Infy full gear on recruitment drive

BANGALORE: Infosys Technologies has added 2,065 employees (gross addition) this quarter, the highest ever by the company for a quarter. Out of the additions 328 were lateral and the net additions were at about 1,806 employees for the three-month, ended September 30^th 2002. The company had hired 772 employees totally during the previous quarter ended June 30^th 2002. At the present the company’s total head count stands at 13,110.

Out of the total additions this quarter, 51 were added for overseas operations, rest locally. 63 employees were added for sales, marketing, support and account managers divisions. The company has announced an initiative to invest on boosting the sales and marketing team. An indication for looking at new businesses as 94 percent of its revenue is contributed by repeat business.

Utilisation rates increased by four percent, excluding training. Revenue from fixed price project increased by six percent during the quarter as against the corresponding period last year. Subsequently revenues from consultancy and enterprise solutions also increased. Onsite-offshore revenue split increased in favor of onsite as the company signed up with 260 new projects during the quarter and "there is a fair amount of onsite consultancy and design engaged when a new project is signed," said Infosys, CEO, President, Managing Director, Nandan M Nilekani.

In his presentation to the media soon after the board meeting, Nilekani, said, "Software revenues in US dollar terms grew by 16.1 percent for the quarter as compared to the quarter ended June 30, 2002. Revenue growth comprised a volume growth of 11.7 percent and a price growth of 4.4 percent as compared to the quarter ended June 30, 2002."

But he was quick to add, "This is the first time since the last few quarters that the company has registered a price growth. However pricing continues to be an issue and the increase in the same is contributed by higher prime services and consultancy lead assignments."

The company had made several strategic investments in the past. It is in the process reviewing the investments on ongoing basis and make adequate provisions, where necessary. "Due to challenging market conditions, some of our investee companies have not been able to perform satisfactorily. We have made adequate provisions on our investments due to the challenging market conditions as well as the state of the industry in which they operate," said Infosys Chief Operating Officer and deputy Managing Director S Gopalakrishnan.

After failing to reach an out of the court settlement on the pending sexual harassment litigation, the lawsuit is expected to enter into a trial, although a date for the same has not been fixed. With the outcome difficult to predict, the company has taken a meek stand saying if an unfavorable resolution against Infosys is passed then the lawsuit could adversely impact the company results of operations or financial condition.