Indian companies lack empathy: Ratan Tata

The head of Tata Group, Mr.Ratan Tata says that Indian companies lack empathy as they layoff employees in these pandemic times. He also says that it is a knee-jerk reaction to layoff employees

Indian companies lack empathy: Ratan Tata

In an interview, Mr.Ratan Tata says that the top leadership of these companies does not have empathy for its employees. In his own words “These are the employees who worked for you. These are the people who have served you all their careers. You send them out to live in the rain. Is that your definition of ethics when you treat your labor force that way?”

This pandemic has brought several losses to the Tata group. But still, these companies did not layoff any of its employees. Across the nation, several companies fired their employees due to lack of revenue

However, the salaries of the top officials at the Tata company are cut by 20%. Almost all the Tata group companies belonging to Airlines, Hotels, Finances, have incurred several losses

But they did not fire any of their employees till now. Mr. Ratan Tata says that if the company is not sensitive to its people, it cannot survive.

He further says that while everyone is chasing profits, if you are not ethical to your employees, there is no point. Business is not always about making money. Sometimes it’s about being ethical to your own employees

He also says that the important thing right now is to not shy away from making difficult decisions.

Also, read: Zoom plans to open a technology center in Bangalore

Ratan Tata was asked about the thing he missed the most during this lockdown. His response was ” It’s not been yachts, manors, and huge estates. It’s been a wonderful experience of interacting with people who stand for the same ideas as you do… that’s something I’ve come to miss “

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Also, read: Uttarakhand CM writes to Sundar Pichai to invest in the state
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Headcount of the top 4 IT firms fell by 9000 in Q1

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US visa ban will have minimal impact on operations: HCL

HCL Technologies says the US visa ban will have minimal impact on its operations. The CEO says that this is the trend they already been following and now others are following it.

US visa ban will have minimal impact on operations: HCL

He further says that the company has enough people abroad in the US to continue its operations without any halt. He also says that the new rules are unfortunate, but the company already is prepared to handle this situation not just in the US but across the globe.

If this situation continues in the long term, the company has to come up with a new idea to address the situation, according to the CEO. He also says that at present the company delivers from across the globe and that is the work model they are using

The company believes that although the situation can be controlled, there should be some tweaks to maintain to operate next year.

Also, read: Amazon extends work from home policy until 2021

HCL currently has 1.5 lakh employees globally. In the recent quarter, 63% of HCL revenue is from the US region. The company also brought its stranded employees from the US but didn’t officially announce any numbers.

Similarly, Infosys and Tech Mahindra also brought some of their stranded employees to their respective nations via chartered flights

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Also, read:
UC Web owned by Alibaba suspends India’s operations
SBI plans to adopt work from home model and save 1000 crore
A lawsuit filed against US Visa policy by 17 U.S States

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The suspension of new H1B visas affect the Indian-firms in the US

The USA under Donald Trump plans to suspend new H1B visas. Suspension fo new H1B visas will affect the Indian firms in the USA. This could prevent people from coming into the country until the ban is lifted. The move could affect the Indian origin companies as well. In order to handle this, companies like TCS, Infosys will have to hire American citizens to fill the vacant positions.

The people who are already having visas will not be affected by this rule. The Indian IT firms use the H1B visas to send highly skilled people from India to the USA. According to the immigration data, India accounts for 70% of the 85,000 annual limits for the H1B visas issued.


Recently the rejection rates for the Indian firms for H1B visas have raised from 5% in 2015 to 24% in 2019. On Friday, NASSCOM said that they seek exemption for the technology workers from any restrictions being imposed.

For most companies, the US is the main market for its revenue. For example, TCS which operates in 50 countries, has the s their biggest revenue generator. Tata Sons chairman said during the annual shareholders meeting that these visa restrictions continue to evolve timely and TCS has the responsibility to comply with these situations.

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For major IT companies, 60-65% of the total operating costs will be of staff costs only. If these companies are going to hire the local talent, who costs more than the H1B visa individuals, the company’s operating margin might decline by 30-80 points, according to a report by CRISIL.

In FY20, Infosys has hired around 78% of its senior management in the USA locally. In the Annual sustainability report, Infosys said that it is looking to strengthen the local hiring and continue to increase the senior management proportion with the local talent.

Also, several industry analysts feel that hiring local talent is one way to handle these H1B visas suspension. However, most of them believe that the ill always welcome great talent to come and work in their country.

Most of the companies feel that these new restrictions by the US government will bring their projects to a halt and affect their revenue if they couldn’t hire the local talent.

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Over the past few years, these Indian IT firms have benefitted by hiring fewer people

The top IT services providers in the country have hired fewer people over the past few years in comparison to their revenue growth across the same timeline. This indicates that companies are adopting various automation and digital technologies.

