Layoffs or Job cuts news has been doing rounds from early 2017. It seems to have affected IT workforce more now than before as there are quite a lot of news doing rounds about employees getting pink slips from giants like Wipro, Infosys, Cognizant and Tech Mahindra. Though layoffs are being underplayed as a small percentage based on the poor performance the numbers are quite high compared to the previous years.
Another reason being the decision taken by the IT giants hiring US citizens in the US thereby reducing the workforce here with respect to the change in laws in the US.
Above are the two reasons which have come into existence in past few months. But the main reason being IT sector in India has taken work outsourced to them in the area of Application Development and Maintenance. The work that companies can take is directly proportional to the number of people they employed. This business still accounts for largest chunk of work done by such companies
For many years, Indian IT companies have been speaking of the need focus on the non- linear growth, which has not been easy for them. Now with Automation becoming a way of life in most companies, and Artificial Intelligence becoming a reality, the Application Business and Development part is under threat. So Indian IT companies find themselves caught in the middle of two changes. The result is few number of jobs in the Job Sector. The new jobs created will largely be in areas such as Analytics, Artificial Intelligence. So there the need arises for upgrading to new skills, in short, it is “re-skill or perish”.
In startups like YepMe, Craftsvilla etc is focusing on revamping operations and making profits. The realty sector which was just about showing the signs of recovery is also hit badly.
Though it is going to be a rough road ahead for Indian IT companies and also for the job force, this would be an opportunity to go beyond application to innovation and for the job force to equip themselves for the challenges ahead.