No Mass Layoffs By Indian IT Companies, Says Industry Body

Nasscom said reports of mass layoffs in IT companies were false.

Commenting on the recent reports of mass layoffs by Indian IT companies, industry body Nasscom said such reports are incorrect. In a statement, Nasscom said that India’s IT industry continues to be a net hirer with over 1.5 lakh people being employed on a net basis each year. The comments came on the back of protests by techies in some parts of the country over the sudden spate of layoffs which has forced to state governments to intervene in some cases.

With the rise of automation and increased protectionist policies by the US (a major market for India’s IT services) many Indian firms have had to trim work force. While companies like Tech Mahindra laid off about 1,000 employees this week citing regular weeding out of bottom performers, Infosys has ruled out any “planned layoffs” but however deferred pay hikes for its techies until July.

“Workforce realignment linked to performance appraisal processes is a regular feature every year. Skilling and workforce realignment are essential to remain competitive in international markets,” Nasscom which counts about 2,000 Indian software and IT companies as its members said.
Commenting on the recent developments Nasscom added that no “significant changes have been reported or observed this year.”
Meanwhile a forum of IT professionals has petitioned Telangana and Tamil Nadu governments to intervene against what it calls “illegal termination” of employees at Cognizant. After intervention from the Telangana government, Cognizant has asked for two weeks to present its side of the story.

Last month a report by Assocham, an industry body, had warned that tightening of H-1B visa regime in the United States will force IT giants to create fundamental changes to their strategies in terms of hiring, salaries and jobs, which could impact employees in India too.

“Indian IT companies are bound to face disruptions by way of higher costs and even some laying off work force back home, as the rising rupee is aggravating the situation further for the technology export firms,” Assocham said in the report