Seeing a rebound in IT outsourcing contracts, IT services provider iGate today announced that it plans to hire 1,500 people in the calendar year 2010. Phaneesh Murthy, CEO of the Nasdaq-listed company said iGate's plan to increase the headcount was a reflection of the business environment.

"We believe there is already a revival in the demand side as the companies have started spending on discretionary projects. The IT budgets are also expected to increase by 2-4 per cent, as per our estimate," Murthy who was in Bangalore for the inauguration of the company's expanded facility said.

In the fourth quarter of the current calendar (October-December 2009), iGate intends to hire 300 people including 100 for BPO services. Murthy said while the pricing environment largely remained stable, the company was seeing a huge increase in the number of first time outsourcers. Of the 12 new clients, iGate has added during the last two quarters, 11 are first time outsourcers. "This indicates that offshoring to locations like India is expected to be more in the coming days," he added.

iGate, which reported a revenue of $49.1 million in the quarter ended 30 September, employs about 6,400 people. The company is present in India in four locations including Bangalore, Hyderabad, Chennai and Noida. Besides, its near-shore centre in Mexico employs close to 100 people. The major chunk of the company's manpower are located at its 14 acres corporate campus in Bangalore, where the company has opened up the fourth facility with an investment of about Rs 65 crore.

The new facility provides 1,15,000 square feet of additional workspace to iGate, and can accommodate 1,050 people.

Source: Business Standard