000 people.
In the year to March 2009, TCS had net employee additions of 32,354. As on 31 December, TCS, together with its subsidiaries, had a total employee base of 149,654.