Medium-size IT companies go for lateral hiring

Last year at the time of recession the medium-size IT companies were the first one to pull down the curtains on lateral hiring due to sizeable bench and most important factor was rising salary costs, are now back on the recruitment.

The key HR consultants informed that lateral hiring is back because the ‘market has improved.’ According to Mr Rishi Das, CEO, CareerNet, a Bangalore-based recruitment firm a big recruitment cycle is going to begin in the mid-size companies.

Mumbai-based IT recruiter stated, “The mid-caps did see a stock rally and there is confidence in the Indian market”. The HR sources, pointed out companies such as Aricent, Logica and captives such as Goldman Sachs and BankAm are in the process of hiring between 200 and 300 people.

Dr Pallab Bandyopadhyay, Vice-President and Head, HR, Asia Pac, Perot Systems, informed his company is hiring at a steady pace and has to currently recruit 300-400 positions.

The company has plans to recruit at least 100-150 positions a month. Mr E. Balaji, CEO and Director, Ma Foi Consultants, informed the companies that had put hiring on hold are now in the process of filling critical positions, but the ‘peak is yet to come.’

However, most of the recruitments at present are for lateral (those between five years and 10 years’ experience) even as companies have put campus hiring on hold.

The reason is the companies have to yet absorb the last year’s hires besides restricted by an advisory from Nasscom, which has recommended that IT companies should not enter campuses until they have absorbed all last year’s offers. Mr Das informed that this year campus recruitment will be active in the last semester and not 18 months ahead of graduating, as it used to happen earlier.

Regarding salaries, laterals who could have demanded between 50 per cent and 100 per cent jump can now look for only 15-20 per cent rise when they change the jobs.