Thinksoft opts for recruitments in US, courtesy high attrition rates in India

Off-shoring is not a one-way street. High attrition rates and employee cost in India have driven an Indian software company to look at recruitment in the US.

Thinksoft Global Services, an independent software testing company expects to recruit 30 to 50 employees in the US by July 2005-06.

Thinksoft has not given up on India though. The company, which concentrates on banking, finance and insurance industry, will also increase its headcount by 200 employees in Mumbai and Chennai in the next six months.

Vanaja Arvind, chief operating officer, Thinksoft Global Services, told Business Standard, "With the US economy recovering, we plan to recruit in the US during the first quarter in 2005-06 for on-site projects as it will be cost competitive on a long-term perspective."

The employee cost in the Indian IT industry has gone up to 50 per cent as a percentage of total revenue from 30 per cent a few years ago.

One of the major reasons for the growth in Indian software industry has been the low employee cost but it has been increasing. It is cost competitive to recruit in the US for on-site projects, she added.

Arvind said that the Mumbai branch is being expanded. A new facility has been added, and the employee base is to increase from 30 to 85 people.

At present, the headcount of the company is 270 people. Thinksoft will close the current fiscal with a turnover of $5 million. The company plans to achieve a turnover of $15 million in the next fiscal. The company has a presence in New York, London, Singapore, Bangalore, Chennai and Mumbai.