RETRENCHMENT IN IT INDUSTRY SOLUTION

It is really sad that in IT companies which was once the sunrise sector of Indian Economy and there

was always a demand for employees today the situation is grim.

Everyday we are reading in various Blogs and news on the Internet and hearing on the news channels

about people being asked to go on ground of poor performance and skill set issue or non availability

of Visas etc.




There are also news about how employees have forgotten to code as they became Managers and new

languages were not learned by them resulting in they becoming irrelevant when the automation and

artificial intelligence is able to do scheduling as well as monitor productivity .

Similarly some if the quality audit and other work can also be automated.

But still these people can be re trained and absorbed in production .

So out of curiosity I checked the headlines about the three biggest Indian corporations and what I

found was that while Wipro & Infosys are asking employees to leave TCS has no plans to ask even a

single employee to leave.


Now to understand the reason behind I looked at the growth of the three companies last year

compared for a larger period .

If we look at the below numbers in 2008-09 the turnover of all the three companies was in the same

range but over the period of 7 years the Turnover of TCS is almost double of Wipro and 60 % more

than that of Infosys.

So the primary reason is not being able to get business as expected and hiring at the beginning or before the curve which is common in the IT industry but now with pessimism growing they do not want to continue with the bench strength and may be people with skills no more relevant.

But if between two of them they retrench 56000 employees may be the savings would be Rs 3000

crores would be equivalent to 10 % of their margin .

It is high but is not worthwhile to re0skill them and get some low margin job which although might

reduce the overall margin % but would increase the overall profits and most importantly image of the

company as a employee friendly and also families of such empoyees.

PARTICULARS	Mar '09	Mar '10	Mar '11	Mar '12	Mar '13	Mar '14	Mar '15	Mar '16
TCS-	22,402	23,044	29,275	38,859	48,426	64,673	73,578	85,864
WIPRO	21,507	22,922	26,301	31,683	33,227	38,757	41,210	44,685
INFOSYS	20,264	21,140	25,385	31,254	36,765	44,341	47,300	53,983
GDP SERVICE SECTOR	2,333,251	2,578,165	2,829,650	3,061,589	3,263,196	3,013,108	2,754,464	2,510,220
PARTICULARS	Mar '09	Mar '10	Mar '11	Mar '12	Mar '13	Mar '14	Mar '15	Mar '16
TCS	21%	3%	27%	33%	25%	34%	14%	17%
WIPRO	23%	7%	15%	20%	5%	17%	6%	8%
INFOSYS	29%	4%	20%	23%	18%	21%	7%	14%
Service Sector Growth	10%	8%	10%	8%	8%	9%	10%	10%

TURNOVER FOR THE PERIOD 2008-09 TO 2015-16

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