Are pink slips round the corner?
Dell lays off 1200, Nokia to shut German plant… and now, TCS lays off 500 and IBM 700, are the tremors of slowing economy finally reaching onshore?
This seems to be the question worrying all IT employees. Just a few months, and the over-pampered employees of the country's Sunrise sector don't know if they have made the right career choice. The days of hefty pay cheques and bonuses seem to be replaced by the anxious days of the early-2000 slowdown, when no one knew 'whose turn it could be next'.
Says Kris Gopalakrishnan, CEO, Infosys, India, "Pink slips are possible in the industry." However, he goes on to add, "What happens in such a situation largely depends on the company's clients. If we look at companies that have clients in sectors like services, BFSI and retail, they will be the most affected."
Few other sectors have been so closely bound by the global markets as information technology. So, according to analysts global sentiments affecting the industry is but a natural outcome. The industry is in fact expected to come on par with its global counterparts in terms of salary increments and annual growth.
Sourabh Kaushal, Industry Manager, ICT Practice, Frost & Sullivan, South Asia & Middle East, news from the TCS and IBM stables could be seen as early signs. "These are still early signs. However, facing a US recession, IT companies are under great pressure. So, in future we may see this trend growing with companies undertaking strategic restructuring."
We run you through some of the top tech companies in India and overseas which have gone for a trimmed workforce in the past few months.
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