We are affected by bad global cues

Most of the engineers who completed their graduation in May-June with a software job in their hand through campus placements are still waiting for call from companies. Some companies have given the tentative dates that fall in second quarter of 2009. Some firms who came to campus for placement in the early 2007 have not yet given even tentative dates for joining.

I heard of comparing the situation to those in 1997-99. But experts tell it is wrong because now Indian economy is completely globalised, where every small change in world economy has its own effect on Indian corporate.

As we already know US economy is facing very bad time that has ever seen after 1929. In USA alone about 85,000 has lost their job in August. Running in loss and bankruptcy of the investment corporations could affect the IT companies, because they have invested huge amount in IT firms. AIG experienced a 90% fall in its share value this year. Stock price of GE went down to 11 years low. IT stocks in Indian market are also going low reflecting the situation

In US these developments are given political importance for the coming presidential election. US House of Representatives voted against the proposal of government intervention in economy which was $700-billion bailout plan. Obama, democratic presidential candidate said in his one of the campaign that he shall remove the tax holydays for the companies which are outsourcing their works, to increase the employment rates there. If so, what would be the fate of the Indian software firms which are mainly focusing n the outsourced works? Still we can expect smoothening of the situation after the US election.

Exchange rate of the USD against Indian Rupee is improving. It is now about 47Rs/USD where it was about 39Rs/USD beginning of the year. It seems good news for the software firms because their revenue comes from exporting the IT products. By telling so we want to run over the reality, but we can’t hide the fact why Rupee is going down. It is because the foreign investors are removing their investments from Indian firms. Is it good news?

As per the information, even the middle level HR managers do not know when they are going to issue joining date for fresher. Higher authorities of the companies have instructed them to suspend recruitment till next instruction. So fresher may have to wait for some more time without minding news in the air.

City bank helped a company for acquisition of another bigger company. City bank is showing loss in recent days. Person who does not reveal his identity responded that the company faced a hard time in the last financial year and now it is under recovery. This is the time when it needs help of investment banks. So nobody can tell when the company will call fresher without knowing the present status of relation between the company and the bank.

Do they require all those who got placed? We can not answer this question unaware of strategies of individual companies. But one should accept that IT firms are not running as they have forecasted two years back.