Terminating Employees In IT Companies.... - CiteHR
Svsrana
Hr Head With Pmi
Rahul Kumar
Senior Hr Professional

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Hi Citi Members,
I Came to know that in IT companies, employees are terminating day by day... is it fact that there is no projects.
Please if anyone knows these... can you tell me, whats actually happening in IT Induatry...
Thanks,
Kuwar

Hi Kuwar,
That's partially true. Large, reputed IT Companies generally do not practice this but retain IT professionals and bench them till the next project comes in. IT professionals are valuable and scarce too!
Only Companies that cannot carry the 'burden' of salaries of 'redundant' IT professionals given them a subtle or clear message to look out..
Sometimes, Companies are also not confident of bagging projects in particular verticals/domains requiring specific skill-sets, thus leading to forced-attrition of benched workers.
Rahul
09968270580

rahul has shared the truth....
Advice is also based on the same principles mentioned by Rahul:
either work for a large concern wherein they have plenty of projects and so can afford to shift employees laterally. most good cos keep doling out salaries until and unless the situation exists there are simply too many people who cant be absorbed or the employee in question refuses to learn a new skill.
in case of a small cos, the advice would be to have a backup set of skills... ie if one technology goes out of picture, then be ready to encash another set of skillset which you have... sometimes ppl m,ay need to move on a lower compensation too
surya

Yes, Most of the companies reducing their work force Size not only from the Development sector based on the projects. This is the true information Recently 2 - 3 weeks back. Wipro has layoff 300 Employees from Varies Departments.
Like Person who has joined recently to 6 Months of Exp. So they were adopting new strategies like Reduce the work force / less Expansion to Yield higher productivity.....
Regards,
Saravanan
/ 09884211661

Hi,

Most of the work that comes to our country is outsourced backend/support work from developed countries like USA etc, with the recent recession in the US market the economy has suffered due to low business indirectly affecting the job requirement and the profit margins.
Companies which had sufficient pools to maintain a bench, have got into the cost cutting mode therby increasing layoffs. Generally the axe falls on the resources on the bench/or redundant employees(not updated with the latest etechnology), Freshers at times and importantly low performers.
The other reason could be over the past few years IT has seen a boom and the software salaries have skyrocketed. High salaries account for increasing cost,the profit margins for organisations have fallen, it is only a basic business strategy to lower cost. As we cannot generally reduce salaries of employees(would lead to attrition & panic) the best option is to make optimum utilisation of available, productive and good performers. In other words treat those existing employees well who can keep the fire burning till such time that they can bail you out of this situation.
This is a vicious cycle, if you dont need more technical resources automatically people in the support teams(read Hr,finance)become redundant since workload reduces, as there are no new projects coming the existing technical employees do not have sufficient work(poor performes etc are layed off)...thus this cycle continues....therby adding to retrenchment and if few major companies do it around the same time....it becomes a panic situation.

Hope this answers your concern

regards
Preeti

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