News »Browse Articles » 50,000 techies may lose jobs in next six months

Friday,26 December 2008:Bangalore: It is really tough time for employees in IT and BPO sectors in India as worsening economy may cause to lose over 50,000 jobs in these sectors over the next six months. Employees in Big and small firms are likely to be the most impacted section of the downturn in next six months, while it was employees in medium-sized companies met job losses largely during September-December period.

Karthik Shekhar, General Secretary, Union of IT Enabled Services (UNITES) India finds that there was a loss of 10,000 jobs in IT and BPO sectors during the September-December period. According to the UNITES India, companies in trouble could resort to salary and incentive cuts without trying to squeeze the staff, rather than adopting the layoff path.

Karthik further added that employees are willing to agree with cuts in their salary and other incentives for 12-16 months and when the demand picks up again such benefits should be restored to them. He said senior officials of the industry had concurred with the figure of 10,000 job losses in September-December, stating that it accounted for bottom 5 percent of the performers.


"Continued slowdown, likely tax application to companies outsourcing jobs under the new U.S. regime and tightening procedures with regard to H1B visas are among key reasons cited for acceleration in issue of pink slips," he opined.

Source:
http://www.siliconindia.com/shownews/50000_techies_may_lose_jobs_in_next_six_mon

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