BANGALORE, INDIA: TeamLease Services Private Limited, India's largest staffing company, today released its latest Employment Outlook Report for the period January to March 2009.

According to  Surabhi Mathur-Gandhi, General Manager, TeamLease Services Pvt Ltd, "The business outlook for the 1st quarter for 2009 has been completely undermined with the series of disastrous socioeconomic events in the last quarter. The impact has been broad-based across sectors and companies, which has left no scope for positive projection in the near future.

The Telecom sector seems to be the least impacted, given the domestic dependency for their business. We see that the Outsourcing sector has bottomed out and do not see any further fall. With the recession in US, we see a quiet a few outsourcing deals favoring business for the Indian IT /ITES industry. In spite of the insecurity and not so positive sentiments in the IT /ITeS sectors, the attrition remains the highest in this sector".

Gandhi further adds, "In these trying times and the gloomy overall outlook, corporate India needs to bring in a higher frequency of communication to keep their workforce motivated and the morale high".

Key Findings of the Report

• There is a decrease in Employment Outlook index points of all sectors except Telecom. Telecom (with 60 points) has the highest index points followed by ITES (with 53 points).
• All cities show a decrease in Employment Outlook index points.  The Index points of Hyderabad decreased the most (by 50 points) followed by Kolkata (by 41 points).
• Net Business Outlook Index has shown a steep dive by 50 index points across sectors. The index points of all the sectors are on the decline and the Infrastructure sector declined the most (by 132 points) and Telecom sector declined the least (by 16 points).
• Business Outlook index points of all cities have dropped tremendously.  Mumbai shows a huge decrease of 87 points followed by Kolkata, down by 69 points.
• A decrease in the intention to hire is observed at Entry and Junior levels while there is an increase in the intention to hire at Middle and Senior levels.
• The report also shows a decrease in the intention to hire across all Functions.
• The attrition rate was under 15 percent for all the sectors during the past three months. Over the one year period, the attrition rate for IT, ITES and Telecom was over 15 percent  and less than 15 for the other sectors.
• During the past 3 months, Bangalore (20 percent) and Chennai (24 percent) had the highest attrition rates compared to other cities. During the past 1 year, Bangalore (23 percent), Hyderabad (21 percent) and Chennai (32 percent) had higher attrition rates compared to other cities. Ahmedabad had the lowest attrition rate in last 3 months (5 percent) and last 1 year (6 percent).

TeamLease regularly releases the Employment Outlook Report every quarter after a survey administered to the HR heads, CEOs and Senior Management of leading companies in India.  This study focuses on the employment growth potential, the business outlook and hiring forecasts with relation to the location and the company profile.  This report serves as a reference manual to corporate houses to understand the employment trend in the present market scenario at major cities across the country.