New Delhi: Infosys may not visit campuses to hire engineering graduates in the second half of this year according to a report by global brokerage firm Morgan Stanley. The move underlines the slowdown faced by India's second largest software services company.
Infosys, which employs over 1.5 lakh employees, has not officially announced its campus plans for the rest of the year.
The development is unlikely to surprise investors. Infosys' hiring plan for the entire fiscal was 22 per cent less than last fiscal. Infosys planned to hire 35,000 people in 2012-13 against 45,000 recruitments during 2011-12.
It hired fewer employees in the June quarter due to negative growth in business and lower revenue forecast. Infosys added 9,236 employees in the June quarter against 10,676 in the March quarter.
Morgan Stanley said it is comforting to see Infosys taking steps to control its rising bench costs. The IT industry is witnessing a delay in new projects, leading to a decline in employee utilization rate and increasing bench strength.
In June, the company had delayed taking on board some of its planned 28,000 new recruits until mid-2013, according to reports in a business daily. Engineering graduates who were offered jobs from campus placements between August and September last year have started to receive joining dates from September this year to as late as after mid-2013, the report said. (Read: Infosys delays new hiring)
Infosys, which is also listed on Nasdaq, has disappointed investors in two consecutive quarters with a weaker-than-expected sales growth outlook due to an uncertain global economy.
The results have sparked worries about the prospects for the country's $100 billion outsourcing sector, which is facing slowing demand from western clients, intense competition from global rivals and volatile currency markets.
The company's stock price has hit new 52-week lows as investors flock to HCL Tech and TCS, which have managed to deliver above estimate growth despite the global slowdown.
(With inputs from Reuters)
Infosys, which employs over 1.5 lakh employees, has not officially announced its campus plans for the rest of the year.
The development is unlikely to surprise investors. Infosys' hiring plan for the entire fiscal was 22 per cent less than last fiscal. Infosys planned to hire 35,000 people in 2012-13 against 45,000 recruitments during 2011-12.
It hired fewer employees in the June quarter due to negative growth in business and lower revenue forecast. Infosys added 9,236 employees in the June quarter against 10,676 in the March quarter.
Morgan Stanley said it is comforting to see Infosys taking steps to control its rising bench costs. The IT industry is witnessing a delay in new projects, leading to a decline in employee utilization rate and increasing bench strength.
In June, the company had delayed taking on board some of its planned 28,000 new recruits until mid-2013, according to reports in a business daily. Engineering graduates who were offered jobs from campus placements between August and September last year have started to receive joining dates from September this year to as late as after mid-2013, the report said. (Read: Infosys delays new hiring)
Infosys, which is also listed on Nasdaq, has disappointed investors in two consecutive quarters with a weaker-than-expected sales growth outlook due to an uncertain global economy.
The results have sparked worries about the prospects for the country's $100 billion outsourcing sector, which is facing slowing demand from western clients, intense competition from global rivals and volatile currency markets.
The company's stock price has hit new 52-week lows as investors flock to HCL Tech and TCS, which have managed to deliver above estimate growth despite the global slowdown.
(With inputs from Reuters)
