The hiring number looks ridiculously large. Getting 30,000 employees productive is a challenge of mammoth proportions. Its going to drive recruitment consultants crazy.
Tuhina Pandey and Mokshada Batra, April 13, 2010 (Bangalore)
Infosys, the second largest Indian IT company, kick started the earning season on Tuesday posting numbers quite aligned with the street's expectations.
Infosys on Tuesday reported a consolidated net profit of Rs 1600 crore for the quarter-ended March 31, 2010, a quarter-on-quarter growth of 2.6 per cent and year-on-year decline of 0.9 per cent.
The company registered revenues of Rs 5,944 crore for the March-ended quarter 2010, up by 3.5 percent quarter-on-quarter and a year-on-year-growth of 5.5 per cent.
But investors were, as always, more focused on the keenly awaited guidance for next fiscal which came in healthy at 16-18 per cent for dollar revenue growth but more muted in rupee terms at 9-11 per cent with earnings seen largely flat in FY11.
"We have done very well to what we thought we would. We have been able to take advantage of the opportunities in the market and grow faster due to our investments in capacity and capability building during the economic downturn", S Gopalakrishnan, CEO and MD said on Tuesday. "This quarter we added 47 new clients, the highest in recent times", he said.
Infosys also said it was looking at recruiting nearly 30,000 persons for this fiscal year including over 2000 from overseas.
In India it had already made 19,000 campus offers, T V Mohandas Pai, Member of the Board and Head-HRD and Education and Research said.
The company was planning to induct 5,500-6,500 laterals, he said while talking about Infosys' hiring plans. It was planning to recruit 1000 each for its China and US office and around 400 in Manila.
Infosys also saw one of the largest wage increase. "There has been a large wage increase for middle and junior level employees. In senior level there has been a 10 per cent increase in wages". Overall the average wage hike has been around 14-17 per cent, he said.
All expect Infosys to beat its indicated guidance as it has in the past but the margin contraction by 150 basis points next fiscal on the back of rupee appreciation and wage hikes, and rising attrition are causes for some concern.
An upbeat management at Infosys headquarters and the most widely used phrase "cautiously optimistic” is out of fashion for now. However, as of now it seems like "play it safe" is still the Infosys mantra.
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