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It's mayhem in India's IT sector

11-05-2017

India's software companies like Wipro and Infosys are in the process of laying off employees on a massive scale, the Times of India reported. The move has come after the growth in India's 150-billion dollar IT industry has slowed down more than anticipated.

After Cognizant, Wipro, now Infosys to lay off employees: report

An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012. © REUTERS/Vivek Prakash An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012.

Infosys could hand out pink slips to hundreds of mid- and senior-level employees as it carries out bi-annual performance review amid a challenging business environment. The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs. Read MORE

Earlier in April, Infosys had said it plans to hire 10,000 Americans in the next two years, following criticism from the Trump administration that the company and other outsourcing firms are unfairly taking jobs away from U.S. workers.

Infosys to hire 10,000 American workers amid crackdown on visas

Infosys, which employs about 200,000 people around the world, will expand its local hiring in the U.S. while adding four hubs to research technologies such as artificial intelligence and machine learning. The first location will open in Indiana in August 2017 and is expected to create 2,000 jobs for American workers by 2021, the company said. READ MORE

WATCH: Infosys to hire 10,000 U.S. workers

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(Video provided by Reuters)

White House on Infosys plan: Victory

The White House  characterized the Infosys announcement as a political victory, pointing to it as further evidence that companies are renewing investment in the United States as a result of the Trump administration's "pro-growth economic agenda." READ MORE

Earlier in April, country's apex trade body ASSOCHAM had warned about industry's growth prospect and said: "Aggravated by rising rupee leading to lower realizations for software exports, the Indian IT firms may be forced to displace work force. In that case, the chances of layoffs are real."

Barely a week after this warning, India's third largest software services firm Wipro fired hundreds of employees as part of its annual "performance appraisal". 

Wipro laid off around 600 employees

Wipro is learnt to have fired hundreds of employees as part of its annual "performance appraisal". According to sources, Wipro has shown the door to about 600 employees, while speculation was rife that the number could go as high as 2,000. READ MORE

Wipro to go for 50% local hiring in US operations

Azim Premji-led software services export firm Wipro also believes locals will constitute over 50 per cent of its workforce in the US by June as it invests significantly in the American market, amid tightening of visa norms. READ MORE

Why Indian IT sector may see more job cuts in the days ahead

Assocham had warned that the Indian IT firms may be forced to displace work force amid US tightening H-1B visa norms and rising rupee leading to lower realizations for software exports. Nearly 86% of the H-1B visas issued for workers in the IT sector go to Indians and this figure is now sure to be scaled down to about 60% or even less, Assocham had said. READ MORE

WATCH: H-1B Explained

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(Video provided by Bloomberg)

According to reports, Wipro CEO Abid Ali Neemuchwala, earlier in the month, mentioned in an internal conference call that if revenues don't grow, around 10 per cent of employees would be let go this year. 

Last week, Cognizant Technology Solutions offered its top executives - directors, associate VPs and senior VPs - a voluntary separation package , a part of its plan to shift operations to automation and digital technology. It was reported that at least 1,000 executives are expected to go.

Cognizant may lay-off 6,000 Indian employees 

Cognizant Technology Solutions (CTS) has made the headlines once again. It is being said that the American multinational corporation is looking to lay off about 6,000 workers in India to ramp up hiring in its home country. READ MORE

WATCH: Techies up in arms against Congizant, call attrition unfair and illegal

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(Video provided by India Today)

Cognizant to boost hiring in U.S. this year

Cognizant Technology Solutions Corp reported a higher-than-expected quarterly profit and said it would beef up hiring in the United States, a move that comes amid U.S. President Donald Trump's tough stance on the H1-B visa rules. READ MORE

The trouble in Indian IT industry started with US president Donald Trump 'Buy American, Hire American' campaign.

The US is in the process of tightening the norms for H-1B visas. 



Nearly 86 per cent of the H-1B visas issued for workers in the IT sector go to Indians and this figure is now sure to be scaled down to about 60 per cent or even less, ASSOCHAM had earlier said.

Cautioning against a huge decline in remittances from US, the apex trade body said the US visa move could disturb remittances by 8-10 per cent.

WATCH: Visas to the US: All you need to know

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(Video provided by NDTV)


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