Economic Slowdown Impacts IT Hiring: ASSOCHAM Survey

October 4, 2011: You may not see huge fresh recruitments in the IT and BPO sector for the next one year.

It is crucial situation for IT and BPO firms in India, the industry cannot afford even a single mistake, each step taken might have some relevance and positive impact for the firm as the sector is under pressure, says Associated Chambers of Commerce and Industry of India.  US economic slow down and debt crisis in Europe are the greatest threat for Indian IT and BPO sector at this point of time. Companies are maintaining consciousness and perfect evaluations before taking every strategic step. 

Unfortunately it is the young enthusiastic talents which are being affected the most because of all these ups and downs. According to the report by ASSOCHAM, IT and BPO companies has decided to slow down their recruitment policies and strategies. The study was conducted among 140 representatives which also included CEOs and MDs of leading Indian companies and as per the findings US economic crisis and downgrade of credit rating is about to make a direct impact on hiring practices in the Indian industry. 

According to one of the representative who is also CEO of a million dollar company, the inflation in the nation is high and also the interest rates. In such situation it is very difficult to enter into new contracts and as a result the contract value is also diminishing. Even though there are expectations that the Indian IT and BPO sector might be the least affected but it cannot be calculated that even the smallest impact might cost how much for the whole industry.

Report added that in the coming months, recruitment in the sector might fall steeply down even to 30 percent. Bangalore, which is considered as the home for BPO and IT business, has witness many companies entirely freezing their recruitments for another one year. This trend is expected to extend for some more time.

ASSOCHAM report on IT and BPO companies also stated that there are companies in the sector which are in need of fresh talents as well as experienced persons at different levels, but they feel that it is highly risky at this point of time to add more to the workforce as it might become difficult for the company to maintain the employees in the near future.

The research report which included opinion of representative from major IT locations in India such as the Ahmedabad, Chennai and Hyderabad along with nation capital and innovative hub Bangalore made crucial findings. If US is in recession, then it is quite sure that Indian IT and BPO firms will lose outsourcing business. In such crucial situations companies taking precaution is obvious. But for people who are looking for a carrier in IT and BPO industry, it is a sad situation even.      




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