Thursday, May 11, 2017
Service based Indian free market economy explodes to kill the next generations! After Wipro, Cognizant and Infosys, Tech Mahindra plans to lay off 1500 employees Palash Biswas
Service based Indian free market economy explodes to kill the next generations!
After Wipro, Cognizant and Infosys, Tech Mahindra plans to lay off 1500 employees
India's IT companies employ close to 40 lakh people directly. They are one of the main reasons why Indian economy is relatively doing well. That story seems to be changing as of last week.Further, Indian IT firms are witnessing their slowest growth in a decade, while global firms are shifting their budgets from traditional IT services to newer areas such as digital and cloud!
Alarming it might be to know that if two decades ago it was US engineers whining about getting `Bangalored'-losing jobs to lowerpaid employees here -now it's techies in India distressing about losing jobs to American engineers because of the new US administration's protectionist policies.
President Donal Trump ,the blue eyed love of Ruling hegemony of Aparthied, discrination and injustice in India,is eating outsourcing which has Killed jobs in America as well as Rural India and majority people in India deeply assocaited with nature as well as Agriculture.
Tech Mahindra is planning to lay off an estimated 1,500 employees across all levels.Once India's global claim to fame, the country's information technology (IT) sector is seeing a spate of layoffs by IT majors like Tech Mahindra, Wipro, Infosys and Cognizant.
Be aware my friends opting for technology,this year, the appraisal cycles came in the backdrop of a recent report by advisory firm McKinsey & Company, which said that almost half of India's 3,700,000-strong IT services workforce will be "irrelevant" over the next three-four years. In fact, industry body Nasscom has also said that both freshers and existing employees should look at self-learning to stay relevant at a time when digitisation is causing disruption in the industry.
Service sector oriented economy replacing agrarian based production based economy heralds calamities infinite and digital India apped automation creates unemployment darkness for generation next. Apped forces of religious blind nationalism seem to be quite unaware of the calamities ahead under Saffron Tsunami environment which has inflicted majority heart and mind,I am afraid.
Sincewe opted free Market economy killing agriculture,nature and the humanity associated with Nature,Environment and agriculture,since Agrarian growth rate zooms around infinite zero,since Indian peasantry has only survival kit which seems to be mass suicide,the services sector is not only the dominant sector in India's GDP, but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment.
India's services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.
UID centred digital India dividing Indian people vertically with technical mobile apps beside purchasing capacity and income opportunity monopoly,this economic turnaround has inflicted workers,peasantry,business and the generation next as well.
I have been warning againt this time and again.Outsourcing tagged India as US colony and the ruling hegemony handed over sovereignty and freedom of the nation to US Imperialism.
Lay off is trending as trade unions have become the part and parcel of management. Ideologies hijacked by class and caste interest,workers have been betrayed all around.
It is the beginning only,I am afraid.In fact.Growth in India's dominant services industry came close to stalling in April as new orders slowed to a trickle, forcing companies to spend more on aggressive advertising campaigns as they fought for business, a private survey showed on Thursday.
The latest,Indian service sector activity showed weakest increase in output in last three month, according to IHS Markit report released today. The headline seasonally adjusted Nikkei Services PMI Business Activity Index was down to 50.2 in April from 51.5 in March.It would have adverse impact on job market which is all about services owned by private sector and hiring have to be converted in firing which is happening rather very fast.
However,the services sector is the key driver of India's economic growth. The sector contributed around 66.1 per cent of its Gross Value Added growth in 2015-16, thereby becoming an important net foreign exchange earner and the most attractive sector for FDI (Foreign Direct Investment) inflows.! As per the first advance estimates of the Central Statistics Office (CSO), the services sector is expected to grow at 8.8 per cent in 2016-17.
In comparison,Agrarian Growth rate is 1.6 percent only during the last two years of the Manusmriti regime which intend to kill universities and higher education and at the same time information explosion has developed into atomic radiation as for generations for last three decades quest for knowledge ended and technology is the only survival kit which is being snatched like job,livelihood,jal,jangal jameen,citizenship and freedom.
Media reports:Tech Mahindra on Wednesday joined its bigger rivals Wipro, Cognizant and Infosys in laying off employees. The company is planning to lay off an estimated 1,500 employees across all levels.
With the appraisal season under way for IT firms and reports emanating of such planned layoffs, which the companies call a routine process for letting underperformers go, employees have started seeking government intervention to save their jobs.
On Tuesday, the Forum for IT Employees (FITE) filed a petition with the labour commissioner in Chennai and Hyderabad. It will also be approaching the labour departments of Karnataka and Coimbatore over such terminations shortly.
"We demand the state and central government intervention to stop the illegal termination of Cognizant employee's with immediate effect, reinstate all the affected employees, restore the normalcy in work environment affected by illegal terminations," FITE said.
In fact, fearing more such layoffs, FITE also plans to submit a petition to Prime Minister Narendra Modi, chief ministers of all states and the labour department of all states seeking intervention in this matter without any further delay.
In response to a query on layoffs, Tech Mahindra said, "We have a process of weeding out bottom performers every year and this year is no different."
As reported earlier, Infosys, is also in the process of letting off around 1,000 employees, largely in the category of project managers and senior architects. Cognizant is also resizing its employee headcount by around 6,000 while it has also reduced the variable component in salaries.
Similarly, Wipro is estimated to have let go of 350-400 employees, which the company attributed to a rigorous performance appraisal process to align its workforce with business objectives and which has resulted in the separation of some employees.
The slowdown in hiring in the industry has been happening for quite some time now with Nasscom stating that total employment for the sector grew by 5 per cent in FY17 as against 6 per cent in FY16. "Gentle deceleration continues as industry focuses on productivity and automation," it had said.
Unlike the layoffs in the past where largely the lesser experienced professionals were impacted, this time there is downsizing across all levels. Cognizant recently announced a voluntary separation package for its employees.
Posted by Palash Biswas at 12:37 AM