With the economic slowdown having taken a toll on most sectors of the country's economy, the business and employment outlook indices are at an all-time low, says a study. While the 'net business outlook index' nose-dived by 50 index points to stand at a dismal 6 index points as compared to the last quarter's figures, the employment index was down 30 points from the trailing quarter.
India’s largest temporary staffing company TeamLease Services’ latest quarterly report also reveals that the employment outlook Index for the January-March 2009 quarter now stands at 34 index points. It is computed as the difference in the proportion of respondents who report an increase in hiring needs and those who report a decline in hiring needs over the next three months.
Among the sectors covered, there is a decrease in index points of all sectors except telecom. Telecom, with 60 points, has the highest index points followed by IT-enabled services (ITeS), with 53 points. The infrastructure sector declined the most (by 132 points) and telecom sector declined the least (by 16 points). The report also states that there is a decrease in the intention to hire across all functions, especially at the entry and junior levels, while there is an increase in the intention to hire at middle and senior levels.
The attrition rate was under 15 per cent for all sectors in the past three months. Over the one-year period, the attrition rate for IT, ITeS and telecom sectors was over 15 per cent and less than 15 per cent for the other sectors. In spite of an insecurity and not- so-positive sentiments in the IT-ITeS industry, attrition remains the highest in this sector, notes the survey.
Citywise, Bangalore and Chennai had the highest attrition rates in the last three months, while in the past one year, Bangalore, Hyderabad and Chennai had higher attrition rates compared to other cities. Ahmedabad has had the lowest attrition rate since the last one year. There is a decrease in the employment outlook index points of all cities. Hyderabad decreased the most (by 50 points) followed by Kolkata (by 41 points).
There is also a decrease in the 'business outlook index' points of all cities. The index points of Mumbai decreased the most by 87 points, followed by Kolkata -- by 69 points.
Surabhi Mathur-Gandhi, general manager, TeamLease Services, explains: “The business outlook for the 1st quarter for 2009 has been completely undermined with the series of disastrous socioeconomic 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. We see that the outsourcing sector has bottomed out, and do not see any further fall. With the recession in the US, we see quiet a few outsourcing deals favouring business for the Indian IT /ITES industry.”
The study that covers India's organised verticals -- manufacturing and engineering, financial services, IT- ITeS, infrastructure, retail, media, FMCG and telecom -- focuses on employment growth potential and hiring forecasts for the next three months and provides an overview of hiring pattern with relation to location and company profile.
