Tuesday, July 01, 2008

Slow down in hiring...temporarily?

At times I wish -what I said didn't come true!

But as the article in Outlook Business, which carries a 'slow pedalling hiring' quote of mine highlights-the trend is actually unmistake-able! The table -CMIE source- shows a bunch of IT/ITES companies decelerating-and perhaps -there is an effect on the hiring cycle!

The article mentions the slow and cautious approached of companies to battle it- managing the 'bench', holding back offers from campuses, renegotiating of rates with vendors, et al.

It is ironical though..to see a correlation between the oil prices & the weakening of the rupee -could arrest the decline in hiring? I quote..

"The good news for IT/ITES vendors is the fall in the value of the rupee against the greenback. After appreciating sharply last year, the rupee-dollar rate is down to 42-43 levels. This is a huge relief for the IT/ITES industry, as every 1 percentage point fall in the rupee impacts profit margins by 300-450 basis points, depending on the business model," says Kaustubh Dhavse, Deputy Director, Frost & Sullivan.

It is too eerie to think that there could be a connection of some market players ..involved in the sub prime crisis-would they be responsible for the rising oil prices?

As on date, the India story stands to be threatened-galloping inflation, oil prices, stock market beginning to tank, real estate projects being delayed, airlines getting crippled..would the saving propensity of the Indian- bail out the economy? Who knows, the weakening rupee could inspire exporters... IE/ITES industry will bounce back? And, with that hiring will happen in hordes once again....

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