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Employees of domestic and international information technology companies in India are claiming they were not fired, instead were forced to resign by their employers to save severance package. IT professionals are facing a tough time as the industry is handing over pink slips to employees in a bid to trim costs amidst a slowdown. Employees are now alleging they were pressured to resign. "I was given two days' time to resign and with no compensation. I have a child and a home loan to pay, I need a severance to keep me going until I find my next job at least. I did not join the company over one phone call, right? Why should I accept resignation over a call?” one the employees told ET. The employee has now approached Bengaluru-based IT/ITes Employee Centre (ITEC), which is dubbed as welfare association for IT employees. Likewise, many employees are approaching unions over forced resignations. However, technology industry expert Siddharth Pai told ET that the companies were not being unfair to the employees. "Companies would not have paid as much as the employees expected. But, contractually they would have met all the obligations. I don't think it is a fair allegation to make,” Pai, founding partner of 3one4 Capital, told ET. "We get so many calls every day about companies forcing employees to resign. We got close to 200 phone calls in the last 3 weeks in our helpline number. Publicly companies are denying any retrenchment, but they are forcing people to resign on the other side,” an ITEC spokesperson told ET. Also, employee unions such as Chennai-headquartered Forum for IT Employees (FITE) and IT-wing of National Democratic Labour Front (NDLF) say they are seeing more IT employees reaching out to them seeking legal counsel. On the flip side, law on unionisation in the IT industry in Karnataka is somewhat ambiguous. The Indian IT is no stranger to unionisation. After the global financial meltdown in 2008, there were attempts to form unions in the IT industry after there were job cuts, but the industry bounced back a year later and hiring by IT companies resumed on full swing.

Retrenched employees say they were forced to resign; approach unions

Headhunters across India have been observing a shocking trend after the slump in the information technology (IT) sector, with a unique jump in the resumes of mid-management IT professionals. These resumes have, as compared to last year, taken a leap of as much as 250% this year. It’s clear, therefore, that the reported instability in the country's $150-billion software services exports industry has had the most impact on the middle-level employees, those with 7 to 15 years of work experience. The rise in CVs could also be accredited to the radical shift in the need of upskilling, as well as the emergence of automation and robotics. Talking of upskilling, there is a clear difference in the skill set that these employees possess and the skills that the clients need, forcing employees to upskill or look for new jobs. "As IT companies adjust to this new normal, there is a change happening in their delivery models and workforce optimisation. This has made professionals uncertain about the future, resulting in the increase in the number of CVs finding their way to recruitment firms," Paul Dupuis, Managing Director of <keyword id="6421932" type="COMPANY" weightage="100" keywordseo="Randstad-India">Randstad India</keyword> told <a href="http://economictimes.indiatimes.com/jobs/it-is-a-worry-headhunters-see-up-to-90-jump-in-mid-level-tech-resumes/articleshow/59225130.cms">ET</a>. Over the past six months, Randstad India has seen around 15 to 20% jump in the number of mid-manager profiles for the IT industry. Other companies reported jump of 250% since (Head Hunters India), 90% since January (<keyword id="6381892" type="COMPANY" weightage="100" keywordseo="Teamlease-Services">TeamLease Services</keyword>), and 45% in the month of January alone (TimesJobs). Most of these mid-level <keyword id="6467356" type="UNKNOWN" weightage="100" keywordseo="IT-employees">IT employees</keyword> are team leads, delivery managers, project managers etc, while the list also includes people from quality assurance, security testing, infrastructure, technical operations, code review, etc.

