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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.

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

Disgusted Dhoni denies rift with selectors

Indian skipper Mahendra Singh Dhoni on Nov 22, 2008 denied rift with selectors on dropping of Rudra Pratap Singh and preferring all-rounder Irfan Pathan for the remaining part of the on-going One-Day series against England.

“I don’t know who is spreading this kind of rumors. Whoever is leaking confidential matters to the press is not doing any good for the well being of cricket. I don’t want to deny or admit what transpires during the meeting because it is supposed to be confidential. If someone has leaked confidential matters to the press it is just not done. I want to know who the source was. As far as I am concerned there was no rift with the selectors on any issue,” Dhoni told reporters on the eve of the fourth One-Day match at the Chinnaswamy Stadium.

“It is unfortunate that such rumors are being spread when the team is doing so well and we are on the threshold of achieving yet another series victory. I should admit this kind of distractions are not good for the game in general and for the team in particular. The selection matters should always remain inside the four walls and moreover it is the selectors job to pick the best possible team,” he added.

It is understood that one of the selectors leaked about Dhoni’s threat to quit as captain of the Indian team if Irfan Pathan was preferred ahead of R P Singh during the selection meeting in Kanpur after the hosts beat England by 16 runs on Duckworth-Lewis Method.

However, Dhoni, who first denied the rift vehemently but later on softened his stance and wanted to know who was leaking out confidential matters to the press wanted to know the name of the person responsible when a scribe tried to grill him on this matter.

“if you (scribe) got the news over phone from someone, why don’t you name that person. By naming that person, you will be doing a great service to the team as what transpires in a meeting is not supposed to be leaked by anyone,” he thundered.

“Thankfully, our team is very united and both R P and Irfan understand that the best 16 boys get to play for the country. Luckily I don’t have to explain to RP or Irfan about anything as they trust me fully. In fact the whole team trusts each other and I should say that it has been a very short but fruitful journey as a player and captain so far. Though this unwanted event (rumors of rift) has turned out to be an eventful journey as well,” he added.

November 22, 2008 Posted by | Cricket, General, Sports | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment