Nasscom denies mass layoffs, says IT sector net hirer of 1.5 lakh people

It was speaking in the back of media reports of mass layoffs across the sector

India's software industry lobby group Nasscom says that India's IT industry is a net hirer of 1.5 lakh people a year and has denied that there are mass layoffs by IT companies in the country.

"In fact the industry continues to be a net hirer with over 1.5 lakh people being employed on a net basis each year, though the focus is shifting from scale to skill. Talent and skills are the key building blocks for the industry, which is intensifying investment in in skilling/ reskilling its workforce to strengthen its foundation on a continuous basis," the lobby group said in a statement on Friday.

Analysts say that IT firms are looking at shedding as much as one lakh jobs as the industry faces its worst crisis in nearly a decade due to the triple challenges of automation, technology shifts and protectionism in US and UK.

"Additionally, workforce realignment linked to performance appraisal processes is a regular feature every year," it said of companies edging out non-performers in a tight market.

Firms such as Infosys, Wipro, Cognizant and Tech Mahindra have removed non-performers from their roles as these companies look at tightening belt in an uncertain market. 

"Skilling and workforce realignment are essential to remain competitive in international markets. It needs to be appreciated that such workforce realignment is a normal part of the internal process of companies based on their own operational imperatives; companies evaluate their priorities and business imperatives and continuously align talent to serve their needs and enhance competitiveness," Nasscom said. "It is reiterated that no significant changes have been reported or observed this year."