IT whirlwind has impacted mid-level employees the most! Here’s how

Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> on Wednesday said that the government is taking numerous steps to free the IT industry from unnecessary regulations. Speaking at the <keyword id="6372077" type="ORGANIZATION" weightage="20" keywordseo="nasscom">NASSCOM</keyword> Technology &amp; Leadership Forum 2021, Modi cited the liberalised regulations on geospatial data, making it freely available in the country for innovation and IT companies. The change is made specifically for Indian companies through updating the current guidelines pertaining to developing map technologies. The Prime Minister congratulated the Indian IT industry for running the industry even during Covid-19 restrictions. "Today's India is full of self-confidence. We have seen at the borders also. India has confidence we will keep India secure," Modi said, referring to India's response to China in Eastern Ladakh. The Indian IT industry is set to grow 2.3 per cent in the financial year 2020-21. SEE ALSO: <a href="https://www.businessinsider.in/science/news/its-round-its-two-sided-and-it-could-be-the-most-accurate-world-map-created-till-date/articleshow/81033263.cms">It’s round, it’s two-sided and it could be the most accurate world map created till date</a> <a href="https://www.businessinsider.in/science/space/news/from-ambani-adani-to-godrej-indias-treasure-trove-of-satellite-data-goes-beyond-helping-startups/articleshow/80989166.cms">From Ambani, Adani to Godrej — India's treasure trove of satellite data goes beyond helping startups</a>

PM Modi claims the Indian government trying to 'free' the IT industry from unnecessary regulations

A senior figure from the <keyword id="396996" type="UNKNOWN" weightage="100" keywordseo="Indian-IT-industry">Indian IT industry</keyword> has said that techies working in the industry have good work ethics, are well-paid, and can even find opportunities outside the company that they work for; which is why they don’t need to form employee unions. The noise about these unions being formed always arises whenever there is a bit of a downfall in the IT industry, but nothing concrete has ever been done in this regard, says <keyword id="138760" type="PERSON" weightage="100" keywordseo="V-Balakrishnan">V Balakrishnan</keyword>, ex-Chief Financial Officer of <keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword>. "Work ethic is very good and salaries are high. Even today the attrition rate in the IT industry is double digit. It (talk of employees' unions) always fizzles out after some point of time. It never sustained," he told PTI. "But I think even if there is a union, I don't think it will impact the industry much because IT industry is one of the best paymasters in the country and second, the people find opportunities outside," he added. He added that industries with bad work ethics and grungy treatment towards employees require employee unions. "IT industry is not bad, IT industry people are well taken care of, well-paid, and they find opportunities. Even one of the bad years, this year, where growth rate has come down, the attrition is still double digit." He even added that the reports about extensive job losses in the industry are exaggerated. "If you look at all the leading companies, none of them are talking about huge job losses; they are all talking about the regular performance-based attrition, that is normal in the industry. So, to some extent the scare of job losses is exaggerated," he said. (Image source Huffington Post India)

Techies don’t need to form unions, says V Balakrishnan

India could soon see its first union of techies, given the large scale layoffs by Indian IT companies in the recent past. 
 "The Forum for Information Technology Employees (<keyword id="4141674" type="UNKNOWN" weightage="100" keywordseo="fite">FITE</keyword>) will be getting itself registered formally as the first union for IT employees in India," said forum's vice-president Vasumathi. "We are expecting this to happen within next five months." 
 
Also read: <a href="http://www.businessinsider.in/Retrenched-employees-say-they-were-forced-to-resign-approach-unions/articleshow/58786061.cms">Retrenched employees say they were forced to resign; approach unions</a> 
 
Off lately, a large number of IT majors in the country have resorted to layoffs, which has been termed as "<a href="http://www.businessinsider.in/IT-professionals-seeking-legal-options-as-speculations-over-Cognizant-firing-6000-employees-in-India-gather-steam/articleshow/58571212.cms">illegal termination</a>" by employees. 
 
FITE has over 1,000 online members and around 100 active members, with active presence in nine cities, including Chennai, Bengaluru, Hyderabad, Pune, Mumbai, Kochi and Delhi. 
 
Also read: <a href="http://www.businessinsider.in/Tamil-Nadu-is-building-a-union-for-tech-professionals/articleshow/58718208.cms">Tamil Nadu is building a union for tech professionals</a> 
 
In the past too, the group has been involved in battles for IT employees who were indiscriminately sacked by their employers. 
 On these layoffs, <keyword id="6372077" type="CITY" weightage="100" keywordseo="Nasscom">Nasscom</keyword> president R Chandrashekhar had stated that <a href="http://www.businessinsider.in/Indian-IT-industry-left-behind-should-panic-says-Rajat-Gupta/articleshow/58734972.cms">IT sector</a> should be revising the skill set every now and then so that it can keep up with the emerging technologies. 
 
"The IT employees also know the need to learn continuously and grow with the organisation. It is the responsibility of employers to foresee the change in technological trend and re-skill the employees accordingly," said Vasumathi. 
 
