How things changed during Recession??
First green shoots of hope had now started growing.I sincerely pray for the immediate growth of the tree,I dont want a plant now.”IT” should be a big tree in coming years.Meanwhile we must look back and analyse what happened in the pinnacle years of IT & services industry and what happened very recently when it lost its affluence.The crisis was expected by atleast a few people like Stephan Roach, Chairman, Morgan Stanley Asia.He said in 2004 that “US had less than 10% chance of avoiding an economic Armageddon”.Very few took him seriously or never thought seriously about his comment.Except a few like Ford Motors which is among the survivors of shrinking US auto market and global economic slow down. Alan Mulally CEO Ford Motors says “Fortunately,we began aggressive restructuring efforts before the crisis hit heavily”.Eventhough he says “Fortunately” it was not just fortunate, it is the think tank of Ford Motors whom made the hard decisions in North America.That is how Ford survived when even bigger companies like GM fell in the storm.This is a global scenario of pre-recession where right decisions at right time helped many companies to hold on to there position in the market.
When we turn towards the IT industry, everything is indirect.In the IT & ITeS industry the recession is as a result of crisis in other sectors. Considerable amount of projects come from other sectors so naturally it affected the IT industry also.Experts says Indian companies are among the less affected ones.Even with this comment the figures are a bit frightening.Its estimated that around 3.5-5% of the 2.2 million IT jobs have been lost or under threat.Very recently i came across a magazine in which it shows a picture of an advertisment saying “RECESSION NIGHTS 50% OFF on all drinks“.It surely looks funny, but the advertisement shows the intensity of the recession.The Real estate prices are sliding.Anyway it is the part of an industry which gets the highest paid jobs.The phenomenon is not new to Indians,they have happened before,but never in such big numbers.
Sad Part:
The sad part about the lay offs and recession is that none of the companies accept that they are giving away pink slips because of scarcity of projects.They put the blame on the professionals.It is usually like “resign or be terminated” situation,from which most people choose the first option as the latter will be a black mark in your resume.Big companies like Wipro,Infosys says this lay offs are part of there usual employee performance evaluations.But how can an employee be hero to zero in an year??How can a person who got special award and appraisal last year get into the league of poor performers??The companies are keen in protecting their reputation.That is the reason such things happening.
The Benefactors of recession:
Outplacement firms was not a word familiar to Indians but now its everywhere.They help laid off employees cope with job loss.These firms assisst companies in giving away pink slips with a human touch.In a country like ours where social status is linked to success at workplace, a job loss is really catastrosphic.Outplacement firms train managers on how to notify employees about lay offs. Counsellors help candidates to rise from the bitter situation,motivate them.Make them understand that it is just a business decision and it has nothing to do with their capabilities.Globally this is a $10 billion business.Now its gaining stregth in India also.Now international giants like BTI consultants are stepping to India.But it seems like the worst is over for corporates so will the outplacement boom be short-lived??.They says as of now business is good.
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