High Pro­duc­tiv­ity Takes the Byte out of IT Hir­ing

IT needed 16,055 en­gi­neers in 2015-16 vs 31,846 in 2009-10 to earn ev­ery $1 b of ex­port rev­enue

The Economic Times - - Front Page - Anir­ban.Sen@ times­group.com

Ben­galuru: In­dia’s in­for­ma­tion tech­nol­ogy in­dus­try is ex­pected to post the sev­enth straight year of im­prov­ing pro­duc­tiv­ity, as au­to­ma­tion adds to ef­fi­ciency and drives down hir­ing rates among soft­ware ser­vices com­pa­nies.

The in­dus­try is es­ti­mated to have re­quired 16,055 en­gi­neers to gen­er­ate ev­ery ad­di­tional $1 bil­lion of ex­port rev­enue in 2015-16, com­pared to 31,846 en­gi­neers in 2009-10, a near dou­bling of the ef­fi­ciency with which labour is em­ployed.

Cus­tomers such as RBS and Tar­get ques­tion­ing rel­e­vance of the labour ar­bi­trage model

The Mi­lan Court of Appeals, which ruled that the 2010 Agusta deal with the In­dian Air Force in­volved cor­rup­tion, has raised a big ques­tion on the 18 mil­lion.

The Ital­ian court has ob­served that while 18 mil­lion eu­ros were paid by Agusta to a Michel-owned com­pany named Global Ser­vices FZE, an in­ter­nal re­port or­dered by Agusta it­self raised doubts on this. “Why do we have to pay 18.2 mil­lion eu­ros for some scrap whose value… was es­ti­mated10 years ago at 5% of 18.2 mil­lion eu­ros?” the court ob­served, quot­ing the in­ter­nal re­port.

ED’s probe into Michel’s trans­ac­tions show how the fugi­tive Bri­ton, sought by both ED and the Cen­tral Bureau of In­ves­ti­ga­tion, op­er­ated. In May 2010, Michel en­tered into a con­tract with Agusta to pur­chase 14 dis­carded WG-30 chop­pers from Pawan Hans. The chop­pers had been sold in the 1980s by West­land, which was then a Bri­tish com­pany and later merged with Ital­ian Agusta. WG-30s had de­vel­oped se­vere prob­lems and Agusta’s logic, In­dian sleuths say, may have been that buy­ing back those he­li­copters would be a good­will ges­ture to­wards In­dia. But that doesn’t jus­tify the quan­tum of money set aside, as the Ital­ian court and In­dian in­ves­ti­ga­tors point out.

The Ital­ian court has re­ferred to this WG-30 buy­back and a post-con­tract ser­vice deal for VVIP chop­pers as part of its in­dict­ment of Michel.

ED of­fi­cials, who have been prob­ing the case and are hot on Michel’s trail, told ET that they sus­pect the con­sul­tant floated a com­pany named Gufic Trad­ing in Dubai and later trans­ferred money from Global Ser­vices FZE, the com­pany that got 18 mil­lion eu­ros from Agusta.

“For in­ves­ti­ga­tions to progress fur­ther, we need to ques­tion Michel re­gard­ing the con­tract. It is also pos­si­ble that the deal was can­celled. An­other pos­si­bil­ity could be that he forged the doc­u­ments to get the con­tract from AW,” said an ED of­fi­cial.

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