It was the worst hit sector amidst the downturn, and the Satyam episode did nothing to help. But things are looking up for the Indian IT sector. Trends indicate a gradual though definite revival for the sector in the coming quarters. Revision of plans and projections for financial performance, recruitment, compensation, news of large deals and contract extensions along with an overall upbeat spirit in the sector, are all on the cards.

After almost a year of reduced spending on IT outsourcing due to monetary challenges, clients have started initiating discussions on their expansion and investment plans to generate more value in the long term. There is a definite stability in the demand cycle, which is creating a sense of comfort and relief for the industry.

As Hari T, Chief People Officer and Chief Marketing Officer, Mahindra Satyam, shares, ?We have been able to sign on 30 new customers and renewed multi million dollar contracts with key customers, including GSK and GE. Similarly, embargoes that were placed earlier have been lifted. We will also be hiring more than a hundred people with specialised skills in the Enterprise Business Solutions space this year.? Mahindra Satyam has recently reinstated the variable compensation for all employees besides reintroducing ESOPs based on performance for its senior level associates. ?We are also re-introducing team outings, family days and other associate connect activities that we had stopped due to budgetary constraints,?adds Hari.

For Praveen Raj Gullepalli, Manager, Mahindra Satyam ?the nightmare is over. Lost privileges such as bank loans, performance incentives, awards etc are being reinstated as a result of which there is a sense of anticipation of better things around the corner. The overall sentiment in the market is upbeat and we are not only feeling positive but are living it!?

The efforts made by Mahindra Satyam to recognise performance of its associates by promotions and other incentives, reinforces the fact that they are on the road to stability. ?The employees weren?t expecting much because of the recession. But the business that we acquired recently, and of course the appraisals brought them joy,? says Sambit Mohanty, Assistant Manager, Mahidnra Satyam. Mohanty believes this has sent out a strong message to the world that ?we are not just reviving and recovering, but are actually racing back to glory.?

The latest results are another cause for cheer. Ganesh Natarajan, Vice-Chairman and CEO, Zensar Technologies believes the results this quarter are going to be a mixed bag ? with companies that have a strong business model with diversified services and geographic portfolio performing better than their peer. ?The stirrings of life are evident in the global IT community and as 2010 budgets get rejuvenated, the trickle of new business can be expected to become a stream this quarter,? Natarajan says.

However, the industry will still focus on cost control and high productivity. So, don?t expect the recruitment pipelines to open to full throttle till the end of 2010, Natarajan adds. ?This is a wakeup call to all engineering and management institutions. They must increase their focus on industry relevant employable skills to ensure their graduates have value in the job market. Expect single digit industry growth in FY 10 growing to 15% in FY 11,?says Natarajan.

?Hiring is linked to recovery. Early next year we will go to the universities to recruit,? says S Mahalingam, ED and CFO, TCS not failing to add that he will continue to be cautiously optimistic.

Echoing the sentiment, Kishor Bhalerao, Senior Vice-President, Human Resources, Persistent Systems, says his company was optimistic about the coming quarters. ?The market is opening and we have started getting queries and new orders,?he adds. With regards to hiring, Bhalerao shares, they are already recruiting people at various levels and locations to help meet the existing and future business requirements. ?We are hopeful the trend will continue for Persistent as well as for the industry,?he says.

Not quite there

However, there are a few in the industry who still consider the mood dim. Harish Jain, who worked as an engineer in a Bangalore-based software firm, feels although the economy seems to be ?officially?reviving, it will take some time before the glum mood among employees gets a lift. Cost-cutting claimed his job last November and he is still jobless because most companies are still not hiring. ?Few companies are doing selective hiring but that?s not enough,?he shares.

?Past few months have been difficult,?says an Infosys employee who has recently completed the company?s rigorous training schedule. ?The training is undoubtedly one of the finest in the industry but it?s too hectic. It?s been deliberately made more hectic because of the recession… so that employees opt out voluntarily.?

A networking professional working in Microland says that he has been working odd hours since he joined the company. ?I was initially told that a five-day week would be the standard schedule. But I have worked for eight days at a stretch, without a break, on several ocassions. The remuneration is not good enough and there is no recognition of hard work,? he narrates with a sigh.

Others like Swaminathan (name changed), a networking support engineer at Tech Mahindra, are quitting even without any hopes for a new job. ?The company is getting restructured. The management rationalisation has led to lowering of headcount demand especially on the networking and support side. I have become the hapless loser for the only reason that I am yet to put in over three years in my vocation,?he quips.

?While Indian IT companies continue to maintain their tight leash on the overheads on the expansion of head count, the ever-growing job-seekers are yet to be enlightened on the dynamics of IT business cycle and the corresponding hiring needs,?says HR analyst, E Balaji, CEO, Mafoi Consultants. But with new deals and things looking up for the sector, employees are keeping their fingers crossed.

?(With inputs from Ayushman Baruah in Bangalore, Geeta Nair in Pune and S Saroj Kumar in Chennai)