Howdy, Digital People !
Lots happening in last few weeks in the Indian IT Industry, so called Boom Boom Industry of India. Many major companies have announced to reduce their workforce for the current financial year & this has created a lot of uncertainty & chaos among employees.
( This blog was originally published by me in the UC News)
What’s Really Happening?
As per the announcements made by seven blue-chip IT companies in India, approximately 56,000 employees will be laid-off this year. This number is twice that of last year( Infosys, Cognizant, DXC Technology Co, Capgemini, HCL, Tech Mahindra & Wipro totally employees around 1.24 million people).
The above data is according to ‘Mint’. They have done extensive interviews with 22 current & former employees across these seven companies.
As companies prepare to layoff, they have already awarded lower ratings for poor performers. Cognizant has awarded lower ratings for 15,000 employees; Infosys has placed 3,000 senior managers in the category of employee needing improvement.
DXC Technology is planning to downsize its empire in India, plans to reduce it’s branches from 50 to 26. It also plans to sack 5.9% (around 10,000), of its 170,000 employees.
Reason for Layoffs?
Laying off employees is not new in IT Industry, this practice is followed by many companies every year. There are multiple reasons like employee performance, company performance, market slow down etc. Major reasons are
Change in Policy -This year, the major reason cited is the policy changes which might take place for corporates based in USA region ( biggest market for majority of Indian IT companies). Based on the proposed policy amendment, companies need to hire local workforce than non-local, to save on cost. This will have impact on current Indian workforce, who are based out in USA.
Advancement in Technology – As there is a lot of advancement in the technology, many tasks have been automated. This will have impact on the current workforce of any company. Going further a lot many tasks are expected to be handled by machines than humans.
Poor Growth and Lesser Margins – Due to Companies lower growth & margins; it has forced them to minimize the expenses by cutting down the workforce. For FY 2016-17, for the first time since 2009-10, TCS, Infosys and Wipro grew slower than industry forecast 8.6%.
Despite these on-going issues, companies continue to hire young talents & train them with newer technologies.
It’s better for any person in any field to be-multi skilled, as there is always an uncertainty attached to anyone in any industry.
( This blog was originally published by me in the UC News )