Speaking about the job openings in the sector, Mr Gopalakrishnan was quoted as saying, "Hiring position seems to be muted this year because many companies still have deep bench (strength), in other words their utilisation rate is still low."
Earlier media reports claimed that Infosys had asked at least 5,000 employees to leave the company. Ahead of its third quarter results, the company reportedly had asserted that such steps of asking "under-performers" to seek other jobs are part of normal business routine.
However, it is not only Infosys but almost all IT giants have been maintaining a low profile while it comes on hiring or recruitment. OneIndia earlier had reported that the tough phase is yet to over in recent future.
It is believed that slowdown in hiring by software companies will keep the entry-level salaries stagnant in upcoming years.
Reasons behind the crisis in Indian IT industry:
- Nearly 30 percent employees of all software companies are on bench, i.e. without any project to work on.
- IT sector will suffer in near future as the global demand for industry is not expected to rise significantly.
- Recently, IT companies have taken initiatives to automate more of their processes resulting slowdown in hiring.