Stating that Cognizant has registered industry leading growth of 20% in 2012, Lakshmi Narayanan, vice chairman of the IT major expressed hope that the company will continue to perform well in the next financial year as well.
Narayanan expressed his reservations on the stagnation of wages in the IT industry, especially at the entry level. Talking about the hiring scenario, he said that there is an oversupply of talent from the education market. He reasoned that this oversupply will have to adjust in the next two to three years. Talking about a wage increase at the mid level, he said that it will either remain the same or will witness a subdued increase.
In an interview to ET Now, Narayanan said that he expects the coming year to be 'good' for the IT industry. Commenting on Nasscom's projection of 12-14% growth in IT exports, Narayanan said that it was a good considering the overall global economic situation. Keeping in mind the performance and improved guidance for the industry, he hopes for some positives as the year goes by.
Giving his views on US president Barack Obama's address on offshoring tax, Narayanan said that tax regimes of different countries keep changing and businesses adjust to it. He added that while tax was a minor irritant it does not have a major impact growth or margins of the industry. "This is something which companies and industries have managed well in the past and would continue to do so in the future," he told ET Now.
On the issue of the IT industry 'staying away' from Gujarat, Narayanan clarified that it was not a deliberate move. "Cognizant is focussed on export and looks at quality talent which the company has in abundance in the states where it operates," Narayanan said.
"There was no compelling reason to expand in new geographies. This adds to the management burden," he justified.
Narayanan expects a 'good' budget with stable policies. "Stability and consistency are required so that businesses can plan on a three-five year basis," he added.