You are here : Home » News
Posted On : 16 May, 2017  Source : PTI  Place : New Delhi 
Not correct to assume IT industry going for big job cuts: Govt
The Indian government on Tuesday said IT industry has assured it that there will be no large scale job losses in the technology sector which continues to demonstrate 8-9 per cent growth.

IT Secretary Aruna Sundararajan said there could be some cases were contracts are not renewed as part of the regular annual appraisal cycle.

Besides, she said, the industry is also undergoing a shift in the job profile given the advent of cloud, big data and digital payments.

"Some of the companies which have been named (as undertaking job cuts) have clarified that there is nothing big this year," she said on the sidelines of Broadband India Forum event.

Sundararajan added: "As part of annual appraisals, they may not be renewing contract of some people but it is absolutely incorrect to assume that suddenly this year a large number of jobs are being shed." 

The government has categoric assurance from the industry in this regard, she emphasised.

The industry is growing at 8-9 per cent and there is nothing to suggest that the growth is going to slow down "dramatically".

IT sector, she said, will continue to hire and has added 5 lakh jobs in the last 2.5 years. The issue needed to be looked at "holistically", she added.

Over the past few weeks, there have been reports of layoffs across the IT sector. Tech majors like Wipro, Infosys, Cognizant, and, more recently, Tech Mahindra have initiated annual performance reviews, a process that weeds out bottom performers or non performers.

There are fears that thousands of employees in the sector could be shown the door over the next few weeks.

The development comes at a time when Indian IT firms are facing challenges in the business environment and stricter work permit regime in countries like the US, Singapore, Australia and New Zealand.

That apart, executive search firm Head Hunters India said recently that job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years due to under- preparedness in adapting to newer technologies.

A McKinsey & Company report also said earlier this year that nearly half of the workforce in the IT services firms will be "irrelevant" over the next 3-4 years.


No substantial impact of WannaCry on Indian IT system: Secy

The impact of WannaCry ransomware attack has been limited to five or six isolated instances so far and there are no reports of any substantial disruption to India's IT backbone, the government said today.

A multi-agency monitoring team is continuously assessing the situation round the clock, IT Secretary Aruna Sundararajan said on the margins of a Broadband India Forum event.

CERT-In, the government's cyber security arm, has maintained that apart from five or six isolated instances, there are no reports of a substantial scale to indicate that Indian systems have been hit.

"One such incident pertains to 18 computers of Andhra Pradesh Police... and apart from that, there are five other cases... one of them in Kerala where some of the panchayat computers were affected," Sundararajan said.

All the cases reported so far involve fragmented, and isolated systems or standalone machines, she stressed.

"Since March, the government has been on high alert. We have already installed the necessary security patches as far as the key networks are concerned. We have not got any reports of widespread infection of the ransomware," she said.

Over the last few days, the global ransomware attack WannaCry infected computers running on older versions of Microsoft operating systems like XP, locking access to files.

The cyber criminals have demanded a fee of about USD 300 in crypto-currencies like Bitcoin for unlocking the device.

Reports suggest that over two lakh systems globally could have been infected by the malicious software.

The ransomware has hit various IT systems in more than 150 countries, including Russia and the UK, in one of the most widespread cyber attacks in history.


 
 
Comments