TCS latest IT company to lay off employees

Working for a leading MNC software firm or Indian tech company was the dream job. But the situation has drastically changed on Wednesday with well-known companies laying off employees, including those at mid level, and freezing recruitment.

The recent mass layoff at the country's largest software exporter Tata Consultancy Services (TCS) is the latest addition to the downside of the IT sector. While sacked employees of the IT major are knocking the doors of labour departments in Karnataka, Tamil Nadu and Kerala, the company has maintained that only "poor performers" have been asked to quit and it is a routine process.

As per a conservative estimate, more than 25,000 IT professionals have been laid off in the last 12 months in India by leading firms. Apparently, recruitment agencies have been flooded with resumes of experienced professionals with CTC in the bracket of Rs 20 lakh-mounting glut, slack demand 40 lakh.

Experts blame the contraction of global economy as companies are not keen on retaining employees.

National Association of Software and Services Companies data for last fiscal indicated that software exports would grow about 13 per cent in FY15. The sector is expected to add an incremental revenue of $13 billion this fiscal.

"If we observe the orders from global marquee clients of top IT firms, it is not the same what it used to be three to four years ago. The business environment has become challenging as more companies have entered the fray. Indian companies or MNCs operating here can no more boast of claiming an advantage over other geographies," said Ashok GA, an IT sector analyst.

SHOCKWAVES IN IT INDUSTRY

>> Earlier in FY15, Yahoo! reportedly sacked more than 2,000 employees

>> Cisco Systems reportedly sent home more than 4,000 employees and hiring nearly 2,000 freshers

>> IBM India reportedly asked a significant number of its employees in India to quit as well after restructuring its business

>> There were reports of lay-offs by Dell. HP had reportedly laid off a sizeable chunk of their workforce in India as well