Companies like TCS, Infosys, Tech Mahindra, HCL Technologies, Wipro have increased their growth over the past few years. This has been achieved by adopting the artificial intelligence technologies, automation of tools and digital services

During the same period, the businesses of core services like application development, maintenance, and infrastructure have fallen. Analysts are saying that this can be due to using automation and other technologies for the tasks which are at the bottom of the pyramid.

India’s largest software service provider, TCS currently employs 4,48,464 employees and has seen a compounded growth of 7% in hiring. In relation, the company’s revenue has grown by 10.64% every year. Meanwhile, Infosys’s revenue growth is slightly higher than TCS at 11.23% since the financial year 2015. The company has seen an increase in hiring by 6.59% for the past 5 years

The highest disparity between revenue and hiring among the top IT service providers in the country is observed at TechMahindra with revenue growth at 10.26% and hiring is at 4% each year since FY15

Since the FY15, Wipro has seen a 3% increase in hiring every year, and the revenue of the company has grown by 5.38% for the same period. HCL is the one that has performed well in terms of revenue for the last 5 financial years. The company’s revenue has been increased by 13.77% while the hiring has seen an increase of 7.23%. In the last five years, the company has recruited around 47,000 employees which increase the overall employee count to 150,423

However, at Tech Mahindra there has been a great difference between revenue and hiring for the last 5 years. The revenue of Tech Mahindra grew at 10.26% while new employees are recruited at a rate of 4% each year. Analysts predict that this great disparity at Tech Mahindra is due to the increased number of subcontractor staff deployed in every project.

Last week during the filing to the US Securities and Exchange Commission, Infosys announced that the use of automation tools and related technologies have cut down the costs for the company. Also, this has led to the involvement of manual effort in the projects.

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The government wants to build a rival to Zoom. Shortlists HCL, Zoho for the task

Indian government wants to develop a Made-in-India video conferencing software. For this, the government had shortlisted a few companies like HCL Technologies, Zoho Corp.

As part of this initiative, these companies will receive Rs.5 lakh from the government to create a prototype of the product. This is to rival existing Softwares like Zoom, Google Meet, Microsoft Teams. As part of the second round, the government is planning to select three startups from the list of 10 to continue developing the product.

The selected three startups will receive Rs.20 lakh to finish building the software. In the final round, one selected startup will finally deploy this solution to the state and central governments.

The companies which were selected along with HCL and Zoho are PeopleLink, Aria Telecom, CyberHorizon Corp, Instrive Softlabs, SoulPage IT solutions, Techgentsia Sofware Technologies, and Data Ingenious.

This new project is undertaken by the IT Ministry and launched by the government of India last month.

The government believes that having an Indian product can be a great advantage. It can be hosted locally and can be developed into all the languages of the country. Also, legally the government can store the recorded video in the country, without any legal obligations.

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18% decline in Hiring in March. Delhi NCR is the most affected region.

In the month of March, across India, the hiring has been reduced by 18%. The most affected sectors are travel, airlines, hospitality, and retail industries which saw a decrease of 56% in offering new jobs. The job portal Naukri has compared this data with the previous year’s data and announced these results.

50% decline in hiring in the retail sector, followed by 38% in auto/ancillary, 28% in pharma, 11% in insurance, 10% in accounting/finance, 9% in IT and BFSI. This is according to the ‘Naukri job speak index’. The first 20 days of March have seen just a 5% decrease in hiring. Due to the lockdown, the overall hiring decrease has been increased up to 18%.

The hiring activity has seen a little rise in January which is around 5.75%. There is no increase in February and March has seen a decline.

This decline is observed the most in metro cities. In Delhi, it is 26%, 24% in Chennai and 18% in Hyderabad. The pharma industry in Delhi has seen a massive dip of 66%.

The demand in these sectors has grown higher with 63% in hospitality, 28% in banking, 23% in accounting, and 22% in IT&Hardware. Overall the decline among all the experience levels has been observed. The most affected experience level group is people with over 13 years of experience. They have seen a decline of 29%, while 0-7 years experience group has seen a decline of 16%.

However, the white-collar industries such as IT, BPO/ITES, BFSI, etc have seen a lesser decrease in hiring during these tough times. New recruitments in restaurants, travel, marketing have seen a decline of 51%, 48%, 33% respectively.

Naukri spokesperson has said that this is a crucial time for all the learners to update their skillset and make great use of this situation.

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Alert! IT companies started issuing pink slips. 1.5 lakh employees may lose their job.

In March, a techie from Pune was asked to resign from his job along with 6 other employees. After this incident, in Fareportal, an ITes-BPO firm has laid off some of its employees. The count is around 300. All these incidents are not a coincidence but are linked together. IT experts predict that around 1.5 lakh employees might lose their jobs in the next three to six months and this is just the beginning of it.

