Hexaware to stop hiring employees for next 2 Qtrs

The effects of the US slowdown is forcing IT firms to reduce their hiring for this financial year. Hexaware Technologies is the latest to announce that it will not hire for the next two quarters (third and fourth quarters). On an average, the company has been hiring 1,000 persons annually. For the second quarter ended June 2008, its global headcount stood at 6,598, a net reduction of 329 over the first quarter ended March.

P R Chandrasekar, CEO and vice-chairman, Hexaware Technologies, said, “We will not be hiring for the next two quarters as we want to better our utilisation rate.”

The company’s utilisation is 63.7 per cent, much lower compared with its peers, who have increased utilisation in the range of 70-75 per cent.

These are some of the measures announced by the new management team headed by Chandrasekar (ex-Wipro executive). “We are trying to put a focused operational structure in place. Some of the measures that are being considered are vertical focus and key account wins. Other than putting in place a structure, I want to bring in the opportunity of cross-selling within the existing client base,” he added.

“We have taken a cover of $196 million for the next few quarters. Though we have said a mark-to-market loss of Rs 86 crore, it is not for this quarter,” said Prateek Aggarwal, CFO, Hexaware Technologies.