The mega plans that TCS and Infosys have formed begs the question: is the once seemingly limitless pool of Indian manpower draining too fast? According to this article the big four will hire more than 80,000 this year alone. Infosys and TCS will add numbers equal to 50% of their current workforce. Worth noting however, is that a significant number will be hired outside India.
IT employees rule the roost
B G Shirsat in Mumbai
June 28, 2006 08:18 IST
Infosys plans to hire 25,000 employees across geographies for which it has set aside Rs 1,600 crore (Rs 16 billion) to invest in training and infrastructure for FY07.
TCS plans to add 30,500 during FY07 while Satyam expects to hire 12,000 and Wipro might lap up over 15,000 engineers.
The expansion in manpower would take the total strength of the IT sector to around 2.29 million in the current fiscal from around 1.29 million now. NASCOM estimates the manpower strength of the total IT industry to touch 4.3 million by 2009-10.
The IT and ITeS sector is estimated to spend close to $2.6 billion over the next three years in training people for this industry. Also Indian IT companies have plans to invest in facilities in SEZs and tier III cities.
Infosys has plans to increase its office space by 50 per cent -- creating 5.3 million square feet of Grade A office space that can seat around 25,000 persons.
It already has 10 million sq ft office space for 52,715 employees. It will hire 1,000 people in China in FY07 and is building capacity for the 5000 people it plans to hire there over the next five years.
TCS expects to add 15,000, about half of its projected 30,500 hires, from campuses. At the beginning of FY06, it had planned to add 10,000-odd employees to its rolls. It ended up adding more than double � 21,140 to be precise.
TCS currently has 66,480 employees. The company has signed an MoU with the Maharashtra government to acquire 50 acres of land to develop a state-of-the-art development facility in Hinjewadi Phase III in Pune, a part of an MIDC-promoted Special Economic Zone.
TCS is expected to invest up to Rs 500 crore (Rs 5 billion) in the facility to create a capacity of 5,000 seats. Infosys has outlined nearly $400 million (Rs 1,600 crore) for expansion in FY07. Wipro is spending Rs 1,300 crore (Rs 13 billion) while Satyam has planned to spend Rs 400 crore (Rs 4 billion) in 2006-07.
And why not? The four frontline IT companies are flush with funds with total reserves of Rs 23,000 crore (Rs 230 billion) as on March 31, 2006.
They have Rs 7,400 crore (Rs 74 billion) worth cash in hand for capital expenditure program with Infosys Technologies (Rs 3,279 crore -- Rs 32.70 billion), Satyam (3,053 crore -- Rs 20353 billion) and Wipro (Rs 886 crore (Rs 8.86 billion) are high on the cash list. These companies have spent Rs 4,000 crore (Rs 40 billion) on fixed assets over the last two years.
TCS aims to become $10 billion firm by 2010
TCS has publicly announced its intention to reach the magic $10 Billion mark by 2010;
http://www.hindu.com/thehindu/holnus/006200606292069.htmTCS aims to become $10 billion firm by 2010 Mumbai, June. 29 (PTI): Country's top software exporter Tata Consultancy Services expects a five-fold increase in its revenues over the next four years to touch USD 10 billion in 2010. The company has earmarked a capital expenditure to the tune of Rs 1,300 crores for the current fiscal and it will add around 30,000 employees during the year.
Addressing the Annual General Meeting of the company, Tata group chairman Ratan Tata said, "We aim to become among the top ten (IT companies) by 2010 with revenues touching USD 10 billion over the next four years. The company will leverage the booming IT industry which is witnessing rapid growth during these years."
During the last fiscal, TCS revenues stood over USD two billions.
As part of expansion programmes, TCS would spend Rs 1,000 crores towards real estate development, which includes setting up of campuses in various parts across the country.
About Rs 300 crores would go for technological expansions, he said.
TCS, Tata said, would continue to grow around 28-30 per cent during the year, slightly above the growth rate, predicted by the industry body, NASSCOM.
About the merger of acquired entities into the company, Tata said, it was not necessary to merge all those entities with TCS.
"As subsidiaries, we think, those (acquired entities) can register a better growth. So it's not necessary to merge these firms with TCS," he said, adding 37 out of 50 subsidiaries of TCS were making profits. Do refer to my previous blog on this subject;
http://theringside.blogspot.com/2006/05/race-to-10-billion.html
"The MBA Caste System"
Alumni and B-Schools;
http://www.rediff.com/getahead/2004/oct/25ga-rashmi.htmThe MBA Caste SystemBy Rashmi Bansal (editor or JAM)
...
So what is it that sets the crème de la crème apart? Resources, faculty, infrastructure? That's just part of the story. By that reckoning, university departments like FMS and Bajaj should have been knocked off their pedestal a long time ago by newer entrants with deeper pockets. But 'pedigree', as the dictionary defines it, is a 'line of ancestors'. In the case of management education, ancestry has one simple definition -- the alumni. The older institutes boast of alumni who joined the corporate world two-three decades ago and are at -- or very near -- the top today. The alumni effect is two-fold. At the obvious level, the companies they run ensure the alma mater is always on the recruitment radar. But, at a subtler level, alumni achievements rub off on the mother brand, and hence on the current crop of students. In a sense, the alumni community IS the brand because they are the finished products, so to speak, of the MBA manufacturing process. And they form the one unique component in the matrix that cannot be duplicated by more recent institutes. That, in a nutshell, is the competitive advantage enjoyed by pedigree institutes which -- in the immediate future -- will remain unbeatable....
The Economist: Can India Fly?
The latest issue o f
The Economist (June 03, 2006) has India on the cover ...
Not all articles are available online, but you can find one here:
http://www.economist.com/surveys/displaystory.cfm?story_id=6969740
India Today College Rankings
India Today has come out with its annual colleges survey. They have listed out top 10 or 10 institutes each in Arts, Commerce, Science, Engineering, Law and Medicine. Unlike previous years, B-Schools rankings have not been published alongside. I expect the same to be given in the next Business Today issue that is to come out any time now.
The market research agency behind this is AC Nielsen ORG MARG. They have described their methodology is some detail, but I am yet to analyze it.
The top colleges for each field are:
- St Xavier's College, Mumbai (Arts)
- SRCC, Delhi (Commerce)
- Loyola College, Chennai (Science)
- IIT Delhi (Engineering)
- NLSIU, Bangalore (Law)
- AIIMS, Delhi (Medicine)
Again, I have not looked thru the report in detail, but the abscence of BITS Pilani in the engineering Top 20 was too glaring to miss.
PS: The entire issue looks like a multi page advertorial. Please people, bunch all those adverts into a separate handbook next time. From where do these institutes get the cash to place such ads anyways?
