Indain outsource companies snatching or creating new jobs?
November 9, 2009
Infosys announced an across-the-board salary hike and promotions with effect from October 1. Domestic (offshore) salaries have risen by 8% while onsite remunerations have gone up by 2% for Infosys employees. This may reduce the IT company’s margins by 2% in the next two quarters, but it sends the right signals across the software industry. In addition, in May this year, the company increased its headcount in the US, and plans to follow suit in Brazil, Mexico and China.
Paradoxically, while Microsoft slashed its headcount in India by 1% this year, reports are pouring in that TCS aims to double its foreign workforce from the current 10,000 over the next five years. Between the two of them, Infosys and Wipro plan to increase their expat ratio to 10-15% in the next five years, up from the present 5%.
In neighbouring China, Infosys plans to raise its headcount to 400-500 people in 2009-10, up from the 200 it now has. Wipro likewise plans to hire 1,000 people in Chengdu, China, in the next year.
Wipro plans to set up another development centre in Atlanta, which would require inducting 750 US citizens in the next two years, according to a news report on Siliconindia.
In addition, Pratik Kumar, executive vice-president, HR, Wipro recently told Forbes India that his company would like to hire at least 750 people abroad in the next 12 months.
However, among the top Indian technology firms, TCS employs the most number of expats, accounting for almost 9% of its employee base, followed by Infosys and Wipro, respectively.
The only distinguishing feature between MNC hiring and the Indian IT companies’ hiring is that while the former scout technical talent, Indian IT majors hire expats mainly for sales and marketing functions. Apparently, techies are in sufficient supply at home.
“With recession in the US and huge job losses, hiring locals has become a lot easier than before,” Pratik Kumar told Forbes-India. “I can today get a Georgia Tech University graduate for $50,000-60,000 per annum, which is the same amount that would have to pay to an engineer from India to work there,” he said.