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IT companies opt for temporary staffing

Indian IT companies are increasingly resorting to flexible staffing (also flexi-hiring) - hiring on project basis, says sector lobby National Association of Software and Services Companies (NASSCOM). Himani Chandna Gurtoo reports. U-turn on permanent hiring plans

india Updated: May 10, 2013 18:36 IST
Himani Chandna Gurtoo
Himani Chandna Gurtoo
Hindustan Times

Indian IT companies are increasingly resorting to flexible staffing (also flexi-hiring) - hiring on project basis.

NASSCOM has estimated that Indian IT and ITeS companies are likely to hire nearly 50,000 less people this fiscal, but there has been buoyancy in flexi-hiring among IT companies.

According to the estimates of Indian Staffing Federation, hiring of temporary staff in IT industry has grown by 30% in last six months, against the industry average of 20%.

"Flexible hiring in IT is exceeding the hiring numbers of the overall (all industries) flexi-hiring market as there is lot of uncertainty in the IT industry" said Rituparna Chakraborty, vice-president, Indian Staffing Federation. "The strategy helps to beat margin pressures, maintain lean benches and also facilitate just-in-time hiring in a highly volatile market."

The firms are increasing the flexi-staff count in non-core activities and services - where the revenue flow is not recurring - to focus more on core activities and cut down on costs.

"Most of the hiring is done for jobs in administration, technical and customer support," said Sangeeta Lala, vice-president, TeamLease Services, a staffing consultancy.

However, IT companies are tight lipped about the strategy they adopted while jostling against the ongoing instability. The mails sent to Microsoft, Hewlett-Packard, Tata Consultancy Services, HCL, IBM, Mindtree and many others went unanswered.

"As demand cycles are becoming more unpredictable and cost structures are rising rapidly, the HR practices are transforming," said Alok Bhardwaj, former president, manufacturers' association for information technology (MAIT). "The trend in IT industry is enraging as short service commissions - jobs for duration of 5 years," said Bhardwaj who is also a senior vice-president, Canon

First Published: May 09, 2013 21:52 IST