India's IT giants will now hire fewer college graduates asthe business environment has become unpredictable and as software companies prioritize soft skills and domain-based specialisation,NASSCOM president Som Mittal has said.
He also attributed the slow hiring pattern to the slow attrition rates in the country, "When the attrition rates are less, naturally hiring rates will also be slower."
This basically implies that contractual basis hiring is likely to be the norm for entry-level positions.
According to a report in Mint, companies such as Infosys , Tata Consultancy Services and Wipro are expected to reduce the number of people they hire from colleges to 40% of their total annual recruitment compared with 60-70% earlier.
"The numbers will not be as big as it used to be... though, we will be hiring in 2014-15, they will actually be for 2015-16, so that they can go through their training.. We spend over two percent of our revenue for training," Som Mittal said yesterday.
Also, instead of hiring everyone from campus in one go, the intake would be staggered. The new normal is shorter notices.
The hiring would happen this year in two phases -- September to October and in May to July, he said, adding, in the first phase it will happen in the seventh semester and the other will happen once the student graduates.
Asked whether not all graduates would land in a job, he said, "Well, I cannot give job to all students. Also, the number of students graduating is growing. In 2005, there were 36,5000 graduates in IT sector, which this year is 1.3 million graduates now."
According to Som, the talent output has gone up 3.6 times in the last eight years with about 13.2 lakh students expected to pass out in FY13. However, of this only 10-15 percent are expected to be recruited by the IT BPO industry.
He also advised colleges to keep up with the expectations of the industry, as employers expect more soft skills and domain specialisation from the students, in addition to the technical expertise.
Mittal said that the future demands in the IT sector for skills would include mobile application, cloud virtualisation, platform engineering besides the need for data scientists.
He also said that the 60 percent of the present day workforce are Gen Y, who prefer easy going work environment, rapid job promotion and work-life balance, mobility and social media device usage.
Of the 3.1 million workforce of the industry, 30 percent comprised of women, of which 15 to 20 percent are at managerial level and above, he said.
IT sector is set to grow 12 to 14 percent presently, he said, adding, it would be reviewed after October this year.
He said NASSCOM has also set a target of providing one to 1.5 percent jobs for differently-abled individuals.
Commenting on the US new immigration bill, he said, "There is a shortage in the US corporations and we are filling in those. If the bill is passed, US corporations would stand to lose more than the Indian companies. And this would also impact the US economy."
US Immigration Bill provisions is also forcing Indian firms to increase global hiring.
This is expected to constitute 5-7 percent of total hiring this year, he added.
"At the US centres of several Indian IT firms, 30-35 percent are local employees. Companies are not just going to campuses; they are also opting for the acquisition route to hire local talent. As more companies get into multi-lingual support, more local hires are possible," he added.
India's IT industry added 107,000 jobs in the US in the 2006-11 period, of which 30% were created for US citizens.
The Bill, if passed in its current form, will force Indian software exporters to remove professionals on H1B work permits from on-site client locations in the US and force companies to file fewer visa petitions effective October 2014, as the cost per petition would go up by about $5,000. The Bill will also increase the wages of workers on H1B permits by 5-15%,
With inputs from PTI
Updated Date: Dec 20, 2014 22:25:02 IST