Why did India's IT industry lay off 56,000 people?

For Indian science and technology practitioners, 20 17 is a year of nightmares. Until a few years ago, the IT industry was one of the industries that provided the most jobs in India, but this year, the industry laid off more than 56,000 people, with a scale of 654.38+060 billion US dollars.

The wave of automation is coming.

In the past few years, India's normal forced turnover rate (that is, requiring employees with poor performance to leave) was about 1%, while in 20 17 years, the turnover rate of Indian IT enterprises reached 2%-6%.

About 6,000 Indian employees of Cognizant lost their jobs due to the implementation of automation projects. Tech Mahindra in Mumbai has implemented a cost optimization plan to improve automation and reduce manpower. In July, the media exposed an audio content of the company, which caused a scandal. The audio content is that the human resources department of the company forces employees to resign before 10 the next morning, otherwise they may be fired.

The company no longer "keeps idle people"

In 20 17, the number of campus recruits of Indian IT companies decreased by 50-70%. This is mainly because IT companies have changed their recruitment methods: in the past, companies would recruit a large number of new people to make reserves for contracts that have not yet been obtained. Now, the recruitment strategy has become "as many employees as there are". IT companies are facing great pressure of revenue growth at present, and don't want to spend money to "support people" while waiting for projects. They focus on increasing the employment of highly skilled people or improving the skills of existing employees.

High skill versus low skill

In the long run, the popularity of automation may give employees with special skills more employment opportunities. But lower-level employees will continue to be squeezed. According to a recent report released by market analysis company HfS Research, nearly one third (700,000) of low-skilled workers in India's IT industry will lose their jobs in 2022. Less than 5% of Indian science and technology practitioners are qualified for high-skilled jobs.

So once there is a problem, whether it is a career problem or a family problem, they often have no one to turn to.