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Although this article talks about just Infosys – bu it is a good indicator of what is going on in the Indian IT companies in general. The hiring is up; attrition rate is up (Infy, btw, has one of the lowest attrition rates); the salaries are up. What is the key here is the productivity! That needs to be up!
India’s IT bellwether Infosys Technologies Ltd made the largest hiring in the just-concluded fiscal 2006-07, taking its total strength to a whopping 72,241 employees as against 52,715 in the previous fiscal (FY 2006).
The company said in a statement in Bangalore on Friday that it had recruited 30,946 employees, including 8,023 laterals. For the fourth quarter (January-March) of the fiscal, the gross addition was 5,992 and net addition 2,809.
With the attrition rate increasing marginally year-on-year (YoY), the net addition for the entire fiscal was 19,256 employees. During the last 12 months, the attrition rate has gone up to 13.7 per cent from 11.2 per cent.
"Our investments in the education system through campus connect and project genesis initiatives have qualitatively enhanced the capacity in educational institutions to meet our future demand," Infosys board member and head of HRD and education & research TV Mohandas Pai said in the statement.
On the compensation front, Pai said offshore salaries were increased by 12-15 per cent for fiscal 2008. "We are making substantial investments in creating a scalable training engine in Mysore to support our future growth. By December 2007, we will have a capacity to train about 13,500 employees at a time," Pai added.
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