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Indian IT Industry

The Technology & Economic Forum is a venue to discuss issues pertaining to Technological and Economic developments in India. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
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Re: Indian IT Industry

Postby arvin » 15 Jul 2017 15:26

Singha wrote:infy ceo came in a driverless golf cart today built in their mysore office. anyone know what tech is used ?

Good to see IT companies atleast atttempting to catch up with efforts put in by Apple, google and Tesla. The top 5 giants have hugh warchest and they should use it develop IP like this.
Also a nice way to convey message to employees that we have automated this. We can automate many things.

BRF Oldie
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Location: Where DST doesn't bother me

Re: Indian IT Industry

Postby Vikas » 17 Jul 2017 14:54

Singha wrote:things that Govt could mandate:
- minimum 30 days severance pkg or upto the notice period whichever is longer.
- you can ask ppl to leave the next day but pay them for 30 days
- health insurance cover must be there for 3 months and emp has option of paying something for 3 more months. kind of a desi cobra. often aeging parents are tied to this.
- employer must give a relieving letter without coercive tactics do this, do that.
- maximum notice period 45 days.
- illegal to keep degree certificates and passports in custody

In my KB, they pay 3 months Basic pay if they ask you to leave very next day and thats pretty much it. But if you want to leave very next day, You will have to pay 3 months full salary.

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Location: Bangalore

Re: Indian IT Industry

Postby symontk » 17 Jul 2017 15:46

Singha wrote:A section of cos in massa send a security guy to escort out a laid off staffer.cube is packed by admin and sent later.

But that is over there. Does not look good asking person to put in papers or else termination . Implied dhamki is termination letter will set a nasty tone to spoil the entry into next job

In US folks have guns, building security over there is practically nil. In the famous chip company, there was fear that some of the laid off colleagues will come back and shoot at them later

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Re: Indian IT Industry

Postby Gus » 17 Jul 2017 17:55

Singha wrote:- employer must give a relieving letter without coercive tactics do this, do that.

definitely need some sort of independent 'employment verification' thing that one can use to verify employment without having to beg HR.

I had to make couple dozen calls and emails over a few weeks to get a letter of previous employment (needed for mortgage application, in a format they recognize) and it got ugly with me having to say stuff like "I did not come this far down this process of closing a house and to get into issues like this and losing it..I will make your life miserable by calling every day and copying emails to everybody". The dude kept telling me that I can use the offer letter, and the relieving letter - and together they make up for verification of employment :x

The fun part? I was a transfer and we were still the same company :evil:

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Re: Indian IT Industry

Postby Zynda » 21 Jul 2017 10:07

Opinion | 'Expect 100,000 to 200,000 Jobs to be Lost Every Year For The Next Three Years'

Last weekend, I was in Pune just after the suicide of a techie who was feeling depressed as he saw a very bleak job landscape for IT professionals. During my visit, I met several people in Pune and the common talk was about the IT jobs scarcity / layoffs.

The previous week, I was in Chennai where I met a senior manager heading marketing for a software services company. Her CTC was Rs 35 lakh. She had come for a job change and when I asked her why she wants to leave her present employer, a top 10 software services company, her response was shocking.

She said in the last six months, in her department alone, she was asked to send off 6 people – 25% of her total staff. She is having sleepless nights because she does not know when the Axe will fall on her. According to her, the company has identified, a supporting service like Marketing as expendable. She is a single mother and she does not know where to go if she loses her job. The point is she is still employed, but the Axe looming over her Head is something which is very difficult to describe.

As a Headhunter, I keep meeting people across industries looking for jobs. Most of them are in the middle management level and above. The people who meet me / call me on phone are in general those who are in dire need of jobs.

These days, I find that the number of calls / people who come and meet me has increased 5 fold. The reason either they have lost jobs or the sword is hanging.

Four weeks ago, I met an engineer from IIT in a 5 star hotel in Mumbai with the added qualification of a MBA from IIMA. He was 33 years old. To his credit, he was not asked to leave. He was an entrepreneur who ran out of funds. In the last eight months, he has been living on his wife’s savings. She is pregnant and now on leave.

I could see the desperation on his face. He was willing to take up a job anywhere in India. Regarding salary, I told him that he should not negotiate and try to get a CTC matching his peers. Reason he is unemployed. The advice I gave him was, first get a job, don’t worry about location or CTC. No potential employer will underpay you. Even if they pay you less in the beginning, knowing your strength, they will increase your salary so that they don’t lose you.

The other day a Fintech COO came to my office in Bangalore. He is 46 years, engineer, MBA from a reputed organisation. He has worked in some of the top FMCG companies in India – MNC and Indian. 2 years back, the start up bug caught him. He joined a Fintech company as a COO. Unfortunately, the company ran out of funds and he had to leave.

The anecdotal incidents I have described above is something which I am witnessing for the first time in my 30 years in Executive Search in India.

For the first time, across sectors – IT / BPO / Telecom/ Retail / BFSI / Autos etc etc , companies are laying off people in large numbers.

In the IT industry alone, we expect about 100,000 to 200,000 jobs to disappear every year for the next 3 years. Beyond 3 years it is difficult to predict what will be the extent of job losses.

Recently, Tata Motors, gave a VRS for middle managers. CTS did the same some time back. Ashok Leblanc did this exercise 2 years back.

I am aware of a top steel company having identified 7000 people excess on their rolls.

Some of the top industrial Groups in India have decided to deploy / redeploy people within, rather than go for outside recruitment. Obviously, specialised positions are exempt.