The CEO of CIEL HR services has said that the majority of the layoffs will happen in small IT firms, who are dependent on the large scale clients. Overall, there are 40-45 lakh employees are currently working in the IT industry, out of which 10-12 lakh employees are from small scale firms.

Due to the coronavirus impact, it has become a challenge for all the companies to keep the companies running efficiently. The hospitality sector and the travel sector have been hit entirely due to this epidemic. The manufacturing sector is currently paused. Few companies like Apple, Microsoft have already alerted their investors regarding the performance in the upcoming quarter.

The lockdown has been extended till May in some countries. Apart from this, the decisions were being impacted largely due to the uncertainty of the situation. The smaller firms have started laying off their employees with each of their projects being either closed or completed.

The employees were being asked to resign due to the increase in the cost of maintaining them. They were being given a choice of resignation or termination. They are told that even though they are working well, due to the client-facing problems with the corona outbreak, they cannot maintain the employees.

All these companies laying off its employees are doing this in private, without the rest of the world knowing about it. Some of the cases are quite shocking that employees were being given only two hours of time to confirm their resignation.

This situation is only going to get worse with the ongoing situation. The employees who are on the bench in various companies are being affected the most. Next comes the employees who are part of projects which are currently stalled due to the increasing expenses and the client cannot maintain the billing.

The employees who are being laid off, feel that the companies should give ample time for them to search for new jobs or maintain savings. At least two months are being asked by the employees. The situation outside is very critical. They are no jobs and no company is looking to hire new employees in this situation. This may continue for the next few months.

The hiring is paused by almost all the companies and the offers which were already given to new employees were being postponed to further undisclosed dates. However, people in IT are not sure about their future, about the current job, and about many other things. Uncertainty is at its peak in the industry, currently.

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Infosys employee at Pune is tested positive for the Covid-19. Panic around the tech park.

An employee from Pune who is working at Infosys is tested positive for the Corona Virus test. With this incident, Infosys is said to be working with health authorities on contact tracing.

Police have arrived at the site at Hinjewadi and Magarpatta Tech parks already twice last week. In these tech parks, IT and ITes companies co-exist and work together. Most of the employees are working from home but some are needed at Tech Park. They had to stay and work from the office.

After allowing its employees to work from home, Infosys has reported a positive case for Covid-19 on Sunday. This case was at Hinjewadi IT park phase-2. The previous week, an employee from Magarpatta tech park became suspect for the test and created panic across the tech park which led to the closing of the offices in that tech park. These two major tech parks in Pune employs about 5 lakh people.

Infosys is reportedly working on SDB 1, SBD 4 and FC 1 for fumigation and sanitization of the campus and its employees. The company statement said that Infosys has confirmed a positive case in one of its tech parks. They even asked their employees to maintain self-quarantine and monitor their health regularly.

While some of the companies are allowing their employees to work from home in the tech parks, some other companies are not allowing their employees to do so in IT parks located in Magarpatta, Hinjewadi, Yerwada, etc.

Mr.Pawanjeet Mane, President of Federation of IT employees of Pune has said that most of the IT companies are not being honest about how many numbers of employees are currently working at the campus and they are giving wrong stats to police and government authorities about this. He also said they reached out to the district collector and the police to make sure all the companies follow the guidelines set by the government.

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The new IT hub of India: Himachal

The beautiful state of Himachal is famous for its scenery, mountains, and hospitality. It also has good connectivity between different north Indian states and cities. With all this, the tourism rate is high in Himachal. Now, not only just tourism but Himachal is soon going to be an IT hub of the country.

The availability of several educational institutions and upcoming web-based startups is the main cause for Himachal to transform into an IT hub.

The situation is very different 10 years ago. The private sector IT jobs were very rare in the region at that time. With no availability of good institutions, the youth of the region had to migrate to various other cities of the country. This led to the development of the respective cities. Even for higher education, the students had to move out of Himachal to attain quality education. They moved to cities like Delhi, Chandigarh, and Bangalore.

Many cities in the state have good IT startups and educational institutions. Some of them are Mandi, Shimla, Dharmashala, Solan

The current situation around Himachal is that the nearby cities like Punjab, Haryana, and Uttarakhand have attained new IT companies. This led to an increase in IT in Himachal as well. There are several jobs available in the region as full-time, part-time, or freelancing. This changed the situation of the graduates from the region to go to the other states for employment.

Many well-recognized universities have been started in the region, which is another reason for the increase in job opportunities. Some of the cities in the Himachal state like Mandi, Shimla, Solan, Dharmashala are being recognized as educational hubs of the state.

Coming to the jobs, Shimla became very famous for its web design startups like Netgen IT solutions. These startups are also looking for candidates to fill several vacant positions. It has been 5 years since Netgen started in the Himachal. Along with job opportunities, Netgen also offers training related to IT jobs like graphic designers, content creators, app developers.

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