Tuesday, 3 July 2007

Rising ruppee and experienced IT guys

Indin IT companies had been growning at more than 35% y-o-y for many many years now but now that growth seemed to be slowing down considerably. There are many reason for this slow down. Rise of ruppee against the dollar is one of them.
With ruppee rising against dollar significantly in the last year and no slowing down in sight for this ascent in near future the IT compnies are hard pressed to maintain their margins and past growth. They have to look for ways to maintain margins.
One of the way being followed is to hire more and more freshers and take less of experienced guys to work on projects. There was time when all would be experienced guys on all projects in IT companies but now they are putting freshers and one experienced person for a team of 4-5 freshers. Freshers are given some initial training and are expected to work and experienced guy is expected to enforce quality on the deliverables. This way compnies are saving a huge amount by paying pittance to freshers in comparison to experienced guys. When it comes to internal appraisal /increment, not-so-freshers-now are given better increment than experienced, because if given same absolute amount, for a less experienced guy it is better increment than an experienced guy. That means company is saying indirectly to experienced guys that you are not as important as the guys next to you.
This means experienced guys have to work doubly hard to keep themselves relevant. It's not only IT skills which will be enough but also management skill, leadership skills will be required.

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