India headquartered IT services firms have taken scalability in the services arena to a new high. Not many in the outside may know whats happening inside these emerging global giants. This scalability is made possible based on "process focus of these firms. You need to have the processes in place to manage this scale. Need to have technology and backbone which is robust enough." The economictimes article gives a glimpse of the developments inside these enterprises.
- Infosys Technologies has been hiring about 50 people a working day for the last nine months. For the full year, it will hire 12,000 people. It received a million applications.
- Wipro adds three employees to its staff every working hour. It made 40,000 offers between April and December, more than the number of people it currently employs.
- Satyam will see an addition of 30,000 to the present 20,000 in the next few years.
- TCS’S headcount stands at 43,681 people with over 6,200 added in last two quarters. In a short span of 12-36 months, almost all the top five Indian IT services firms will boast of a 50,000-strong workforce making the term "software factories", the post-modern equivalent of the good old manufacturing ones.
Trendsetting HR practices are coming from leading Indian IT companies. The core strength of the cultural and HR processes, which have been developed by companies are in many ways superior to those followed by the US companies. The Indian headquartered IT software companies are setting the global standards now in many areas and not just in software development.As Partha Iyengar of Gartner agrees, "Indian companies have applied their process mania and capabilities to the recruitment area as well. Hence, they have a pretty robust process - right from the mechanism to solicit resumes, to screening them, to doing online testing and filtering candidates to the final hiring and orientation. Once you have a process in place, it becomes extremely repeatable and scaleable."
The view of the indian firms about US /Europe headquartered companies offering to compete - "The ability to process million applications, recruit thousands, train them and put them to work without de-stabilising the organisation might emerge as a core competency of the Indian IT services firms – which could become the key differentiator with the MNC firms that have mounted a vigorous challenge for leadership in the offshore space".
My Take: Admittedly these enterprises shall gain more strength in the days to come - there may be a lot more that these companies may need to do to withstand competition and create new frontier for growths.We shall cover these in a separate post - there are imminent dangers and infinite opportunties - To just highlight the marketcap of these top tier companies listed in the US bourses vary from 3 Bn USD to 20 Bn USD ... Several such things would come into interplay when we assess growth prospects for these enteprises.