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Satyam prunes hiring target 40%

Posted by Yogesh on Saturday, 18 October, 2008

HYDERABAD: Satyam Computer Services, the country’s fourth largest software and services exporter, has said it will take fewer people on board to
cut costs due to the unstable global economic environment. The company is planning to hire only 8,000-10,000 people this fiscal as against 15,000 that it had earlier planned to recruit.

“We have decided to scale down our hiring guidance factoring in the current business environment. With the kind of visibility that we have and the expected requirement, we will hire about 10,000 people in the next two quarters, said Satyam Computer Services CFO V Srinivas.

The company has already recruited 5,200 people in the first two quarters. The rest are expected to join in the coming two quarters. But he declined to give a break-up on hiring, saying it would be a mix of freshers and experienced people. Satyam founder & chairman B Ramalinga Raju also said the company had to assess the situation before going on a hiring spree. “We will honour all our offers made to people. Our hiring will be commensurate with our business needs. But there may not be any undue delay or deferral in bringing people on board, he said.

The company claimed that it had not resorted to lay-offs to cut costs. “Every year, we put 5% of our employees across all levels under ‘performance improvement plan’ . They are kept on watch for 2-3 months and they have to exit the company if their performance fails to improve,“ he said. Around 250 employees were given the pink slip last quarter.

But Satyam may switch gears on hiring if demand picks up in future. Currently, clients are adopting a wait-and-watch policy and are not ready to open up their purse strings.

But this could change as technology helps build competency in an uncertain environment. If it happens , it will be an opportunity for the Indian IT companies , Srinivas said.

According to an HR analyst, there is a definite slowdown in hiring by IT companies this year due to the US economic downturn. “US market alone accounts for 70% of their revenues . Most IT companies do advance hiring from campuses anticipating new projects. With US firms resorting to cut in spends, project flow is rather slow and in some cases they stand cancelled,” he said. Source Indiatimes – Infotech

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One Response to “Satyam prunes hiring target 40%”

  1. […] 2 (01-10-2009): According to Naatmad: “Satyam Computer Services, [..] has said it will take fewer people on board to cut costs due […]

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