IT sector layoffs unrelated to economic slowdown: CEOs

By IANS

Mumbai : IT companies worldwide have institutionalised the tradition of weeding out inefficiencies and non-performance and there was nothing new with layoffs in this key sector in India, top IT CEOs have said.


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However, the slowdown in the US and the rising rupee have turned the spotlight on layoffs in software services companies, they said.

This view emerged on the issue of layoffs hitting the Indian IT sector in recent months at the Nasscom Leadership Summit 2008 currently underway here.

The three-day summit organised by industry body National Association of Software and Services Companies (Nasscom) is being attended by CEOs of top IT companies.

The CEOs said the sporadic cases of layoffs by software services companies have no relation to the economic slowdown or diminishing export returns due to the rising rupee.

Satyam Computer Services Ltd Founder and Chairman B.B. Ramalinga Raju said Indian IT companies have attained global standards with higher deal sizes and increased appreciation of acquisitions.

“But growth is surely a challenge for IT companies and hence they have to adopt the right business models to tackle the issue,” he said.

CEOs would continue to invest in global opportunities even in the present scenario.

“We will continue to grow, maybe not as fast as expected though.” Raju said.

Other prominent speakers at the seminar included Steve J. Rohleder, chief operating officer of Accenture, Salil Parekh, CEO of CapGemini, Pankaj Vaish, managing director of Delivery Centre Network of Accenture and Ajay Kela, CEO and managing director of Symphony Services.

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