IT firms help staff look out for jobs

IT firms help staff look out for jobs

By SiliconIndia   |   Tuesday, 30 December 2008, 03:23 Hrs   |    1 Comments
Printer Print Email Email
Bangalore: IT biggies in India are no more just laying off their employees, and instead, firms such Yahoo, Cisco and Genpact are helping their employees connect with potential employers. The companies adopted this measure to cope with the economic recession more effectively by downsizing the staff strength in order to lower the salary costs, reported The Economic Times.

"When a global software product development firm wanted to downsize, they asked me to get in touch with another firm to see if they would like to absorb the employees," said GC Jayaprakash, principal consultant at Stanton Chase. "Outplacement is gaining ground in India but usually it is done in an informal manner and firms do not want to publicize this too much," he added.

Indeed, People Capability Maturity Model (PCMM) certification makes it mandatory for firms to offer outplacement help. "As a process, it has been there for a long time but very few organizations have used it in India and in most cases, it has been the MNCs. Indian organizations generally shy away it," said Amitabh Das, CEO of Vati Consulting.

During past three months, firms across the segments of IT, business process outsourcing (BPO) and FMCG have offered such help to their staff. HUL, Motorola, Sapient, Yahoo, Intel, Genpact, Cisco and Fidelity are among several firms in India who have offered outplacement help to their affected employees.

Shiv Agrawal, CEO of ABC Consultants, is a big supporter of this system. "Retrenched employees bear no negative feelings and perceive the organization as a good employer. It sends a positive message to the remaining workforce thereby giving fillip to morale, loyalty, productivity and retention," he says.

More over, even after asking their employees to leave because of the recession, these companies are hoping that they will be able to attract talent when the situation improves.

Write your comment now
Submit Reset
Reader's comments(1)
1: Outplacement is a good idea and works well during good economic times. In recessionary situations, outplacement may be less effective. Hence alternatives should be sought.
One alternative is to look for potential business networks. I understand that Indian IT people with steady jobs are well paid and have disposable income and wealth. Such IT people should take some time off (say one day a week). They should form a network to start incubating start-up companies and build new products and services. Obviously, the network should have a mix of people with diverse skills needed to start and operate a nascent business. In order to encourage this trend, the established companies should come forward to offer sabbatical leave for their volunteering employees with entrepreneurial zeal. The companies may also act as angel investors in these companies. Progressive Indian banks should finance such ventures. The success of this model can launch a grand new wave of entrepreneurism in India.
Posted by:Som Karamchetty, PHD - 30 Dec, 2008