Also read: <a href="http://www.businessinsider.in/While-economy-grew-by-7-jobs-increased-by-only-1-1-reveals-survey/articleshow/58750482.cms">While economy grew by 7%, jobs increased by only 1.1%, reveals survey</a> 
 
She added that the IT companies are laying off employees keeping in mind their profit, under the pretence of "poor performance" by employees. 
 
(Image source: Huffington Post Canada)

Increasing layoffs forcing IT employees to form unions

<keyword id="6357585" type="CITY" weightage="80" keywordseo="Tata-Consultancy-Services">Tata Consultancy Services</keyword> (TCS) stocks have gained over 8% in the last half year six as compared to the 5% gain in the benchmark. Over half of the stock gain happened in the past three weeks. This was in expectation of a strong quarterly performance in the June 2015 quarter. 
 
TCS will report its quarterly numbers on July 9, 2015. It will be a crucial quarter for the company after the stunted revenue growth reported in the previous two quarters. 
 This time there is a reason for investors to hope for a better performance since other <keyword id="6357647" type="ORGANIZATION" weightage="80" keywordseo="IT-Companies">IT companies</keyword> have usually shown greater revenue traction during the first two quarters of the fiscal the year, i.e. the June quarter and the September quarter. 
 
(Image credit: Indiatimes)

TCS may register 4-5% sequential growth in dollar
revenue for Q1 in 2016

After reports of massive layoffs sparked at <keyword id="28721" type="CITY" weightage="20" keywordseo="Cognizant">Cognizant</keyword>, the company President Rajeev Mehta wrote to employees to quell concerns. 'Cognizant has not done any layoffs. Each year, in line with industry best practices, we conduct performance reviews to reflect on the work of last year and ensure goals for the subsequent year are clear. We are being committed to being a meritocracy. We believe that's good for all associates around the world,' he is believed gto have said in an email to employees. Notably, several employees alleged 'forced' termination as a result of which IT unions petitioned before labour dept in several states demanding a resolution on the matter. According to reports, over 6,000 employees in India have lost jobs even as the company has put in place a voluntary separation programme for mid to senior executives. The management has also denied speculations that such measures are being undertaken to allow more hiring in the US. 'We continue to hire in local markets around the world. We have been ramping up our recruiting efforts in US for a number of years and will continue to do so while hiring in most other parts of the world including India', the letter from Rajeev said. Mehta also advised employees to make the most of re-skilling programs that the company has in areas of Data science, Big Data, Machine learning and Adobe stack. Cognizant employs over 2,62,000 people globally of which over 1,50,000 are in India.

This is what Cognizant President Rajeev Mehta wrote to the staff after massive layoff concerns gripped employees

<ul><li>The <keyword id="6374576" type="General" weightage="20" keywordseo="it-industry" source="Orion">IT industry</keyword> (47%) consistently maintains the most positive outlook among businesses, indicating a strong hiring sentiment. </li><li><keyword id="22943" type="General" weightage="20" keywordseo="employers" source="Orion">Employers</keyword> in all four regions are optimistic about expanding their payrolls in the third quarter of 2023. </li><li>As many as 84% of employers said they are recruiting for green jobs or roles requiring green skills. </li></ul>Despite reports of layoffs, and a projected global economic slowdown, the job market is showing positive indicators in the third quarter of 2023 (July to September). In a ManpowerGroup survey of employers, almost half of them (49%) expect to increase their workforce, while 13% anticipate a decrease in hiring in the upcoming quarter. Around 34% do not foresee any changes in their staffing levels. Although there has been a decline of 15% in hiring sentiments compared to the same period last year, there is a notable growth of 6% as compared to the previous quarter. In the region, India ranks second in markets that intend to hire after Australia, and fifth globally. Interestingly, 84% of employers said they are recruiting for green jobs or roles requiring green skills. <cmsannotation type="cmsannotation" annotationid="subhead" text="Hiring by industries">Hiring by industries</cmsannotation> In the upcoming quarter, an increase in employment is projected across all eleven industry sectors. The IT, and <keyword id="535418" type="General" weightage="20" keywordseo="technology-sector" source="Orion">Technology sector</keyword> stands out with the highest hiring intentions, as employers in this sector report a net employment positive outlook of 47%. The finance, insurance, and real estate sector follow closely with a positive outlook of 41%, and the healthcare, and life sciences sector also shows strong hiring intentions with a 40% positive outlook. These industries demonstrate promising hiring prospects, and are expected to experience growth in their workforce. Says Sandeep Gulati, managing director, ManpowerGroup India, and Middle East, “India is one of the significant IT talent hubs for tech companies across the globe. Coupled with that, is the government’s continuous reinforcement in the semiconductor industry, both of which is fortifying the <keyword id="46964" type="General" weightage="20" keywordseo="it-sector" source="Orion">IT sector</keyword> as the dominant player for growth in the Indian job market.” <cmsannotation type="cmsannotation" annotationid="subhead" text="Hiring by region">Hiring by region</cmsannotation> Employers in all four regions are optimistic about expanding their payrolls in the third quarter of 2023. The West shows the most promising hiring pace, with a positive net employment outlook of 42%. Following closely, the North, and South regions have positive outlooks of 39%, and 33% respectively. The East also forecasts dynamic hiring activity with an outlook of 29%. However, it is worth noting that hiring prospects have weakened compared to the same period last year.

