Which IT Companies in India Are Letting Go of Employees and Why?

Top Most Firing IT Companies in India

Disclaimer: I cannot personally acknowledge that the information given in this article is 100% accurate. Most of it is true and has been acknowledged by the Indian Press as well.

IBM - Currently, this is the most firing company for IT professionals. In the last six months, this company has fired nearly 20% of its employees due to background checks and performance issues. It is viewed as the most insecure company from an IT professional's perspective. They lack any strategic plans or HR policies regarding employee security. Appraisals are minimal, with a maximum of 10%.

TCS - Previously functioning as a government IT company, TCS has now transitioned into a major firing IT company. Recently, it laid off 500 people, mostly individuals with less than two years of experience. TCS has also lost numerous projects recently, especially the British Telecom projects.

Accenture - This is the second top most firing company. The firing rate is approximately 5%. It is dependent on outsourced projects; they have a unique system where Accenture development centers worldwide bid for incoming projects. Currently, the Philippines center is excelling, while the Indian centers are in a firing mode.

Accenture is the second top-firing company, with a firing rate of around 5%. This rate depends on outsourced projects; they have a unique system where Accenture development centers around the world bid for a project coming into the company. Currently, the Philippines center is excelling while the Indian centers are in a firing mode.

WIPRO is known for firing people with very frequent background checks and without providing experience letters or relieving letters (only mentioning as terminated from services), promising to retain employees but eventually letting them go after the project is completed. They may even threaten criminal cases against employees who oppose the move and have filed cases against some.

Intel has recently joined the league of firing companies. Running heavy losses, they are letting go of 3000 employees in the Bangalore center in a phased-out manner. Intel previously made headlines with a failed processor design from the Bangalore Labs and fired a few employees for producing fake car rental bills.

CTS has a steady firing policy, checking educational backgrounds, previous employment, and employee performance at work. At a recent HCL walk-in, approximately 50% of attendees were from this company. Unfortunately, even the I-pods provided to employees have not been able to help them.

World's 10 Best Companies to Work For

February 2, 2009

Happy employees are motivated employees and a huge contributing factor to any company's success. No wonder then, the top 10 great companies to work for -- as listed by Fortune magazine and the Great Place to Work Institute -- also do well when it comes to profitability.

Note: Market cap as of January 28, 2009

Company: NetApp

Rank: 1

Chairman, CEO: Dan Warmenhoven

Business: Specializes in proprietary network storage and data management.

Reach: Has over 130 offices worldwide, including the US, Canada, Europe, South America, Asia, Pacific, and Australia.

Market cap: $5.37 billion

Why: Greatplacetowork.com says, 'The essence of what fuels the quality of the workplace at NetApp is the high trust culture. Leaders reach out to employees, sharing information, support, and time in a variety of ways. This generosity of spirit is reciprocated many times over, creating within NetApp its own version of a fail-safe networked organization.'

World's 10 best companies to work for

Company: Edward Jones

Rank: 2

Managing partner: James D. Weddle

Business: Offers financial products at an individual investor level. Currently serves more than 7 million clients.

Reach: Over 10,800 offices in the United States, Canada, and the United Kingdom

2007 revenue: $4.14 billion

Why: Greatplacetowork.com says, "Employees receive a whopping 149 hours of training on average a year, more than three times the 100 best average of 45. But Edward Jones doesn't just train people for the job they're doing. The management's philosophy is that employees who are passionate about their jobs will make the company a better place, so managers encourage people to develop skills even when they know the new skills will lead to a different job."

World's 10 best companies to work for

Company: Nugget Market, Inc
Rank: 10
CEO: Gene Stille
Business: Family-owned, upscale supermarket chain
Reach: Owns and operates nine Nugget Markets and three Food 4 Less stores in the Northern California region, United States
2007 revenue: $273 million
Why: Nugget Market, which was founded in 1926, has never had a layoff. Since its launch, it has had a progressive, employee-friendly attitude, providing its associates with some of the top wage and benefit packages in the industry. Nugget also has excellent healthcare benefits, including long-term disability and sick pay. It encourages associates to balance their work and personal life through flexible schedules and five weeks of paid vacation.

World's 10 best companies to work for

Company: Goldman Sachs
Rank: 9
Chairman, CEO: Lloyd Blankfein
Business: A bank holding company that engages in investment banking, securities services, and investment management.
Reach: United States, South America, North America, Asia Pacific, Europe, Middle East
Market cap: $42.57 billion
Why: Sharing ideas, supporting collaboration, and contributing to others' projects is encouraged, both through explicitly defined cultural expectations and through the actions of individual leaders, who are also expected to serve as role models. Some of the benefits offered include education, tuition reimbursement, preparatory courses and exams, scholarships and fellowships, as well as loan and mortgage discounts. Employees can also avail ongoing training and mentoring programs.

World's 10 best companies to work for

Company: Methodist Hospital System
Rank: 8
Director of Operations and Business Development: Nagib Mustafa
Business: A leading US hospital, this acute care complex serves over 40,000 domestic and international patients every year. It is also a comprehensive teaching hospital, with leading specialists in every field of medicine.
Reach: United States. It also partners with more than 25 hospitals in Latin America, Europe, and the Middle East.
2007 revenue: $1,742 million
Why: Employees earn paid time off accruals biweekly beginning from the date of hire. They are offered subsidized transport options. Education assistance includes tuition reimbursement for undergraduate, graduate, and doctoral-level courses that are job-related. Employees can get additional financial assistance for certain certifications/degrees and a college scholarship for children of employees enrolled in healthcare degree programs. Employees who adopt children are provided financial assistance. All employees and dependents have access to resources to help with the everyday challenges of work and life.

World's 10 best companies to work for

Company: Genentech
Rank: 7
Chairman, CEO: Arthur D. Levinson
Business: This leading biotechnology corporation is considered the founder of the biotech industry.
Reach: United States, Singapore
Market cap: $87.78 billion
Why: Genentech fosters individual creativity and initiative among its researchers, encouraging scientists to pursue projects of interest in addition to working toward the company's goals. Their scientists have consistently published important papers in prestigious peer-reviewed journals. They have also secured approximately 7,400 current, non-expired patents worldwide and have about 6,250 patent applications pending. Genentech also has a strong postdoctoral program, with fellowships that last four years. The company believes providing employees with programs, services, and benefits allows them to bring the best to the business and to their personal lives.

Hi Jay,

This was very useful information. As per my personal experience, let me tell you that if it includes all industries, then the first prize will go to India's famous home appliance company (from Korea). Two in the list. Guess the correct one (hahahha).

Regards,
PRIJU

The situation is not only restricted to the IT industry.As far as the telecom industry is concerned, the market is flooded with too many players leading to very thin profit margins. But major players like Airtel have also initiated employee retrenchment without much noise. Employees who have served the company for 13 long years are being asked to leave with short notice. Employees who have been hired 6 months ago are being asked to put in resignation within 3 months of joining. On the other hand, the company has been recruiting middle level management which is a total absurdity to the company's reasoning to reduce manpower cost. It is quite shocking to know that companies like Airtel having the best HR policies and one of the ‘Most Preferred Employer' has been doing such employee retrenchment under the table. It is a total contrast when smaller organizations have retained & supported their employees during the tough times where as bigger companies which run on profits month on month even during the recession are adopting to such measure and creating a detrimental work culture. Employers are reaping the seed of job insecurity that they instilled in the minds of the employees during the bad days.