| With companies like Wipro and GE setting up centres in other cities, the slowdown in hiring could impact the BPO industry in the region. |
| "Most BPOs in the region are now hiring to just cover for the attrition rates rather than ramping up. The hiring average has declined to around a 100 per month, against the earlier monthly average of 600-700," a human resources (HR) consultant said. |
| Industry experts pointed out that the dip in hiring rates was on account of a space crunch. "There is an urgent need for more infrastructure in the region and till then companies will only cover up for attrition," an industry expert said. |
| HR consultants also feel employees in the NCR region are more expensive to come by compared with other regions in the country. |
| "The candidates are more costly due to the high salaries and perks in the North. Companies are getting comparatively cheaper employees in the southern and eastern states, making them set up new facilities in these parts," said MaFoi consultant (ITES practice) Manoj Sharma. |
| Sharma, however, pointed out that the slowdown in hiring could be a temporary phase since North India continues to have the biggest pool of trained manpower for the sector. |
| The nascent Knowledge Process Outsourcing (KPO) industry, however, is unaffected by the dip in hiring rates in the sector. Xansa and Evalueserve, two of the biggest KPOs in the region, are hiring more people. |
| A recent study indicates that the total employees working in KPOs in India would increase to 3,00,000 by 2010 compared with 25,000 at present, Sharma said. |
| HARD TIMES |
| BPOs are lowering their hiring rates on account of higher retention costs and capacity bottlenecks |
| Employees in the NCR are more expensive compared with other regions in the country |
| The hiring average has declined to around 100 per month, against the earlier average of 600-700 people per month |
Top Section
Explore Business Standard