IT recruiters prefer to wait and watch - The IT recruiters aren’t rejoicing yet

By Harsha Pramod @ Friday, May 09, 2008 12:15 PM

Section - Outsourcing/Outsourcing

The depreciation of the Indian rupee means techies can breathe easier. A strong Indian rupee may be a matter of pride for the Indians, but doesn't put IT companies in a comfortable position, especially those dependent on America. Many IT companies reacted to the depreciation by cutting down various types of expenditure. This reflected on IT recruitment as well.

The recruitment scene was generally dull when the rupee was stronger. Cost cutting also affected increments and perks. It was clearly a difficult period for IT. Some of the companies stopped any recruitment for nearly six to seven months and preferred to make use of the existing workforce.

Some of the companies increased the number of people hired on a contract basis and decreased the number on direct rolls. There are companies, which resorted to firing of its people to cut costs. Companies which maintained a high number of engineers on bench anticipating new projects, promptly cut down the number. Some of the companies did not maintain a bench at all. Some resorted to recruiting less experienced engineers to cut costs.

The IT recruitment scenario may change following the rupee depreciation. However the IT companies are still cautious about uncertainties regarding rupee value. Thus the present scenario may continue for while.. They feel that it is too early to say anything about a change in the present scenario and would prefer to wait for the US elections to predict the immediate future. The IT recruiters aren’t rejoicing yet. X