While browsing through Facebook news feed I saw Times Now report on mass layoffs in the IT sector caught my eye. Here is the layoff report, as you can see below synopsis reads demonetisation as one of the reasons for slowdown in the IT sector:
Lets analyze the IT industry current situation. Indian IT firms majority of the revenue originated from North America and Europe. It is true that IT firms have abused the visa provisions as a result Indian employees are considered cheap labors. Local governments would like to push their workforce as a result they are reforming existing visa restrictions.
However there is issue with supply of STEM graduates in USA. As a result not all the jobs in USA are at stake but these companies need to be careful with future hiring. They are indeed planing to increase hiring locally, here is Infosys USA hiring.
Every year during year-end review there will be pool of associates marked as to be improved. Companies like TCS give at least two-cycle of performance reviews before marking associate for layoff. Automation is playing really big role. Most of the repetitive jobs can be easily moved to robots hence leaving less skilled at disadvantaged.
FX rates also plays a big role in the IT earnings. Currently USD/INR is trading at 64 way below from all time high of 68. Though dollar earning will be same but INR earnings would fall off. All these factors adds to overall layoff figures.
Let us get back to media; during the age of information every view counts. The biased media pushes their agenda with strategically inserting such words. It’s clear that demonitisation is not related to slow down and layoff in the IT industry. Still media houses would play with words for better click bait. And market it aggressively through multiple channels including Facebook and Twitter.
People who are pressed for time, will read through these synopses and may get a wrong impression. India clearly needs unbiased media.