IT companies may shed 30,000-40,000 mid-level staff: Mohandas Pai
BENGALURU: India's information technology services companies may shed 30,000 to 40,000 middle-level employees this year as growth slows down, IT industry veteran T V Mohandas Pai said on Monday.
The former chief financial officer of IT major Infosys Ltd termed these job losses as once-in-five-years normal phenomenon with maturing of the industry.
"As in all sectors in the West, in India too when a sector matures so many people will be there in the middle level who will not be adding value to the salary they get," Pai said.
Promotions are okay when companies are growing fast but when it slows down, people getting fat salaries will aggregate at the higher level, prompting companies to periodically reset their pyramids, and shedding people, he said.
"It's going to happen again and again and again every five years," said Pai, chairman of Aarin Capital and Manipal Global Education Services.
"Nobody is entitled to a fat salary and high-paying job unless you perform, right? You have to deliver value".
"All across industry, may be 30,000 to 40,000 in a year ... ," he said when asked about the number of middle-level staff who would lose their jobs.
But Pai said about 80 per cent of those who lose jobs would have employment opportunities in industries in general if they are specialists.
译文来源：三泰虎 http://www.santaihu.com/48823.html 译者：Jessica.Wu
Sarcastic Bee • Pune • 2 days ago
Mr. Mohandas Pai, a staunch Modi supporter has started giving pessimistic view. Think how bad the shape of economy must be for a blind bhakt like Pai to be giving such prediction.
RT• 2 days ago
in Modi rule he is not getting any Domestic govt project and TCS & Wipro bagging all domestic projects... People like you will even blame Modi for forgetting to flush your toilet
rajesh kp• 2 days ago
Every 5 year it may happens !!! But we didnt see such things under MMS 10 year go nment..Last 5 years ,every one loosing job or job at risk because of this stupid demonetization ...
Rational View• 2 days ago
Dont mask layoffs due to poor economic condition by saying its regular phenomena or such clarifications. How come we never heard of this phenomena before. Plain and simple, business climate is bad.
Prashanth Rao• 2 days ago
What he is saying is what happens in the IT industry. A significant part of the revenue of the IT industry is driven by $ or € coming in. The rates are not increasing for the last 15 years. Actually has reduced in actual $ terms due to competition. But salaries increase by 6-10% every year. So effectively in 5 years, the salary would have increased between 35 to 60%. So at an individual level the profits would reduce, so companies clean up. Nothing to do with the economy here or outside
Bigde Thakur• 2 days ago
What Mr. Pi has stated is absolutely correct, most of the middle level managers in IT companies do not add any value to the organizations. They neither have technical competency nor have any willingness to learn any new technology. You would often find them indulged in office politics.
Joydeep Bairagi• 2 days ago
this pi guy i also one among these incompetent people.. otherwise why he hired and retained them for so long.. he should shed some of his personal wealth to pay for these unfortunate people''s retirement benefits..
Rabahuto • 2 days ago
Mr. Mohandas, from your position it is very easy to say this but it is very very unfortunate for the sufferers. People like you will never understand the plight of middle and lower income groups.
Sumith K• 2 days ago
First he should be fired being so insensitive
Citizen• 2 days ago
Mid-level lazy staff who only indulge in politics and is utterly useless for the company must be FIRED and should DIE STARVING IN GUTTER!
Sasi Dash• 2 days ago
They should follow Japanese practices where employees are not thrown out.
Every body shares in the pain.
Sundarv• 2 days ago
You have raised a very valid point. Why come the top level staff and the management do not take any pay cuts ? And how come none of them is ousted ?
Angry Man • 2 days ago
All Rajeev Gandhi''s fault. If he did not introduce computers then 20 million people would not be working in IT sector in India today. Then 40 thousand would not love their jobs. All Rajeev Gandhi''s fault. Mitron mai zero tolerance aur zero jobs ki taraf India ko lay jaunga.
Manu • 2 days ago
Mr Mohan das pai have you added any value when you were in infosys or have your company spend any money on transforming skills of employee.Have you deserved such a fat salary.
Saqib Munees• 2 days ago
who needs a job we just need jio free data1.5 GB per day