As a person whose future depends upon Executive Recruitment, I keep close watch on the happenings globally.

Two years back, the World Bank, predicted that in India 60% of the jobs as we know will disappear. In China, according to the same study, it will be 70%. In the western countries, the jobs which will disappear will be around 50%.

We will be soon in the area of driver less cars, robots cooking at McDonalds/Dominos.

While we can say that India is different, let us not forget that the banking industry, before our eyes, we have seen ATM’s have replaced cash tellers in banks. Further, PAYTMs are fast replacing ATMs.

We are entering an era of jobless growth globally. Robots will increasingly play more and more important roles in our life.

Yesterday I was watching Elon Musk speaking about need to control Robots. According to him, if we don’t, the Robots will rule the earth. A scary prospect indeed.

So what do we do after 10 years when jobs will become increasingly difficult to get. Some experts are talking about UBI – Universal Basic Income. Already, some of the European countries are trying this out.

To conclude, I would say that things are not as bad as painted. There are silver linings among the dark clouds.

Knowledge workers will always be in demand. Today it may be big data, Hadoop, analytics, AI etc etc. I am told that an engineer who is well qualified and experienced in self driving cars can get a salary of US$ One million in Silicon Valley today. :eek: A mind boggling figures, isn't it for a 30 year old.

Coming to India, I see that this is a great opportunity for us to overtake the western countries due to our superior intelligence and education.

Kris Lakshmikanth is a Founder Chairman & Managing Director of The Head Hunters India Pvt. Ltd. Views expressed are personal.

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Re: Indian IT Industry

Postby Zynda » 21 Jul 2017 10:09

On the same note...

IT Sector Job Losses Echo in Parliament, LS Clears IIIT Bill

New Delhi: The issue of massive IT job losses resonated in Parliament on Wednesday and members in the Rajya Sabha expressed concern over rampant layoffs. In its response, the government said it will work towards providing safeguards to the employees.

During the Question Hour in Upper House, Congress member Anand Bhaskar Rapolu raised the issue and sought to know about the steps the government was taking to protect the interests of the workers who were facing rampant and “unceremonious termination” of their services.

Responding to the concerns, Labour Minister Bandaru Dattatreya said the government would work to provide safeguards to the employees.

Dattatreya said the government was trying to provide social security and over one crore new workers have been brought into the ambit of the employees provident fund net. He said that an interest rate of 8.65% was being provided this year on EPF. The government was also focusing on portfolio management, he said.

During the discussion, members raised several related concerns about efforts required by the academia and industry to match demand and supply, need to increase placements, availability of faculty, among other things.

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Re: Indian IT Industry

Postby Rishirishi » 21 Jul 2017 18:06

IT industry in india has had continious growth for the past 25 years. Middle and top management is simply overpayed, because too many rely on providing cheap services.

For future, India will need to focus on quality not price.

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Re: Indian IT Industry

Postby KJo » 21 Jul 2017 19:45

What is happening in India is very normal and has happened in the US also. Back in the dotcom era, everyone and his mom was in IT. They needed people so badly, and there was a deluge of funds. RB was still a munna not yet in SillyValley.
Then came the bust and it was a disaster. All the pretenders left the field and joined other avenues of career.

Compare this to India, Indian IT had a fantastic run from 1997-98 to 2017 - about 20 years of boom time. People made fantastic amounts of money and had career growth and all that. It's been a great 2 decades, way above normal or average. Things are in correction now. Many will have to leave IT and get into other areas.

Frankly I don't know what has changed from last year because Trump has not changed any laws, he has merely barked and Indian IT has been spooked so much. "Automation" is an excuse, nothing cataclysmic has happened.

And yes, no more days of "shadow resource" or pushing in incompetent untrained bodies and calling them experts. Things will definitely change and it will be for the better.

It concerns me that IT kids are taking drastic actions like killing themselves because of a downturn. It just goes to show how much they were coddled and pampered by everyone - parents, teachers, managers... Life is tough and there is no free lunch. No one is responsible for ensuring anyone's livelihood. Back in the day, it was hard to get a call at Infosys. We had to study for the interviews which were tests and there would be sample questions. I remember getting Lathi charged by the guards at Kirloskar Company, Mysore when I had gone there for an interview along with many other graduate invitees. Here I was getting thrashed with a lathi and my dad had a company almost next door. :eek:
How these kids are spoilt today. They want everything handed to them. Else they strap on a bum and do soosai.

BRF Oldie
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Location: NJ

Re: Indian IT Industry

Postby Javee » 22 Jul 2017 12:43

Heh, I still remember the event where a security guard at Infosys saw our resume and told us that we don't have a chance and gave us tips to improve it.

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Joined: 13 Apr 2005 01:55

Re: Indian IT Industry

Postby Santosh » 23 Jul 2017 00:27

The current situation of layoffs is happening because IT companies are seeing that clients want to spend their budgets on automation, continuous delivery, big data, machine learning etc. none of which is trivial. If you have plain Java/.NET/PHP programming skills, it is a tough road to get on to the skill sets in demand. IT companies are simply taking advantage of zzzz barking, global slowdown what ever you call it and are trying to trim the fat. The bottom 10% will have to face the axe regardless of whether one is in tech or tech management. That's not too much considering the baggage IT industry has accumulated in the past few years.

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Re: Indian IT Industry

Postby CalvinH » 23 Jul 2017 01:01

How many here works in corporate IT in leadership roles? the ones who actually decide the budgets. I will prefer hearing from them and not from disillusioned consulting/services folks..

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