56,000 Layoffs and Counting: India's IT Bloodbath This Year May Just Be the Start (qz.com)
An anonymous reader quotes a report from Quartz: For Indian techies, 2017 was the stuff of nightmares. One of the top employment generators until a few years ago, India's $160 billion IT industry laid off more than 56,000 employees this year. Some analysts believe this spree was worse than the one during the 2008 financial crisis. Meanwhile, hiring plummeted, with entry-level openings having more than halved in 2017, according to experts. Tata Consultancy Services (TCS) and Infosys, two of India's largest IT companies and once leaders in job creation, reduced their headcounts for the first time ever. Even mid-sized players like Tech Mahindra retrenched several employees.
Compared to the normal rate of forced attrition (i.e. asking non-performers to leave) of around 1% in earlier years, 2017 saw Indian IT companies letting go of between 2% and 6% of their employees, said Alka Dhingra, general manager of IT staffing at TeamLease Services. Infosys cut 9,000 jobs in January. "Instead of 10 people, what if we have three people to work on (a project). If we don't have the software, then some others will take the advantage (away from us)," Vishal Sikka, the former CEO of the Bengaluru-based company, said in February. Meanwhile, around 6,000 Indian employees at Cognizant reportedly lost their jobs to automation.
Compared to the normal rate of forced attrition (i.e. asking non-performers to leave) of around 1% in earlier years, 2017 saw Indian IT companies letting go of between 2% and 6% of their employees, said Alka Dhingra, general manager of IT staffing at TeamLease Services. Infosys cut 9,000 jobs in January. "Instead of 10 people, what if we have three people to work on (a project). If we don't have the software, then some others will take the advantage (away from us)," Vishal Sikka, the former CEO of the Bengaluru-based company, said in February. Meanwhile, around 6,000 Indian employees at Cognizant reportedly lost their jobs to automation.
Those worthless savages make my blood boil as I attempt to get any issue resolved or any answer from Microsoft. Azure and Store = nightmares. Stay as far away as you can. Seriously. It's a mental hospital of extremely rude, unhelpful, hostile, and very incompetent Indians. It's downright scary.
WTF? 1% of Indian techs are incompetent?
Is this the new king of broken metrics? What is 'competent'?
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
as spoken by Detective McLane.
Not to sound unnecessarily harsh, but there are plenty of other movie choices online.
Bout time this problem was fixed.
"Not to mention all the idiots who use words like boxen."
Anonymous Coward on Monday August 04, @06:49PM
The flip side of the coin is understaffing and no night or weekend down time for state side employees. Been there done that. Nothingâ(TM)s ideal folks.
From the article, "Digitisation and automation brought about disruption in traditional roles"... so when cheaper labor comes along to try and cut my throat I'm supposed to go along with it, but when automation comes along and replaces those people who try to cut my throat I'm supposed to feel sorry for them? HAHAHA, NOPE!
Well, there you go. If they laid off several, it must be bad.
Funny use of "retrenched" IMO.
n/t
"retrenched several employees"
For bringing the jobs back here
Based on my experience with I.T. offshoring in India, I laughed out loud when I read that 1% represents the under performing employees. Perhaps its a nuance of the language and underperforming has no relationship to to good service or solving problems there.
Suppose you were an idiot. And suppose you were a member of congress. But then I repeat myself. -- Mark Twain
But they didn't realize we meant the modems and went ahead with the business plan anyway. Don't worry, next year they will have a new proposal since this one didn't perform completely to expectations.
You can get rich if you own a politician, but you have to be rich to buy one in the first place.
No it is not a jab at these punters.
economies hard. All three articles mention it as the cause. We're at the point where subsistence wages are more than a machine. I think India's government sees this coming and is trying to bring tax dollars in to mitigate it, but I'm guessing it'll be too little, too late. Like America and Japan they've got a culture of overwork. But what do you do when the world doesn't need ditch diggers anymore? If you leave them to rot their join armies and start wars and genocides.
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They saturated the tech market for companies looking for cheap IT labor and willing to accept all the various compromises that come along with the cheap cost. Considering that globally the tech sector is fine, this is most likely the result of India producing more workers than needed.
Better known as 318230.
