One lakh layoffs in IT service sector by September
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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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Reader's comments(16)
1: sorry.....v r with the concerned..means with all employees...
but it happens in all over world once in four to five year...everybody knows..
then why so .........people r crying now..
No. of emplyees are more....
it is a big loss to thm as well country..
but it is in world...

Posted by:ykgarg - 29 Apr, 2009
2: HI
It is wrong to blame any company and its not the first time. Basically recession is the cycle generates in certain course of time. But here I want to say, Country's government should be strong enough i.e.there should be some rules for companies to follow. Government and other suportives spend lot of money in elections,agriculture or any other areas. But they are inefficient to make some schemes that can give job security. Central and state governments should have some rules or criteria so that any company may not directly lay off their employee. They should have make such plans under which an employee may be safe and can give his 100%. Secondly,I agree that an employee must have multi skills. For example developers will need 10 skills in the next five years:
1.One of the "Big Three" (.NET, Java, PHP)
Unless there is a radical shift in the development world (akin to an asteroid hitting Redmond), most developers will need to know at least one of the Big Three development systems—.NET (VB.NET or C#), Java, or PHP—for the near future. It's not enough to know the core languages, either. As projects encompass more and more disparate functionality you'll need to know the associated frameworks and libraries more deeply.
2.Rich Internet Applications (RIAs)
Love it or hate it in the last few years, Flash is suddenly being used for more than just animations of politicians singing goofy songs. Flash has also sprouted additional functionality in the form or Flex and AIR. Flash’s competitors, such as JavaFx and Silverlight are also upping the ante on features and performance. To make things even more complicated, HTML 5 is incorporating all sorts of RIA functionality, including database connectivity and putting the formal W3C stamp on AJAX. In the near future being an RIA pro will be a key resume differentiator.
3.Web development
Web development is not going away anytime soon. Many developers have been content to lay back and ignore the Web or to just stick to the basics their framework provides them with. But companies have been demanding more and more who really know how to work with the underlying technology at a “hand code” level. So bone up on JavaScript CSS and HTML to succeed over the next five years.
4.Web services
REST or SOAP. JSON or XML . While the choices and the answers depend on the project, it's getting increasingly difficult to be a developer (even one not writing Web applications) without consuming or creating a Web service. Even areas that used to be ODBC COM or RPC domains are now being transitioned to Web services of some variety. Developers who cant work with Web services will find themselves relegated to legacy and maintenance roles.
5.Soft skills
One trend that has been going for quite some time is the increasing visibility of IT within and outside the enterprise. Developers are being brought into more and more non-development meetings and processes to provide feedback. For example, the CFO cant change the accounting rules without working with IT to update the systems. And an operations manager cant change a call center process without IT updating the CRM workflow. Likewise customers often need to work directly with the development teams to make sure that their needs are met. Will every developer need to go to Toastmasters or study How to Win Friends and Influence People? No. But the developers who do will be much more valuable to their employers—and highly sought after in the job market.
6.One dynamic and or functional programming language
Languages like Ruby Python F# and Groovy still are not quite mainstream— but the ideas in them are. For example the LINQ system in Microsofts .NET is a direct descendent of functional programming techniques. Both Ruby and Python are becoming hot in some sectors thanks to the Rails framework and Silverlight respectively. Learning one of these languages wont just improve your resume though it will expand your horizons. Every top-flight developer I’ve met recommends learning at least one dynamic or functional programming language to learn new ways of thinking and from personal experience I can tell you that it works.
7.Agile methodologies
When Agile first hit mainstream awareness I was a skeptic along with many other folks I know. It seemed to be some sort of knee-jerk reaction to tradition throwing away the controls and standards in favor of anarchy. But as time went on, the ideas behind Agile became both better defined and better expressed. Many shops are either adopting Agile or running proof-of-concept experiments with Agile. While Agile is not the ultimate panacea for project failure, it does indeed have a place on many projects. Developers with a proven track record of understanding and succeeding in Agile environments will be in increasingly high demand over the next few years.
8.Domain knowledge
Hand-in-hand with Agile methodologies development teams are increasingly being viewed as partners in the definition of projects. This means that developers who understand the problem domain are able to contribute to the project in a highly visible, valuable way. With Agile a developer who can say From here we can also add this functionality fairly easily and it will get us a lot of value or Gee that requirement really doesnot match the usage patterns our logs show will excel. As much as many developers resist the idea of having to know anything about the problem domain at all it is undeniable that increasing numbers of organizations prefer (if not require) developers to at least understand the basics.
9.Development hygiene
A few years ago many (if not most) shops did not have access to bug tracking systems version control and other such tools it was just the developers and their IDE of choice. But thanks to the development of new integrated stacks, like the Microsoft Visual Studio Team System and the explosion in availability of high quality open source environments organizations without these tools are becoming much less common. Developers must know more than just how to check code in and out of source control or how to use the VM system to build test environments. They need to have a rigorous habit of hygiene in place to make sure that they are properly coordinating with their teams. Code cowboys who store everything on a personal USB drive donot document which changes correspond to which task item and so on are unwelcome in more traditional shops and even more unwelcome in Agile environments which rely on a tight coordination between team members to operate.
10.Mobile development
The late 1990s saw Web development rise to mainstream acceptance and then begin to marginalize traditional desktop applications in many areas. In 2008 mobile development left the launch pad and over the next five years it will become increasingly important. There are of course different approaches to mobile development: Web applications designed to work on mobile devices RIAs aimed at that market and applications that run directly on the devices. Regardless of which of these paths you choose adding mobile development to your skill set will ensure that you are in demand for the future.

