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HR Talk : Employment And Business Outlook At An All-Time Low: TeamLease

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DQC News Bureau
New Update

The various socio-economic events during the year, the financial
circumstances and the US recession has put attrition rates on a high with the
IT/ITeS sector being hit the hardest

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TeamLease Services released its latest Employment Outlook Report for the
period January to March 2009.

TeamLease regularly releases the Employment Outlook Report every quarter
after a survey administered to the HR heads, CEOs and senior management of
leading companies in India. This study focuses on the employment growth
potential, the business outlook and hiring forecasts with relation to the
location and the company profile. This report serves as a reference manual to
corporate houses to understand the employ­ment trend in the present market
scenario at major cities across the country.

According to Surabhi Mathur Gandhi, GM, TeamLease Services, “The business
outlook for the first quarter for 2009 has been completely undermined with the
series of disastrous socio-economic events in the last quarter. The impact has
been broad-based across sectors and companies, which has left no scope for
positive projection in the near future. The telecom sector seems to be the least
impacted, given the domestic dependency for their business. We see that the
outsourcing sector has bottomed out and did not see any further fall. With the
recession in US, we see quiet a few outsourcing deals favoring business for the
Indian IT/ITeS industry. In spite of the insecurity and not so positive
sentiments in the IT/ITeS sectors, the attrition remains the highest in this
sector.”

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Key
Findings
  • There is a decrease in Employment Outlook
    index points of all sectors except telecom
  • Telecom (with 60 points) has the highest
    index points followed by ITeS (with 53 points)
  • All cities show a decrease in Employment
    Outlook index points. The Index points of Hyderabad decreased the most (by
    50 points) followed by Kolkata (by 41 points)
  • Net Business Outlook Index has shown a
    steep dive by 50 index points across sectors. The index points of all the
    sectors are on the decline and the infrastructure sector declined the most
    (by 132 points) and telecom sector declined the least (by 16 points)
  • Business Outlook index points of all
    cities have dropped tremendously. Mumbai shows a huge decrease of 87
    points followed by Kolkata, down by 69 points
  • A decrease in the intention to hire is
    observed at entry and junior levels, while there is an increase in the
    intention to hire at middle and senior levels

She further added, “In these trying times and the gloomy overall outlook,
corporate India needs to bring in a higher frequency of communi­cation to keep
their workforce motivated and the morale high.”

The report also shows a decrease in the intention to hire across all
segments. The attrition rate, according to the report, was under 15 percent for
all the sectors during the past three months. Over the one year period, the
attrition rate for IT, ITeS and telecom was over 15 percent and less than 15
percent for the other sectors. The attrition rates in all major cities during
the past three months-Bengaluru 20 percent and Chennai 24 percent had the
highest attrition rates, whereas Ahmedabad had the lowest attrition rate in last
three months-five percent.

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