But where's the Like button on this thing; wasn't it next to that Thumbs up emoji? I must be stuck in some weird space-time-login continuum, and 56K layoffs should be enough for anybody
... are starting to pay off! IT jobs are coming back to the US of A!
echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
Did they kill any of these 56,000 workers? Bloodbath implies enough blood to fill a bath. So unless they're killing those workers or the workers are committing suicide because they're being laid off, you're using that word wrong.
Donald Trump’s arrival at the White House earlier this year hasn’t helped.
Since Trump took office, the fate of the H-1B, a six-year temporary work visa that Indian IT companies heavily depend on, has been hanging fire.
In March 2017, the US government stalled the premium processing of this visa category.
The criteria for computer programmers to apply for the H-1B visa became tougher. In April, Trump signed the “Buy American, Hire American” executive order, promising to bring jobs back to the country, putting migrant workers in jeopardy. In November, the judicial committee of the US House of Representatives gave its nod to the Protect and Grow American Jobs Act (titled HR 170) which classifies any company that has more 15% of its workforce working on-site as “visa-dependent.” With this, the pressure is mounting on Indian outsourcing giants which sometimes have over 50% of their manpower working on-site.
Even the current workers have cause for concern—to clamp down on visa fraud, the United States Customs and Immigration Services (USCIS) plans to double the number of visits to workplaces. “Indian IT companies, thus far champions of IT-based outsourcing, have been forced to go back to the drawing board in order to reposition themselves higher up in the value chain,” Anshul Prakash, a partner at Mumbai-based legal services firm Khaitan & Co, told Quartz.
1%? Whatever metrics they're using are misleading at best. In the "Real World" about 70% of them would be back on the street. Unless they value their employees by the results of their google searches to solve problems.
More likely 1% of them were making way too much money compared to everyone else, and their employers didn't care about quality.
That's 56,000 more jobs added to the US economy.
"Karma" as they call it.
Oh, I was unaware the Orange One brought any tech jobs back. The U.S. will still be the high cost producer of many things and U.S. business will still either leave or move more heavily into automation and AI. The tax reduction will probably get matched in any countries harboring American business so don't count on any moves back because of that. The recent announcements of income hikes for U.S. workers were all from a handful of companies looking to butter up the Orange One because he can understand that. And those hikes are easily retrenched by those companies not giving increases in the following years. The Orange One is being scammed, I doubt he understands that...but he should given his history.
Has Bangladesh been moved to China when I wasn't looking?
Ken
Meanwhile, around 6,000 Indian employees at Cognizant reportedly lost their jobs to automation.
So are there coding projects staffed by automation?
Did someone figure out how to make a voice-response system that replied in canned incomprehensible tech-speak?
Ken
I took a job with Infosys.
Imagine a world where steeply-discounted Microsoft products took an unbreakable foothold. Imagine delivering Agile DevOps solutions for Fortune 100 using Powerpoint slide decks and Excel spreadsheets exchanged over email in Outlook.
Now take the entirety of this "toolchain" and put it in browser-based Citrix session for access.
Congrats! You're as good as on-boarded!
I am a stick in their spokes.
US jobs need to BE US First!
I hope a fair deal of them are the ones who replaced pharma, manufacturing, telecom, and blue chip it workers (like disney). I revel in the slightest hope that "bupesh" got his after taking someone else's job in America. To the gentleman that has only met 3 inferior Indian it workers in his decades of work, you are the anomaly. I have met dozens in my 20 years that should be thrown in prison for referring to themselves as IT professionals
Someone calling from India saying "This is Windows calling, your computer has virus".
Oh, I was unaware the Orange One brought any tech jobs back.
He apparently also caused the current economic boom in the US... pre-emptively, in fact. Even before he announced his candidacy for president, the aura of his magnificence was already causing the economy to grow.
#DeleteChrome
...is that quality matters. Duh.
More hackers.
You must be looking to get appointed to a future cabinet position with kind of flattery.
The Orange One *IS* the scam. If you haven't figured that out by now then you might as well give up.
Dude's an asshole.
That stupid Putin cock sucking orange haired cum stain has his head buried so far up his ass that he couldn't find it again using both hands and a flashlight.
And that goes for the rest of his money grubbing asshole wife and family.
Motherfuckers can rot in hell for all I care.
I doubt it. They've probably just found somewhere cheaper. North Korea? Sudan?