Hiring outlook to improve in the next quarter says ManpowerGroup

IT industry, at this time, is facing a lot of issues, leading to the salaries at entry level going down the hill. However, the CEOs from the IT industry have had no effect of this, since they are still earning several hundreds to a thousand times the salaries that a middle employee gets, says an <a href="http://economictimes.indiatimes.com/tech/ites/it-ceos-like-vishal-sikka-are-earning-several-times-the-median-employee-remuneration/articleshow/52931439.cms">ET</a> report. 
 
The shareholders at TCS and Infosys have already begun questioning the payments of these CEOs, which as per them are very high. The highest salary is taken home by Infosys CEO Vishal Sikka, and Infosys also has the highest CEO compensation in comparison to median employee remuneration, which is 935.38 times. 
 
In comparison, Wipro's CEO is paid the least, and the company has the lowest ratio of CEO compensation to employee remuneration (260.19 times). 
 
For several years now, the starting salaries of IT entrants have been within the Rs 2.5-3.5-lakh per annum, which has forced some companies to hire B.Sc and a few arts graduates who can support IT people, so that they can continue maintaining low salaries at the bottom of the pyramid. 
 
<a href="http://simc-wire.com/wp-content/uploads/2015/07/2a14b53c-e0fc-46e1-8131-08c0a571e406wallpaper1.jpg">Image source</a>

IT CEOs take home thousand times a maiden employee’s salary

The <keyword id="396996" type="UNKNOWN" weightage="100" keywordseo="Indian-IT-industry">Indian IT industry</keyword> has, off lately, seen a number of companies resorting to layoffs, which is why software professionals with three-eight years of experience are increasingly afraid about their job security. To escape the worst, these techies are now focused at adding multiple skills to their kitty, which has resulted in a rise in the demand of courses from e-learning companies like <keyword id="2008319" type="UNKNOWN" weightage="100" keywordseo="Upgrad">Upgrad</keyword>, <keyword id="805453" type="COMPANY" weightage="100" keywordseo="SkillSoft">Skillsoft</keyword> and <keyword id="1309724" type="UNKNOWN" weightage="100" keywordseo="Simplilearn">Simplilearn</keyword>. These companies are offering courses in specialised areas like analytics and product management. "Professionals with management profiles are shifting to product management. We have doubled the number of batches to keep up with this demand," Mayank Kumar, co-founder, Upgrad, told <a href="http://economictimes.indiatimes.com/tech/ites/career-stagnation-layoffs-pushing-it-professionals-to-go-in-for-multi-skilling/articleshow/58903816.cms">ET</a>. Skillsoft, which is a digital learning platform, started to see applications from early birds over five-six months ago. "Those with over five years of experience, i.e. mid-level executives and project managers, are taking up courses in UI/UX (user interface/experience), machine learning, artificial intelligence and micro service architecture. Cyber security is another sought-after course," said Vinay Pradhan, CEO, Skillsoft. Similarly, Simplilearn, has seen a 43% rise in the number of working professionals from key metros in the last one year, especially in categories like digital marketing, data science, and sales force. "Professionals are not secure about their jobs anymore because of the recent layoffs. However, this environment is providing a big opportunity for lakhs of white-collared professionals to move out of their comfort zones and upskill themselves to remain employable. Automation and digital transformation has created an adapt-or-perish scenario. It's an alarming reminder that re-skilling is the only way out to be relevant," said Krishna Kumar, founder and CEO, Simplilearn. Industry experts are of the view that professionals concerned about career stagnation are looking forward to up-skilling and cross-skilling. "In today's fast changing business context, it is important for professionals to focus on continuous skill building. The good news is that there are plenty of resources available online, be it in the form of Massively Online Open Courses or specialised open enrollment courses," said Rajiv Jayaraman, L&amp;D expert and founder of KNOLSKAPE. (Image source Pine Tribe)

