With a range of investments in recent weeks, Indian companies are on a job creation spree in the US.
Automation in the global IT industry threatens to disrupt the sector in -India but it may be a blessing in heavy disguise. For the stagnant industry, robots may pave the way for the next round of growth.
On March 19, news reports suggested Cognizant, the New-Jersey headquartered software services firm may fire between 6,000-10,000 workers in its bid to reduce redundant and non-performing workers. As the news spread and doomsday predictions started ringing, the firm’s spokesperson sought to cool frayed nerves stating this was part of the company’s annual appraisal process when the bad apples are weeded out.
Bright sunny days over, Indian IT industry braces for big churn
With revenues of $ 160 billion employing a workforce of nearly 4 million, the Indian information and technology (IT) sector is without exception the first industry that showcased India’s prowess at low cost problem solving to the wide world. Kick-started largely thanks to the Y2K scare that gripped the world in late 1990’s, India firmly established itself at the forefront of outsourcing game.
The Indian IT sector must reskill its workforce and move up the value chain if it wants to retain its dominant position in the world as well as its double digit growth rates.
On July 15, 2016 a sombre looking Vishal Sikka, the CEO and MD of Infosys Ltd, India’s second largest exporter of IT services announced the company’s first quarterly results. While revenue and profit were below market expectations, what surprised many was the downward revision of annual revenue growth forecast. Markets were swift to mete out punishment. The shares of the company crashed by about 10 per cent in a single trading session, wiping out nearly $3.5 billion in market capitalisation.
Against the backdrop of Indian Prime Minister Narendra Modi’s visit to the US in June, here is a very brief snapshot of some of the recent trends in the India US economic ties over the past few weeks.