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
Dear Trump. I'm not tired of winning yet. Please send another million or so Indians packing. Then we can talk.
Oh, I was unaware the Orange One brought any tech jobs back.
You should read the article
The Orange one might have brought tech jobs back to the USA and they might be very expensive, but I know the tech companies can afford these people (ie us) as they make so much money they don't know what to do with it besides stuff it into some island bank account.
Salaries seems to be a reasonable destination for the spare cash, and the tech workers will then spend it. that's far better for the economy than a race to the bottom for the peasantry while our new aristocrats get so rich they couldn't spend it all even if they really really tried (and frankly, looking at Theranos and Uber's continued funding, they're really trying)
How come, when it happens to American IT jobs,
it's not described as a bloodbath in any headline?
Just askin' for a friend....
CAP === 'enlivens'
American companies have finally realized
1 -their customers detest trying to have a conversation with someone who doesn't speak English - and that Indian is NOT English.
2- Costs of Indian developers isn't that cheap once you factor administrative, project management and commutation problems within a group on the other side of the planet - again, with people don't understand the cultural nuances of American English speech
. On the positive, companie can't find enough workers in the US paying great salaries. Ride while you can!
the job loses were completely due to automation. Trump had nothing to do with it. He let in a record number of H1-Bs this year and is poised to do it next year. If you were expecting a man who relies as heavily on work visas to make money as he does to champion your the cause of American IT, well, I'm not sure you're going to be disappointed because you're paying so little attention that you can manufacture your own reality as you seem to have already done in your post.
Sorry to sound so harsh, but folks need to wake up. Trump is not your friend. He is not, never has been and never will be the friend of the working class. He was always a scam artist and a rich man's son.
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At the rate King Donald is getting through them he might not have a choice - they'll have to introduce some kind of draft.
to keep prices low. But they would never do that, would they? Why, it'd undermine the sanctity of the process...
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China doesn't have the graineries to feed it's people, and they're not gonna get them from India. Wars are fought to steal valuable land. If China goes to war with anybody it'll be the US. More likey they'll just buy us out. Haven't you heard? The aristocracy is global now. They don't fight among themselves on the national stage. Not over anything important. That's for pleebs like you and me. Now get back to arguing over gun control, abortion and whether White Culture is a thing or if Black Lives matter or whatnot and forget about all those pesky economics...
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
For bringing the jobs back here
Those jobs (mostly IT) have been automated here, you ignorant rube. But whatevs. Enjoy your winning.
And 56,000? In India, that's a village.
The Orange one might have brought tech jobs back to the USA and they might be very expensive, but I know the tech companies can afford these people (ie us) as they make so much money they don't know what to do with it besides stuff it into some island bank account.
You talk just like the type of person who has no idea what the fuck he's talking about. The bulk of jobs being bled in India are the type of IT jobs that led themselves to automation (or when a company is downsizing and reducing opex). No new jobs, you dumb rube.
Salaries seems to be a reasonable destination for the spare cash, and the tech workers will then spend it.
LOL. This is wishful, ignorant thinking. That money goes back to shareholders. Rarely that gets re-invested into operations.
that's far better for the economy than a race to the bottom for the peasantry while our new aristocrats get so rich they couldn't spend it all even if they really really tried (and frankly, looking at Theranos and Uber's continued funding, they're really trying)
Wait, you think that this bleed out in India is somehow going to stop what you just described? I have a bridge to sell you (or a red hat, whatever tickles your fancy.)
TR's point was that the early automation programs were already cutting into IT employment, which is at more basic level in India. That article mentional a net loss of 70K jobs this year.
Karma points ?
because Americans do a good job at those IT jobs. They didn't want to lost their jobs to subpar Indian nationals.
More is lost to lower cost nations. Indonesia, Vietnam, China, The Philippines are all ready to offer much lower overall costs to anyone wanting to set up in their nations. Move your entire company over and start saving. Well educated people are ready to work for less.
Indian owned companies are moving to the lower wages on offer for profit and better support in other parts of the world.
Why stay in India just for the educated workers? A very small front company can be set up in the USA, UK to handle legal work and interface with the government, US/UK mil, private sector. A few locals with the needed security clearance to bid for US/UK contracts.
The actual work can be done at a much lower cost in other nations.
Profit for the company owner in India and more work on offer with much lower total wage costs.
