IT Companies Resort To Layoffs As Pressure Mounts Due To Covid Crisis

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The information technology (IT) industry is laying off thousands of employees across the globe and in India, on grounds of non-performance, lack of projects and rightsizing surplus staff as pressure mounts on firms due to an uncertain business environment.

 

Analysts believe employees on bench will inevitably be the first ones to be laid off. “Layoffs are obvious. The existing business models of these IT companies are under tremendous pressure as new deals are very hard to come by. Even the deals that come are much smaller, take longer to close and are more outcome-based. Also, the existing contracts are being renegotiated. Bench employees are non-billable so they would be hit first,” said Sanchit Vir Gogia, CEO and chief analyst, Greyhound Research.

“In terms of profile, employees with critical skills like artificial intelligence (AI), data science, and user experience are likely to be retained for longer than the infrastructure services workforce. Also, expensive roles such as senior project managers with 8-12 years of experience and not associated with any outcome-based roles are vulnerable as well as the most basic ones who are not trained or involved in repetitive tasks,” Gogia added.

HT Mint

<strong>Analyst: Sanchit Vir Gogia</strong>
Analyst: Sanchit Vir Gogia

Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Digital & Technology Research & Advisory firm.


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