No mass layoffs by Indian IT companies, workforce realignment happens every year: Nasscom
India's IT industry body Nasscom on Friday has issued a statement denying a mass layoffs by IT companies in the country stating that the workforce realignment linked to performance appraisal processes is a regular feature every year.
India's IT industry body Nasscom on Friday dismissed reports appearing in a section of the media about mass layoffs by IT companies in the country.
"Recent media reports of mass layoffs by IT companies in India are incorrect," said the National Association of Software and Services Companies (Nasscom) in a statement issued on Friday.
The latest development comes at a time when IT companies in the country are facing challenges in the business environment and stricter work permit regime in countries like the US, Singapore, Australia and New Zealand, according to PTI report.
IT majors like Wipro, Infosys, Cognizant, and more recently, Tech Mahindra have initiated annual performance reviews, a process that also weeds out bottom performers or non performers, it said.
Stating that the IT industry continues to be a net hirer with over 1.5 lakh people being employed on a net basis each year, Nasscom said the focus was shifting from scale to skill.
"Talent and skills are the key building blocks for the industry which is intensifying investment in skilling/reskilling its workforce to strengthen its foundation on a continuous basis," cited Nasscom.
The country's apex IT industry representative further noting that workforce realignment linked to performance appraisal processes is a regular feature every year said that skilling and workforce realignment were essential to remain competitive in international markets.
"Workforce realignment is a normal part of the internal process of companies based on their own operational imperatives," Nasscom said in a statement.
Companies evaluate their priorities and business imperatives and continuously align talent to serve their needs and enhance competitiveness.
"No significant changes have been reported or observed this year," the statement added.
With the US hardening its stance on outsourcing, IT firms are under pressure to hire locals instead of taking Indian employees on work visas to client sites. This also impacts their margins, the PTI report noted.
IT companies have been one of the largest recruiters in the country. Apart from the impact of stringent visa regime, increasing automation of processes would also lead to reduction in hiring in coming years.