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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.

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

Gambhir ban upheld by ICC, will miss Nagpur Test

Gautam Gambhir walks back to the pavilion as the Australian team celebrates the fall of his wicket.

WALKING OFF: Gautam Gambhir walks back to the pavilion as the Australian team celebrates the fall of his wicket.

The International Cricket Council (ICC) has rejected the appeal of Gautam Gambhir and upheld the one-Test match ban imposed by match referee Chis Broad.

Justice Albie Sachs, who was appointed to hear the appeal, upheld the ban, which means Gambhir will miss the fourth and final Test match against Australia starting from November 6.

Justice Sachs, Cricket South Africa’s appointment on the ICC Code of Conduct Commission, was appointed to hear the appeal in accordance with ICC Code of Conduct processes.

Tamil Nadu opener M Vijay has been named as Gambhir’s replacement for Nagpur Test.

Gambhir was charged under Level 2.4 of the ICC Code of Conduct for pushing out his elbow that hit Australian all-rounder Shane Watson during the first day’s play in the third Test match in New Delhi.

While handing out the one-Test ban on Gambhir, Broad said that he also considered an incident that happened almost a year ago when Gambhir went face to face with Pakistan’s Shahid Afridi in during an ODI Kanpur.

“The ICC has repeatedly told the players that deliberate physical contact between players will not be tolerated. I have also taken into account the previous offences of Gambhir and therefore, I am satisfied that the penalty imposed is an appropriate outcome in the circumstances of this matter,” Broad had said.

November 5, 2008 Posted by | Cricket, General, Sports | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment