<p>Observing that the IT industry’s growth rate in the current financial year would be “very muted”, Infosys CEO S Gopalakrishnan said: “Employment opportunities for new graduates are going to be very limited.” He added once the recovery takes place and growth comes back, there would be a surge in the demand for graduate engineers again.<br /><br />Speaking at the fifth India Innovation Summit 2009, organised by the Confederation of Indian Industry, Gopalakrishnan also stressed the need for continuously improving the quality of education.<br /><br />Speaking at the function, Wipro Chairman Azim Premji said a large number of unemployed engineers would lead to their salaries plunging. Recalling his interaction with the vice-chancellor of Anna University, Premji said there was a possibility of a large number of engineers graduating this year not getting jobs.<br /><br />He quoted the vice-chancellor as saying that as much as 40-50 per cent of the graduating engineers from some 300 affiliated colleges in 2008-09 would not get jobs. <br />This figure is expected to go up to 80 per cent in regard to those who pass out in the current financial year. <br /><br />The Wipro chief also indicated that carry-over of such a large number of unemployed engineers would lead to salaries of engineers coming down sharply.<br /><br />He said earlier engineers never experienced failures in job markets, they had four-five job offers at a time and could change their jobs “overnight” but that’s not the case now as there has been a fundamental change in suppy-demand equation.Premji also cautioned the industry that competition globally is hotting up and warned the sector against falling into a mind trap of ‘India Advantage’.<br /><br />“We have talked a lot about India advantage. That makes me extremely worried. It’s a huge amount of thumping on the back (by Indian IT industry),” Premji said.<br /><br />He said BPO (business process outsourcing) exports from the Philippines this year would be “pretty close” to that of India’s. Five years ago, BPO exports from the Philippines were probably 10 per cent of what India exported.<br /><br />DHNS & Agencies</p>
<p>Observing that the IT industry’s growth rate in the current financial year would be “very muted”, Infosys CEO S Gopalakrishnan said: “Employment opportunities for new graduates are going to be very limited.” He added once the recovery takes place and growth comes back, there would be a surge in the demand for graduate engineers again.<br /><br />Speaking at the fifth India Innovation Summit 2009, organised by the Confederation of Indian Industry, Gopalakrishnan also stressed the need for continuously improving the quality of education.<br /><br />Speaking at the function, Wipro Chairman Azim Premji said a large number of unemployed engineers would lead to their salaries plunging. Recalling his interaction with the vice-chancellor of Anna University, Premji said there was a possibility of a large number of engineers graduating this year not getting jobs.<br /><br />He quoted the vice-chancellor as saying that as much as 40-50 per cent of the graduating engineers from some 300 affiliated colleges in 2008-09 would not get jobs. <br />This figure is expected to go up to 80 per cent in regard to those who pass out in the current financial year. <br /><br />The Wipro chief also indicated that carry-over of such a large number of unemployed engineers would lead to salaries of engineers coming down sharply.<br /><br />He said earlier engineers never experienced failures in job markets, they had four-five job offers at a time and could change their jobs “overnight” but that’s not the case now as there has been a fundamental change in suppy-demand equation.Premji also cautioned the industry that competition globally is hotting up and warned the sector against falling into a mind trap of ‘India Advantage’.<br /><br />“We have talked a lot about India advantage. That makes me extremely worried. It’s a huge amount of thumping on the back (by Indian IT industry),” Premji said.<br /><br />He said BPO (business process outsourcing) exports from the Philippines this year would be “pretty close” to that of India’s. Five years ago, BPO exports from the Philippines were probably 10 per cent of what India exported.<br /><br />DHNS & Agencies</p>
