Infosys to add 26,000 employees in FY08

116570 Investors following Infosys. Share this News with them.

0

Like this story, share it with millions of investors on M3

Infosys to add 26,000 employees in FY08

Infosys Technologies has announced its first quarter results. The company has reported consolidated net profit of Rs 1,079 crore (including tax write back) in the first quarter of FY08, as against Rs 1,144 crore in the previous quarter, down 5.68%, which is above the market expectations.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Infosys Q1 revenues grew by 25.1% YoY EPS for FY08 to be in a narrow range: S Gopalakrishnan Revenue impacted by Rs 287 cr due to Re rise: Infosys Infosys Technologies Q1 revenues grew sequentially by 7.5% Infosys BSE | NSE 28/05/12 Are Mutual Funds betting on Infosys?

Infosys Technologies has announced its first quarter results. The company has reported consolidated net profit of Rs 1,079 crore (including tax write back) in the first quarter of FY08, as against Rs 1,144 crore in the previous quarter, down 5.68%, which is above the market expectations.

The management said that Infosys will add 26,000 employees in FY08. The employee utilization , including trainees, is up 260 bps to 70.5% and the attrition rate is at 13.7%.

T V Mohandas Pai , Director-Human Resources said the fact that the headroom in employee utilization is in their favour.

Regarding the BPO business, Pai said, "Overall, we are able to source people and the key challenge is to diversify the workforce. We have hired from all over the world. We accelerated hiring in North America. A batch of youngsters are coming from the United States to train in Mysore. They would be completing their training and going back this quarter. We have done many initiatives in the last several quarters, which are now bearing fruit."

The management stated that the wage cost is up 2.5% and the visa cost is up 1%. The offshore wages are up 12-15%, while the onsite wages are up 5-6%.

Pai added that they would like to see a national skill development programme, which might reduce attrition and increase supply. He feels that the government is not doing enough in the HR area.
 
"I would like to see a large-scale national skill development program, so there will be many more skilled people coming into the marketplace. That should reduce attrition and increase supply. The government needs to get its act together on this. It is not investing enough in the HR area. We are not taking advantage of the opportunities available," commented Pai. 

Infosys has to build their employment band and offer good compensation, observed Pai. However, he feels that reducing the wage increase is not an option.

"Most people have many more career options than in the past. So, obviously, we have to build our employment band and offer them good compensation. There is no way you can hold on to wage increases, which are the normal thing like 12-15% a year and expect quality people. Today, if you are in the top 20% of your class, you have many career options. All we have to do is go to campuses and woo these people. So, reducing the wage increase is not an option at this point of time," said Pai.

According to Pai, in three to four years, the wage increases could come down. "The IT industry fundamentally transformed this country by hiring about 4,30,000 people in this year gross. These people will create an education market and become an inspiration for many people, who will now possibly borrow money to get educated and come into this market. The only way is to get public investment to expand the market . So, three-four years later, the wage increases could come down. We absorbed all the wage increases and have given more wage increase outside India. We also absorbed the visa cost," concluded Pai.