Nasscom pooh-poohs mass layoffs in IT

Amidst reports of the leading information technology (IT) companies laying off employees across the country, industry body Nasscom on Thursday said the sector will hire around 1.5 lakh people this year on ‘net’ basis.

It also said the techies will have to re-skill themselves to stay relevant. The employees will have to “re-skill or perish” as the world moves to new technologies such as automation, robotics, analytics and cyber security, R Chandrashekhar, President, Nasscom, told reporters here.

Nasscom clarified that the reports of mass layoffs by IT companies in India are incorrect. In fact, the industry continues to be a net hirer with talent acquisition continuing across sectors, it said.

However, Nasscom could not clarify the reason why there was noise around the layoffs this year.

“We categorically reject the reports of mass layoffs in the sector. Financial year 2017 saw 1.7 lakh people being added, while in fourth quarter alone, the gross hiring was over 50,000 by the top five companies,” Chandrashe-khar said.

He said six-lakh jobs have been created in last three years and boasts of a total employee base of 39 lakh today — around one-lakh in start-ups and 50,000-60,000 in e-commerce.

“To keep up in a fast-evolving technology environment, the IT industry must reinvent itself by re-skilling its employees in new and upcoming technologies,” he added.

Looking at the future needs of the industry, Nasscom will continue its efforts to create opportunities for skilling and re-skilling of employees to make them competitive for the industry.

The industry body said the sector remains one of the largest employers of the nation. While there is a gentle deceleration in the net hiring growth rate due to shifting focusses towards innovation, lower attrition and enhanced efficiencies, the sector continues to hire fresh and lateral employees in equal proportion.

“Companies evaluate their priorities based on the business needs and work towards making the necessary changes in their workforce planning. And therefore, it is important to look at the larger picture and the long-term roadmap to completely understand and appreciate the situation,” Raman Roy, Chairman, Nasscom, said.

He said the companies are making huge investments in training and re-skilling their employees on new technologies to ensure they stay up-to-date.