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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

War on Mumbai Day 3: Sequence of events so far

30 hrs IST on Wednesday night, terrorists entered the 22-storey Taj hotel and took hostages.

WARZONE MUMBAI: At 21:30 hrs IST on Nov 26, 2008 night, terrorists entered the 22-storey Taj hotel and took hostages.

More than 36 hours on, the war on Mumbai is still in full flow. The situation has been developing minute by minute. Here’s making sense of what’s happened so far.

At 21:30 hrs IST on Nov 26, 2008 night, terrorists entered the 22-storey Taj hotel and took hostages. Mumbai’s Anti-Terrorist Squad reached the area and soon a gunbattle began, punctuated with explosions.

Within minutes of the first gun being fired, there was panic across Southern Bombay. Young, heavily armed terrorists were at various locations – from the CST Station to five star hotels to the very popular Leopold Cafe in Colaba. Eyewitness accounts being collated by intelligence agencies suggest that these terrorists made their way into the heart of city in boats.

At 02:00 hrs IST on Nov 27, 2008, a fire broke out in Taj hotel’s central dome. In the continuing gunbattle, three terrorists were killed by 05:00 hrs IST on Thursday. Some guests were evacuated, but the war was far from over.

Apparently having landed by boat at the nearby Gateway of India, the terrorists split up. They first opened fire at the popular Cafe Leopold before moving to the Taj and Oberoi hotels. A group of terrorists entered the CST Station, fired and lobbed grenades into the crowded. Ten people died in the ensuing mayhem.

The terrorists then moved to the adjacent municipal headquarters and then to Cama hospital, where again they opened fire and lobbed grenades.

The terrorists managed to kill ATS Chief Hemant Karkare, who was supervising operations personally. Along with him were Additional Commissioner of Police, Ashok Kamte and senior police inspector Vijay Salaskar, a crack encounter specialist of the Mumbai Police, both of whom too died in the attack on Cama hospital.

The terrorists then hijacked a police vehicle and drove towards Metro junction, where again they fire into the crowds present there. This group of terrorists were later gunned down by a police team.

While police hunted for the terrorists, the Army, National Security Guard and Naval commandos tried to defuse the hostage situation in the Taj and Oberoi hotels – where some foreigners were being held – and Nariman House through the night.

The Armed Forces have had partial success at the Taj, but the stand off at the Oberoi hotel and Nariman House continues.

November 29, 2008 Posted by | Attacks, General, India Related, World News | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment