KTR Downplays IT Meltdown, Layoffs
Hyderabad: Telangana Information Technology minister K T Rama Rao tried to downplay the reported layoffs by Indian IT companies. Speaking to media at an event on Monday, he said that retrenchment of the employees is common in IT industry.
Saying that the focus on people being retrenched is too much, he said that it is a natural part of IT and ICT companies. “It’s not like it is happening for the first time. Such process takes place every year,” the minister said.
Recently a few employees of Cognizant approached State Labour Department alleging that the IT Company was forcibly taking resignations from employees citing poor performance, while the IT major clarified that performance reviews are done to ensure the company has the right skillset needed to meet client obligations and achieve business goals.
Various news reports were warning of layoffs in the IT sector.
On Sunday, executive search firm Head Hunters India stated that job cuts in IT sector will be around 2lakh per year for the next three years due to under-preparedness in adapting to newer technologies.
A report by McKinsey & Company said that in the coming 3-4 years almost half of the workforce in the IT services firms will be irrelevant.
Meanwhile, when asked about IT and IT-enabled services exports from the State in 2016-17, KTR said they are expected to be above all India growth rate. Last year Telangana recorded Rs. 75,000 crores worth of IT exports.
He claimed that Telangana tops the chart in digital transactions.