RETAIL This sector, along with media and FMCG, will lead the jobs boom this quarter	INFORMATION TECHNOLOGY IT lags only marginally behind retail in the jobs sweepstakes
Help, Tarun!
Designing Careers

There's more good news on the employment front. Companies across the entire spectrum of industries-from retail, media and fast moving consumer goods (FMCG), to information technology to financial services, to infrastructure to it-enabled services (ITEs) to manufacturing and engineering-are planning to hire in large numbers over the quarter starting October 1, 2006. The first Business Today-TeamLease Employment Outlook Survey, covering 490 companies in eight cities-Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad-shows the Employment Outlook Index, arrived at by subtracting the percentage of respondents who say they will recruit greater numbers from the proportion who project a decline, at 81. The objective of the survey is to track and understand the hiring expectations of the Indian private sector. Incidentally, the Business Outlook Index (calculated the same way as the Employment Outlook Index) is at 85. Expectedly, companies in Mumbai, Delhi and Bangalore, in that order, are most bullish about creating more jobs during this quarter (see Citywise Employment Outlook Index), while those in Kolkata were the least so. "The government says 10 million jobs will be generated every year over the foreseeable future. This study supports that claim; it also proves that job creation has now become largely independent of the political process," says Nirupama V.G., Associate Director, TeamLease Service.

The Business Today-TeamLease Employment Outlook Survey will be carried out every quarter to track the job creation potential of the Indian economy.

An All-pervading Optimism

If the proof of the pudding lies in the eating, then here's the verdict: sweet. Every single sector is expected to go on a hiring spree this quarter. The services sector-retail, media, it and financial services-will mainly drive this trend, as will the FMCG sector. This is not at all surprising. The economy is galloping along at over 8 per cent per annum, making it the second-fastest growing economy in the world after China. Reflecting this buoyancy, the stock markets seem to have resumed their ascent, after a brief period of volatility. And the country seems to have put the era of jobless growth firmly behind it. Just pick up any newspaper. Chances are you will come across a news item on yet another massive recruitment drive by one or other company. ICICI Bank has just announced plans to hire 40,000 people a year over the next three years. And Reliance Industries' retail venture alone is expected to generate over half a million jobs over the next few years. And it's not alone. "We are hiring 600-700 sales people every month; this will rise to 1,000 people a month over the next few months," says Sanjay Jog, Head of hr, Pantaloon Retail. And the Big Three of IT-TCS, Infosys and Wipro-will collectively recruit more than 100,000 people this year. A good percentage of this will obviously take place this quarter. "TCS will add 30,000 people to its workforce by the end of the year," says S. Padmanabhan, Executive VP and Head, Global HR, at TCS. Only the manufacturing and engineering sector trails the overall index. Says Yashovardhan Verma, Head of HR, LG India: "This is probably because this sector has been focusing more on productivity expansion than on increasing manpower."

FINANCIAL SERVICES Sectors like the one above will hire at a faster pace than the rate of growth of their businesses	INFRASTRUCTURE The government's capex is creating massive job opportunities

The Boom Towns

India's financial capital is brimming over with optimism. An index score of 98 means that almost every company in the sample expects to add to its numbers this quarter. Ditto with Delhi, which follows close on Mumbai's footsteps. Bangalore, Ahmedabad, Hyderabad and Pune more or less reflect the overall national trend, but Kolkata, despite the hype about its revival, still trails the nation by a fair bit. "Kolkata lags only when compared to the other cities. In absolute terms, the number of companies there that plan to recruit over this quarter still outnumber those that don't by a fair margin," clarifies TeamLease's Nirupama.

Mumbai, Delhi and Bangalore already have large, existing employment bases and the Business Today-TeamLease survey suggests that these cities will add the most among all the cities to their already substantial employment numbers. As mentioned in the section on Employment Outlook Index, ICICI Bank, Reliance and the three big it companies will recruit on massive scale. It stands to reason that a fair percentage of these numbers will be added at their primary centres of operations, particularly in the case of the it companies. "For it and ITEs companies, most of the hiring will take place in the bigger cities," says LG's Varma.

The survey suggests that recruitments in Ahmedabad, Pune and Chennai will more or less follow the national average. Given the high index score for the country as a whole, this means that potential employees can look forward to this quarter with optimism. Hyderabad, surprisingly, trails the national average by nine points. In Kolkata, too, the number of companies that plan to hire over the next quarter far outnumber those that don't. The implication: the laggard is slowly catching up with the rest of the pack, and that's good news for people in that city. How it performs in future surveys will be interesting to track.

Hiring Trends Across Geographies

Respondents were asked whether they would hire from the metros, Class-I and Class-II cities and rural areas. An overwhelming 78 per cent said they would hire from the first two only. This is not surprising given the nature of jobs being created and the industries that are generating them. it, media and financial services companies, which the survey suggests will recruit the maximum numbers, obviously need high qualified personnel; and such resources are mostly based in the big cities. This skew is also due to the fact that the survey covered only the organised sector, which is heavily concentrated in the bigger urban centres. LG's Verma, however, feels that "tax havens and the special economic zones will lead to an employment boom in the smaller centres."

