Saturday, May 19, 2018

2013 was not a very good year for Information Technology companies

2013 is not a very good year for Information Technology companies, they are having tough business environment in the country but still they are enjoying, throwing parties and are spreading the festival cheer among their employees.
Various companies are hosting parties for their employees such as Accenture has given its annual party in a hotel in Bangalore, Tech Mahindra hosted its annual party at the JW Marriott in Mumbai and Cognizant Technology Solutions hosted their party in a very good hotel in Chennai, Yahoo hosted the party at the end of the year for their more than 2000 employees and for their family members at the KTPO convention hall in Whitefield.
There are some other IT Companies like Intel, Broadcom, Flextronics, Tata Consultancy Services, IBM, Firstsource, and iGate who have already conducted the party for their staff members or are planning to host their annual parties or yearend parties in the five star hotels giving a boost to their banqueting revenue.
Every company wants to host the parties for their employees to make them feel happy so as to reduce their level of stress, which was created due to non performance of these companies and due to recession arise in IT Sector. Companies are not feeling shy from holding annual or yearend parties, even they are working very hard during difficult times. According to the Rajneesh Maller head food and beverage at ITC Gardenia, Bangalore, he has not seen any kind of de-growth or cut on spending by IT companies. There are various multinational IT Companies based at Bangalore, for them ITC has hosted more than eight year end parties.
When IT Companies plan to host the parties they have to deal with 5-6 suppliers or vendors for hosting such parties outside, but they can also avoid this hassle, while it is seen that hotels benefits from large business. The hotels can generate good business as they not only cater to their food and beverage requirement but also take care of event management, party themes and housekeeping among others. Due to this in the last quarter this has led to as much as 15-20 percent increase in F&B businesses of hotels.
According to the Mr. Anurag Bhatnagar, area general manager of Stawood Hotels in Mumbai & Pune, throwing parties and spending some money on their associates and giving them such events is a source of a motivation for the employees as 15-20 percent of the banqueting and catering business is contributed by such events. He also says that if compared with last year, IT companies have also increased their budget by 15-20 percent.
In 2014, technology budget is also expected to increase by the American companies with the share of outsourcing budget which is set to increase faster. In the current fiscal year ending March 2014, according to Nasscom, there are chances that IT exports are likely to reach $86 billion and domestic IT sector also increases by 12-14 percent.
There are few technical companies who wanted to increase their business growth in FY15 are prepared for hosting their parties at the end of the year and for this they are booking banquet halls for conducting the events with the inclusion of the reward programs for their employees and for their family members. Some of the events organized by the companies are theme based while most of them also include games, music, dance, special performers and F&B dining. Mostly these parties contain 50-100 people or maximum 5000 people.
According to the Roshan Rajpal, director of sales and marketing at Ibis & Novotel Bangalore Techpark, the number of parties has also increased. Now parties on the occasion of Diwali and Christmas are also hosted by IT companies, whereas earlier it was only one of them.
If we look at the cost incurred in hosting these annual parties, then in a five star hotel a meal with liquor costs around Rs 2,500 per person and the F&B cost per person ranges between Rs. 1400-1500 on the condition if liquor is paid on the basis of the consumption. As per the hotliers, for hosting these parties average price range would be around Rs.25-35 lakh for 300-350 people, only on food and beverages. This is expensive but still it cannot stop the companies from holding their year-end parties at such locations.

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