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Worst condition of IT Sector true or false ?

written by currentaffairs May 29, 2017
IT Sector

Everything happens for a reason on a particular time. Each sector has economic up and downfalls. Now, it’s the time of IT sector going through layoffs and automation development. IT giant lay off 1.2% of their employees on the basis ongoing performance appraisal, the employee’s performance, incoming automation and/or H1B visa. Condition is going to be more worst in coming years, as top IT companies have started to modify itself according to the upcoming automation era. They together laid off 29000 employees so far. Expected figure is about 5-6% workforce retrenchment from IT sector in the year. 1500 employees will sacked from total 117,000 employees of Tech Mahindra. The company spokesperson states to changing demand in business for global economic reforms. Their regular basis employee performance measures made them to layoff numbers of talented employee.

Pink slips will be prepared soon to weed out hundred numbers of bottom performers in Infosys. The reason told is bi-annual assessment to control cost. Infosys has also planned to remain in the international market as visa norms are becoming rigid to provide jobs to the locals. USA, Singapore, Australia and New Zealand have their own working visa norms. Keeping in consideration, Infosys has decided to hire around 10,000 Americans for upcoming four centers in coming two years.

Cognizant had already laid down 6000 and 1000 more layoffs from senior level are expecting to cut. Cognizant, US-based IT company has 2,60,200 employees so far from which 28% are working from abroad. It has placed 15000 employees with less ratings and below average performers. Uncertainty has created in the sector due to worker visa restrictions.

Third largest IT giant of India, Wipro, expecting to lay off around a thousands of employees on the basis of performance measures in coming one or two months. The company has already hired 2,800 Americans for international business last year. HCL Technologies Ltd too had laid off its employees based on performances, but back-off to ask employees to leave the company.

DXC Technology planned to come down from 50 to 26 offices by laying off around 20,000 employees out of 170,000 employees in three years. France-based Cap Gemini SA also set to lay down more employees. Whereas TCS is not in condition to retrench their skilled workforce. The reason of such decision is under cover. According to a research report, around 56,000 employees of IT department will lose jobs and 2 lakhs of job cuts within next three years. That means around 30-40% of the workforce become unskilled.

The retrenchment drive is worse than recession hits in 2008. Skilled Engineer staff laid off number is twice of what in the last year. HR heads talks only of rigorous performance evaluation systems accepted in their companies. The main reason is the company and the staff not ready to get over the upcoming automation technology and evaluated employees with bad or average performance in protest. One more reason is H1B visa.

Due to working visa restrictions, IT companies have to balance in their international market by hiring locals. IT firms in abroad requires to hire qualified locals. Automation also made economy and growth in the sector worst. Other technologies like Big Data, Artificial Intelligence, Machine Learning, Data Mining etc. are taking the market place. Troubling time is going in IT sector. Many seniors had already laid off and could be hired in average IT companies. Juniors of IT sectors have less opportunity to get better jobs. Automation is giving trouble to all levels of employees. Sacked employees can overcome from layoffs by learning the new technology, by starting their own venture, by applying in other sectors or by joining average IT companies on limited pay. Retrenchment drive has made worst condition in the

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1 comment

elexan May 30, 2017 at 6:52 am

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