News Tonight

According to a survey, recruitment by Indian IT firms recorded a slump during the last month, because of the crisis in the United States and Europe region, however, the overall hiring mood in India is cheerful.

It might take a period of two three months for recruitment activities in the IT space to gain momentum, according to recruitment tendering platform MyHiringClub. com, which stated that hiring movement recorded a 49% decline in the IT and ITes segments during the month of August as compared to the previous month.

The US makes about 60% of the revenues of the $60 billion Indian IT business.

In contrast, other industries including FMCG, banking, telecommunication and autos witnessed 14% additional recruitment during the month under review as against July 2011.

MyHiringClub. com CEO Rajesh Kumar stated, "This data shows the strong impact of the US and Euro crisis in Indian IT sector hiring. We had seen the overall hiring trend was healthy in the previous month, except the IT and ITeS sectors."

"When discussed with some employers, they indicated it will take 2-3 more months for hiring from these sectors," Mr. Kumar added.

A city-wise investigation indicates that the majority of cities witnessed a quiet period in hiring activity in the information technology and ITes sections during August, 2011.

Indian IT hub Bangalore also recorded a 29% drop in hiring in comparison with the preceding month.

Among the metropolitans, the Delhi/NCR area witnessed a 19% decline in hiring during August as against the same period of 2010, whereas Chennai saw a decline of 15%.

Mumbai and Hyderabad registered a fall of 13% and 8%, respectively, in the month of August.

The appraisal was carried out among 353 employers, comprising 127 employers from the IT and ITeS sections.