Prime News, National (New Delhi), May 10:- Information technology (IT) companies in India are in the midst of the industry’s largest retrenchment drive, with seven of the biggest IT firms planning to ask at least 56,000 engineers to leave this year.
The number is at least twice the employees laid off by the companies last year, reflecting their under-preparedness in adapting to newer technologies and dealing with the fallout from US President Donald Trump’s protectionist policies.
The seven companies—Infosys Ltd, Wipro Ltd, Tech Mahindra Ltd, HCL Technologies Ltd, US-based Cognizant Technology Solutions Corp. and DXC Technology Co., and France-based Cap Gemini SA—and which together employ 1.24 million people, plan to let go of 4.5% of their workforce in 2017.
In the past, between 1% and 1.5% of a large Indian IT firm’s employees would be asked to leave every year on account of poor performance. The number was 3% for foreign companies with large Indian operations. This year, the range is likely to be 2-6% across Indian and foreign companies.
Trump’s protectionist policies mean more Indian IT companies are asking Indian H-1B Visa holders to return home.
Infosys has already announced that it plans to hire 10,000 US citizens over the next two years. Wipro has hired over 2,800 Americans over the last 18 months and expects half of its total workforce in the US to be locals by the end of June 2017.
– (PR, Inputs- livemint)