Chennai, April 27: Looks like there is more bad news for employees in the IT sector, already reeling under great pressure. Experts have indicated that the Indian IT services sector may see up to 5 per cent layoffs amounting to more than one lakh job cuts over the next six months.
According to the NASSCOM ‘Perspective 2020’ report, “The Indian IT industry has grown from $2 billion in export revenues in 1998 to $47 billion today, employing over two million people.”
However, when this newspaper spoke to IT companies across the city, they denied that 5 per cent workforce would be trimmed.
“Yes, the next quarter is going to be extremely challenging. But one can never predict what might happen over the next few days.
We might cut down salaries by 10-15 per cent but will not show the exit door to our employees,” noted a leading IT company HR head.
Noting that the figures mentioned were quite high, Mr E. Balaji, chief executive officer, Ma Foi Management Consultants, said, “IT companies may trim around 1-2 per cent of the workforce and that will be based on their performance and not layoffs.” He noted that employees who work in IT companies are put on performance improvement plan and if they showed no improvement even after that, they will be shown the door.
Denying that layoffs in large IT firms had increased significantly in the past few months, Mr Kris Gopalakrishnan, chairman and managing director, Infosys, pointed out, “Yes, the layoffs of under-performers are likely to increase to 2-3 per cent, but I doubt if they will reach 4 per cent.” The trimming was performance-based, he said.