Survey :-Job cuts on anvil at India Inc, salary hikes to hit dead-end
Amid continuing economic uncertainties, a lesser number of companies at plan to create new jobs in the coming months, while some employers also expect job cuts, says a survey by job portal Naukri.com.
Just about 54 per cent of India Inc predict fresh job creation in the second half of this year whereas the same sentiment was shared by 68 per cent entities at the start of 2013, while salary hikes too are expected to be on the lower side, said the survey.
Hiring sentiment would be muted for the remaining half of 2013 amid economic uncertainties, it added.
While around 53 per cent recruiters expect replacement hiring in the second half of this year, about "15 per cent of recruiters have anticipated a hiring freeze and layoffs in the coming months".
Layoffs are expected to increase in banking, auto and ITES sectors, the survey said.
The survey covered more than 1,100 employers.
Info Edge India's Chief Financial Officer Ambarish Raghuvanshi said macroeconomic indicators are running weak, the rupee has stumbled to an all time low and inflationary pressures are strong.
"The hiring confidence can't overlook these parameters and hence reflects the slowdown. However, replacement hiring would be considerable in the coming six months," he added.
Naukri.com is part of Info Edge group.
Going by the survey, most sectors -- except for IT and construction -- witnessed a sharp decline in creation of new jobs last month as compared to January.
"About 15 per cent of recruiters have anticipated a hiring freeze and layoffs in the coming months as compared to 10 per cent in January 2013," it said.
Regarding increments for employees this year, the survey found that 39 per cent recruiters expect the increment to be in the range of "10 to 15 per cent".
About 33 per cent respondents said that increments are expected to be less than 10 per cent.
"Lowest increments were given in the auto and pharma sector, wherein a majority of the recruiters said salary hikes in their organisation were in the range of 5-10 per cent in 2013," it said.
On the other hand, 45 per cent respondents said attrition level has been stable over last 12 months.
However, striking an optimistic note, Raghuvanshi said, going forward, improvement in the economy would be factored in gradually by employers.
The Naukri Hiring Outlook Survey is conducted twice a year.
Source : Financial Express.
Sources:- Infosys planning to cut onsite jobs
In an attempt to ensure cost efficiency in its operations, Infosys -- India's second-largest IT services exporter -- is likely to reduce its onsite operations, reported ET Now.
According to ET Now sources, Infosys is considering downsizing its onsite, which implies that a lot of people in the support functions are likely to face the possibility of a job cut.
ET Now understands that the marketing team in the US is also on the radar. "Also, the Infosys management is looking to cut costs in the strategic global sourcing (SGS) division," ET Now reported.
This is being seen as an attempt to restructure the sales engine in the US. "Infosys feels that the SGS group is overlapping with what the sales function does," ET Now added.
It is believed that NR Narayana Murthy and his son Rohan Murty have been in the US for the last two weeks to fine tune the strategy to cut costs on onsite. Infosys' onsite cost accounts for 46% of total cost as of March 2013. The management refused to comment on any queries pertaining to 'internal organizational matters.'
ET had earlier reported that Infosys under Chairman Murthy is centralising decision making. The chairman's office — the new power centre created after the return of retired co-founder Murthy — has to sign off on key decisions related to large technology contracts, such as pricing or the way a deal is structured that might expose Infosys to future risks, at least three senior executives told ET on the condition of anonymity.
"For all practical purposes, Murthy is the chairman, CEO, COO all rolled into one," said one of the executives.
Before Murthy's return, chief executive officer SD Shibulal was in the process of decentralizing decision-making, especially those related to negotiating and signing contracts.
The intention was to empower client-facing sales executives who are aware of moves by competitors and other considerations critical in negotiating and winning large outsourcing contracts. Under that model, a business unit head would be empowered to close large deals.
For Infosys, which gets the lion's share of its over $7-billion (Rs 42,000 crore) revenues from corporations in the US and Europe, this could mean longer decision cycles when it comes to large contract negotiations
Source : TOI
According to ET Now sources, Infosys is considering downsizing its onsite, which implies that a lot of people in the support functions are likely to face the possibility of a job cut.
ET Now understands that the marketing team in the US is also on the radar. "Also, the Infosys management is looking to cut costs in the strategic global sourcing (SGS) division," ET Now reported.
This is being seen as an attempt to restructure the sales engine in the US. "Infosys feels that the SGS group is overlapping with what the sales function does," ET Now added.
