IT industry reeling from layoffs, Infosys offers solutions

Business

01 Jun 2017

Narayana Murthy has a solution for lay-offs: Senior executive salary-cuts

Infosys co-founder NR Narayana Murthy said that if senior executives in companies took salary cuts, large-scale job losses could be avoided.

Murthy also weighed in on the need to investing in training the employees.

He said that if compassionate capitalism was employed by industry leaders there would be no large-scale job losses nor the need for unions in the IT industry.

Grim job prospects in IT

Abysmal state of the IT industry

IT firms, once India's largest recruiters are fast handing pink-slips to employees.

Increasing automation has put a dent on hiring.

Head Hunters India figures reveal that in the coming 3 years, 1.75- 2 lakh people will lose jobs to "under-preparedness in adapting to newer technologies."

McKinsey & Company's report revealed that half the current IT workforce will be "irrelevant" over the next 3-4 years.

03 Apr 2017

Narayana Murthy lashes against the 60% hike to Infosys COO

Narayana Murthy lashed out at the compensation hike to Infosys COO UB Pravin Rao calling it 'improper'.

He said this measure would "erode the trust and faith of the employees in the management and the board".

Murthy said a 60-70% compensation hike when the rest got a mere 6-8% hike was improper.

Moreover, he asked the senior employees to show self-restraint in their compensations.

11 May 2017

Infosys to lay-off employees over 'non-performance'

Information technology (IT) firms in India are in the middle of the largest cost-cutting drive, and to this effect, Infosys is set to fire hundreds of its employees.

The number of employees being laid off is twice as high compared to 2016.

The company, in a statement, said "continued low feedback on performance could lead to separation of individuals" after the bi-annual review.

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No planned layoffs, says Infosys COO

When the news of layoffs surfaced, Infosys COO sought to pacify employees by saying they weren't carrying out 'planned layoff' but there would be regular performance-based exits.

26 May 2017

IT sector's newest threat- Unions

IT sector's newest threat- Unions

Given the magnitude of layoffs, need for unions is being heard.

For 3 years now, employees are taking aid of pressure groups like the Forum For IT Employees (FITE) to make "involuntary exits" of employees from IT firms more transparent.

While employees say it's 'unfair termination', the employers see the 'performance-based appraisal' as befitting and hence the clamor for unions is getting louder.

01 Jun 2017

Narayana Murthy has a solution for lay-offs: Senior executive salary-cuts

Infosys co-founder NR Narayana Murthy said that if senior executives in companies took salary cuts, large-scale job losses could be avoided.

Murthy also weighed in on the need to investing in training the employees.

He said that if compassionate capitalism was employed by industry leaders there would be no large-scale job losses nor the need for unions in the IT industry.

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