New Delhi: IT bellwether Infosys revealed on Wednesday that it plans to hire 26,000 fresh employees out of which starting-level professionals are likely to constitute a majority and a considerable number of recruitments would be done from overseas.
“We have hired from all over the world and have accelerated hiring in North America. A batch of youngsters are coming from the United States to train in Mysore. They would be completing their training and going back this quarter,” T V Mohandas Pai, Director-Human Resources Infosys was quoted by moneycontrol.com.
The IT major is also battling increased attrition rates, following the buzz that its management is mulling a cut in the annual salary hikes to cope the currency impact on its earnings. However Pai denies that effecting a wage hike cut is on the cards.
“Most people have many more career options than in the past. So, obviously, we have to build our employment band and offer them good compensation. There is no way you can hold on to wage increases, which are the normal thing like 12-15 per cent a year and expect quality people. Today, if you are in the top 20 per cent of your class, you have many career options. All we have to do is go to campuses and woo these people. So, reducing the wage increase is not an option at this point of time,” said Pai.
At present, the attrition rate in Infosys stands at 13.7 per cent—a level higher than the previous year. The employee utilization of the company, including trainees, is up 260 bps to 70.5 per cent.
T V Mohandas Pai, said that they would like to see a national skill development programme, which might reduce attrition and increase supply. He feels that the government is not doing enough in the HR area.
“I would like to see a large-scale national skill development program, so there will be many more skilled people coming into the marketplace. That should reduce attrition and increase supply. The government needs to get its act together on this. It is not investing enough in the HR area. We are not taking advantage of the opportunities available," commented Pai.
Infy employees are not the only one to feel the heat of currency impact on earnings. India’s largest software exporter Tata Consultancy Services also hinted last week that the annual wage hikes will be restricted to 12-15 per cent this year. TCS CFO cited rising rupee and increased cost of currency payouts abroad major reasons behind the move.
Infosys management stated that the wage cost is up 2.5 per cent and the visa cost is up 1 per cent. The offshore wages are up 12-15 per cent, while the onsite wages are up 5-6 per cent.
According to Pai, in three to four years, the wage increases could come down. “The IT industry fundamentally transformed this country by hiring about 4,30,000 people in this year gross. These people will create an education market and become an inspiration for many people, who will now possibly borrow money to get educated and come into this market. The only way is to get public investment to expand the market. So, three-four years later, the wage increases could come down. We absorbed all the wage increases and have given more wage increase outside India. We also absorbed the visa cost,” concluded Pai.
With excerpts from a moneycontrol.com report
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