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Infosys Looks To Cut Costs By Hiring Freshers
In a con-call on Wednesday, the IT giant amid reports of huge order lay-offs as well as the recent whistleblower complaint case said that the company will up its cost savings and thereby take on to improving margins by hiring more freshers.
Under the reign of Salil Parekh who took on to more investments to spur growth, operating margin has been dragged lower, and with more of hiring at the fresher level, the Bengaluru based software services provider will be able to save as much as Rs. 1100 crore in the ongoing financial year 2019-2020.
"There are 21 tracks we are looking at for cost-optimisation. We are targeting $100-$150 million in cost savings as the year goes on," a leading business daily quoted Infy CFO Nilanjan Roy as saying on Wednesday.
Roy said the firm was focused on improving the bottom-end of its pyramid, which had become more barrel-shaped, by hiring freshers. It was also looking to recreate the pyramid onsite through fresher hiring, he added.
In the US and Europe, the company last year hired as many as 1700 fresher staff.
Such a wage rationalization and cost-cutting has earlier also treaded on by the IT company but this time the company has quantified it. At the same time, the company is seeing non-performance related attrition which should not be wronged as mass attrition.
On October 11, Rao told analysts that the attrition in the second quarter for tech services - both voluntary and involuntary - was about 19.4%. "If you look at voluntary alone it is about 18%," he said.
Infosys shares were last trading with gains of 1.13% at Rs. 720.70 on Nilekani's assurance that action will be taken if the probe is found to be true against the company's management.