A Cross-sectional View

ITES Indians are taking to BPOs & KPOs like never before	MANUFACTURING Companies here are more focussed on enhancing productivity

A bulk of the hiring (86 per cent) will take place at junior levels. This is a no-brainer; there will obviously be more jobs available at this level than higher up the hierarchy. This is also a function of the fact that several companies in the three sectors leading the Business Outlook Index are starting operations or are expanding in a big way and so, need to rapidly fill up their junior ranks. There are, after all, only so many heads of departments, project managers, branch managers and the like that companies like Reliance, Infosys, TCS and ICICI Bank and others need to recruit. They will obviously need many more salespersons, codejocks and front desk personnel, and that's what is going to drive the recruitment boom. Also, "most companies are hiring at a faster pace at the entry level than at middle or senior levels because of the constrained supply of experienced hands, and this is true across industries," says Achal Khanna, Country General Manager, Kelly Services, a staffing solutions firm. There is, however, hope for others as well. Over a third of the sample size propose to hire mid-level personnel. The survey shows that two such people will be recruited for every five entry- or junior-level recruits. And if you've already reached the senior ranks, don't worry; one in six employers surveyed says there's room for people higher up the totem pole.

Indian Job Seeker Is Spoilt For Choice

Here's proof, if proof is needed at all, that India is now a buyer's market. The maximum demand (almost one in three) is for marketing professionals. With a wide range of goods and services to choose from, the Indian consumer is obviously spoilt for choice. The corollary: he needs to be coaxed into exercising it. And who better to do it than the army of marketing personnel. The flip side: those irritating calls from call centre execs offering everything from cheap housing and car loans to insurance and the like. Next up is the need for it pros. This is evidence not only of the buoyant demand for Indian it services but also of the fact that use of information technology is now widespread across the organised economy. As mentioned above, it companies are on a recruitment spree. Besides, with companies in almost every segment-especially in retail, infrastructure and financial services-expanding at a rapid clip, there is an urgent need to scale up their it backbones to cope with the increasing complexity of their operations and their logistics. "I've worked for 20 years in the placements industry, and I've never seen the kind of buoyancy in the job market that I'm witnessing now," says Kris Lakshmikanth, MD, The Headhunters, an executive search firm.

Confidence Brimmeth Over

The economy is pushing ahead at full throttle; the stock markets are again flirting with their all-time high levels and there's a feel good factor pervading the economy. Little wonder then that an overwhelming majority of decision makers in the corporate world feel that business over the next three months will be better than it was in the previous three. Companies in the retail, media, FMCG, infrastructure and financial services are particularly bullish. The survey suggests that companies in these sectors will hire at a faster pace than the rate of growth of their businesses. This probably has to do with the fact that several of these sectors are still in their sunrise phase or have just taken off. "The organised retail industry is obviously very bullish about growth. Pantaloon has been opening retail stores in large and small cities alike," says Jog. "The optimism of Indian employers is reflective of the rapid pace at which the Indian economy is growing," adds Jeffery Joerres, Chairman and CEO of Manpower Inc, global staffing solutions consultancy.

The survey suggests that companies in Bangalore are almost in a state of euphoria. That's the only way to describe a Business Outlook Index score of 100. Mumbai and Delhi also present an exceptionally healthy picture of business growth over the next three months. And, this is the clincher: though the others trail the national average, all of them exude confidence about the next three months. Even Kolkata, which clocks in at the last position, shows a score of 72, which, on a standalone basis, reeks of optimism.

-additional reporting by Kapil Bajaj

COUNSELLING
Help, Tarun!

Q: I'm a 21-year-old BSc (Biotech) graduate. I want to set up a firm with a small investment. What are my chances of growth and are there any rules and regulations that I need to follow? Do I need any degree to fulfill my dream?

It's not enough to just set up a firm. What kind of firm do you want to set up? Your chances of growth will depend on the kind of business you do. As far as rules and regulations go, there are a variety of them-from the shops & establishment rules to paying your taxes to labour laws.

Q: I'm a 21-year-old Mech. Engg. graduate. I have always wanted to work in an MNC and some of my friends suggest that I pursue an MBA (specialisation: marketing) on a full-time basis. Is there any other course/training that I should undertake to serve my purpose?

An MBA will not only help you get into an MNC but also enhance your career prospects further. Have you ever thought of entering an MNC as an engineer (in the technical field)? I would advise you to broaden your horizons. Ultimately, your career ambition should be to do really well and that does not necessarily mean joining an MNC. Don't make joining an MNC your sole career goal. Look beyond that-the world is open to you!

Answers to your career concerns are contributed by Tarun Sheth (Senior Consultant) and Shilpa Sheth (Managing Partner, US practice) of HR firm, Shilputsi Consultants. Write to Help,Tarun! c/o Business Today, Videocon Tower, Fifth Floor, E-1, Jhandewalan Extn., New Delhi-110055..

Designing Careers
Fashion designers can now look forward to regular jobs in large corporate houses.

The Indian fashion industry is getting corporatised. Result: there's a buoyant demand for fashion designers. "This will only grow as more brands are launched," says Atul Chand, Vice President, ITC Lifestyle Group, which owns the Wills Lifestyle Stores (WLS) brand, adding that designers specialising in accessories like ties, cuff links, wallets, etc., will also be needed in large numbers to feed this growing market for branded lifestyle products. Already, companies like ITC, Madura Garments and Arvind Mills, among others, hire designers to keep their clothes and accessories lines up to date. Says Sanjay Shukla, Team Leader, Triburg Sporstwear, a buying house (company that sources, samples and delivers merchandise to its customers) based out of Delhi: "Young fashion designers can be picked up from institutes like NIFT or Pearl at salaries of Rs 12,000-15,000 per month."

-Shivangi Misra

FACT FILE

Fashion industry: Bitten by the corporate bug WHO'S HIRING: ITC, Madura Garments, Arvind Mills, buying houses, export houses, etc. WHO'RE THEY HIRING: Design graduates from leading institutes like NIFT, Pearl, etc. AT WHAT LEVELS: Senior level and entry level SALARIES: Starting at Rs 12,000-15,000; designers with five to seven years' experience can earn lakhs per month TOTAL MANPOWER REQUIREMENT: Precise figures aren't available; but demand is buoyant and is expected to number in thousands within a few years