SLOWDOWN EATS INTO IT

FRESHERS’ PARTY

A Presentation By : AVICK BISWAS

• IF YOU THINK THE RECESSION
IS OVER AND THE COMPANIES
ARE HIRING, THEN THINK
AGAIN …!
 THE CONDITION NOW
• THE TECHIES TAKE HOME 20% LESS NOW.

• THE PAY PACKAGE HAS DROPPED TO RS 1.7 LAKH AS COMPARED TO

RS 3.5 LAKH 2 YEARS AGO.

• THE ENTRY LEVEL SALARY OF IT PROFESSIONALS IS BROUGHT DOWN BY

20%

• AS PER THE STATEMENT OF “GC JAYAPRAKASH”, A PRINCIPAL

CONSULTANT OF STANTON CHASE INTERNATIONAL, THAT THE ENTRY
LEVEL SALARY ARE DOWN BY ATLEAST 10 % TO 16 %.
 THE CONDITION NOW CONTINUED…
• STILL A NUMBER OF SKILLED PROFESSIONALS ARE UNEMPLOYED.

• THE IT FIRMS ARE FINDING IT DIFFICULT TO MANAGE UNUTILLISED

RESOURCES SITTIG ON BENCH.

• AS THE POJECTS OF IT COMPANIES LIKE WIPRO , TCS AND ARE

SHELVED, THEY POSPONDED CAMPUS HIRINGS.

• RECRUITMENT FIRMS SUCH AS “GLOBAL HUNT”, SAYS THAT HE ENTRY

LEVEL SALARIES DROPPED BY 30% AS THERE IS INCREASD LEVEL OF
AVAILABILITY OFSKILLED PROFESSIONALS.
 THE REASONS
• SLOWDOWN.

• INCREASED AVAILABILITY OF SKILLED PROFESSIONALS.

• COMPANIES ARE TRYING TO UTILLIZE THE HUMAN RESOURCES STILL

AVAILABLE WITH THEM.

• MOST OF THE COMPANIES PROJECTS ARE ON HOLD, SO LESS OR NO

NEW HIRING.

• THE SUPPLY IS MORE THAN THE DEMAND.

 CONSEQUENCES
• MANY SKILLED PROFESSIONALS ARE STILL UNEMPLOYED.

• THE NEW PROFESSIONALS HAD TO ACCEPT A LOW SALARY , AS THEY

HAVE NO BARGAINING POWERS.

• EVEN THE EXPERIENCED EMPLOYEES WHO LOST THEIR JOBS FEW

MONTHS AGO, ARE NOW BEING OFFERED ENTRY LEVEL SALARIES.

• ECONOMIC IMPACTS:

• THE INCOME IS LOW SO THE MONEY SUPPLY WITH THE INDIVIDUAL IS

LOW.
 ECONOMIC IMPACTS CONTINUED…

• LOW SAVINGS DUE TO HUGE EXPENDITURE.

• LOWER CAPACITY TO SPEND RESULTS IN LOW DEMAND FOR THE

PRODUCTS.

• THE PER CAPITA INCOME IS FALLING AS COMPARED TO THE PREVIOUS

2 YEARS.

• DUE TO LOW PER CAPITA INCOME OUR GDP IS ALSO AFFECTED AS IN

2007 GDP WAS 9.4% AND AT PRESENT ITS AT 6.4% (2009)
 • THEREFORE THE CAUSES OF
UNEMPLOYMENT OR LESSOR PAY IS
NOT ONLY DUE TO THE EXTERNAL
FACTORS LIKE “SLOWDOWN”, BUT IT IS
ALSO CAUSED BY HEIGH SUPPLY OF
HUMAN RESOURCES…
THANK
YOU !