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 ()
- 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 of people. (2017 is not likely to see as many Indian techies moving abroad)
Setting aside rhetoric, it is a classic case of a glass beginning to fill …….
….. leading to some spillage