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
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.