India Inc witnesses 3 months of consecutive dip in recruitment activity, Maybe time to startup?

Planning to startup your own venture? Well, if you look at certain developments over the past one month, you might get better convinced that the time has come to take the plunge. To begin with, look at Naukri’s Job Speak Index –  says sectors like IT, BPO and Banking have seen a drop in hiring levels in September 2012 when compared to last month. The index suggests that the job market has considerably slowed down over the last six months as key sectors are adopting a cautious hiring approach.

Naukri Job Speak Index - Sep2012
Naukri Job Speak Index - Sep2012

Naukri’s report notes that during September 2012, IT and BPO companies hiring index went down by 3% and 4% respectively over August 2012. Earlier in September this year, according to a study, Indian IT companies are one of the 10 worst paying employers in the world.

Mid to senior level staff in India get an average salary of $ 38,767 every year, less than a quarter of what IT employees are paid in Switzerland.

In the meantime, Manpower group’s survey projected that hiring pace across Indian companies is likely to slow down noticeably in fourth- quarter.

Another strong reason for starting up is the roll out of some promising incubators and accelerators of global fame led by industry veterans. Last week, technology veteran Lalit Ahuja, Swiss Venture Capitalist John Cook and French-American VC Larry Glaeser have announced to launch Kyron, a $50 mn accelerator for Indian startups. Kyron has plans to incubate 125 new companies and there will be two batches of 10 startups every year starting from February and July.

Also, super angel Dave McClure’s accelerator 500 startups hired Pankaj Jain to focus on Indian startups. In September, Pearl Uppal, former CEO of FashionandYou and Gaurav Kacharu, had  launched an accelerator called 5ideas to invest about Rs 2.5 crore in each of the 5 startups it selects. In addition to that, erstwhile president of Reliance entertainment, Rajesh Sawhney launched multi city GSF accelerator is reported to be investing around $ 25,000- $ 30,000 in return for 5- 8 % equity in startups across 4 cities.

Isn’t NOW the best time to launch your own venture, now that corporate job honeymoon is almost over?

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