Surging Re may trim hiring plans of infotech industry

Written by Vrishti Beniwal | New Delhi, Nov 11 | Updated: Nov 12 2007, 03:58am hrs
Rupee appreciation seems to have cast its shadow on the hiring plans of the IT industry with the leading five companies cutting down net employee additions to 26,361 in the second quarter of 2007-08 from 28,214 additions in Q2 last fiscal.

Infosys, Satyam and HCL Technologies substantially trimmed their employee additions during the July-September quarter. IT bellwether Infosys, which boasts of 80,501 people today, added only 4,530 employees in the second quarter of this fiscal. It had hired 7,741 people in the corresponding period previous fiscal when its employee base was 66,150.

Similarly, Satyam increased its employee strength to 45,767 with an addition of 3,420 associates during the quarter, against 5,065 additions in the same period previous fiscal. The company had 34,908 associates at the end of September last year.

HCL Technologies had an employee count of 36,452 in the July-September quarter of FY07, with an addition of 3,826 employees during the period. But in the same period of the current fiscal, it hired 3,625 people, which took its total headcount to 45,642.

The trend is much in line with what was anticipated in the wake of strengthening rupee. Human resources comprise the biggest spend by any IT company, with about 60% of the revenues going into wages. As the Indian currency moved up 6% in Q1 and 2% in Q2, it was presumed IT firms would go slow on hiring to improve bottomlines.

Hiring, however, remained strong in the biggest software company TCS, which hired 9,445 employees this year, against 6,838 recruitments in Q2 last year. Wipro also stepped up its hiring from 4,744 people last fiscal to 5,341 this year. The additions helped TCS and Wipro take their respective headcounts to 1,04,347 and 77,478.

The employee count of the five leading software services providers reached 3,53,735 at the end of September 2007, compared with 3,27,374 employees in the previous quarter. In the first quarter of current fiscal, the five IT companies (TCS-5,483; Infosys-3,730; Wipro-4,319; Satyam-2,795; HCL Technologies-1,868) had added 18,195 employees.