US rating downgrade may adversely impact IT hiring in India

New Delhi, Aug 9: In one of the disastrous consequences of US credit rating downgrade, hiring activity in the Indian Information Technology sector could see a fall by about 25 percent. According to analysts, it may take at least another 5-6 months for the recruitment activities of the IT sector to gain momentum.

Rajesh Kumar, the Founder and CEO of MyHiringClub.com was quoted by the PTI as saying, "We are expecting overall almost 26 per cent dip in recruitment in IT industries from first quarter of FY'12. It'll take at least 5-6 months to get momentum in hiring in IT industries."

He added, "Due to the economic crisis in the US, the Indian IT job market is also going to be affected badly. The major reason behind this is cost-cutting in Indian companies' US division," before saying, "In the near future, Indian IT companies having offices in the US are going to face a surplus in their existing manpower strength."

Ambarish Raghuvanshi, the Group President (Finance) and CFO of Info Edge (India) was quoted as saying, "Recruitment would be lagging in the IT space..."

But all these talks of another recession in the US economy seems to be of little bother to TCS and Infosys, who remain the country's two largest software exporters. These two companies seem to be confident of withstanding another downturn.

Infosys CEO and MD Kris Gopalakrishnan was quoted as saying, "It is too early to say. There are fears of another recession in the US and a debt crisis in Europe."

The US accounts for nearly 60 percent of the revenues of the Indian IT industry.

OneIndia News