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Jul 12, 2012, 08.23 AM IST
CNBC-TV18’s Shreya Roy finds out why top-tier IT firms maybe losing talent to smaller counterparts.
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IT giant Infosys , which announced delays in recruitment in June, has seen a 30% year-on-year dip in job applications in FY12. Applications received by the firm fell by over two lakhs to 6,22,971 applications during the period. According to recruiters, the decline in applications could be a trend common across top-tier firms, courtesy a growing interest in mid-sized players amongst technology professionals.
IT professionals with zero to five years of experience, say industry experts, are gravitating towards smaller firms like Hexaware and Mindtree as they offer to faster growth and recognition, opportunities to work on niche projects and develop specialised skills.
Sangeeta Lala, co-founder, TeamLease, "What mid-tier firms can't offer in terms of brand value and campuses, they give through better projects, travel, variable pay and a higher retention bonus."
Larger companies like Infosys, TCS and Wipro are also losing the edge in terms of compensation and benefits. Mid-tier companies have been quick to capitalize on this change in trend. Mindtree, for instance, says it has been getting four employees back for every one it loses to the top-tier firms.
Sangeeta Lala, co- founder, TeamLease, says "Larger IT firms have lost their sheen such as stock options and exposure to global markets, in the last few years." Besides mid-sized firms within the sector, newer technology segments such as e-commerce are also luring young recruits.
E Balaji, MD & CEO, Randstad, says, "Candidates are now opting for organisations that offer more learning and development, excitement in e-commerce and mobile technology."
However, the decrease in applications came at a time when net recruitment at Infosys was up by 12% year-on-year in FY12 and rival TCS hired the most in its entire history during the same period.
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