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sandip singh - My Blog
US Recession and it's affect on Indian Companies
Related to country: India

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For young engineering graduates, getting a job has never been tough in the past few years. While multiple job offers were pretty much the norm earlier, engineering graduates now consider themselves lucky if a company shows up for campus recruitment at all. And those who have got offer letters have been asked to wait for six months to a year before reporting to work.

Some fresh graduates say they are yet to receive offer letters from IT companies, which include many top-tier ones, even after the selection and placement season ended in February 2008. Others say they are receiving offer letters, which have a date of joining mentioned as late as six months to one year. Anxious students across India have even formed online communities around companies that have issued them offer letters.

Students in tier-II institutes in Non Metro towns have been the most affected. Ritesh Pahuja, a placement officer at Greater Noida Institute of Information Technology said: “All major IT companies have been slow on placements this year. Only 60% of the total batch has been placed so far, although the placement process is still on. Students who have been placed were supposed to get their offer letters by the first week of April. However, most of the students have not got any letter as yet. The delay might be the result of a slowdown in the US, which is impacting the IT industry in India.”

Even if the companies are hiring students, they either keep the students on bench or if you are very unlucky they will fire you. Recently, Sapient Technologies lay off 160 employees which included 10 classmates of mine. And even in the first quarter of this year TCS had cut salary packages of its employees by 1.5%.

On the other hand, top-tier IT companies maintain that they will stick to their annual guidance of hiring the announced numbers (25,000 in case of Infosys). Wipro Technologies has made close to 14,000 offers to fresh engineering graduates in the current year. But Satyam has outrightly denied participating in the placement process this year for the 2009 batch, according to an institute in NCR.

In India, the reason behind delayed job offers is because of the reduction in new business from the US and Europe due to a downturn in the economy. Industry leaders expect the slowdown to be over in 12-18 months, by which the demand for IT employees may again peak due to a sudden jump in offshoring.

July 4, 2008 | 5:31 PM Comments  2 comments

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adham5555 Adham Tobail
July 4, 2008 | 6:27 PM

The problem of engineering students due to a decline job offers in the world as a result of a number of the most important Alaciab
Globalization
Poverty
Occupation
Lack of experience in working graduates
sandipsingh sandip singh
July 5, 2008 | 3:08 PM
RE: @ Adham
I thought the problem was there in India only. Is it prominent in Palestine also?
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