Indian software firms are back to double-digit growth after more than a year of sluggish business.
As the economy recovers, IT firms are striking new business deals.
They have also stepped up hiring and are giving salary bonuses to their employees as they once again see a surge in global outsourcing orders.
A pick-up in global technology spending has bolstered profits for India’s IT companies.
One of the leading software company, Infosys, added 47 new clients in the first quarter.
The increase in revenue coming is mainly from European markets.
Infosys plans to hire another 30,000 people as business improves.
India’s third largest software group, Wipro, has projected its sales to reach $1.2 billion from April to June. It has also taken in new staff.
Salaries went up in February, and promotions are planned by June.
Pratik Kumar, HR head, Wipro, says: “We are on course to the progression cycle. Progression cycle is our own internal promotion, which is due in a couple of months’ time. But more importantly we are being able to create more career opportunities for people, where earlier we were a little tightened on whole of last year.”
Wages are also going up, as IT firms struggle to prevent poaching of staff by rivals.
Infosys recently announced a $134 million compensation payout, one of the largest in the IT industry’s history.
It was one of many firms that froze salaries last year, but is now handing out bonuses to retain staff.
Mohan Das Pai, HR head, Infosys, says: “If you look at the fourth quarter, we had 3,500 people leave Infosys. That’s up by two percent compared to the previous quarter out of which 500 people were involuntary separation, largely due to the trainees not passing our test at the end of the training. It’s gone up by two percent because the market is pretty hot right now.”
Recruitment numbers are still fewer than it was two years ago, when the IT industry was growing 20 per cent annually.
The US markets, where these firms source for 90 per cent of their business, are expected to pick up. When that happens, hiring will go up as well.
While pink slips were being handed out to Indian techies during recession, the hiring spree once again, is reaffirming India’s position as a global outsourcing hub.
Although India’s IT and BPO market grew only seven per cent last year because of the financial crunch, it is expected to spring back to 20 per cent growth in the next three years.
Source:http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1059540/1/.html