Here’s why an Indian techie needs to be multi-skilled

Automation and newer technologies have brought major changes to the Indian <keyword id="6374576" type="ORGANIZATION" weightage="100" keywordseo="IT-Industry">IT industry</keyword> and it is slowly adapting to these changes. Meanwhile, middle-level employees in the industry are facing an uncertain future, owing to possibilities of restructuring. 
 
There are nearly 1.4 million employees in this section of the <a href="http://www.businessinsider.in/Indias-IT-Industry-is-ending/articleshow/54865727.cms">Indian IT industry</a>, holding 8 to 12 years of experience and earning anywhere between Rs 1-1.5 lakh per month. 
 
Also read: <a href="http://www.businessinsider.com/india-is-on-the-verge-of-a-digital-revolution-2016-9?IR=T">India is on the verge of a digital revolution</a> 
 In India’s IT sector, one’s progress in career is measured not by the <keyword id="649252" type="UNKNOWN" weightage="100" keywordseo="new-technologies">new technologies</keyword> learned but by the number of people an employee managed. 
 
Also read: <a href="http://www.businessinsider.in/Indian-IT-sector-is-going-through-a-slow-phase-and-TCS-Infosys-among-others-may-post-worst-Q2-performance-results-in-10-years/articleshow/54776935.cms">Indian IT sector is slowing down</a> 
 
"The middle management are the weakest link in the chain," Milan Sheth, partner - advisory services &amp; technology sector leader at EY, told ET. "The leaders are meeting clients, so they know about the change in (their) thinking. The bottom most guys adopt easier and learn. It is therefore, this middle management that is <a href="http://www.businessinsider.in/worrisome-infosys-releases-around-2000-employees-every-quarter-thanks-to-automation/articleshow/56681003.cms">most difficult to change</a>," he added. 
 
The changes brought in by <a href="http://www.businessinsider.in/automation-is-going-to-eat-almost-50-of-your-jobs-by-2033/articleshow/56999710.cms">automation</a> and digital technologies have already started to overturn the normal way of doing business, stressing both the old structure and people associated with it, since machines are replacing people. 
 
Roles that were typically assigned to employees with over 10 years of experience are now being done by machines, be it assigning people to projects or helping project managers take trade decisions about project manpower and timelines. 
 
Also read: <a href="http://www.businessinsider.in/what-happens-when-robots-take-our-jobs/articleshow/57161905.cms">What happens when robots take our jobs?</a> 
 This has resulted in low pay hikes being projected to <keyword id="626794" type="UNKNOWN" weightage="100" keywordseo="mid-level-employees">mid-level employees</keyword>. 
 "People who are passing out as <keyword id="54038" type="ORGANIZATION" weightage="100" keywordseo="engineers">engineers</keyword> today are all digital natives. They all are massive users of technology. Therefore, both of those put together - digital natives, more closer understanding of our client's business since they are also a consumer - is helping them ramp up very quickly," said Rostow Ravanan, CEO at Mindtree. "We also see that their ability to deliver results is also very high," he said. 
 
The fact that middle level employees are the ones resisting changes the most, it remains to be seen how they cope up with these sudden and powerful changes. 
 
