Layoff Figures Of IT Industry Over Exaggerated: NASSCOM
IT industry body National Association of Software and Services Companies (Nasscom) called the estimated number (56,000) of layoffs by IT companies as grossly exaggerated. Nasscom claimed that the number of layoffs reported are not in tune with the actual scenario. It also said that the sector is looking at $350 billion of exports by 2025 and is a net creator of jobs.
“In fact, the industry continues to be a net hirer with talent acquisition continuing across sectors. In 2016-17, the industry added 170,000 new jobs (600,000 in last three years) and today boasts of a total employee base of 3.9 million (95,000-100,000 in start-ups and 50,000-60,000 in e-commerce),” it said in a statement.
“The sector remains one of the largest employers of the nation. While there is a gentle deceleration in the net hiring growth rate due to shifting focuses towards innovation, lower attrition and enhanced efficiencies, the sector continues to hire fresh as-well-as lateral employees in equal proportion thus indicating the opportunities for employment at the entry as well as the mid-management level.”
The statement further noted that realignment of employees is common to all industries which is a part of yearly performance assessment process, which impacts only 0.5-3 percent of the overall IT workforce.
“Both skilling and talent re-deployment are part of a regular yearly cycle, as this enables companies to remain competitive,” an IANS report in gadgets.ndtv.com quoted Nasscom Chairman Raman Roy as saying.
“Companies evaluate their priorities based on the business needs and work towards making the necessary changes in their workforce planning. And, therefore, it is important to look at the larger picture and the long-term roadmap to completely understand and appreciate the situation,” he added.
The Indian IT industry is going through a rough patch and will witness massive layoffs in the coming months, believe many. Recently Kris Lakshmikanth, Chairman and MD at Head Hunters, said that job cuts in IT sector would be around 1.75 lakhs and 2 lakhs annually for around next three years. While stating the reasons for this huge layoff forecast, the researcher reported that the IT companies are still not prepared to adopt newer technologies.
The IT industry that currently employs about 40 lakh people may have to be re-train 24 lakhs, which is a challenge. Lakshmikanth explained that of the 24 lakhs, only about 50 percent, or approximately 12 lakh, can be re-trained and about 6 lakh can manage with existing skills. The rest, approximately 6 lakh, will lose their jobs over the next three years.”
As per the report, majority of employees in job level six and above including group project managers, project managers, senior architects and higher levels are expected to be shown the door.
The current layoffs have resulted in a mid-life crisis for those who have been asked to leave and are finding it increasingly difficult to land a new job, even with a salary haircut as the domain they specialised in becomes obsolete. At the same time, to cope with this situation, Indian technology firms may resort to more strategic investments, acquisition, and skill trainings in the next 12-18 months, believe experts.
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