With economic crisis in 2001 India was the destination for IT majors to make a move to. Most IT giants globally started setting up their India operations for the want of Low cost highly talented pool of resources. Here were the origins of new jobs in Bangalore, a tiny village in the 12th century, Bangalore has become one of the fastest growing cities in the world by the 21st Century & also considered to be IT capital of India. In 10 years’ time span Bangalore has fast become a cosmopolitan, with people not only moving from different parts of the country but also from across the globe.
However as of 2012 even the Indian IT industry is facing the heat due to economic turmoil. As the Indian IT industry reels under the pressure of the global financial crisis, an Industry Monitor Survey released, finds a marked decline in the rate of employment and manpower utilisation by 3 to 5 per cent. In the IT services industry, there has been a 3 per cent decline in pricing.
Profit margins are expected to go down to 3 per cent owing to a weaker rupee. In spite of the fact that world reels under the effect of the economic slowdown, companies catering to the domestic market have not been affected all that much, say experts from various sectors, right here in Bengaluru. What does the downturn mean to industries in this blooming city here? How easy is it for namma students to get jobs this year?
General Manager at one of the top Management Consultants which works with companies both nationally and internationally catering to their recruitment requirements, opines, “The downturn has had a sentimental effect. There has been a reduction in the volume of activities. The number of jobs advertised has decreased. Annual salary hikes have not happened.” Even as people leave companies, companies are not backfilling, says Mishra, adding that hiring in sectors like IT, banking, retail has reduced by about fifty per cent. “But in sectors like FMCG, insurance, education, it has increased,” he adds.
The downturn has definitely seen a rise in the number of resumes being passed on. But there has been a change in the kind of resumes that companies receive and the kind of people looking for jobs. Junior and entry level jobs in sectors like insurance and FMCG are in demand.
For their part, some companies in the city are looking at ways to streamline internally. At Cisco Systems, the network equipment major which has a major presence in Bengaluru, the stated plan is to realign resources to maximise growth opportunities, while aggressively managing expenses. Based on this realignment, there may be areas that must de-emphasised in order to move resources, to the extent possible, to other areas which have high impact on business.
Bengaluru in the downturn is not a rosy picture: extensive nail biting, handing out pink slips, showing doors, emotions running high. The slowdown has been about all this and more. While those with jobs are holding on tight, the job seekers are hoping to strike at least bronze if not gold. Even as sectors like education, health care, insurance, consumer products and FMCG continue to grow, the big question in Bangalore is when the recovery of the blue boys of growth — IT and BPO — sectors is likely to happen.
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