(<a href="http://static.atimes.com/uploads/2016/11/2016-11-28T002546Z_775406985_RC1B4F094B50_RTRMADP_3_USA-TRUMP-INDIA-TECH.jpg">Image source</a>)

Possible restructuring poses threats to mid-level employees in Indian IT sector

<ul><li>Amid news of sub-par <keyword id="65655" type="General" weightage="20" keywordseo="placements" source="Orion">placements</keyword> even at top-tier engineering colleges, students are worrying about their future</li><li>Experts advise preparing for the worst and acquiring additional skills through industry-certified courses </li><li>Continually update your profiles on job boards and expand your network on platforms such as LinkedIn</li></ul>Last week news began trending that claimed more than 30% of IIT Bombay students could not get placements. Later, the institution displaced these concerns and revealed that only 6.1% of eligible students are actively seeking employment. However, the fact remains that fresher <keyword id="6357342" type="General" weightage="20" keywordseo="hiring" source="Orion">hiring</keyword> this year has taken a hit across almost all colleges across the country. “Direct fresher hiring from colleges has significantly decreased, owing to the general sluggishness in the economy,” says Karthikeyan Kesavan (Director &amp; head of perm Placement) Adecco India, a workforce solutions provider. The dip in fresher hiring may seem more pronounced in the IT sector, which traditionally hires the majority of new engineering entrants to the workforce. Typically, the IT sector absorbs 20-25% of the 1.5 million engineering graduates in India annually. “Companies have had to cut back on freshers' hiring due to a weak deal pipeline, recessionary fears in the US, and the need to utilise existing resources effectively,” says Krishna Vij, Business Head, TeamLease Digital, a job portal for tech freshers. According to NLB Services, a talent solutions company, the <keyword id="6374576" type="General" weightage="100" keywordseo="it-industry" source="Orion">IT industry</keyword> has seen a dip in the <keyword id="6441485" type="General" weightage="20" keywordseo="freshers-hiring" source="Orion">freshers hiring</keyword> intent from 49% in H1 2023 to 42% in H1 2024. What should you do? Uncertain economic conditions come in cycles and if you are a fresher it is just a coincidence that you trying to find your first job in the middle of one. Nothing to do with how good your skills are. But, to navigate such challenging times better, there are things you can do that increase your chances of getting hired. Acquire relevant skills through certifications In the 21st century, having a degree may not be enough. You need skills that are relevant to the job you are applying for, and proof that you have them. In addition to your regular degree, acquire one or two skills preferably through certification. There are many industry-certified courses available both online and offline. Before you enrol on any such courses, talk to your seniors or those already in a job to find out which are the skills in demand. It is essential to stay proactive and not give up. “Developing a combination of technical competencies and soft skills is crucial, alongside participation in hackathons and collaborative projects to showcase practical abilities,” says Vij. Update your profile and network Getting a job off-campus is a time-consuming process. It involves a lot of preparation and results may not be immediate. The first step is to let potential employers know that you are available for hire. “Continually update your profiles on job boards and expand your network on platforms such as LinkedIn, particularly with regards to target companies. Increase engagement and enhance visibility within the talent acquisition community,” says Kesavan. Seek out a mentor In difficult situations, sound advice always comes in handy. “Connecting with industry peers, experts and mentors can make a huge impact on one’s professional journey,” says Sachin Alug, CEO, NLB Services. Freshers must find appropriate networks that play a vital role in their learning, scope of opportunities and creating a sustainable career. From your college professor to your neighbour to your senior, you may find a good mentor if you continuously seek genuine help. Take up a part-time job If you are not getting a job consider taking up part-time gigs which are related to your field of work. Working part-time to utilise one’s time in a productive way can be a good idea for many candidates. “This not only empowers them financially but also allows them time to prepare for their full-time professions. While aspirants may choose part-time <keyword id="11018" type="General" weightage="20" keywordseo="jobs" source="Orion">jobs</keyword> as a temporary occupation, the focus must not shift from enhancing one’s skills in the direction they want to excel in,” says Alug. Finally, it is important that one maintains a positive attitude, resilience, and adaptability throughout the job search process.

Fresher hiring sees a significant decline, particularly in IT sector! What should you do?

