IT companies financial performances

IT companies might bend themselves backwards to prove that there is no slowdown and shout themselves hoarse that things are hunky dory, but yet the unease remains. The financial performances of the frontline IT companies have been good mainly on the back of the appreciating rupee but otherwise if one sifts through the data, it is quite apparent that things are tough. And it is these small signs which one should look out for.

Infosys are stated that it is scaling down its hiring this fiscal, a cut of 29%. It had recruited 35,000 people in 2007-08 and in the current fiscal it will hire only around 25,000 people, of which 18,000 will come through campus recruitments, which means some more savings on costs. Campus candidates no longer come cheap but yet, compared to the open market, they are definitely great values for money. The company has made it very clear that the cut in hiring has got nothing to do with the slowdown, it was more due to pressure on the infrastructure facilities of the company and also due to some changes in the business plans.

Well, when business grows, then pressures on infrastructure facilities would have meant more internal growth to accommodate more people, as the company cannot sacrifice growth. And changes in business plans? Plans which require lesser people? Now that somehow sounds more like a slowdown, irrespective of what the company says, doesn’t it?
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