By Our Reporter
SHILLONG: The Indian IT industry – one of the biggest employers in the country – is set for gloomy days as fears loom large that the 2009 and early 2002-03 recessions may soon hit the industry. There are apprehensions even from experts that hiring by IT firms in the country may take a drop in the current financial year as the estimated addition of three lakh workforce may not be achieved, at all.
However, head hunters said that in the face of economic uncertainty in the primary revenue geographies, the US and Europe, the industry will now end up hiring 25% to 30% less.
Speaking to The Shillong Times, a manager of a job placement firm who did not want to reveal his identity said that BPO firms generally turn to Shillong for manpower for ITES companies. “The US and Europe gloominess will have its effect on the IT firms in the country since majority of these firms are from these two continents. Though overall impact will be there but candidates here have nothing to worry since companies have a natural preference for workforce from here due to accents,” he said.
Another such placement firm from the town said that though the IT industry is projected to end up hiring 25% to 30% less but it is only a hypothetical figure as it can even hit the 50% mark considering the big company’s employee mix. “However, the senior and top level hiring will not face much heat in comparison,” said the executive of the placement firm.
Meanwhile, Anup Rizal who runs a placement firm – Chance – from Police Bazaar that provides job opportunities to candidates in IT, ITES, Insurance, Telecom and other sectors feels that the gloom is not going to affect any hiring prospects as of now and said that the IT sector has faced no major effects of the recession. “It is yet to hit the Indian economy and even if it hits it will not come to that level like the earlier recessions,” opined Rizal.
Rizal, who has worked in several BPO firms in New Delhi and Bangalore, said that candidates now are not that interested in joining BPOs. “That craze, like when we joined these companies is not seen among candidates anymore.
The criteria for joining a BPO firm are graduation with good written and spoken English. But a candidate with good communication skills tries different things these days and don’t turn up for BPO jobs,” said Rizal adding that the hiring effect is not due to recession only but candidates are not keen like before. Rizal’s Chance, which provides Pan India placements at the entry level, said that interview process at the entry level is more stringent than middle and top level – which are mainly done at the departmental level.
Job aspirants on the other hand said that openings at the ITES sector are taking much longer now since companies are nervous as many companies are reassessing the demand supply scenario.
Ranajit Bhowmick, who is working in a leading BPO firm in the nation capital said, “There are certain firms which have frozen hiring and some have even eliminated positions. Though top companies will not reveal such details but hiring has slowed down as the US and Europe gloom started to show in them.”
Mark Suting, a former BPO executive who now works in a firm that deals in mutual funds said that the slow pace of financial reforms taking place in India, vigilant approach towards permitting foreign investments in local business sectors, copious bureaucratic hurdles and rigid constraints turned out to be gainful for the country. He also said that one of the reasons why India won’t be affected by the gloom like other major countries is because Indian firms have very little exposure to foreign assets and their derivative products.
But there are also those BPO executives who feel that there are firms, which have not expanded as anticipated and there could be serious freezing in terms of recruitment.