Indian economy hits record low, IT workers losing their jobs

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India: The growth of information technology (IT) companies in India is very slow and due to the facts that the Indian economy has dropped to its lowest since 6 years, different technologies are emerging every day all over the world and the US government has tightened their visa norms, the Indians in the IT industry have a very uncertain future.

It is reported that more than 30,000 to 40,000 employees might be fired by IT services companies of India before the end of the fiscal year on March 31, 2020.

Despite the higher costs, Indian IT services companies are increasing their workforce by hiring more employees in the United States in response to the increasingly stringent standards of the H-1B visa program, which allows companies to temporarily hire foreign workers in the United States in specialty occupations.

Due to these measures, the employees working in different centers in India are facing major difficulties. The mid and senior-level managers are also getting fired even after working in the industry for 10-15 years.

Infosys recorded layoffs for the first time in its overall dropout when it first requested its second and third-quarter results. It was about 1.4% in September.

Cognizant, another IT service giant, has reduced the bench time of employees who are not involved in any billable project from 60 days to 35 days. After 35 days, they may be asked to leave. Employees who are reluctant to move to other workplaces, who are engaged in different projects, or who move to a new area, are likely to be fired quickly.

New Jersey-based company Teaneck has 70% of its 290,000 workforces in India. During the following layoffs, they must also bear the consequences.

Capgemini, a French IT service company is committed to reskilling its employees in new emerging technologies. Last month, the company fired 500 employees after it observed a decrease in customer projects.

Mohandas Pai, Former Chief Financial Officer (CFO) Infosys believes that this unemployment of people has been a unique phenomenon that occurs once in five years as the industry grows. He further noted that there will be many people at the middle level who will not perform according to the salaries they get.

“Promotions are okay when companies are growing fast but when it slows down, people getting fat salaries will aggregate at the higher level, prompting companies to periodically reset their pyramids, and shed people.”, he said.

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