The Economic Slowdown and The IT Industry: A Clash of Thoughts

Posted on February 11, 2009 in Business and Economy

-Ashik Gosaliya

Golden Run has come to an end. Reality is embarrassing the sky flyers of the Info. Tech. Industry.

One of the most developed and hyped about sector of dreams, India is coming to the terms of the realism and economic doctrine. One of the first industries in India to get the rich chunk of the government policies after India opened the doors for the foreign players to do business in India; IT has evolved and got enriched with the time in last 10 years; considered as a golden era for the IT sector. It was Golden run for industry as well as for those employees of the industry, who call them the most able, potent and skilled people in India.


I am sure none of the IT guys would know the principles of economics, the same time IT companies too, might forget the rules of economics. I may sound little annoyed or jealous on IT field, but that’s not the fact. I do not intend to sound pessimistic. I may be wrong; I am just trying to figure out the reality of the IT sector and the attitude of those working in the sector.

Along with those skilled and multitasking experts, large Number of IT HELPERS were also flying high. During the golden era, lot many colleges across the nation popped up offering any damn course in IT, making everyone highly skilled and talented. No private sector in India has gone without any correction. Only public sector can flourish without worries as they need not think about income, revenue and costing.

Every private sector has to go through some kind of correction after certain span of time. For me it’s high time for the IT sector as well. As long as I have understood the international trade and economics, IT sector is less affected by economical slow down worldwide, but more by much awaited correction. People in IT were in a kind of illusive mindset that no one can really hamper their rally. Now they are being brought to the reality by slowdown and simple economics. Economy may be simple, as it seems, but certainly not smoother.

IBM just offered their American staff to join Indian Units, which means that the Indian IT sector is still providing jobs, but to whom? Certainly not for those who were working in the industry as an IT Helpers. Many people have lost their jobs or are on the verge of losing it. Words from some IT’ens are that IT companies have only 30% of staff worthy and rest eating fruit of self developed IT sector. Only 30% are the real assets for the industry and rest getting salary for surfing social network sites and listening to songs.

What else can you expect in such a situation? Cost cutting is the reality now in IT. IT companies have to lay off unnecessary burden and only need to reward those, who are the real assets for the company.

A senior and a very experienced executive, working in the IT sector in UK, when asked about his opinion on IT Industry as a whole, and Indian IT sector in particular, echoed my sentiments. He said that IT people in India were always over paid, and that had made them more greedy to demand more without delivering the goods. Unduly hype was given to the industry as well as the people working in it. This is the point of concern.

Experts are saying that because of the worldwide slow down, it has become cheaper to work with Indian IT firms and that’s why more and more work is coming to India. Companies like IBM have offered their North American Employees to work in India and Other South East Asian countries. It shows that work is there, but increasing at a slow pace, but the question is that why is there no new employment in the sector? Companies already have people in excess, and under the cost cutting scenario they are going to lay off more IT helpers, as they are merely a burden on the firm.

You may have skills but you have to respect the situation and have to move according to its demand. Compromising with the package and other facilities will confirm your place, sooner or later, or else the sector itself will compromise with you and move ahead without you.

We can tell the IT guys that they have played big role in making the Dream India a reality for us, and are going to play the same role for us.