India is getting too expensive for the kind of work that was once attracting outsourcing on cost.
Other well educated low cost nations will change their entire tax and legal system to bring in new jobs. The USA and UK will follow the lower costs on offer.
Thats the problem with only been able to offer low costs. Sooner or later some other educated nation can get that cost for down too.
Domestic spying is now "Benign Information Gathering"
But I thought the Obama recovery started in 2011?
It's unbelievable both his economic policies and ISIS policies were so effective once he was out of office.
> "Instead of 10 people, what if we have three people to work on (a project). If we don't have the software, then some others will take the advantage (away from us)," Vishal Sikka, the former CEO of the Bengaluru-based company, said in February.
I'm sorry, I can't parse that. Could someone explain what Mr. Sikka was trying to convey?
Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
I'd like to think that it's part of a trend in US companies towards outsourcing where it makes sense, not going offshore simply to cut costs. But that would assume that CIOs suddenly looked around and realized that they weren't getting the huge savings the salescreatures told them about. And had the guts to admit it.
Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
>He apparently also caused the current economic boom in the US... pre-emptively,
It's amazing how your so-called "Obama boom" didn't kick in AT ALL until Trump got elected lol
That reacted by thinking that 56K is not a large number of layoffs? For one or two companies, yes. But not for the entire IT industry in India. It just means that companies are tightening their belts a little.
https://www.youtube.com/watch?...
Glad you understand it all. Maybe you should run for President in 2020 and show him how it's really done...
trump has nothing to do with it and these jobs aren't going to the US, India has had a rising income making them less viable, same is happening with China, now it is places like Bangladesh that are getting all the jobs and manufacturing.
China are also losing a lot of manufacturing to Bangladesh.
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Yes, you can automate a lot when not using Microsoft desktop products.
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Technology catches up with us all...
India always wants to do one better than the rest of the world
Compare to Japan, India jumps from Phase I "low quality", straight to Phase III "cutting corners" without having to improve anything
Well it technically kicked in 2-3 years prior. Just that the Republicans felt that the govt numbers were wrong till Obama left office. They felt it was wrong but were powerless to fix it with a majority for 6 years... They did nothing and all of a sudden it was right because Donald said so.
I bet you think Donald caught Bin-laden too?
The current economic cycle has been trending up for almost a decade.
The only thing that's changed is now the Republicans are owning it.
Last time they tried to own a big economic boom, the economy crashed. I guess we'll see what happens this time.
Jobs aren't a zero sum game. Just because India is losing them doesn't mean America is gaining them.
If I can provide self help info on my website that prevents 10,000 calls, for example, the job to answer those calls disappear completely. Alternatively, if my infrastructure improves to the point that people don't need assistance and that prevents 10,000 calls, those jobs are gone too.
Here's a good example: with two factor authentication, you go from requiring a call to IT to reset a password to users being able to do it themselves. That reduced overhead becomes profit, not more jobs.
Fake Progressive running dogs sure do hate American jobs.
The current economic cycle has been treading water for almost a decade, while Obama continued to enact globalist policies and trade deals that killed US jobs.
To be fair, his five predecessors were no better in that regard.
Trump wants none of that, which is why we voted him in. It's amazing what can happen when you have a government that is not actively trying to sabotage its people and pander to foreigners. Your blind hatred of Trump and your falling for media lies is blocking your objectivity.
As to foreigners: illegal immigration is WAY down (good for jobs), H1-B visas are harder to get (great for jobs), ISIS was out of control with no end in sight and now they're obliterated, the Saudis have purged corrupt terror sponsors on an unthinkable level, and of course we've told the UN that we're not going to be dictated to. These things are why Trump is going to get re-elected, and you're still not going to know why.
In a company like Infosys, the top managers and board suck out almost all profits as bonus and benefits. This leaves very little for shareholders and employees.
Did you know the earlier CEO of Infosys has over 750 apartments in USA ? Bought with money earned from billing programmers.
While the average programmer cannot afford a single apartment in india.
I have never seen the board take a pay reduction.
Yet they deny toilet paper in toilets for the mass employees.
There's a phrase for folks like you: useful idiots.
If you believe anything that twit tells you, I've got a bridge to sell you.
But you'll learn. Again. It wasn't so long ago that George W. was the wunderkind, and we spent the past 9 years watching the Republicans desperately trying to distance themselves from him.
