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New Delhi: Leading industries banking,IT and FMCG sectors,corporate India’s hiring activity is likely to increase by 30 percent mark this year, said global workforce solutions provider Kelly Services.
“Overall, across the main 7-8 key verticals studied by us, an average 30 percent rise in hiring activity this year as compared to 2009. Expansion plans of firms, revival in attrition rates and taking on board recruitment managers indicate a strong recruitment phase in the next six months,” Kelly Services Managing Director Kamal Karanth told media.
Kelly Services today released a study on employment conditions and salaries across key sectors, which aims to guide organisations in their workforce planning.
The Employment Outlook and Salary Guide 2010-11 revealed there is an increased demand for talent at mid-senior levels and even fresher levels, particularly in Banking, IT and FMCG, sectors.
“Fresh recruitment’s in banking and IT industry are likely to increase by 40-50 percent this year compared to the last year, while FMCG may see a 20-30 percent growth in hiring.”
The main factors propelling the upbeat hiring sentiment include strong domestic demand coupled with country’s fast economic growth as well as revival in the U.S. economy. Other key sectors expected to see strong hiring growth include telecom, engineering and real estate, the study said.
The study highlighted that in the banking sector there was a constant demand for banking and finance professionals and high quality customer-oriented services. The current “hot job” in the banking sector is that of relationship managers to provide advice and financial planning.
In the Business Outsourcing Services (BPO)sector, process managers are expected to be in high demand as the focus is on process improvement and cost efficiency.
“Sales and marketing executives are likely to be in hot demand with companies across sectors want to market themselves aggressively to expand their businesses,” Karanth added.
The study also stated that attrition rates across various sectors are on the rise with the revival in the job market.
The banking and IT sectors are likely to see an attrition levels of 15-16 percent this year, while FMCG and telecom may see 10 percent turnover rates on their large bases.
During the first half of 2010, Online hiring activity by Indian companies has risen around 42 per cent. According to the Monster Employment Index, it climbed by 42 per cent to 135 in June this year as compared to 95 in December 2009.
Online hiring in the IT industry during January-June period registered 66 per cent growth, followed by the sector comprising of engineering, cement, construction, iron and steel, which grew by 48 per cent. The Advertising and Public Relations industry was the worst affected as it declined by around 13 per cent in the first six months.
Meanwhile, online hiring in the banking, finance and insurance sector continued its gradual rise with three per cent growth in June over the previous month.In contrast, the real estate sector slid by three per cent in June, while maintaining one of the steadiest three and six-month job growth rates at 52 per cent and 47 per cent, respectively.
If we look at the cities, Kolkata registered 5 per cent increase in June, while Chandigarh saw steepest decline of nine per cent.Delhi NCR witness a rise of one per cent in hiring activity in June, while Mumbai saw an increase of 3 per cent.Among the other metropolitan markets, Hyderabad, recorded a four per cent growth while Bangalore saw reduced opportunities, demand edging down by two points.
Bharat Sanchar Nigam Ltd. (BSNL), a state-run telecom giant, plans to hire 10,000 employees in next two years in its sales and marketing division. Presently having 350,000 employees, BSNL was suggested by Sam Pitroda panel to cut down this number by 100,000. This recommendation was opposed by the staff unions, who said that they would go on strike if this is implemented.
On the contrary, BSNL plans to carry out a major recruitment drive, pushing the marketing and sales division size to 25,000. Kuldeep Goyal, Chairman and Managing Director, said, “It has already redeployed and trained about 10,000 people from other departments for the division and would hire about 10,000-15,000 people in the next one to two years.”
BSNL is also in the process of integrating its operations across the country. The public sector undertaking would implement an enterprise resource planning (ERP) project at an estimated cost of Rs 400 crore to integrate all its segments — finance, personnel, marketing, real estate and others, Goyal said. “The implementation of ERP will increase our productivity and efficiency.
Further, we will be able to access information across all segments immediately, as all the processes will be automated,” he said. The company had also started giving incentives to employees, specifically in the sales department, on achievement of targets within the stipulated time, he added. BSNL has set up a sales division in each of its four business verticals — fixed line, mobile, enterprise and new businesses.
With the hiring processes coming to a forefront in the present scenario, it is sure to establish a mark in the area of employment.
At the Nasscom HR summit 2010, held at Chennai, Mr. Som Mittal, the President of Nasscom said, “There has been a 6-fold increase in direct employment. The number of direct employees in 2001 was around 4.3 lakh and now it has zoomed up to 23 lakh in 2010.” He added, “The contribution of the private sector in this regard has seen a 3-fold increase. It has grown from 5% in 2001 to 15% in 2005-06.”
After a long year of curtailed hiring at the IT and BPO sector, software lobby Nasscom has now given positive forecast for the next decade. It is estimated that the IT and BPO sector will provide direct employment of 10 million and indirect employment of 20 million by 2020.
The IT and BPO industry would play a key role in increasing the women/female candidates employment. By 2020, the industry expects to have around 5 million women employees on its rolls. Currently, the industry has around 37% women employees and around 26% of the female employees are chief wage earners.
Mr Mittal also laid stress on the need for adopting best practices in the IT-BPO industry and wanted companies to follow rules like ethical hiring, insisting on relieving letters, campus hiring in eighth semester, support reference checks and mandate background checks for all employees. “This would help the company and employer. It would ensure that the employee serves his/her notice period correctly with the previous employer,” he said.
