Potential job losses in telecom sector enormous, feel experts

The potential job losses in the Indian telecom industry are "enormous" in the wake of 2G-licence cancellations and many of the affected entities having started trimming their workforce, according to HR experts.

"Most of the companies whose 2G licences were cancelled are reducing their workforce. This is happening at all levels. Only people at key strategic positions are being retained...," HR firm TeamLease Services’ general manager (services) Madhubala Vaidyanathan said.

The Supreme Court in February cancelled as many as 122 licences for 2G spectrum, a move that has resulted in uncertainty in the fast-growing telecom sector.

"Potential job loss is quite enormous as the telecom industry was supposed to have provided thousands of jobs which would have done good for the economy," Vaidyanathan said.

Executive search firm GlobalHunt's director Sunil Goel said there could be potential job losses by looking at the local market scenario.

However, hospitality, FMCG, financial services and banking "would be resource-grabbing industries for ideal surplus resources from sales and marketing and customer service areas," Goel added.

Another executive search firm Spearhead InterSearch’s MD Jyorden Misra said new telecom companies that had hired actively to support their anticipated operational scale up, are facing the unexpected scenario of licence cancellations.

"This has brought an abrupt halt to any hiring plans in the offing...," he noted. Misra said existing companies have been adopting "cost rationalisation and an efficiency optimisation approach" resulting in modest increments and moderate hiring plans.

Telecom industry, one of the sunrise industries, was considered a major job creator for the economy. Experts noted there is enough talent pool available for the telecom sector. "There is more supply of skilled and trained resources than demand in the market...," Goel said.

Noting that telecom industry is presently going through a tough phase, Goel pointed out that consolidation and right sizing are expected in the telecom industry for the next one year.

"Demand should surge again once everything stabilises, including options for opportunities abroad, where there is a huge demand for Indian telecom professionals," he said. More, the telecom equipment and infrastructure companies are feeling the heat.

"The telecom equipment companies were looking at negative growth in 2011 and 2012 would not be any better. Since there is a drop in sales and revenue, layoffs would be expected," Vaidyanathan said.