In More Bad News For The IT Sector, Infosys To Follow Wipro And Cognizant In Laying Off Staff

The turbulence in the Indian IT sector is seemingly depending further. Though the industry is trying to put a brave face amid the confusion in one of its biggest markets, the US, a number of IT companies have resorted to cost-cutting measures.?

Infosys could hand out pink slips to hundreds of mid and senior-level employees as it carries out its bi-annual performance review amid a challenging business environment.

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The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs.

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“Our performance management process provides for a bi- annual assessment of performance... A continued low feedback on performance could lead to certain performance actions, including separation of an individual and this is done only after feedback,” an Infosys spokesperson said in an email statement.

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“We do this every year and the numbers could vary every performance cycle,” the spokesperson said, adding that the assessment is based on individual goals and strategic priorities of the company.

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Last week, US-based Cognizant rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary.

Wipro, too, is learnt to have asked about 600 employees to leave as part of its annual performance appraisal even as speculations were that the number could go as high as 2,000. IT companies have been one of the largest recruiters in the country. However, they have warned that increasing automation of processes would lead to a reduction in hiring in coming years.

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While the outsourcing model has placed India on the global map, increasing scrutiny and rising protectionist sentiment are also posing challenges for the $140 billion Indian IT industry.

Companies are now working towards reducing their dependence on work visas and instead hiring more locals to ensure continuity of work for clients, even though it impacts their margins.