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IT-BPO industry headcount to remain constant in this fiscal..!!
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IT-BPO industry headcount to remain constant in this fiscal..!!
The IT-BPO industry will witness a nearly constant number of manpower or a bit lower in FY10 compared to 2.23 million estimated for FY09. "The gross hiring by IT and BPO industry in the current fiscal is to be nearly 100,000," said TV Mohandas Pai, Head of HR, Infosys.
Pai believes that as many as 200,000 workers may potentially move out of the system, primarily on account of attrition with 40,000 professionals would be those who will be out-placed due to poor performance, reports Business Line. The attrition in the industry will happen due to factors such as pursuing higher studies, medical, marriage or even night shifts in the case of the BPO industry. Nasscom President, Som Mittal, agreed that in effect, the employee population could remain more or less constant in FY10, if the industry growth level is in single digits. He, however, maintains that if the growth revives, then companies will again start hiring in anticipation.
As a measure to create new jobs, Pai said, "It is crucial for the Government to open up public sector employment to make up for the shortfall in new jobs in FY10." Pratik Kumar, Executive Vice-President, Wipro pinpoints that the current recruitment would be based on the outlook for the coming year. The push would be on more utilisation of existing employees. Top executives feel that the recent slowing in headcount addition is a reflection of the slower revenue growth, rather than the industry`s attempts to de-link revenue growth and manpower growth through investments in products or reusable tools. According to Nasscom, the direct employment in the IT services and BPO is expected to reach 2.23 million by the end of FY09, up from two million in the previous year, though the actual growth attained in FY09 will be determined sometime in June.
Pai believes that as many as 200,000 workers may potentially move out of the system, primarily on account of attrition with 40,000 professionals would be those who will be out-placed due to poor performance, reports Business Line. The attrition in the industry will happen due to factors such as pursuing higher studies, medical, marriage or even night shifts in the case of the BPO industry. Nasscom President, Som Mittal, agreed that in effect, the employee population could remain more or less constant in FY10, if the industry growth level is in single digits. He, however, maintains that if the growth revives, then companies will again start hiring in anticipation.
As a measure to create new jobs, Pai said, "It is crucial for the Government to open up public sector employment to make up for the shortfall in new jobs in FY10." Pratik Kumar, Executive Vice-President, Wipro pinpoints that the current recruitment would be based on the outlook for the coming year. The push would be on more utilisation of existing employees. Top executives feel that the recent slowing in headcount addition is a reflection of the slower revenue growth, rather than the industry`s attempts to de-link revenue growth and manpower growth through investments in products or reusable tools. According to Nasscom, the direct employment in the IT services and BPO is expected to reach 2.23 million by the end of FY09, up from two million in the previous year, though the actual growth attained in FY09 will be determined sometime in June.
