[AI] IBM is India's second largest pvt sector employer - India Business - Business - The Times of India
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Dear Friends, with the help of Enable India and Mitra Jyothi, I joined
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will share my working experience with you all.
IBM is India's second largest pvt sector employer
Mini Joseph Tejaswi & Sujit John, TNN, Aug 18, 2010, 01.04am IS
NGALORE: Tata Consultancy Services is the largest private sector
employer in the country. It had 1,63,700 employees as on June 30. But
guess who's number 2?
The honour goes to -- surprise, surprise -- IBM. That's right. Not to
any Tata or Ambani company, or to Infosys or Wipro.
The fact that IBM has over one lakh people on its rolls in this
country is one of India Inc's best-kept secrets. No one in
US-headquartered IBM will admit that it employs such a large number of
people in India -- for fear of a backlash at home. There's been rising
anger in the US over the transfer of `American jobs' to lower cost
havens, particularly India. Faced with an economic slowdown and a
politically-damaging high employement rate, Barack Obama himself has
begun to sound jingoistic. He has issued barely-veiled threats against
US companies that ship out work and promised candies to those who stay
Even as an IBM spokesperson declined comment when contacted, a source
within the company said that in a couple of years, the India employee
strength could cross that in the US, where it employs about 1,55,000
people, and where the pace of hiring is substantially slower than in
India. IBM globally has a little over 4,00,000 employees. So, close to
1 in 3 of its employees is already an Indian.
Its staff strength is more than four times that of India's biggest
private sector company, Reliance Industries, which employs about
23,000 people. It is bigger than the combined employee base of the two
Tata Group's crown jewels, Tata Steel (81,000) and Tata Motors
A cross-section of industry analysts and manpower recruitment firms
TOI spoke with not only put IBM's India workforce (including that of
its wholly-owned subsidiary IBM Daksh) at over one lakh, some even
went to the extent of saying it might be 1.3 lakh -- well over
Infosys' 1.14 lakh as on June 30. Infosys is India's second largest IT
firm by revenue and third, it now transpires, by employees.
Since 2007, the company has stopped disclosing the geographic break-up
of its employee numbers. The last time it provided figures was in
2007, when it said it had 73,000 employees in India. Since then, the
company has maintained that it's a global company and geographic
numbers do not have any meaning in that context.
IT services firms have emerged as India's biggest job generators, even
as traditional manufacturing firms -- historically big employers --
have tended to cut down on numbers to control costs. Typically, this
sector also generates high paying, high disposable income jobs, unlike
It's well known that IBM has been hiring aggressively in India. The
2007 figure of 73,000 was a near 40% increase over the 2006 figure of
53,000. Since then, big IT companies have been hiring upwards of
20,000 people a year.
"Even during the recession years of 2008/2009, it was mostly IBM,
along with Accenture, that kept the lights on in the hiring market,"
says a headhunter. In an environment where the pressure to cut/control
cost is brutal, hiring people at relatively higher salaries has become
a luxury few can afford.
Some said that IBM Daksh (the BPO unit) alone employs about 50,000
people in India. IBM Global Services --- which straddles hardware
(telecom, retail billing, mainframe, servers, etc) and software sales,
services and support business, consulting business --- and IBM Labs
are together seen to employ another 70,000 to 80,000 people.
The hiring aggression is continuing. TOI reported last month that IBM
will take up close to 1.25 million sqft of office space this financial
year, for which it has signed leasing deals with multiple developers.
Real estate consultants said the company's plan is to absorb 3 million
sq ft across IT hubs like Bangalore, Pune and Hyderabad over the next
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