More Layoffs In IT Services By Sept’09
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More layoffs in IT services by Sept’09

Market Development

The Indian IT services sector may see up to five per cent layoffs -amounting to more than one lakh job cuts - over the next six months ascompanies focus more on cost-cutting due to persisting weakness in globaldemand, experts say.

Companies may reduce workforce in this fiscal, mostly based on stringentperformance criteria, experts added.

"We expect the knowledge industry (IT) to see 3-5 per cent non-voluntaryexits in the first two quarters of the financial year mainly in senior andmiddle levels," P Thiruvengadam, senior director (Management ConsultancyServices), Deloitte Touche Tohmatsu told PTI.

Given the fact that more than 22 lakh people work in the IT industry, five percent non-voluntary exits would mean more than one lakh employees being shownthe door by September.

Nasscom estimates more than 22 lakh people were working in the Indian IT-BPOsector in FY2009 (till February), while indirect job creation is estimated atabout eight million.

C S Venkata Ratnam, director, International Management Institute (IMI) said,"The IT sector is better off but it may see up to 4-5 per cent job lossesin the first two quarters of this fiscal."

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