Slowdown will impact new graduates: Infosys CEO

RELATED NEWS Infosys up on bagging eBiz project from Commerce Ministry Infosys Q1 revenues down 3% to Rs 5,472 crore Infosys increases mediclaim budget by 46% for FY10 ALSO READ See latest News about Infosys See previous management interviews See what other Experts & Brokerages are saying about Infosys Infosys BSE | NSE 09/02/12 Are Mutual Funds betting on Infosys?

Chennai, July 28

The slowdown that the IT and BPO industry faces is bound to throw up challenges for the graduating classes of 2010 and possibly 2011, said Mr S. Gopalakrishnan, CEO and MD of Infosys Technologies .

Addressing the journalists of The Hindu group of publications, Mr Gopalakrishnan said, "The current scenario will have an impact on those graduating in 2010, and possibly 2011. They will see a challenge." This would mean that while they wait for placement, students would have to equip themselves with skills that the IT industry would find useful.

Commenting specifically on the job creation scenario, Mr Gopalakrishnan said despite the slowdown, the IT-BPO industry would remain one of the largest recruiters of engineers. "And, if opportunities in BPO open up further, then non-engineering graduates too would benefit."

Asked if salaries for the fresh recruits would slump, he said, "That might happen temporarily. But again, when the GDP growth touches 8-9 per cent, salaries, even at the fresher levels, would rise", because the IT sector would be competing for talent against industries such as retail.

Government biz

Mr Gopalakrishnan reiterated that Infosys would be keen on garnering market share in the Government space. Asked why business from Governments typically contributes less than one per cent of Infosys' annual revenues, he said, "When you are growing at a compounded growth rate of 35 per cent, sometimes you get complacent. (Besides), Government contracts used to be difficult to get, were time-consuming..."

But, he clarified since the Governments are spending more in the economic downturn, their percentage contribution to revenues would increase. "Infosys is now focused on business from Governments."

It recently got a multi-year "eBiz" order from the Ministry of Commerce and Industry and said it would be interested in the opportunities the Unique Identification Project would throw up.

Growth

Mr Gopalakrishnan said the IT industry would go back to double-digit growth once the global economy revives. "But, it would be difficult to say if we would go back to days of 35- 40 per cent growth."

Spending on technology across industries is a given, as the solutions to problems from the downturn would come from the IT industry, he added.

Taken from Business Line

thehindubusinessline.in