It is believed that NR Narayana Murthy and his son Rohan Murty have been in the US for the last two weeks to fine tune the strategy to cut costs on onsite. Infosys' onsite cost accounts for 46% of total cost as of March 2013. The management refused to comment on any queries pertaining to 'internal organizational matters.'
ET had earlier reported that Infosys under Chairman Murthy is centralising decision making. The chairman's office — the new power centre created after the return of retired co-founder Murthy — has to sign off on key decisions related to large technology contracts, such as pricing or the way a deal is structured that might expose Infosys to future risks, at least three senior executives told ET on the condition of anonymity.
"For all practical purposes, Murthy is the chairman, CEO, COO all rolled into one," said one of the executives.
Before Murthy's return, chief executive officer SD Shibulal was in the process of decentralizing decision-making, especially those related to negotiating and signing contracts.
The intention was to empower client-facing sales executives who are aware of moves by competitors and other considerations critical in negotiating and winning large outsourcing contracts. Under that model, a business unit head would be empowered to close large deals.
For Infosys, which gets the lion's share of its over $7-billion (Rs 42,000 crore) revenues from corporations in the US and Europe, this could mean longer decision cycles when it comes to large contract negotiations
Source : TOI
: Report :- Slowdown hits online hiring activity
Online hiring activity registered a decline of nearly 4% in July over the same month a year ago amid weak economic conditions, according to a research by job portal Monster.com.
On a month-to-month basis, the index witnessed even a sharper decline as it was down by 6.10% to 123 in July from 131 it registered in June.
"The decline in annual growth is reflective of the prevailing challenging economic conditions. Keeping in mind the uncertain economic/ political scenario, companies are adopting a cautious approach while hiring which is reflected in the index," Monster.com (India/ Middle-East/South-East Asia) Managing Director Sanjay Modi said.
A sectoral analysis shows that 12 of the 27 industry sectors monitored by the Monster Employment Index registered expansion in online recruitment activity between July 2012 and July 2013.
While hiring in telecom/ISP sector improved by 20% followed by BPO/ITeS sector (up 18%), chemicals/ plastic/ rubber, paints, fertiliser/ pesticides (down 13%) showed steepest annual decline.
Online demand improved in six of 13 occupational groups monitored by the Monster Employment Index between July 2012 and July 2013.
The most substantial annual gains amongst occupational groups was registered in customer service (up 18 per cent) followed by hospitality and travel (up 10%).
Among occupation groups, senior management exhibited the steepest annual decline (down 56%).
Online recruitment activity was up on the year in six of 13 locations monitored by the index.
Kolkata (up 21%) followed by Chandigarh (up 15%) led all cities in annual growth, while, among major metro-areas, Kolkata (up 21%) followed by Hyderabad (up 12%) registered the highest annual growth.
The Monster Employment Index India is a monthly gauge of online job posting activity based on a real-time review of millions of employer job opportunities culled from a large representative selection of career Web sites and online job listings across India.
Source : TOI
On a month-to-month basis, the index witnessed even a sharper decline as it was down by 6.10% to 123 in July from 131 it registered in June.
"The decline in annual growth is reflective of the prevailing challenging economic conditions. Keeping in mind the uncertain economic/ political scenario, companies are adopting a cautious approach while hiring which is reflected in the index," Monster.com (India/ Middle-East/South-East Asia) Managing Director Sanjay Modi said.
A sectoral analysis shows that 12 of the 27 industry sectors monitored by the Monster Employment Index registered expansion in online recruitment activity between July 2012 and July 2013.
While hiring in telecom/ISP sector improved by 20% followed by BPO/ITeS sector (up 18%), chemicals/ plastic/ rubber, paints, fertiliser/ pesticides (down 13%) showed steepest annual decline.
Online demand improved in six of 13 occupational groups monitored by the Monster Employment Index between July 2012 and July 2013.
The most substantial annual gains amongst occupational groups was registered in customer service (up 18 per cent) followed by hospitality and travel (up 10%).
Among occupation groups, senior management exhibited the steepest annual decline (down 56%).
Online recruitment activity was up on the year in six of 13 locations monitored by the index.
Kolkata (up 21%) followed by Chandigarh (up 15%) led all cities in annual growth, while, among major metro-areas, Kolkata (up 21%) followed by Hyderabad (up 12%) registered the highest annual growth.
The Monster Employment Index India is a monthly gauge of online job posting activity based on a real-time review of millions of employer job opportunities culled from a large representative selection of career Web sites and online job listings across India.
Source : TOI
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