Sad over recent IT layoffs, says Infosys founder Narayana Murth
BENGALURU: Founding President of Infosys N R Narayana Murthy on Friday expressed sadness in IT companies firing their employees as part of their cost-cutting strategy.
“… It’s sad …” Murthy said in an email response to a PTI query in the latest IT layoffs. Murthy, however, did not clarify the matter.
Infosys announced that it would distribute pink sheets to hundreds of mid-level and senior level employees as it performs a bi-monthly assessment of the average performance of a challenging business environment.
The development comes at a time when their Wipro and Conscious colleagues take similar steps to control costs. The United States-based Consciousness had set up a voluntary separation program for directors, associate vice-presidents and vice-presidents, offering a 6-9 month salary.
Wipro also learned to ask about 600 employees to leave as part of their “performance appraisal” a year, although speculation was that the number could reach 2,000.
According to executive search firm Head Hunters India, job cuts in the IT sector will be between 1.75 and 2 lakh lakh per year over the next three years due to poor readiness to adapt to new technologies.
A report from McKinsey & Company in India Leadership Forum NASSCOM said that almost half of the workforce in service companies will be “irrelevant” in the next 3 to 4 years
IT companies have been one of the largest recruiters in the country. However, they warned that increasing process automation would reduce hiring in the coming years. While the outsourcing model has put India on the world map, growing consideration and growing protectionist sentiment also pose challenges for the $ 140 billion Indian industry.
Companies are working to reduce their vis-a-vis dependence on work and hire more local to ensure work continuity for clients, even if it does not have an impact on their margins