Hyderabad: Amid concerns of layoffs by Indian IT companies, B V R Mohan Reddy, former Chairman Nasscom and Founder of Cyient said that the upcoming reports of layoffs and so-called crisis in the IT industry is all ‘rubbish’ and is not something to be scared of.
“Technological disruptions are happening at this point of time and the employees’ old, new or incoming need to change their skills for sure. If the person is already in the company then they need to re-skill and up-skill themselves and people who are graduating need to learn new skills.
This is a very common cycle in the IT industry and it is not something to be scared of,” Reddy said. He was attending the 9th annual ICT4D conference in Hyderabad on Monday. He also emphasized that the fact that automation will lead to job cuts is not totally true and it will actually lead to creation of new jobs and skill sets.
“In addition, it is also important that we train our students passing out of technology colleges today. We are seeing that almost 30-40 per cent of students are not employable and it is not just the fault with the students but also the teachers. We are trying to collaborate with teachers to skill them in the upcoming and new technologies,” he said.
Executive search firm Head Hunters India said yesterday that job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years due to under-preparedness in adapting to newer technologies. A McKinsey & Company report had said earlier this year that nearly half of the workforce in the IT services firms will be irrelevant over the next 3-4 years.
A few employees of Cognizant had approached the State Labour Department alleging that the company was forcibly taking resignations from employees citing poor performance. The company had said performance reviews are done to ensure the company has the right employee skill sets necessary to meet client needs and achieve business goals.