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Business Exclusive Headlines News

IT engineers idle as offers stop from US and Europe

Chennai, July 11 (Truth Dive) : The number of IT engineers getting paid to just come to office and browse the net and drink coffee is increasing across all major companies here and in neighbouring Bangalore and Hyderabad. Many of the medium and small-sized companies have packed off and quit the IT parks.

Realty is once again hit and many of these IT parks are now thinking of converting them into apartments. Kerala’s Technopark today has closed more offices than the ones working.

IT companies are worried that the size of the bench is increasing than the expected strength. A bench according to IT business jargon is the reserve ratio of staff kept ready to fill in the vacant position and attend to new work orders.

As per NASSCOM, the growth of IT is expected to be around 11% but US and Europe companies who were the main clients are no more knocking on the Indian doors. Many companies have asked the bench staff to sit at home and wait for the call.

In 2008 in a similar recession period, the bench strength was kept at 20% but today it is increasing and this is worrying the majors. HR firms say that there are very little offers.

Placement officer of a major educational group near Chennai said that 2000 offer letters went out from IT majors in the campus placement meet. The achievement was publicized in the media with full-page advertisement. The real scenario is that 1000 odd selected students have got letters stating that they would have to wait for two more quarters to join. Some have got regret letters.

TCS, Wipro and HCL are those who have put new recruits on hold so as to improve their utilisation rates of the benches because new employees join only from this month. Infosys is affected with growing size of the bench since its new recruits joined a month earlier.