IT companies defer campus hiring by 3 months to September
Information technology companies have put off campus recruitments by three months to September 2012, saying they had delayed visits to engineering colleges because of “operational reasons”. Industry insiders, however, attribute this to the slowdown the industry is facing.
Every year, India produces an estimated 10 lakh engineering graduates, of which two lakh are recruited by IT companies. In 2010, these companies hired 1.7 lakh engineers and in 2011, they offered jobs to two lakh.
Earlier this year, industry body Nasscom said members would recruit two lakh engineers in 2012 despite economic gloom in the West and other slowdown flags hoisted on the tech horizon.
IT companies have delayed campus hiring this time because, officials said, they are not expecting manufacturing firms to recruit in large numbers this year. “We have decided to visit the campus only in September. This was decided internally among Nasscom members,” a recruitment head of an IT company said.
Industry insiders also attributed the hiring delay to the general slowdown weighing on the sector.
Exports from the IT sector are set to slow down further this fiscal. Nasscom has predicted a growth rate of 11-14% for the industry in FY13, compared with a projected 16.3% in FY2012. The lowering of growth estimates is because of the reduced spending on technology by US corporations, the debt crisis in Europe and the political unrest in the Middle East.
Training for 2011 recruits started
Usually, companies visit campuses during the eighth semester but last year, Nasscom advanced hiring to the seventh semester. “When we went in the eighth semester, we found that the core sector (manufacturing) drew the best of talent. Therefore, we advanced it to the seventh last year on a trial basis. It worked well. The industry issued offer letters to 2 lakh candidates,” a source said.
For candidates who were offered jobs in 2010, the “on-boarding” was supposed to start in May-June 2011, but it was delayed by nearly three months. On-boarding is the process of training campus recruits to make them job-ready for projects. “A number of companies delayed on-boarding for 2010 recruits. The process should have started in June 2011. Thankfully, everybody was taken in, though there was a delay,” said a company official.
In some cases, the on-boarding for 2010 candidates was completed only in March 2012. “We had finished on-boarding of the previous year campus recruits in March,” Priti Rajora, global head (talent acquisition), Wipro Technologies, said.
For the offers made in 2011, companies such as Wipro and Cognizant have started the on-boarding process in the last week of May. “We have started on-boarding the campus recruits from May onwards,” said Rajora. A Cognizant official said on-boarding started May end.