The impact of layoffs, digitization, and automation of employees in IT companies

The impact of layoffs, digitization, and automation of employees in IT companies will continue for the next two years

There are massive layoffs in IT sectors like Infosys and Cognizant. According to experts, it will continue for another year or two.

As a process of performance assessment, thousands of employees are being given pink slip ie they are being fired. But it is believed that this is part of the cost control effort, as protectionist measures in the target markets are putting pressure on companies' profits. Indian software exporters have been particularly affected by stringent work permit arrangements in countries such as the US, Singapore, Australia, and New Zealand.

Due to new technology, robotic process automation, and cloud computing in Artificial Intelligence (AI), companies can now do any work with less labor force. Because of this, software companies have to rethink their strategy. Rituparna Chakraborty, executive vice president and co-founder of TeamLease Services, said, "This is a situation where the available talent has not been able to change itself over time." Due to this many employees have become useless today.

Sunil Goyal, managing director of executive search company Globalhunt, said, "The industry changes like this every three to five years, but this time it has affected more because the US has also changed its policy for foreign IT professionals.". Goyal said that this kind of maintenance will continue for the next one or two years. However, at the same time, he believes that it is also an opportunity for IT professionals to update themselves and adopt new generation technology.