Can anyboday have more suggestions about to secure the jobs during difficult period?
Posted by:pankaj MAHAJAN - 28 Apr, 2009
very good message pankaj.Thanks a lot.
Amarnath Replied to: pankaj MAHAJAN - 28 Apr, 2009
4: Now the ball is in employer's court or american president's court! If we go back to year/s before recession, game was totally different...employees in IT sector were intrumental in scoring self goals. It was not unusual to hear about "exit without proper handing over, changing 3 companies a year, joining a company just to get grommed for another top job, attend interview - collect offer - reject offer". I think recession will help IT industry to embrace discipline and professionalism
Posted by:Sreekumar J - 28 Apr, 2009
5: For many people their job security can be increased through specialization. If you have deep expertise in any one area, it is difficult to replace you and your manager will fight for you. You are a general java/.net type of programmer, you can be fired and replaced with someone. But if you are the only guy on your project who understands the perl scripts in your build management system, you are less likely to be laid off.
Posted by:Sriram Rajaram - 28 Apr, 2009
Calll ,me 9789874727
sree Replied to: Sriram Rajaram - 28 Apr, 2009
7: It would very difficult situation for the software guys.
Who will take responsible for the downfall ,it was obvious that fall of a sector after a particular period is fixed,It had already attained its peak now facing the downfall.
Hope good will happen for the employees
Posted by:Anupam Rout - 28 Apr, 2009
8: good.. every other day.. they can only predict of layoffs.. what else can they be sure of.. the economic recovery? never.. they cannot formulate strategies though they are experts.. they don't have any advice for the improvement of the scene..
Posted by:rohit - 27 Apr, 2009
the figure is really low when compared to the fact...its estimated atleast 3.5 million wuld loose their india alone
deepak Replied to: rohit - 27 Apr, 2009
Rohit I agree with you. The software companies are very careful in giving out the data so as to how many will be laid off. Plus this is election season and any appalling news will get the politicians involved and make matters worse. Remember what happened with "Jet Airways" lay off rounds...
Concerned Replied to: deepak - 28 Apr, 2009
Jet Airways employees are beautiful air hostess, so every people cry for those handfull people. But in IT sector no one is intrested to raise the voice.

Reason : God knows...
Anurag Replied to: Concerned - 28 Apr, 2009
Hi Anurag

oh......fear with God
this is not truth........
pl c around u....
ykgarg Replied to: Anurag - 29 Apr, 2009
Don't worry man! Everybody is not fond of big bases. Jet Airways used to have have good girls earlier, now most of them recently joined through recommendations look like posh call girls. So I am sure many will raise their voice for I.T Sector.
Vivek Vaswani Replied to: Anurag - 29 Apr, 2009
Hi vivek

u r one step ahead anurag...
what happens to people like u
first c around u..
is it true.. to fingering .on ladies.?
pl accept the truth and learn to fight ..
God with us.
God is great

ykgarg Replied to: Vivek Vaswani - 29 Apr, 2009
Its very sad news for IT sector and god will help them sothat they will face this recession.
pramod solanki Replied to: Anurag - 28 Apr, 2009
How is syntel position in market
rohit Replied to: pramod solanki - 29 Apr, 2009