Covid-19 impact: IT-ITeS Sector May Trim Workforce To Cut Costs

IT and IT-enabled services companies in India may have to trim their workforce or hire more flexi staff as part of cost-cutting measures with projects getting delayed due to the Covid-19 pandemic.

Contrary to popular belief that flexi staff could be the first to be laid off during such times, experts believe they may actually have an advantage as they come with variable cost structures and minimal compliance requirements.

“As a result of continued slowdown in business, companies will ensure tight control on costs and trimming of staff will be one of the many measures that will be used. When this stage does arrive, IT-ITeS companies will use factors like skills & competency, outcomes & impact, and costs & compliance when deciding which employee types will be given a trim,” said Sanchit Vir Gogia, CEO and chief analyst, Greyhound Research.

While there is no single silver bullet to suit all types of organisations, retention of employees will be dictated based on client needs, skill requirements, and financial health of the company. “As companies try to ensure least impact on financial payouts and compliance costs, and focus more on outcome-driven engagements, flexi workers have an upper hand,” Gogia said.

[HT Mint]


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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