The Hindu : Andhra Pradesh / Hyderabad News : Software engineers face grim future

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Wednesday, Aug 13, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Software engineers face grim future

A. Saye Sekhar

Thousands of techies fired in Hyderabad in the last six months

HYDERABAD: Is it economic slowdown with its moorings in the US or ‘underperformance’ by employees that is leading to job cuts in the IT industry?

While the IT giants and SMEs (small and medium enterprises) ascribe the lay-offs to ‘underperformance’, those who received the pink slips have a different story to tell.

The companies are indeed raising the bar in terms of performance benchmarks. But when they give marching orders to a few, they don’t seem to take a second look at their ‘hire and fire’ policy. Top-tier IT bellwethers are imparting training or performance improvement programme (PIP) and helping people cope with the requirements.

Those in the second and third rungs don’t have that opportunity. “If an expected project does not materialise, they put the associates on the bench only to get rid of them eventually,” said an employee, who was with Virtusa till recently, and sought anonymity out of fear that no other company would employ him again.

Reduced headcount

Unconfirmed estimates put the number of techies fired in the city alone at a couple of thousand in the last six months. It could be even more, said an industry expert.

After TCS and IBM bade adieu to over 1,000 employees early this year, Patni Computers said ‘goodbye’ to 400 of its associates last month.

Virtusa is said to have succinctly reduced the headcount in India by about 200, though efforts to ascertain the facts did not bear fruit. Business Process Outsourcing companies too are relinquishing some of their staff off their duties.

“Economic slowdown impacted sectors like BFSI (Banking, Financial Services and Insurance) and also Telecom, blocking the expected projects.

Naturally, it is taking its toll,” said an HR manager working for global BPO major with large-scale operations in Hyderabad.

Rajan Kanagasabai, head HR Sourcing of Satyam Computers, said those who lagged behind even after the PIP would have to leave the company.

President of NASSCOM Som Mittal said: “The Indian IT-BPO industry is well integrated into the global economy, and therefore any change in the latter impacts it as well.”

In the wake of rising inflation, oil prices, among other things, would necessitate a change in the recruitment pattern and a greater emphasis on performance leading to some attrition.

He foresaw rationalisation in wage increase as companies would adopt a more prudent approach to hiring, given the uncertain global economic environment.

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