The Indian IT industry, which employs around 4 million people, is likely to witness another round of lay-offs in the next 6-12 months, with people in the senior slab likely to be affected the most, according to an Experis IT Employment Outlook Survey.
“The collective number of lay-offs that the IT giants are contemplating is way higher than what the Indian IT industry has ever witnessed and this trend is likely to continue for the next 6-12 months,” Experis said in its outlook for the period between October 2017 and March 2018. According to Experis, a ManpowerGroup company, the Indian IT industry is looking at adjusting its talent pool considering major hiring in the junior and mid-level, while contemplating lay-offs in the senior slab. The Indian IT industry has already witnessed a slowdown in hiring with the intake slowing down, impacted by the twin disruptions of technology and overall market sentiments.
There has also been slowdown in software demand for Indian IT companies with the major markets of the US and Europe re-adjusting to the changing technology landscape. Added to this, developments such as Brexit and new visa rules by the US have also added to the woes of the sector.
Manmeet Singh, president at Experis, ManpowerGroup India, stated, “Today technologies continue to rapidly reshape the business landscape. A rise in new enabling technologies, such as software as a service offerings, cloud-based enterprise resource planning software, artificial intelligence’s unprecedented speed, accuracy and cost efficiency is significant to maintain the competitive edge that are driving the businesses now. With this ongoing transformation, these technologies bring underlying technical complexity that spurs the demand for young professionals resulting in talent refresh cycle in the Indian IT industry that would continue for the next two years.” Experis expects hiring to be muted in the next two quarters compared with the previous periods. “Hiring intention will slacken as the Indian IT industry is still speculating about automation that is affecting layoffs in the industry,” it said.