IT sector job cuts will continue, says top HR firm; 5­–6 lakh engineers to lose jobs

By Muqbil Ahmar

Tech Mahindra, Infosys, Wipro, Cognizant; all these Information Technology majors have fired thousands of employees. India's Information Sector seems headed for an uncertain and tumultuous future. According to a top HR firm, the dark clouds hovering over the IT sector are here to stay. HR firm Head Hunters India has said that 5–6 lakh engineers are set to lose jobs in the next three years, that is, between 1.75 and 2 lakh per year for the next three years.
"Contrary to media reports of 56,000 IT professionals to lose jobs this year, the actual job cuts will be between 1.75 lakh and 2 lakh per year in next three years, due to under- preparedness in adapting to newer technologies," Head Hunters India Founder-Chairman and MD K Lakshmikanth has said, while analyzing a report submitted by McKinsey & Company at the Nasscom India Leadership Forum on February 17.
The McKinsey report has said that nearly half of the Information Technology sector workforce in the services firms would become "irrelevant" over the next 3–4 years.
"So, when we analyse these figures, it is clear that 30 to 40 per cent of the workforce cannot be retrained or re- skilled. So, assume that half of this workforce can continue to work on old skills, then balance will become redundant. So, the number of people who will become redundant in the next three years will be about five to six lakhs. This will work out to, on an average, between 1.75 lakh to 2 lakh per year for next three years," Lakshmikanth explained.
Just a couple of days back, Tech Mahindra, India’s fifth-largest IT services firm, announced laying off 1,500 employees. There are reports that another technology major Infosys is planning to give pink slips to hundreds of mid- as well as senior-level employees. Other corporate giants such as Wipro and Cognizant have also announced job cuts in the recent past in response to what some industry experts term as cost control measures, pressures of new technology and international visa restrictions.
The firm blames under-preparedness of existing employees in adapting to newer technologies as the real reason for the layoffs due to the fast evolving nature of the sector.
Author Bio: I am a writer, editor, columnist, technology evangelist, tech blogger, film critic, theater activist, journalist, but basically a storyteller and blogger at heart. I also write on social issues, startups, SMEs, technology, environment, economy, women empowerment, and arts and culture. I am also a theater activist. Music, theater, films are my passions. You can visit my blog https://muqbilahmarwordpress.wordpress.com/. I invite bloggers, writers, technology evangelists, and others to connect with me on Twitter @muqbil_ahmar, LinkedIn and Facebook.

Comments

  1. Rav23 May 2017 at 06:58

    If you don't have some artifacts or some genuine source of information thn please stop blogging such things. There are other ways to increase traffic to your blogs.

    ReplyDelete

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