One lakh layoffs in IT service sector by September

By SiliconIndia   |   Tuesday, 28 April 2009, 03:36 Hrs   |    16 Comments
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One lakh layoffs in IT service sector by September
New Delhi: The layoff appetite of the Indian IT services sector is yet to see an end as more than one lakh jobs are to be lost till September. "We expect the knowledge industry (IT) to see 3-5 percent non-voluntary exits in the first two quarters of the financial year mainly in senior and middle levels," said Deloitte Touche Tohmatsu Senior Director (Management Consultancy Services) P Thiruvengadam.

The non-voluntary exits would primarily be based on stringent performance criteria of the firms. Nasscom estimates that more than 22 lakh people were working in the Indian IT-BPO sector till February, while indirect job creation is estimated at about eight million. So, five percent exits would imply more than one lakh employees. "The next 5-6 months would be critical for companies in deciding on job cuts," Thiruvengadam said.

Experts believe that professionals must aim towards multi-skilling and put in extra efforts to dabble in other areas of work as well, they stand a chance of becoming indispensable to their companies.

Given the fact that more than 22 lakh people work in the IT industry, five percent non-voluntary exits would mean more than one lakh employees being shown the door by September. As per government data, the export have lost over one lakh people due to the global downturn.

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