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Business News/ Companies / IT-BPO hiring to slow in FY13 amid European debt worries
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IT-BPO hiring to slow in FY13 amid European debt worries

IT-BPO hiring to slow in FY13 amid European debt worries

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Mumbai: India’s information technology (IT) and business process outsourcing (BPO) industry will add 2,00,000 jobs in 2012-13, industry body Nasscom predicted ahead of its annual conclave that begins on Tuesday.

This number is lower than the 2,30,000 jobs that it’s expected to addin the current fiscal year and 2,40,000 jobs that were added in the fiscal year ended 31 March 2011 —an indication of the global economic slowdown amid sovereign debt worries in Europe.

“The industry has already given out 1,00,000 offers so far for the next fiscal year and should make another 1,00,000 offers," said Nasscom’s chairman Rajendra S. Pawar. “Should things improve globally and if we have the help of tailwinds, we might even revise it upwards during the mid-term strategic review in October."

Should the industry meet these projections, the aggregate workforce would rise to 2.97 million, from the 2.77 million employed currently.

Of this, 1.15 million are employed in IT services exports, 8,76,000 staff in BPO exports and 6,01,000 in domestic-focused IT and BPO operations.

Tata Consultancy Services Ltd, the country’s largest IT services firm by revenues, said last month that it has made 43,600 campus offers to freshers who will join the company in the next fiscal year.

This is the highest ever number of campus offers made in a single year by an Indian IT company.

It had said earlier that it would add 60,000 to its workforce in the current fiscal year but is poised to beat that number by 6,000, as it has already hired 51,000 people and is likely to add another 15,000 by March end.

The Indian IT and BPO industry is expected to clock $101 billion in revenue in the current fiscal year ending 31 March, according to Nasscom.

Last week, Nasscom slashed revenue growth guidance for the next fiscal year for the IT and BPO industry. It cut revenue growth estimates to 11%-14% and pegged domestic revenue growth at 13-16% for 2012-13. In the current fiscal, export revenue is estimated to grow by 16.3% and domestic revenues by 16.8%, according to Nasscom.

Despite the global macro economic headwinds, Nasscom remained positive on the medium-term outlook for the industry due to the emergence of a few key trends.

The industry lobby body’s president Som Mittal said GDP growth in advanced economies may rise in the second half of 2012, with the unemployment rate dropping in the US, the industry’s largest market with a 61% revenue share.

“Let’s not talk ourselves into a depression. The business appears to be better than the mood," Mittal said.

On budget demands from the Indian government, Mittal said Nasscom has asked that the minimum alternate tax on special economic zones be removed. The other concern for the industry is linked to transfer pricing and the resultant litigation which is sending out wrong signals to foreign IT companies wanting to invest in India, he said.

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Published: 13 Feb 2012, 10:37 PM IST
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