Thousands from CTS, Infosys and Wipro are sent back home
Posted on: 11/May/2017 12:43:23 PM
Thousands of employees working with IT majors like Infosys, Cognizant and Wipro are sent back home, as the employers struggle lesser growth. Reasons including strict visa processes, changing business models, and automation, among other reasons, IT firms are intending cost-cutting by distributing pink slip to their loyal employees.
CEO of one of the leading recruitment firm says an estimated 2 lakh IT jobs are likely to disappear by March 2018. US clients are no more interested in paying high for services offered by Indian IT firms.
The markets have thus come down. These firms intend slashing down the main cost by up to 60 percent in terms of people-related expenses to combat the challenge.
People earlier used to quit job in companies and move on to new employers or study abroad. Now the scenario is reversed and the employers are sending their employees back home! Pity for the situation!
Employers yielding salary package of Rs 20 lakh per or beyond should choose a separate plan and quit the employer on their own with severance pay off 3, 6 or 9 months.
Elliot Management, an activist investor holding 4 percent stake of Cognizant has advised the company to be on par with growth like Infosys and Wipro, and thus make rapid cost-cutting.
I cannot handle the pressure, says a former Cognizant employee now working with a different firm. A few years ago, mass recruitment was done. Now, contrarily, employees should either improve work efficiency or quit the job.
To remember, Infosys hired whopping 20,000 candidates in a single day, whereas this year, the company has hired just 500 which will further lessen the next year.
All the IT firms are intending to cut down on the employee count through automation. This, they call as a performance appraisal process. And the pink slips are given to employees based on their performance levels.
