Alarmism! IT job cuts! IT layoffs are the hot topics in the town these days. Which is obvious to be, as the most endearing $150 billion sector is about to make 600,000 employees worry about their jobs in upcoming 3 years.
Employment agency Head Hunter’s research says around 2 lakh professionals are to lose their jobs every year. According to McKinsey, nearly 50% of the total workforce is to be terminated from the sector and it will be hard even to retain the remaining 50%-60% due to the significant shift in technology. This giant sector employing 3.9 million professionals, is expected to push 30%-40% of its’ total workforce out of the industry and others may get opportunity to be re-trained and retained.
According to Head Hunters the job cuts are to be only in remote areas like Coimbatore and not in major cities like Mumbai or Bengaluru. ‘The reports about extensive job losses in the industry are exaggerated’ says, V Balakrishnan, ex-Chief Financial Officer of Infosys. But on the other hand, Companies are asking employees to take four months’ salary as a severance package. In worst cases, they are being forced to put down their papers giving two months’ notice. Cognizant, which houses 1,50,000 Indian employees in Bengaluru has reports of 6000-10000 people being downsized. Being the IT hub, Bengaluru will be the most affected in the current round of layoffs, says Alka Dhingra of Team Lease employment solution to the economic times. So, the horrifying truth is the job cuts are real and professionals with experience of 12 years and above are to be most affected by this mayhap.
What are the reasons for this downfall of IT sector is it just Donald trump’s policy? (Making the H1B visa norms more strict), or the Indian Government? (Who pampered this sector with a special economic zone), or just automation? (That is replacing the man power). According to experts the hidden reason for this downfall is global economy being sluggish that leads to low demand of IT service. Reverse globalization can be considered as a reason for sluggish global economy as not only US or Europe but almost every country is opting for nationalism over globalization.
Automation can never be excluded from the list of reasons for these layoffs but on the other hand it is even creating jobs. For the professionals who are willing to switch from the typically technical field of information technology, there are job requirements in different fields like supply chain management or logistics. All it takes is to have a basic knowledge and appropriate skill set for the interested area. New emerging companies like facebook or Amazon could be the other option. Facebook had approximately 225 IT related job requirements just in past month, Amazon had an opening for 1309 IT professionals. Cyber security can never be ignorant to IT professionals as India is one the most cyber crime prone countries.
IT sector may presently have a bad time but that doesn’t really mean the hope should go down for this sector, the country will again see its’ darling sector stand with all new requirements for new and high skilled IT professionals but till then plan B is needed. A wide range of options are available for the professionals in trouble with their jobs just efficient utilization of time and sources available might get them out of the trouble.
Acquiring knowledge and skills of supply chain and operations is not a tough task with various courses available online @metacogsolutions.com