New Delhi, May 13: The Indian IT industry of $150-billion is planning laying off 56,000 of its employees earlier it was seen as white-collar job.
For years, many IT giants like Infosys, Tech Mahindra, Cognizant, etc considered as the placement hub. But now they are on the verge of saying bye to their employees.
According to companies, the reason for lay-off is their employees are non-performers or under performers which can affect their career growth as well.
France-based Cap Gemini SA plan to let go of 4.5% of their workforce in 2017. Cognizant has placed more than 15,000 employees in the lowest category and Infosys has placed more than 3,000 senior managers in the category of employees needing improvement.
The numbers were collated by Mint after extensive interviews with 22 current and former employees across these seven companies.
Many reasons are there for massive layoffs:-
1. The trend of automation
Due to automation many jobs are being replaced by machines especially which are repeatitive. It helps in saving costs and improving performance.
2. The protectionism introduced by US.
Due to increase in H1B visa cost to $130,000 from existing $60,000. Australia, Singapore and many other popular lucrative markets made both time-consuming and costly.
3. Rises of protectionist politics in US, Europe
Pressure of rise of protectionist politics in advanced economies contracts the outsource contracts to firms in India.
Thus, in the short- and medium-term, Indian IT sector is in for some rough times, but their are silver linings too. The push to increase digitisation in India will, over a period of time, lead to a large local market opening up.
According to IT companies it will take some time to materialise meanwhile massive layoffs are compulsory.