Oh, and because you childish idiots see the world as 2 factions, don't misunderstand me. I'm not a Democrat, I'm not a liberal. I've got my own issues with those buffoons. However; we're not talking about them right now, we're talking about Mr. "60 going on 16".
You almost had a chance for a short time, but nobody wants to be responsible and make hard choices. You want to be told fairy tales that big strong Mr. Government can step in and magically change market fundamentals.
The move back to the US is multiple items, First is poor quality help in India, either skill set or language. Skill set is questionable and understanding them is getting more and more difficult. For complex technical issues you need to be able to communicate. Many of those with the skills and language skills have moved to the US and are working onshore. Security implications of using non employees to support equipment. As employee security is tightened for onshore you need to do the same for offshore. Kinda of hard to get a FBI check on someone from offshore. Prices of offshore are going up and not as cost effective as they once where. Hassle of hiring and managing offshore. We have interviewed people via phone and hired them and the person who shows up isn't the person we interviewed. We now force onsite or video interviews. There are a number of "interview" company's that do nothing but interview for a job. Either take the interview or set with you and feed answers. We have googled an answer to a question and then ask the question and listened as the person being interviewed reads the answer word for words back to us. Trumps push to move jobs back to the US is also helping.
Are you referencing the color of his skin? Would you do the same with his predecessor?
There's a phrase for folks like you: useful idiots.
This happens a lot in politics - like "Reagan" ending the Iran hostage deal, which Carter had all but bottled up when Reagan took office.
The reality is it started years ago. I've even been recruited by TCS over the past couple of years (haven't taken anything - offers weren't good enough), predating Trump taking office by over a year.
He made it harder to get H1-B visas, but the insourcing trend actually started around the time of the 2008 market crash recovery (2010-2011).
As I said to the Indians displacing us at Citizens Bank. "Karma is a Bitch!" LOL
When Citizens had an in sourced team there were less of us American System Engineers because we wrote scripts and Automated tasks. We did not document our Automated Minions because we were damn good programmers and we thought less documentation meant job security. Citizens was hell bent on eliminating internal talent not because it cost more than outsourcing, but because they can stretch the truth to their shareholders when it came down to salary expenses. When you outsource your IT staff you can write off payroll over 7 years. Anyway many American IT professionals got cut from Citizens Bank.. 350 of us from Mainframe, Middleware, Wintel, Storage, Networking... we were all cut. Most of us wrote our own automation tools. The tools ran even though we were no longer employed there, but we knew in time when the tools needed to be be updated. We knew the IT Staff from Infosys and IBM global would fail. And it is failing.
Do you think I feel sorry for the Indians. Hell no !
Thanks for proving me right.
I work in IT and have been dealing with on sites and off shore more and more every year... it would be nice to see that trend reverse. Quality just isnâ(TM)t a word that be used with off shore.
Oh, I was unaware the Orange One brought any tech jobs back. The U.S. will still be the high cost producer of many things and U.S. business will still either leave or move more heavily into automation and AI. The tax reduction will probably get matched in any countries harboring American business so don't count on any moves back because of that. The recent announcements of income hikes for U.S. workers were all from a handful of companies looking to butter up the Orange One because he can understand that. And those hikes are easily retrenched by those companies not giving increases in the following years. The Orange One is being scammed, I doubt he understands that...but he should given his history.
The Orange one knows he is being scammed, but it will allow him to get re-elected.
Leslie Satenstein Montreal Quebec Canada
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He made it harder to get H1-B visas, but the insourcing trend actually started around the time of the 2008 market crash recovery (2010-2011).
That could be but that's not what this article is about
56,000 down, 1 million to go
It's about time India got a taste of it's own medicine. infosys, Wipro, and the other Indian outsourcing firms took thousands of American jobs.
ARMAGEDDON (1998):
Lev Andropov: Components? American components, Russian components, ALL MADE IN TAIWAN!
I certainly remember when that was the joke. Hard to believe that was 20 years ago now!
I don't go far enough back to remember a Japan that was considered low quality. However I do recall how South Korea, mostly in terms of auto manufacturing, was considered junk, but have since turned that around. So much so, that getting a used KIA is so cheap because they depreciate so quickly because of the still lingering perception of low quality...