Scope of Permanent and

Contractual Staffing during

Recession in the IT industry in
Delhi and NCR
Presented By:
Sushant Mishra
Recession Fallouts[1]
 About half a million jobs cut
 The total earnings during Oct – Dec, 2008 -
decline of 3.45%
 Most affected sectors – export oriented units
 Employment Decline in sectors (Oct – Dec, 2008):
 Gems and Jewellery - 8.58%
 Transport – 4.03%
 Automobiles – 2.42%
 Textile – 0.91%
 Average Employment on a decline
(Oct – Dec, 2008)[1]
• The decline in average
employment across sectors
which contribute to 65% of
country’s GDP
•Sectors under study:
•Manufacturing
•Mining
•Construction
•Transport
•IT/BPO
Positive Change shown by IT
(Oct – Dec, 2008)[1]

 IT is the only sector showing a positive change in

employment
Break up for Direct and Contractual
Employment (Oct – Dec, 2008)[1]

 Hiring of Contractual workers has increased in IT to cut down

on costs
Delhi/NCR faring better than other
Cities[2]

• Study showing employment

indices of various cities taking July
employment index as 1000
•Delhi/NCR faring quite well with
recession
Employment Indices trend for
different functional areas in IT[2]

• Study showing employment

indices of various functional areas
in the IT sector taking July
employment index as 1000
• Telecom is the best with BPO
and ITES, Software and Hardware
verticals following it
Outlook for 2009[2]

 New jobs as well as replacement hiring would be substantial in the year 2009 for IT
as well as other sectors and hence potential business for IMS Empresaria is
immense
IT Hiring Outlook for 2009[2]
• Both IT and ITES remain
bullish on hiring
•Major fresh and replacement
hiring to take place
Conclusion
 The recession is taking its toll on the Indian
Economy but India still standing tall
 IT – the only sector showing positive employment
change during recession
 IT sector is still bullish on new and replacement
hiring – Potential Business for IMS Empresaria
 Delhi/NCR is going strong even during recession
 Contractual hiring gaining stronger focus as firms
seek to cut costs but Permanent staffing outlook
is positive as well
References
1. ‘Report on Effect of Economic Slowdown on Employment in India – (Oct
to Dec, 2008)’; Government of India’s Ministry of Labour and
Employment, Labour Bureau, Chandigarh; January, 2009.
http://labourbureau.nic.in/Report_on_EOFEMP_Jan09.pdf
 ‘Job Speak’ under the Investor relations link on the Info Edge (India) Ltd.
Website as seen on 9th February, 2009.
http://www.infoedge.in/pdfs/Jobs-Speak-29Jan2009.pdf
 The jobs and careers page on The Tribune’s online edition as seen on 9th
February, 2009.
http://www.tribuneindia.com/2009/20090114/jobs1.htm
 The Labour Ministry website as seen on 9th February, 2009.
http://www.labour.nic.in
 The Labour Bureau of Government of India website as seen on 9th
February, 2009.
http://labourbureau.nic.in/main2.html