Capgemini goes slow on India growth plans

MUMBAI: Multinational firm Capgemini is going slow on its India expansion and is likely to miss its target of 40,000 employees in the country by 2010.

Capgemini India chairman Salil Parekh said that the total number of employees in the country was, currently, around 20,000. While, it still continues to hire, but the rate is slower compared with the previous year, when its employee strength grew by 20%. In contrast, its employee strength is expected to grow by 14-15% this year, which would add around 3,000 employees.

Mr Parekh said that the hiring for 2010 would depend on the market. ���It depends on how much longer the demand will be stressed,��� he said. The company had also announced inorganic growth strategy and plans acquisitions of nearly $1 billion. However, Mr Parekh did not comment on whether any of these plans had changed. Among the European companies, Capgemini is one of the few to have a sizeable presence in India.

���It is true a number of captive units are now in the market for a buyer,��� he said. On Thursday, the Paris-based IT and consulting company firm announced a 19% fall in its second-half net profit to Euro 220 million. Its revenues for first-half of 2009 are also expected to show a marginal drop.