Balgates’s Weblog

I’m Wat I’m!!!

Infosys to freeze hiring, says signs aren’t good

S Gopalakrishnan, CEO and MD of Infosys, speaks at the Reuters India Investment Summit.

COMPANY FORECAST: S Gopalakrishnan, CEO and MD of Infosys, speaks at the Reuters India Investment Summit.

Infosys Technologies Ltd will freeze recruitment after meeting this fiscal year’s target of hiring 25,000 staff, a telling sign the global downturn is hitting India’s $52 billion outsourcing sector.

The country’s second largest software services firm however has no plans to cut jobs and is sticking with its third quarter outlook, CEO Kris Gopalakrishnan told reporters.

He said the outsourcing sector’s growth rate would halve next year as some customers delay orders. “Last year the IT industry grew more than 30 per cent, this year it is looking at somewhere in the region of 15 per cent,” Gopalakrishnan said.

India’s export-driven IT sector, used to a scorching pace of growth, has been hit by the financial crisis and recession in the United States, which contributes more than half their revenue. In the last few years, the outsourcing industry has created tens of thousands of jobs, mainly attracting young workers, as global companies look to trim labour costs.

Infosys hired 16,000-17,000 employees in the first half of the fiscal year that began in April and would honour commitments to 6,000 under training, Gopalakrishnan said. Infosys, which counts Goldman Sachs and Philips Electronics among its clients, cut its full-year dollar revenue outlook in October due to the worsening global downturn.

Gopalakrishnan said on Dec 04, 2008 the company would freeze fresh recruitment, apart from meeting specific skill needs. “We will have to look at controlling our cost, controlling our expenses making sure that we run an optimised business. We will have to look at what are things we need to do in order to prepare ourselves for the recovery.” “Growth is coming more and more from emerging markets so hese are the things we need to prepare ourselves. We should not lose momentum in this slowdown,” he said.

But Infosys still expects its strong client base and a weakening rupee to help it meet a forecast for December quarter earnings of $0.57 a share. The Indian rupee has fallen nearly six per cent so far this quarter against the dollar.

“Infosys is seeing further degradation of the demand environment, with headwinds from leadership changes at customers, a shrinking large deal pipeline …. Pricing pressure has emerged,” CLSA Asia-Pacific said in a report this week.

December 4, 2008 Posted by | General, India Related, IT, Software, Technology | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Superstar Rajnikanth to join BJP?

Tamil Nadu superstar Rajnikanth

He is South India’s biggest super star and for almost two decades now his entry into politics has been speculated. And, with the general elections around the corner once again there is strong buzz of Rajnikanth taking the plunge.

BJP prime ministerial candidate LK Advani’s visit to Rajnikanth’s house in Chennai has sent tongues wagging. Sources said that Advani wants Rajni to hop onboard and campaign for the BJP in the upcoming elections.

However, when both were quizzed about the same, they were tight lipped. Advani said, ” I had an invitation from him to visit his house for a long time and I used the opportunity since I was here in Chennai.”

“Rajnikanth had been pressing me for a long time to visit his place. Today I accepted the invitation. We discussed many things, including his latest film. It was a happy meeting with him and his family,” the BJP leader said.

Advani said that it was long standing desire of Rajanikanth and himself for a meeting. “It was fulfilled today,” he said.

Advani was in Chennai yesteday in connection with the release of the Tamil version of his autobiography.

Advani welcomed Rajnikant’s statement that he would come to politics if god asked him to do so.
“I had appreciated his decision that he will come to politics when god wills,” Advani said.

Following the meet, Rajnikanth also kept mum and said, “It was just a casual visit.”

And, with superstar Chiranjeevi having launched a political party recently, several Rajni fans want to see their favourite star do the same. The meeting assumes significance in the wake of the demand by Rajnikant’s fans asking him to enter politics.

However, he had been resisting such demands but recently announced that he would undertake a tour of the state to meet his fans. He had also promised that he would be frequently meeting them.

Rajnikanth is not averse to the idea expect he says that he’s wating for a sign from the Gods to make the plunge. He had said, “No one can compel me. What has to happen will surely happen. God’s sign has to come. If God’s sign comes, I can even start a party tomorrow.”

During the run up to the 2004 elections Rajnikanth had declared that he will vote for the BJP, but stopped short of asking his fans also to support the party. The saffron party is hoping that this time too Rajni will indicate his support, even if he does not make a political plunge.

November 13, 2008 Posted by | Elections, General, India Related, Politics | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment