Employees in certain industries are hardest affected. Nasscom Reports on Major Unemployment In The Industry.
What is Nasscom worried about?
In an exchange between these companies, Nasscom President Debjani Ghosh said that, despite the value of talent for the sector, companies will have to use this path to surviving as their 'only choice.' "If the environment is impacted, it would have a market effect.
Ghosh said. If we like it or not, we will create a cost rationalization.
I definitely see some impact, therefore, and I don't know what it will be like. In the short term. I hope that's minimal, "she says. "Where the business will not be recovering in the next six or ten months, situations might arise where certain lay-offs are going to take place .
How about IT firms?
The IT industry goes through tough times in general when many consumers have been forced, in the involving steps to test the dissemination of the Covid-19, to close down their establishments globally.
While companies have been hit hardest in the past three months in the areas of travel and hospitality, aircraft, retail, cars and manufacturing.
However, the renewals of new contracts have culminated in gaps in annulment of existing outsourcing programs.
Although, with all this hardship, the Indian IT industry has not resorted to cutting jobs and is currently pursuing other cost optimization moves.
Additionally, many of the IT biggies such as TCS, Infosys, HCL Technologies, Wipro, and Tech Mahindra have said that they would continue hiring from college campuses, albeit in a lower number in 2020.
Ghosh said, “In the IT business, talent is the most important thing. So, letting talent go is the hardest decision any company can take. As an industry, we take all our efforts to keep our people. We honor our job offers. Companies are trying all kinds of steps, including reducing salaries (to save jobs),”.
Also, most IT companies are operating on work from home (WFH) mode with more than 90 percent of their employees working from remote locations.
Nasscom sees the model continue for some more time, despite relaxation in the lockdown norms.
What are companies talking about?
According to the industry association, though about 10% of workers are projected to be in operation at the end of May, relative to about 5% in June, that should increase to about 15%.
The president of Nasscom however said WFH is not seen by the industry body as the new operating model.
Ghosh said on the same road "WFH will not be the future. It would be a mixed platform for big corporations (both from home and office). There is a great deal of excitement with regard to WFH, but other things need to be resolved in order to make this concept functional.