The information technology sector, which has seen a downturn in the past couple of years, is in for good times again.
The buoyancy in the sector can be gauged from the fact that over 1.3 lakh new recruits are expected to be added during the year, nearly three times higher than the 50,000 employees in the previous year. The addition, according to Infosys Chief Executive Officer Kris Gopalakrishnan, is likely to have a ripple effect on real estate, construction and other sectors and contribute to the overall growth of the economy.
Mr. Gopalakrishnan told reporters on the sidelines of a conference here on Thursday that attrition levels had gone up with employees exploring new opportunities being generated by companies that were on the expansion mode. As a result, the attrition rate was likely to reach double digits.
The Infosys CEO did not see scope for slowdown in technology spend due to restrictions on outsourcing and said IT spend, in fact, was all set to go up and this would augur well for the sector. The global economy was in a recovery mode, although there were apprehensions about the prospects of a “double dip'', and it was likely to take 3-5 years for the recovery to be total.
Mr. Gopalakrishnan did not accept claims that outsourcing was leading to job loss.