Indian IT services may see over 0.1m layoffs by Sept

ISLAMABAD (APP) - The Indian IT services sector may see up to five per cent layoffs amounting to more than one lakh job cuts over the next six months as companies focus more on cost-cutting due to persisting weakness in global demand. Companies may reduce workforce in this fiscal, mostly based on stringent performance criteria quoting experts an Indian television channel reported. We expect the knowledge industry (IT) to see 3-5 per cent non-voluntary exits in the first two quarters of the financial year mainly in senior and middle levels, Deloitte Touche Tohmatsu Senior Director (Management Consultancy Services) P Thiruvengadam said. Given the fact that more than 22 lakh people work in the IT industry, five per cent non-voluntary exits would mean more than one lakh employees being shown the door by September. Nasscom estimates more than 22 lakh people were working in the Indian IT-BPO sector in FY2009 (till February), while indirect job creation is estimated at about 9 million. International Management Institute (IMI) Director C S Venkata Ratnam said, The IT sector is better off but it may see up to 4-5 per cent job losses in the first two quarters of this fiscal.

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