Information technology multinationals had a few thousands on their rolls till a few years back.

Today, however, the major six IT MNCs alone -- IBM, Accenture, Capgemini, EDS, HP and ACS -- account for over 9 per cent of the Indian IT-BPO workforce. Overall, MNCs in India account for an estimated 14-15 per cent of the Indian IT workforce.

Of these, IBM India has been among the fastest growing firms. This year, its workforce in India grew by around 37.3 per cent to touch 73,000. This makes it the fourth-largest employer among all IT firms in India -- Wipro (77,500), Infosys [Get Quote] (80,500) and Tata Consultancy Services (slightly over 100,000).

Further, IT MNC hiring is expected to more than double year-on-year over the next three years.

Consulting, technology and outsourcing services major, Capgemini, for instance, plans to increase its headcount in India from 18,000 at present to 30,000 by the end of 2008 (and 40,000 by 2010) because of growth in business operations.

Accenture has about 35,000 employees on its rolls in India, and is expected to add 30-50 per cent to its headcount annually. Other MNCs are following suit.

A recent Forrester report states the changing dynamics of the marketplace, coupled with increasing sophistication of IT services, will see the IT majors putting up centres where the talent pool is available.

Inderpreet Thukral, vice-president, Strategy and Business Development, IBM India/South Asia, says: "Over the last 15 years, we have learnt to go where the right talent is, and at the right price. It's easy for us to attract talent. We have been winning deals and people like to associate with winners."

The rising headcount means stiff competition for talent. Employees will also increasingly switch jobs for better pay.

Domestic salaries have already been rising by 10-15 per cent a year. For senior staff, the levels would favourably compare with foreign hires in similar positions.

The talent shortage will only become more acute. In 2010, IT and ITeS-BPO exports are expected to reach $60 billion, according to Nasscom. To meet these estimated revenue projections, the workforce needed is about 850,000 IT professionals and 1.4 million ITeS-BPO personnel by 2010.

Currently, however, only about 25 per cent of technical graduates and 10-15 per cent of general college graduates are suitable for employment (employable) in the IT-BPO sector.

Rising headcounts will lead to increased competition for scare Indian developers, leading to increased costs for other players, according to Alok Shende, Head IT & Telecom, Ovum India. Companies like IBM and Accenture have taken away the competitive advantage (read labour arbitrage) from firms like TCS [Get Quote], Infosys, Wipro [Get Quote] and Satyam [Get Quote].

However, while IBM and Accenture cannot be matched when it comes to sophistication of their service offers, firms like TCS, Infosys and Wipro score when it comes to offshore integration, notes Sudin Apte, Senior Analyst and Country Head -- India Forrester Research.

The hiring has also reinforces the view that offshoring is here to stay. The Indian domestic outsourcing market, of deal sizes above $50 million, is estimated to be around $2.2 billion.

Siddharth Pai, partner & MD of management advisory firm, TPI, says: "These developments (rising headcounts) only buttress the fact that offshoring is indeed a viable business, and here to stay. The news is good for clients too since increased competition will give them better quality services at better price points."