What do you think about the recent layoffs in the IT sectors?

Answer to a recent question from an online forum

Here is an image that perhaps summarizes the Indian IT Industry All of us have a viewpoint on what’s ailing the IT industry (link) Large software service companies employ nearly 200,000 people each. The rate of voluntary attrition is at historically low percentages.Assuming some sort of a bell-curve grading continues, and companies expect 5-10% of the bottom-rung people to ‘voluntarily’ leave, we are still looking at 10-20,000 people (each) leaving.The global software services market has slowed down. Most of the large software-service firms are projecting slower yearly growth.Thanks to Trump’s Executive actions, Indian firms are promising to hire tens of thousands of American workers.One could include other factors like increased automation and productivity gains that are being touted by IT leaders.Factor in the slowdown in American work-visa (H1) issuance, protectionism in Australia, England and elsewhere that lessens global mobility o…

Layoffs in Indian IT? Cognizant says 400 of its top-level executives have accepted its voluntary separation package

Information technology firm Cognizant said around 400 of its senior executives have accepted its voluntary separation package which will help the multi-national corporation save around $60 million dollars annually, PTI reported on Sunday. The company had offered some of its senior staff up to nine months of salary.Wikimedia Commons The international company had pitched the package, which offers up to nine months of salary, to some of its senior executives based in the United States and India in May. The firm has not specified how many of the employees were based in India, which accounts for a sizable number of its 2.56 lakh workforce. “Of the $39 million (approximately Rs 248 crore) of realignment charges, $35 million was for the roughly 400 associates who accepted our voluntary separation package,” Cognizant Chief Financial Officer Karen McLoughlin said at a recent investor call. The CFO said the step will help increase profits. The firm’s staff strength was reduced by around 4,400 …

Reskill Yourself, Hiring Specialist's Message To Mid-Level Indian Techies

There is a is a recent article from NDTV  titled "Reskill Yourself, Hiring Specialist's Message To Mid-Level Indian Techies"

The advice seems logical, and timely. As a matter of fact, most 'management gurus' and IT leaders are are parroting  the Reskill Reskill Reskill  mantra

However, What to reskill on and How to go about it is unclear, perhaps even to the 'Gurus'

Read rest of the article:

Mid-level positions in India's IT sector are most at risk as the industry grapples with changes in the technological landscape and stringent visa regimes in many overseas markets, according to a top executive of staffing firm TeamLease. There have also been reports of layoffs by many IT companies, even though the industry has denied the allegations. "The nearly 1.4 million mid-rung employees, who typically have 8-12 years of experience, are now at the centre of reskill and restructuring conversations happening across the sector," says Alka Dhingra, Ass…

Layoffs at Top IT Companies continues - Snapdeal Cuts Its Workforce By 80%

Three of India's top IT companies saw significant reduction of their workforce in the quarter ending June, according to a report in HT Mint.

"The $154 billion Indian information technology (IT) sector, once India’s largest creator of jobs, is now struggling to even add to its workforce. For the first time, three of the five largest IT companies saw their workforce shrink in the quarter ended June 30. The five firms, which together employed 878,913 people at the end of the June quarter, saw their workforce shrink by 1,818 people."
According to Economic Times,

E-commerce major Snapdeal on Monday revealed that it is facilitating a major layoff in the company, with an agenda to cut down 80 percent of its employee strength.
A senior official of the company told ANI that the management has given verbal instructions to their department heads to prepare the list.  Additionally, the official also revealed that the owners of the firm have reversed the merger which was to take place…

It's time for TCS, Wipro, and Infosys to say goodbye to double-digit growth forever

A couple of days ago, we looked at NASSCOM''s forecast of "Indian IT sector to see up to 38% fewer jobs this fiscal"

This week, ZDNet posted an analysis "It's time for TCS, Wipro, and Infosys to say goodbye to double-digit growth forever"

The results from the most recent quarter that ended in June 2017 are just in and there are no surprises here amongst the big three in Indian IT.

Using this impetus to wean themselves off of low-end work and gravitate towards more value-added assignments could save Indian IT.

TCS, India's largest IT services company, posted a 5.2-percent growth in revenues (in dollar terms versus a year ago) as well as a 7-percent drop in net profit. Mint newspaper, observing that it was the company's "11th consecutive quarter when the company has either under-performed or at best managed to match analysts estimates" called it a result of "unimaginative leadership" in a separate piece, which is an understate…

Indian IT sector to see up to 38% fewer jobs this fiscal

Many of us watching the IT services sector already knew this but here is an update from Times of India

IT industry is reorganizing its workforce to deal with automation and achieve cost savings.TCS and Infosys saw employee headcount reduce by 1,414 and 1,800 in April-June quarter respectively.There will be lower net addition of techies due to sectoral headwinds and macro economic factors.
In what comes as a harbinger of turbulent times setting in for the IT sector, NASSCOM has said the industry would create 20-38% fewer jobs in FY18 compared to fiscal 2017. The industry would create 1.3-1.5 lakh new jobs (lateral plus campus) in FY18 while it had added 1.8 lakh jobs in FY17. At its peak, the sector added nearly 2.40 lakh jobs a year.

There will be lower net addition of techies due to sectoral headwinds and macro economic factors. "Tech is eliminating jobs in every sector, including IT. It is also creating jobs. Countries like the US and UK have been adopters of technology and hav…

Indian IT: Fired for leaving my team's whatsapp group

IT workers in India seem to be on the edge with all the news of layoffs. Believe it or not, here is a recent post in an online forum that generated a lot of discussion and comments

In the most ridiculous and cruel turn of fate, I had a meeting with my manager where I was reprimanded for leaving the "official" whatsapp group which my manager created. I was clicking around the interface and left the group. I did not care much about it at the time.  Come next day, I was called in and given a lecture about team work. I sucked up and listened. The next week I was called upon again asked to make leave the company or take up PIP. I understood the ploy and resigned on my own.
It is the most farcical thing that happened to me in my career spanning nearly 9 years in the IT industry. Believe it or not, I am amused and a bit apprehensive about the future. I think I took the right decision any way. By the way, I just travelled onsite last month for a knowledge transfer session. I don…