IT cos to remain net recruiter |
Indian IT sector is going through its worst phase ever, but a close examination tells a different story. If various reports are to go by, aggregate job losses at seven IT companies will be 56,000 in 2017, translating into 4.5 per cent of the aggregate headcount. But this is not something new. A pattern, which is familiar by now to all, every year these companies let go of 1-3 per cent employees after annual performance measurement. Kotak Institutional Equities said that it expects layoffs of around 2-4 per cent this year. The brokerage believes the adjustments in staff strength are not materially different from earlier years.The IT industry will continue to be a net recruiter with numbers prudently and continuously calibrated by industry revenue growth. Dalal Street also remains bullish on IT companies. A case in point is stock performance of these equities. For some time now, the US President Donald Trump has been billed as the arch-enemy of the Indian IT sector. However, since his election on November 8, 2016, the shares of top four IT companies have given smart returns. These seem tough times for IT and telecom employees in the country. Several large IT and telecom companies are in the process of laying off employees on a scale not seen since the 2008-10 downturn.
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