<ul><li>Global IT majors will have to bear the brunt of a strong US dollar, despite expectations of revenue growth.</li><li>Back home, Indian IT giants are bearing the brunt of concerns of a potential recession in the US and Europe.</li><li>Several economists have predicted that the US, the world’s largest economy, could slip into recession in the near term.</li></ul>While <keyword id="6357549" type="General" weightage="20" keywordseo="indian-it-companies" source="Orion">Indian IT companies</keyword> are worried about a potential slowdown due to recession, their global counterparts have already started factoring in the impact on their profitability and revenues because of it. The fact that two overseas IT giants – <keyword id="6370971" type="General" weightage="20" keywordseo="accenture" source="Orion">Accenture</keyword> and <keyword id="28721" type="General" weightage="20" keywordseo="cognizant" source="Orion">Cognizant</keyword> – have lowered their growth numbers says a lot about the bleak outlook for the sector because of rising inflation and currency headwinds. Accenture cut earnings per share for 2022 to $10.61-10.70, compared with its previous estimate of $10.61-10.81. The Russia-Ukraine war also had an impact on its earnings as it decided to close down its Russian business. The company said it expects a negative foreign exchange impact of 4.5% in fiscal 2022, worse than its previous forecast of a 3% forex hit, as per a <a href="https://www.reuters.com/business/accenture-beats-quarterly-revenue-estimates-2022-06-23/">Reuters</a> report. Note that Accenture makes more than half of its revenue from outside the US. A strong US dollar means weakness in other currencies – this has an adverse impact on companies with exposure to currencies other than the dollar. Confirming the bleak environment to make money, even Cognizant lowered its revenue guidance to 9-11% in constant currency terms as compared to 8.5-11.5% earlier. “Results were strong though the focus of the Street has shifted to impact on business in a recessionary environment,” said a report by Kotak Institutional Equities. A recession in the US and Europe will impact Indian IT companies directly Stocks of Indian IT companies have seen a major correction this year, as a surging inflation and the rising interest rates reduce the spending power of their clients in the US and Europe. Post the breakout of the Covid pandemic, Indian IT giants TCS, Infosys and Wipro reported record earnings as their clients rushed to digitize their operations to meet their growing IT needs. Now, it looks like the era of record growth is over, leading to sharp corrections in stock prices. <div type="image" title="IT firms top 5 companies" height="900" width="1200" msid="92437564" hostid="261" sizebytes="55924"></div> "The stock price correction (in Indian IT firms) has largely been due to de-rating of valuation multiples, as earnings estimates have largely remained intact or seen minor downgrades. The reasons for this sharp derating, as we mentioned above, are largely related to the global macro environment,” said a report by Phillip Capital. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/may-is-the-first-month-of-2022-when-startups-raises-less-than-2-billion/articleshow/92432430.cms">May is the first month of 2022 when startups raises less than $2 billion</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/mm-shares-hit-52-week-high-on-the-back-of-rural-revival-more-good-news-in-store/articleshow/92432812.cms">M&amp;M shares hit 52-week high on the back of rural revival – more good news in store</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/okinawa-electric-scooter-showroom-in-mangaluru-catches-fire-several-scooters-destroyed/articleshow/92433747.cms">EV fire – Okinawa electric scooter showroom in Mangaluru catches fire, several scooters destroyed</a>

You Searched For "IT industry" and got 13 results

Retrenched employees say they were forced to resign; approach unions

BI India Bureau

IT whirlwind has impacted mid-level employees the most! Here’s how

BI India Bureau

PM Modi claims the Indian government trying to 'free' the IT industry from unnecessary regulations

IANS

Techies don’t need to form unions, says V Balakrishnan

BI India Bureau

Increasing layoffs forcing IT employees to form unions

BI India Bureau

TCS may register 4-5% sequential growth in dollar revenue for Q1 in 2016

BI India Bureau

This is what Cognizant President Rajeev Mehta wrote to the staff after massive layoff concerns gripped employees

BI India Bureau

Hiring outlook to improve in the next quarter says ManpowerGroup

Anagh Pal

IT CEOs take home thousand times a maiden employee’s salary

BI India Bureau

Here’s why an Indian techie needs to be multi-skilled

BI India Bureau

Possible restructuring poses threats to mid-level employees in Indian IT sector

BI India Bureau

Fresher hiring sees a significant decline, particularly in IT sector! What should you do?

Anagh Pal

Accenture, Cognizant could see revenue growth but a strong US dollar could spoil the party

Bhakti Makwana

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