Reports are rolling in that the Indian IT industry is undergoing one of the largest cuts ever experienced, with the number of layoffs in 2017 expected to double that of 2016. Automation, inadequate growth, rising costs, and US President Trump’s ‘America 1st’ nationalist agenda are cited as reasons for the mass layoffs of more than 56,000 engineers.
As a result of Trump’s new policies, many IT companies are in the process of hiring US citizens and asking Indian H-1B Visa holders to return back to India. According to Livemint, Infosys has announced plans to hire 10,000 US citizens over the next two years and Wipro has already hired over 2,800 US citizens in the past 18 months. –India Today
Heavy cuts are expected at seven of the largest IT firms opreating in India, including Cognizant ($CTSH), Mahindra, Snapdeal, and Infosys, as well as DXC Techonlogy, Aircel, and Wipro.
AI and Automation
After experiencing rapid growth throughout the 2000’s, Indian IT companies have come under pressure in recent years. Cost cutting measures have included automation – as AI has been increasingly supplanting human beings for menial tasks. In a study by HfS Research, large-scale automation of non-customer facing positions (back office / IT / processing) will threaten around 640,000 low skilled jobs in India by 2021.
No Outlook
For the first time in 25 years, Indian IT industry public policy makers Nasscom declined to issue a growth projection for 2017-18, citing economic and regulatory uncertainty in the US and around the world.
“We have nothing new at this point to add but given the huge set of uncertainties, whether in terms of macro economic outlook or some of the currency fluctuations or political volatility with the new government in the US, discretionary spending by BFSI clients have also not gone up,” -R Chandrashekhar, president, Nasscom.
Nasscom has sought to allay fears over this decision by stating the Indian IT industry is simply undergoing a ‘realignment,’ and claims that the industry is a ‘net hirer.’
I’m not buying it.
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Check out the technical education stocks. I recently put on a starter position in $FAUR. Kids are starting to wise up on how the “college” experience can be a scam.
I like it moosh, putting it on my screen.
Sorry, meant $LAUR.
People aren’t necessary. Shame democracts, republicans and fake fucking Foreign car driving, Italian cabinet having, Chinese shirt wearing, food picked by, house built by an illegal nationalists can’t be honest with voters. Jobs aren’t coming home, they’re becoming obsolete.
The outsourced workforce is garbage, that is the problem. You have people fraudulently taking webcam interviews and placement test for others who have no clue what they are doing. This works because people can’t tell the difference over video and they can’t even pronounce their name. So you hire 4-5 workers from India for the price of one in the US. But all you end up with is 4-5 bags of excrement. There is some good talent, but the bad taints their reputation.
I think it has just gotten to a point where you can get more for your dollar with someone who is actually educated and has experience in the US.
$LINC a POS is starting to breakout