In a reflection of the economic turmoil in the West affecting the Indian IT services sector, during May 2012, both IT- software and ITeS the largest job creators in the city have seen a marginal dip in the hiring levels compared to the previous month. The IT-services sector mainly depends on the West for its business.
Despite uncertain economic conditions and low GDP growth, the overall hiring activity of Bangalore is moving at a steady pace. The Naukri Job Speak index for May 2012 is 23 per cent higher than what it was a year ago, but monthly growth has been negligible owing to a mixed hiring sentiment across sectors.
“Concerns of a global economic crunch and rising inflationary pressures are acting as a caution sign for India Inc. Therefore, recruiters of some sectors are on a wait and watch mode. This does not mean that companies have frozen hiring, but they are certainly not going overboard.” said Hitesh Oberoi, Managing Director and CEO, Info Edge India.
Hiring has been positive for auto, oil and gas, and banking sectors with the job speak index moving up 8 per cent, 6 per cent and 3 per cent respectively in May 2012 over April 2012. The software services and pharma sector have seen stable hiring levels over the last one month. On the contrary, construction, BPO and telecom sectors have been staggering with low hiring figures for the last few months and have seen dips in the range of 4 per cent and 9 per cent in May 2012 when compared to April 2012.
An in-depth analysis of key functional areas shows that the demand for professionals in production and project management moved up 4 per cent respectively during May 2012 compared to April 2012. Mirroring the trends of the IT- software sector, professionals in software services also did not witness much activity and hiring maintained steady levels. Professionals in BPO and HR domain witnessed a low demand with hiring activity 4 per cent and 3 per cent respectively in May 2012 over April 2012.