Tata Consultancy Services has decided to close its operations center in Lucknow and has requested project manager to complete their programs by Dec. While the company has given the workers a choice to move to other places, #SaveTCSLucknow was popular on Twitter as IT professionals stated their jobs were at risk.
Hours after this statement, India’s greatest IT company announced frustrating financial results for the one-quarter ended June 2017. The company’s benefit dropped 10% while income dropped 0.2%, compared with the previous quarter. With margins shrinking, the pressure to stay competitive has improved. Cutting the headcount is the most immediate solution that control embarks on.
And the layoffs story may get worse. The IT industry is estimated to shed 1.5 lakh to 2 lakh jobs every year over the next three years as the market is disrupted by new technologies like automation, artificial intelligence and cloud computing. And the best choice before techies is to learn new skills.
Mid-level techies who are in the 35 plus age bracket and earning between Rs 20 lakh and 2 crores yearly are the most in danger, according to Kris Lakshmikanth, CEO and Managing Director of Head Hunters India, a professional search company. Rather than overall firing, management may make use of other means to steer them to leave. How many people would want to move? Many of them would have a house, a family and a home loan which they cannot afford to let go
The technical and geopolitical headwinds that Indian IT is running into mean that troublesome causes will change the nature of the industry. Unfortunately, layoffs are the most noticeable and upsetting indication of this.