Opportunities in IT and ITES Sector - A Rise in Rebirth

The IT and ITES Sector is on an excellent recovery path from the recent setback caused due to the economic slowdown world over. The back to normalcy of the America and the European markets marked encouraging signs to the Indian software companies with the rise in the billing rate of the Indian companies. The diversifying of the markets of the developing countries also added to the great comeback of the IT and ITES sector. The large scale recruitment is in spree with companies not only hiring experienced people but also going for fresher hunt through campus placements. Industry sources estimate an additional 5 lakh jobs for 2011-12 with 20% increase over the previous year and inducting as far as 3 lakh freshers. With this, the total employees in this industry may reach to 30 lakhs. The major share in the recruitment will be by top companies like TCS, Infosys, Wipro, Cognizant, Accenture, Genpact and HCL. The IT major TCS alone is recruiting 37000 freshers. The AP Model showing positive sign The state of Andhra Pradesh is also sounding positive in the IT segment with 50000 offerings in the current year. Hyderabad alone is estimated to generate 40000 Jobs thus making the employee strength of IT sector to 3 lakhs. Industry expects recruitment in tier II cities such as Visakhapatnam, Kakinada, Vijayawada, Tirupati and Warangal where Mahindra Satyam and Infotech combine to offer 10000 jobs. Attrition- A cause of concernThe good recovery of the Industry also welcomed the attrition rate which has become a cause of concern for the IT companies. The average attrition rate shows at 15-16% which is much high in the middle level companies and the seriously affected from this frequent change in employees from one company to other is the BPO sector. To retain their employees, companies are going for hikes around 10- 15% which came as a boon for the employees. Even freshers are offered with good packages ranging from 2.5 lakhs to 3 lakhs. Experts SpeakIT and BPO sector looking for the Tier II cities“Due to Lower operating cost of tier II and III cities and as far as 50% employees coming from these cities prompted the companies to look for towns” says Harish Manglik, NASSCOM chairman. He expects the IT industry to generate 1,83,000 jobs and developing of the concept of Rural BPO. “We expect the IT recruitment to grow by 20% in the current year creating 5,00,000 new jobs and Hyderabad alone contributing 40000 new jobs. Our company is going to recruit 3000 jobs in which 1000 are for freshers” - B.V.R.Mohan Reddy Infotech CMD “IT recruitment is expected to be higher in 2011-12 compared to the previous year. The hiring will be more in big companies and the small and medium scale companies are affected by the attrition rate” - L.Naresh, ITESAP President “The IT sector is going to reach the 200-08 level as the quarterly results of the market are very encouraging. The billing for the Indian companies has increased sans American recovery. We recruited 50000 in the previous year and now are expected to take 37000 freshers alone this year” - N.Chandrashekharan, CEO, TCS