Brokerage firm Morgan Stanley has released a report stating that IT major Infosys will not hire new recruits from college campuses in the remaining half of 2012. The company has also not released its campus hiring plans for the second half of the year.
Such a step clearly indicates the slump that the country's second largest software services company is going through.
While announcing first quarter results recently, Infosys cut its hiring forecast for the fiscal year 2012-13 by 22% as compared to the year-ago period. As compared to 45,000 hirings in 2011-12, the company planned to recruit 35,000 new employees this year.
In the April-June 2012 quarter, Infosys got fewer employees on board due to losses and diminished revenue forecast. It got 9,236 personnel on board in the period compared with 10,676 in the preceding quarter.
The Indian IT industry is going through a tough phase and many new projects have been delayed, according to Morgan Stanley. This has resulted in a decrease in employee utilisation rate and rise in bench strength across several IT companies.
Last month, Infosys changed plans of getting new recruits on board and pushed the joining date for 28,000 employees to mid-2013.
Commenting on the Morgan Stanley report, an Infosys' spokesperson said that the company has not decided about its campus hiring for the next season. "As per Nasscom's directive, IT companies can start campus hiring only in September. Our hiring will depend on business needs and we will have better visibility into it in August," she said.