MphasiS on hiring drive
Financial Express, December 24, 2004

4,000 to be recruited; continues with $125-million forward cover

MUMBAI, DEC 23:
IT major MphasiS is planning to increase its workforce in India. The company has chalked out plans to hire additional about 4,000 employees in the next one year.

MphasiS chairman and CEO Jaithirth Rao told FE, “We will add approximately 3,000 or more people in our business process outsourcing (BPO) business and 1,000 in the IT services business in the next 12 months.”

It may be recalled that earlier, Infosys had announced its plans to hire employees for Indian operations. Infosys plans to hire approximately 8,000 to 10,000 people this year.

MphasiS has plans to open a new BPO facililty in Mangalore in Karnataka in the current fiscal, which explains the rationale behind the recruitment drive. MphasiS also plans a capital expenditure of $10 million over the next one year. The company will continue to focus and consolidate in verticals like BFSI, retail, logistics, technology and healthcare.

Infosys already has nine software centres centres spread across India and at this point aims at consolidating and expanding in these cities.

Globally, MphasiS continues to focus on US and UK markets, even as its radar is set on Asia Pacific and Japan. Mr Rao pointed out that it already has a development center in Shanghai in China, which they will leverage in furthering business in the region.

Recently, MphasiS has partnered with Symbian for their certification service for Symbian Signed program. MphasiS will operate its global services based out of its subsidiary in China.

In light of the strengthening rupee, Mr Rao informed: “Since October 2002, our dollar-hedging policy has been to cover net receivables 12 months forward. Currently, we have forward cover in excess of $125 million over a 12-month period. We do not intend to change our policy and believe that the rupee will continue to be strong.”

The US is the biggest market for IT services. It is the most open market and accepts new ideas, technologies and concepts faster than other markets. Nevertheless, even other IT majors have been expanding into other markets as well.

Infosys has invested in Europe, Australia and Asia. Europe’s share has increased to 22% of the company’s revenues and Asia Pacific has kept pace with overall growth.

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