IT professionals mentioned the reason behind retrenchments is companies randomly misusing the IT Act to show more headcount. Firstly TCS has started lay-offs globally then after IBM, Wipro, HCL and Citrix have also announced global “restructuring” plans. Interestingly most of the companies that have announced “restructuring” are doing financially well. It is becoming difficult to understand the requirement for lay-offs.
On the lay-offs issue, professionals who participated in a seminar organised by the “Forum for IT Professionals” said companies showing more workforce for projects to get better revenues and doing away with people after keeping them on the bench is a common tactic.
A. Ashish, member of Forum for IT Professionals said “Companies are bound to give proper explanations and severance package to employees who are retrenched. All companies, which have announced restructuring, are financially sound and this might lead to other companies following suit. TCS has begun lay-offs while IBM, Wipro, HCL and Citrix have announced that they will go for lay-offs too.” As per the IT Act, companies need to show number of fresh recruitments to get incentives.
Harsh who is a techie in one of the big companies going in for restructuring said “I had been on the bench, when suddenly I was taken for a project mid-way as a girl left. I was kept as a shadow resource, which means the client does not know of my existence. Such mismanagement is commonplace to generate more work, instead of work coming from the clients.” And he also said that the employees who are handling out “pink slips,” employees are being branded as poor performers, and this makes them unemployable in other companies for future projects too.