iGate in spread mode, to hire 1000

Despite wage pressure and an appreciating rupee affecting its profits, iGate Global Solutions, the integrated software and services company, will be hiring over 1,000 personnel in the next 12 months to meet expansion plans.

"Of the 1,000 people we will hire this year, 500 will be stationed in Noida and an equal number in Bangalore," iGate's chief executive officer Phaneesh Murthy said at a press conference.

The company's revenues during the 2004 financial year (April-March) was estimated at $125 million. As on December 31, its revenues from operations in the third quarter were at $32.18 million. The rising rupee had affected the profit after tax (PAT) resulting in a $650,000 notional loss.

A company executive said this loss was attributed to forex translation charges which dipped from a gain of $147,000 in the second quarter to a negative $650,000 in the third quarter. The wage pressures in India were rising disproportionately not in line with its peer markets said Murthy.

Across all levels from the entry to the mid levels, waging pressures were increasing. "In countries like India which are strong talent supply, the wages were escalating instead of remaining stable or decreasing," he said.

Speaking about trends in the United States, Murthy said that the nature of the outsourcing deals were changing owing to the dynamics of currency fluctuation and general uncertainty in the industry. Murthy said that post-US elections, there were more "sales conversations" in corporate America with respect to outsourcing.

Increasingly companies were moving from a fixed-time-fixed-price model to a variable based model where, cost components were broken down. "Companies are now focusing more output costs than input cost," said Murthy.

At present, the company has 3,700 employees. The expansion will take the company's headcount in Noida to 850 while in Bangalore, its workforce will grow to 1,700. iGate plans to take the headcount to 850 from 350 at its Chennai facility.

"The inauguration of the second phase in Bangalore will add 1,500 seats to our infrastructure and we will move 1,200 people who are working from other locations in the city to the campus," he said. The company will also inaugurate a new 35,000 square feet Chennai facility on January 20.