IT Industry To See More Lay Offs As Covid 19 Pushes Challenges For The Sector

Amid the ongoing pandemic crisis, when there is dearth of projects, IT industry across the globe is on a downsizing spree. This is there on account of excessive workforce.

Further as per a Mint report, even as there are immense bouts in the economy, there has been a progressive shift to automation and related technologies, thus reducing workforce strength. And the pandemic has only given a fillip to such a process.

On a global level, IBM is said to fire 2000 employees, of which 100 are estimated to be from India. Others who have laid off include Cognizant A company spokesperson said performance was the deciding factor and is a "normal process."

Also, Accenture is also cutting 900 jobs in the UK in the wake of weak demand but beyond this has not planned "extraordinary global workforce actions", an India spokesperson for the company said.

Indian based companies including the likes of HCL, TCS and Infosys have so far not announced any laf-off but performance related cuts may be on the anvil.

With projects scarce, those 'on the bench' or without active projects are considered 'non-billable resources' and would be the first out the door, Sanchit Vir Gogia, CEO and chief analyst at Greyhound Research told the leading daily.

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