Is the job market finally thawing?
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iring in a global scenario, as the once invincible Indian techie has realised is closely linked with the health of the economy and the company's market performance. No sooner did the US economy trip on growth figures, the Indian job market swiftly turned into a buyer's market. Indian techies who were lured with astronomical salaries, signing bonuses, sops and you name it perks were unceremoniously deposed from their high seats. With enterprise spending in the US at an all-time low and India's US-centric industry facing shrinking orders, Indian companies ordered a virtual freeze on hiring. Ever since the reality has been biting - layoffs, salary cuts and drastic reduction in perks.
For the year ending 31 March 2002, Indian companies accustomed to 100 per cent year on year growth had to contend with 30 per cent growth rate. Despite the steep fall in growth, industry performance was on par with market expectations. IT services majors have hence lifted the iron cap on hiring but the talent search is restricted to few experienced professionals, (read employees with five plus years experience.) Says Diva Barua HR Manager Bharati Telesoft, "For software organisations, hiring will be based on projects. We will be hiring professionals with 6+ yrs experience. T R Sanjay CEO Santech Cybernetics Pvt Ltd concurs, "Compared to last year, this time the recruitment business has definitely picked up but companies are hiring professionals with 6+ yrs experience. There is absolutely no demand at the junior levels because the benched resource in most companies has not been deployed. Also the attrition levels at the junior level have fallen drastically as companies are no longer generous to job-hoppers." Rather than large service majors, the job market is being fuelled by mid-sized service and product companies such as Minteck, Impulsesoft, Tata Elxsi, Ishoni Networks, and Ittiam who are hiring professionals at a steady pace. Unlike large service companies who hired in anticipation of projects and are now saddled with excess manpower capacity, service companies hired selectively even during the boom period. The demand, however, is for experienced professionals. In an interview with AssureConsulting.com CEO Ishoni Networks Dr Mansingh admitted to a changed focus in hiring because speed to develop, deploy and market are crucial and there is no time for hand holding in product companies.
Demand for IT professionals is also being driven by offshore projects which companies have bagged. Polaris Software for instance changed its business model from primarily onsite business to offshore business and has projected a 50 per cent growth this fiscal and is recruiting professionals. Says Taruna Pamnani Business Development Manager Monster India, "Organisations with a model like that are the ones who will survive in the long run." A large number of IT companies that have entered into offshore partnerships with multinationals to set up operations are hiring professionals. For instance, Mascon which recently tied up with 3Com is on the lookout for telecom professionals. Similarly, Aztec recently tied up with Asera Solutions and is now hiring though the company laid-off professionals in the thrird quarter last year. Satyam Computers has also admitted an increased interest in the offshore outsourcing model. Client visits are up and as price re-negotiations reach the end of the cycle, demand for professionals will also build up on account of these partnerships.
In addition to the three year work experience tag, companies are on the lookout for professionals with niche skills. For instance, Infosys, Wipro and Satyam are looking for candidates with skills in automotive electronics, avionics and medical electronics sectors. Also the market for embedded chip design and applications is rapidly growing. Majors like Intel, Texas Instruments, National Semiconductors are hiring aggressively. With more than 100 companies involved in semiconductor design in Bangalore, the demand for these skills is bound to remain steady. In addition, there is an acute shortage of professionals with PeopleSoft, SAP and ERP skills. Network security, telecom, datawerahousing and wireless are other areas that T R Sanjay believes will see a steady demand for professionals.
The market is beginning to thaw but Manish of Planman Consultants cautions "Companies are in the wait and watch mode. Companies are very quality conscious and hire if the candidate is exceptionally good; freshers continue to be badly hit." In the face of shrinking margins, falling billing rates and intense competition, as reported in our last edition of Tattler, Indian IT companies have further slashed growth rates to 20 per cent. Clearly, its not the time to celebrate yet, if consultants like T R Sanjay answer with an emphatic NO when asked, "Are we there yet?"
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