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Software cos' response to US slowdown mature -- `Recruitment more selective now'

V. Rishi Kumar

HYDERABAD, April 9

INDIA has shown a mature reaction to the slowdown in the technology spending in the US. There have been no knee-jerk reactions to the issue from the Indian software companies, according to Mr T. Hari, Vice-President, Human Resources, Satyam Computer Serv ices Ltd.

``There is a strong anticipation of future businesses to be diverted offshore from US. Hence, there has been no significant change in the recruitment pace at project leader and project manager levels. Team member/junior level recruitments are being close ly monitored,'' Mr Hari said.

Reactions to the slowdown in India and the US are mixed. While those in India expect more business, the scene is different in the US.

Since Satyam's onsite presence is part of the overall project team of offshore and onsite, there has been no impact on the business scenario, as of now.

Small-time operators who have no offshore presence and were involved in placement of software professionals overseas, may be the hardest hit, in this. Even the product companies may also feel the impact more, Mr Hari said.

Satyam, a major IT player, sees it is an opportune time to consolidate the achievements of the past and redirect energies if required and tap the larger talent pool that is now available from US.

There can be a higher level of filter in recruitment, given the larger pool of professionals that is available to choose from.

A senior consultant based in the US said: ``The Internet is no vapourware. It is for real. But companies which did not have long-term planning and vision made a lot of assumptions as to how fast the public can catch up with the technology. These assumpti ons have gone awry.''

The job scene right now was pretty bad, but relatively. Last year, if a college graduate posted his resume on the Net, he would have got a few interview calls by the end of the day.

Now, leave alone college graduates, even highly qualified people who had been laid off were finding it difficult to get one as there is no shortage of qualified people.

Two job fairs in the Bay area witnessed gate crashes and the organisers had to control the flow, the consultant said.

Mr J.A. Chowdary, President of Hyderabad Software Exporters Association, said that there had not been reports of people returning home now.

``Though we will witness temporary unemployment, they will find ways to get over the crisis,'' he added.

Mr T. Muralidharan, Managing Director of CareerMosaicIndia.com, said: ``A lot of consultants who set up shop moving away from major IT companies are now in trouble. Some of them are in trouble due to demand-supply situation. The salaries went up from $45 ,000 per annum to $120,000 in no time. It is now drifting to more realistic levels.''

All companies which wanted to build up fast hired consultants at extraordinary salaries. They are now in deep trouble, causing the same to employees.

The number of people visiting the career portal, Naukri.com, in the last month has seen a marked increase, along with a rise in the number of people registering with it.