Due to Global Recession Even Infosys Ltd has again deferred the Joining dates of about half of the 35,000 employees Mostly from different Campuses.

The Bangalore-based IT major was expected to recruit about 35,000 employees, including 26,000 from campuses across various cities,

Will now recruit 17,000 in the first half of next fiscal


Infosys Ltd has again deferred the joining dates of about half of the 35,000 employees it planned to recruit this fiscal because of a continued run of sluggish growth.

CAMPUS RECRUITS

Last month, the IT major said that it would defer hiring of 17,000 new recruits by three months, but even this looks unlikely now.

It now plans to defer recruitment of 17,000 to the first half of next fiscal (2013-14). This will also affect the prospects of 6,000 campus recruits who will now be recruited during FY14.

The Bangalore-based IT major was expected to recruit about 35,000 employees, including 26,000 from campuses across various cities, this fiscal (2012-13). But the FY13 gross hiring could fall short of the guidance that they had given out in the first quarter this fiscal. Among fresh hires, the number will now be reduced to 20,000. However, onsite hiring will continue to be maintained at about 2,000.

As Infosys has slipped into the silent period ahead of its third-quarter results on January 11, its spokesperson referred to an announcement from the company in November this year which stated that there are no plans to reduce the total number of recruitments, though a part of the recruitments will be deferred by three months to January this fiscal.

An analyst with Axis Capital said the December quarter for Infosys will be muted. “The September quarter saw strong momentum in large deals and volume growth. However, momentum has not sustained in Q3 impacting new deal visibility,” the analyst, Priya Rohira, Executive Director, IT & Telecom, wrote in a note. Hence, hiring dates of campus recruits will be deferred, the analyst said.

Analysts with IDFC said for the company, supply of talent is not an issue, given the sluggish volume growth across the industry. However, improving utilisation from the current 72 per cent, excluding BPO employees and trainees, to a level of 76-80 per cent, remains a priority for the management.

“We believe the company would also take a relook at visibility, and a downward revision of organic growth guidance cannot be ruled out,” the IDFC analysts said.

An analyst with Tata Securities said they expect the company to miss its EBITDA margin guidance, given the pressure on revenue growth. He also said that in case the US fiscal cliff event happens, there is likelihood of clients delaying their calendar year 13 budget cycle or deferring their spending till clarity emerges.

The recession that keeps on taking Chicago Tribune The respectfully nicknamed Great Recession officially ended in June, 2009, and the wounds from that economic collapse have been slow to heal. Yet even a robust recovery, as the nation experienced after the double-dip recessions of the early 1980s... See all stories on this topic » Chicago Tribune

Poll: Majority expect recession in 2013 The Hill (blog) A full 70 percent of voters told the conservative-leaning pollster Rasmussen they expect a recessionnext year if Congress fails to stop the tax increases and spending cuts that are set to begin in January. But even if lawmakers take action before the ... See all stories on this topic »

All Signs Pointing to Recession? Fox Business Details. Description. Jim Lebenthal, Lebenthal Asset Management president, on the chances of the economy falling back into recession, and how this will impact the markets. Duration 4:47; Date Dec 26, 2012. Advertisement ... See all stories on this topic »

The Great Republican Recession of 2013 is Now Five Days Away Mother Jones After the failure of his fiscal cliff negotiations with the White House, followed by his humiliating inability to get even his ridiculous "Plan B" proposal approved by House Republicans, John Boehner gave up and punted the whole thing over to the ... See all stories on this topic » Mother Jones

Rasmussen Survey: Recession Likely, Fiscal Cliff Deal or Not Moneynews Most Americans expect the U.S. economy to slide into a recession next year whether policymakers avoid the fiscal cliff or not, a new Rasmussen Reports survey finds. The White House and Congress remain at odds over fiscal reforms, and failure to agree ... See all stories on this topic »

French share their way through recession Aljazeera.com The French are responding to Europe's stagnant economy by sharing rather than consuming. People have seen that statistically, most people with a power drill use it for 12 seconds each year, so now they are wondering: why bother buying one? The same ... See all stories on this topic »

The Recession Ends, Mobility Stays Hot in 2013 IT Business Edge (blog) The New York Times has an interesting story in its Dealbook section floating the premise that venture and investment money is flowing into less glitzy and, presumably, less risky projects. Instead, Nicole Perlroth writes, the projects being favored are ... See all stories on this topic »

A Last Look At 2012 Recession Indicators Seeking Alpha A recession is generally defined by the NBER as a substantial downturn in production, employment, sales, and income. Now that the November numbers are in, let's take a last look for where those numbers stand in 2012. The St. Louis FRED site directs us ... See all stories on this topic »