 "Just-in-time is not an appropriate hiring model: Ashok Vemuri")
In September last year, Ashok Vemuri left behind a likely opportunity to head India's second largest information technology services firm, Infosys, and moved to the Nasdaq-listed IGATE Corp as president and chief executive officer. Having brought about several changes, he talks to Itika Sharma Punit about these:
How has the experience been?
I am elated, excited and energised. I like the speed with which my leadership team and all IGATORs (employees of IGATE) have risen to the new challenge, a testimony to the great things that we as a company can accomplish.
We have given industry-benchmarking increments. We are making investments in training of employees, and all these steps are creating an ecosystem and an environment, where all our employees are feeling recharged and re-energised.
Is it true that you are looking to increase hiring numbers drastically?
We have a very elaborate hiring model, that gets tweaked on a quarterly basis. We are looking for capability in both lateral and freshers. We are going to increase the amount of fresher intake, which is quite low at this point. Basically, we have moved away from a 'just-in-time' hiring model to a 'hire-for-growth' one. I think 'just-in-time' hiring for this sector is inappropriate. The right model has to be to invest for growth and you have to therefore hire above of the curve; you have to be practical and pragmatic about it.
Hiring in bulk can also lead to the problem of holding a bench (staff without work). Is it a wise move, in the current market environment?
Our employee utilisation is 74 per cent; my comfort level is 74-75 per cent. Remember, people on the bench are not sitting on the beach; they are under training, also essential.
What are your expectations on demand and growth?
Our expectations for the second half of the year (2014) continue to be positive. We are hopeful that the revenue growth in the second half would be higher than the first two quarters. The success of our industry utility platform and our positioning in large deals, including the recently announced one, gives us the confidence that our structure, value proposition, client engagement and relevancy are working quite well, and therefore our revenue and margin growth are tracking well.
Infosys is an iconic company and has chosen a leader of great reputation. It is important for the industry to have a stable Infosys. I wish Vishal Sikka all the best.
How has the experience been?
I am elated, excited and energised. I like the speed with which my leadership team and all IGATORs (employees of IGATE) have risen to the new challenge, a testimony to the great things that we as a company can accomplish.
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How is the employee sentiment and general mood at the company's campuses?
We have given industry-benchmarking increments. We are making investments in training of employees, and all these steps are creating an ecosystem and an environment, where all our employees are feeling recharged and re-energised.
Is it true that you are looking to increase hiring numbers drastically?
We have a very elaborate hiring model, that gets tweaked on a quarterly basis. We are looking for capability in both lateral and freshers. We are going to increase the amount of fresher intake, which is quite low at this point. Basically, we have moved away from a 'just-in-time' hiring model to a 'hire-for-growth' one. I think 'just-in-time' hiring for this sector is inappropriate. The right model has to be to invest for growth and you have to therefore hire above of the curve; you have to be practical and pragmatic about it.
Hiring in bulk can also lead to the problem of holding a bench (staff without work). Is it a wise move, in the current market environment?
Our employee utilisation is 74 per cent; my comfort level is 74-75 per cent. Remember, people on the bench are not sitting on the beach; they are under training, also essential.
What are your expectations on demand and growth?
Our expectations for the second half of the year (2014) continue to be positive. We are hopeful that the revenue growth in the second half would be higher than the first two quarters. The success of our industry utility platform and our positioning in large deals, including the recently announced one, gives us the confidence that our structure, value proposition, client engagement and relevancy are working quite well, and therefore our revenue and margin growth are tracking well.
Infosys is an iconic company and has chosen a leader of great reputation. It is important for the industry to have a stable Infosys. I wish Vishal Sikka all the best.