The industry is also looking at discouraging frequent job-hoppers in less than 6 months. “There are some employees who join an organization undergo the soft skills and product training and quit. They then go and join another company and do the same. This practice should be strictly discouraged,” Mr Mittal pointed out.
In the coming decade, the industry would witness multi-cultural workforce with 15-20% foreign origin. “Employers would look for talent pool with multiple, specialized domain expertise. They would look for talents with value add capability through innovation and analytics,” he said.
After the global economic downturn which pushed the world economy to hibernate for nearly 20 months, the IT/ITeS sector is expected to hire over 2,000 CXOs in the current fiscal.All these business verticals are action packed today. That means big time hiring. Already there is a 20-30 percent increase in CXO hiring across segments.
Even, other sectors are going to witness an absorption of nearly 5,000 CXOs this year as thousands of vacant and newly created positions across the industry verticals has to be filled up. “With market recovery, there is a visible uptick in the CXO hiring. Another part in this package of good news is that organizations are not only hiring on a large scale but they also promise to pay heavy salaries to make their offer lucrative for potential CXOs. From now on, a CFO can expect a salary from Rs. 80 lakh per annum to Rs. 1 crore, HR heads get upto Rs. 1.5 crore, CEOs from telecom, retail, real estate can expect a salary from Rs. 2.5 crore to Rs. 3 crore and more.
UST Global, the California-based company has close to 7,000 employees working across North America, Europe, and Kochi, Thiruvananthapuram, Chennai and Bangalore is planning to add 1,000 employees to its centers in Kochi and Manila by this year. It also plans to set up an 8,000-seater facility in Thiruvananthapuram.
UST plan to add about 500-600 employees in Kochi this year. The Thiruvananthapuram facility built over 36 acres will be opened by next year. The expansions will help us ramp up our managed services and remote infrastructure management practices.In February UST set up its IT services division in Manila. The centre has about 350 employees and now planning to expand its strength by hiring 1,000 employees.
The Paris-based IT services and consulting company, Capgemini has planned to employ more than 4000 people for its India operations during this quarter. Capgemini India added 2,500 people in the first quarter.
The company’s India headcount stood at 23,353 at the end of March, making India one of its largest centres. The company’s headcount at its headquarters at 19,892 saw a drop of 0.7 percent, whereas the India headcount grew by over 5 percent in January-March (Q1). This reflects the company’s strategy to leverage its offshore presence. Onshore recruitment reduced by 11.5 percent on a quarter-on-quarter basis.
The headcount growth also reflects the increased focus of Capgemini on India. Asia Pacific, which also includes India, contributed 2 percent to its revenue in the first quarter, up from 1.6 percent in the same quarter last year. Capgemini reported a revenue of 2,052 million euro (around Rs 11,750 crore) for the first quarter of 2010, down by 6.9 percent from 2,205 million euro (around 12,770 crore) in the same quarter last year.
The new project from Unique Identification Authority of India (UIDAI) will provide an identity to over one billion Indians. As a result it will also grant estimated 3,50,000 new jobs. This super project is expected to result in a commercial opportunity of $20 billion in the first five years and after that, $10 billion annually.
The revenue is expected to flow in a phased manner. According to the reports in the first phase the revenue opportunities will be for consulting, IT services, business process re-engineering (BPR), hardware and training and maintenance. Whereas handset makers, mobile payment services, market analytics and business intelligence services, and hardwares will generate it in the second phase. In the third phase, the potential revenue opportunity for targeted marketing could be in the region of $12 billion per annum.
Other than software and hardware providers, telcos and banks will be big beneficiaries. Telcos stand to gain 60 million new subscribers, $4.5 billion in mobile payments, and $2 billion in average revenue per user (ARPUs) and handset sales, while banks stand to gain 125 million new bank accounts from the existing figure of 240 million unique account holders.
India’s leading IT firms Infosys, Wipro and Tata Consultancy Services has been listed among the world’s top 10 best outsourcing providers. The list released by International Association of Outsourcing Professionals (IAOP).
The ranking of the top ten firms which made to the list is as follows: Accenture bagged the top position followed by Infosys and Sodexo. Wipro Technologies won the fourth position while IBM and ISS are at fifth and sixth. TCS is at the seventh position while ARAMARK, CSC and Convergys bagged the eighth, ninth and 10th positions respectively.
Nearly 15,000 jobs will be coming soon as four leading technology and telecom firms are getting ready to expand their operations at a fast pace. Leasing deals for office space of around 15 lakh sqft in Bangalore have been signed in the past two months for Accenture, Oracle, Nokia and Capgemini, reports Anshul Dhamija of Times of India.companies had reduced the space allotted to an individual to around 65 sqft. Even by this revised figure, 15 lakh sqft of office space means 23,000 new jobs.
Capgemini has signed for 2.5 lakh sqft of office space at the Summit in Brigade Metropolis, a deal confirmed by M R Jaishankar, CMD, Brigade Enterprises. It is said Capgemini will have a head count of a little over 2,000 people at the facility, most as new recruits
Many MNCs are expanding their operations in SEZs as the sunset clause for STPIs is coming up by end-2011.Unlike the 2002-07 boom, the wave this time will not be led by the IT industry alone. Other sectors like aerospace, biotechnology, pharma, clinical research, auto design and ancillary and manufacturing are set to pump up the volume.
As companies downsized in the past 18 months, an inventory of 12 million sqft of ready-to-occupy office space built up in Bangalore. IT hubs like Whitefield and Outer Ring Road have over 5 million sqft of inventory waiting to be occupied.
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