[sdp1975]

Recession in the IT industry abating ? Big four IT firms hire 70,000 in past 9 months :

https://economictimes.indiatimes.com...w/67822386.cms

[sgiitk]

The basic point is that our economy is undergoing restructuring. In the interim period while jobs will be lost, replacements may take time. Also, as the private sector becomes bigger the employment will stand to be reduced. We all know the private sector has a far higher productivity.

[Samurai]

Originally Posted by sdp1975

Recession in the IT industry abating ? Big four IT firms hire 70,000 in past 9 months :

That's basically freshers who are being hired. What are they doing with their 10+ 15+ 20+ years experienced people?

[sdp1975]

Originally Posted by Samurai

That's basically freshers who are being hired. What are they doing with their 10+ 15+ 20+ years experienced people?

I was thinking about that too, but when freshers are being hired , there will be people needed at the higher levels too. Maybe one 10 years experienced manager or lead for every 10 freshers , maybe another 15 yr experienced resource for every 20 freshers , and so on.

Nothing to be delighted about for the experienced folks , but probably better than what it was last year.

[sgiitk]

Originally Posted by Samurai

That's basically freshers who are being hired. What are they doing with their 10+ 15+ 20+ years experienced people?

I have always held that in the IT Industry you have to retrain yourself every 5-10 years. Now the human brain has a limited capacity for this. So you may become obsolete, and then managerial jobs are far fewer. In many ways the highr salaries in the IT Sector point to this, a far shorter working career.

[ajmat]

Originally Posted by Samurai

That's basically freshers who are being hired. What are they doing with their 10+ 15+ 20+ years experienced people?

Casting them aside!

Originally Posted by sgiitk

I have always held that in the IT Industry you have to retrain yourself every 5-10 years. Now the human brain has a limited capacity for this. So you may become obsolete, and then managerial jobs are far fewer. In many ways the highr salaries in the IT Sector point to this, a far shorter working career.

I am at the sharp end of this. I retrained myself when I was 45+, once I was in that stride, that got taken away. My ex-company then decided to de-fang my region as it was becoming a powerhouse- that meant no new management jobs, they then forced AGILE on everything. Works for intact teams, not for remote teams spanning 12 hour timezones!

[V.Narayan]

Why is recession being limited to IT jobs created or lost. I don't think India is in a recession. Nor is USA even though the pundits keep threatening in the vain hope it will bring down Trump.

[SmartCat]

Originally Posted by V.Narayan

I don't think India is in a recession.

India never went into recession in 2000 and 2008 either. In recent history, we had a recession in 1991 and then in 1980 (because of oil shock caused by Iran-Iraq war). Indian economy might have swung into recession during the three wars we fought.

[Ithaca]

Not connected to the IT industry but in my industry, contract periods have again risen for junior ranks and crew ranks.
Salaries for all ranks are being re-aligned to the new environment.
Except for Masters & Chief Engineers, all salaries are being reworked.

One company has already informed that junior and fourth engineers will be phased out and certified fitters and qualified Oilers will be employed in their stead to tide over the tougher times.

[AltoLXI]

Deutsche bank lays off 18,000.

Link

Deutsche Bank said it would cut its global workforce to 74,000 by 2022, part of a reorganization that will cost the company €7.4bn ($8.3bn; £6.6bn) over the next three years.

[SoumenD]

Recession is probably happening at global level more than domestic (India). Talking about IT industry here. If you notice quite a few big MNCs are opening up shops here to reduce costs, which has led to sudden spurt in hiring of 10-15 years folks. Normally it's tough for them to jump compared to say a 5-8 years experience person. It has come as a breath of fresh air for folks stuck in Infy,Wipro,TCS,CapG, Accenture etc.

The number of calls have increased and the market sure looks better than 2017/18(for now). While it's good news for folks looking for change here, people elsewhere are under pressure & the on-site opportunities (from IT services firms) have surely taken a hit. I see very few people traveling now for long term assignments. At most all travels are restricted to KT/workshops spanning over few weeks or couple of months.

[AltoLXI]

Originally Posted by SoumenD

Normally it's tough for them to jump compared to say a 5-8 years experience person. It has come as a breath of fresh air for folks stuck in Infy,Wipro,TCS,CapG, Accenture etc.

Hiring overseas has also added to Infy's costs.

Infosys has more than 2,200 employees outside India who earned more than Rs 1 crore last fiscal, a jump of over 500 since FY17, data accessed by ET shows, highlighting the high-cost nature of the firm’s move to hire in its major markets.

Link

[Samurai]

Among the highest paid overseas are both older employees and consultants who have come in through acquisitions. The list includes Paul Haines, previously director of Noah Consulting and now an associate partner at Infosys Consulting, who earned Rs 6.9 crore in FY19; and John Brizzi, vice-president and partner at Infosys Consulting, earning Rs 5.7 crore.

This appears to be the main reason. If you acquire a company for their IP and people, you can't reduce their pay. If key people leave, the IP becomes less valuable or useless. Tech industry has lots of examples where acquiring company didn't understand the importance of IP creators to the IP. If you buy the company and lose the people in it, you basically own a worthless IP.

[Samurai]

What is happening in Peenya industrial area? I saw two media outlets with different levels of alarms. One says 15 lakh jobs will be lost.

https://www.livemint.com/companies/n...890166526.html

https://www.daijiworld.com/news/news...?newsID=618730

[vrprabhu]

A similar situation is reported to be prevailing in Coimbatore - which is hub for foundry (castings), motor and auto components.

First, the over time pay was cut, followed by closure of third and second shifts. And now there is news of contract workers being laid off.

This appeared in a news story in Times of India last week.

Appears as though manufacturers - across various sectors - are faced with decline in orders. Two quarters of dip in index of industrial production (IIP) is an indication of recession..... but it wasn't so, if I remember right. Similarly, if PMI (purchasing manager's index) - which is also from manufacturing point of view - is above 50, it signifies expansion (number below 50 signals contraction). It was above 50 during this year so far.

I was stupid enough to believe that the trade war between China and US will help Indian companies, especially with the depreciating Rupee... I guess other countries must be filling the space left behind by China - Vietnam, Taiwan, Bangladesh perhaps?