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Amidst Twitter, Meta Sacks, Can Indian IT Firms Sweep Away From the Clutter? News18 asks the experts

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Amidst the chaos of layoffs at big tech companies like Twitter, Meta, Disney, Amazon and Alphabet’s Google, which are said to be planning to lay off up to 10,000 employees, how is India’s IT sector doing?

According to industry reports, Capgemini and Infosys of the Indian IT sector are in a frenzy of appointments.

A report by Analytics Insight highlights that Capgemini is looking for technical professionals in India Applications are accepted for available positions across the country. Her recruitment includes both new hires and side hires. But its chief executive, Ayman Ezzat, said he expected a tighter liquidity position in relation to higher interest rates. He said, “We don’t need to go overboard and start looking at operational efficiency and utilization and it’s an opportunity to tighten operationally.” Also highlighted in the report is that fresh students who have accepted job offers from Capgemini claim to not have started work yet.

Meanwhile, Infosys’ variable pay ratio in the July-September quarter was well below the 70% average variable pay rate it provided to employees in the April-June quarter. In connection with this low ratio, the company stated that the Indian IT sector is dealing with a demanding and unpredictable environment due to an impending recession in the core market, as well as margin pressure caused by high attrition issues.

All this can raise concerns like Indian institutes technology IIT and Indian Institutes of Management (IIM) students will be looking for the best packages in top companies in India as well as abroad, as technical layoffs are in full swing.

newer look

News18 spoke to Abhijeet, a student at IIT Delhi, about how layoffs are affecting India’s recruitment season. From a more recent perspective, he said, the situation was difficult.

“Recession is also hitting the world, so startups in the US and UK will create problems for the start-ups. Since India is doing well at the moment, Indian start-ups may not take such measures.”

However, according to Upgate, people with experience may not have much trouble because many companies are hiring and companies, including startups, are looking for only people with experience.

report card

According to the latest Naukri JobSpeak Index, hiring in the Indian IT industry slowed by 18% in October compared to a year earlier. IT giants such as Tata Consultancy Services, Wipro, HCL and Infosys collectively employed approximately 28,836 people in the third quarter of this year. That number is less than half of the 53,964 people it hired in the same period in 2021. Capgemini hired 6,300 people in the September quarter, down from 11,400 in the previous quarter.

Dheeraj Gupta, co-founder and CTO of mFilterIt, told News18 that the tech meltdown in India happened for several reasons.

He said, “The Reserve Bank of India (RBI) has introduced a lot of regulations for Fintech and Crypto Exchange startups, which focus on protecting data sharing, privacy, KYC compliance and formal legality of products like Buy Now, Pay Later (BNPL). Also, there are many limitations. The Reserve Bank of India (RBI) has put it on cryptocurrency exchanges, forcing them to either shut down in India or downsize until they find solutions. This is one of the reasons for the slowdown in technology hiring.”

According to Gupta, another major reason is that there has been a shift in technology consumption during the Covid lockdown. “Educational technology is one of the key sectors involved in this, as products are made with the assumption that work and education from home will always be the same. With that assumption proven wrong in 2022, startups will have to change their business model, and be forced to lay off a significant portion of their teams. “.

According to the industry expert, it has brought negative PR towards the technology industry and brands. He said, “Because of the massive layoffs, loyal users of the brand are losing confidence. Among the internal stakeholders, there is a constant fear of losing jobs and thus a high rate of talent flow. Also, these mass layoffs attract a lot of negative PR, questioning management decisions supreme.”

Amit Vasistha, Founder and CEO of GALF Wellness Complex, said layoffs in the workforce have always been an inevitable aspect of business operations across all industries, but mainly in the IT sector due to its dynamic nature.

Some of the reasons are believed to include the after-effects of Covid, the Russia-Ukraine war, and cost-cutting measures to reduce an excess workforce or job cuts that lead to layoffs and inflation.

Vasista suggested: “Technical institutions should consider preparing their students for such situations, in addition to preparing them for a job role. They should be taught how to deal with these issues pragmatically and conduct independent research on potential employers.”

Younger professionals and recent graduates should look for ways to develop their skills and, if necessary, diversify into new industries. Connecting with friends, former bosses, and co-workers is also crucial.”

However, the expert also believes that every crisis presents new opportunities, so “think, improve skills, diversify”. We need to view layoffs as unfolding economic scenarios rather than a personal crisis. It’s troubling, but it’s also an equal opportunity to transition into a new role, job, city, employer, and in many cases a skill and industry as well. It can also open the door to entrepreneurship.”

Saga packaging

In the case of Twitter, employees were reportedly sent an email stating that they would have to deal with “very hardcore” and would be required to put in more hours. He was the new boss of Twitter Elon Musk which required employees to either accept these terms or leave the company. But it has been reported that hundreds of employees have chosen to resign rather than agree to what the email told them to do. Later, according to another report, Musk said that Twitter would not lay off any more employees. This happened after nearly two-thirds of the workforce had been fired.

India, where Twitter reportedly let go of nearly 180 of its 230 employees, felt the brunt of the layoffs. It was reported that the production and engineering team, which collaborated with the global engineering team, experienced job cuts of 70%.

Meta, the parent company of Facebook, WhatsApp and Instagram, has chosen to shrink its workforce by 11,000, or 13% of its current size. After the firing, Meta CEO Mark Zuckerberg wrote a post agreeing to take responsibility for it and also attributed the unexpected results to the Covid-19-induced acceleration in tech companies.

Several H1B visa holders from India who work in the US were among those affected in Meta.

Meanwhile, reports indicated that a performance improvement plan will be implemented by Google to gradually dismiss 10,000 employees.

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