NOW IGATE DELAYS NEW JOINEE DATES
After Infosys it is now the turn of iGate which has delayed joining dates for new hires as per newspaper reports. California-headquarted iGate, which has a majority of its staff in India and employs around 30,000 people, said out of the 3,000 campus offers it made across India, joining dates of around 1,000 engineers will be delayed by one, or possibly, two quarters. "The overall demand environment remains weak. Close to 1,000 freshers, who were expected to join in July-August, will now join by the end of September or October," said Srinivas Kandula, HR head at iGate. "If the economic situation worsens, we will have to delay it by another quarter," he said.
Last month, country's second-largest IT firm Infosys had said it would delay the joining dates of over 25,000 engineers it hired from campuses to as late as mid 2013, a sign of how IT companies are coping with project delays and weak economic sentiments in the US and Europe.
HEADED FOR A SLOWDOWN ?
Prominent research organisations who track the sector closely have signalled about the possibility of slowing growth in the industry
CLSA
Continued delays in decision-making and flux in discretionary spending implies near-term demand outlook could surprise on the downside. While FY13 EPS seems safe with the currency tailwind, the spectre of 2 consecutive years (FY13/14) of low $-revenue growth looms large
STANDARD CHARTERED
We see rising risk of subdued volume trajectory in the BFS vertical extending beyond FY13, even outside of event/regulatory risks. This could be in contrast to the quick M&A-led bounce-back in IT spending after the global financial crisis.
DEUTSCHE BANK RESEARCH
Channel checks suggest that clients are not cancelling existing projects or delaying new deal ramp-ups.
However, we believe pricing in the BFSI (banking and financial services and insurance) vertical could be under pressure in 2HCY12. We note that Management of most investments banks would be stringently reviewing the CY12 IT budgets in the first week of July and there is a strong possibility that 2HCY12 spending will come under pressure.
After Infosys it is now the turn of iGate which has delayed joining dates for new hires as per newspaper reports. California-headquarted iGate, which has a majority of its staff in India and employs around 30,000 people, said out of the 3,000 campus offers it made across India, joining dates of around 1,000 engineers will be delayed by one, or possibly, two quarters. "The overall demand environment remains weak. Close to 1,000 freshers, who were expected to join in July-August, will now join by the end of September or October," said Srinivas Kandula, HR head at iGate. "If the economic situation worsens, we will have to delay it by another quarter," he said.
Last month, country's second-largest IT firm Infosys had said it would delay the joining dates of over 25,000 engineers it hired from campuses to as late as mid 2013, a sign of how IT companies are coping with project delays and weak economic sentiments in the US and Europe.
HEADED FOR A SLOWDOWN ?
Prominent research organisations who track the sector closely have signalled about the possibility of slowing growth in the industry
CLSA
Continued delays in decision-making and flux in discretionary spending implies near-term demand outlook could surprise on the downside. While FY13 EPS seems safe with the currency tailwind, the spectre of 2 consecutive years (FY13/14) of low $-revenue growth looms large
STANDARD CHARTERED
We see rising risk of subdued volume trajectory in the BFS vertical extending beyond FY13, even outside of event/regulatory risks. This could be in contrast to the quick M&A-led bounce-back in IT spending after the global financial crisis.
DEUTSCHE BANK RESEARCH
Channel checks suggest that clients are not cancelling existing projects or delaying new deal ramp-ups.
However, we believe pricing in the BFSI (banking and financial services and insurance) vertical could be under pressure in 2HCY12. We note that Management of most investments banks would be stringently reviewing the CY12 IT budgets in the first week of July and there is a strong possibility that 2HCY12 spending will come under pressure.
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