India to bag 40% of jobs lost to layoffs globally

[NG Missile Vessels]

Experts say that 30-40% of the more than 300,000 technology jobs lost to layoffs globally could move to outsourcing hubs like India in the coming months.

A lot of these jobs are likely to be redistributed across the existing workforce of large tech companies in India, they said.

Sanjay Shetty, director-professional search and selection, Randstad India, expects 30-40% of tech jobs that were cut globally to move to India by 2024-25.

"India is going to be the biggest gainer in the medium to long term, as almost every company that we speak to is looking at expanding its India base,” Shetty told ET.

Over the last year, global technology companies and technology service arms of multinationals such as Google, Microsoft, Meta, Amazon and Salesforce have announced multiple rounds of layoffs. So have large banking and telecom majors.

Data from staffing firm Xpheno shows that while the India workforce of big tech companies accounts for about 17% of their global staff strength, it has grown by 35% in the last 12 months compared with 12% headcount addition in the rest of the world.

The banking, financial services and insurance sector saw the next highest growth in headcount at 21%.

According to data from tech industry body Nasscom, India has more than 2,700 global capability centre (GCC) units, of which more than 65% are of US-headquartered companies. The Indian GCCs cohort added a little over 150,000 employees to grow from 1.45 million in fiscal 2022 to 1.6 million by end fiscal 2023, said Kamal Karanth, cofounder, Xpheno.

"While companies are facing a slowdown in North America and the Europe-UK markets, they are keen on improving their profitability through more work addressed out of India centres,” Shetty said.

He added that since several multinationals have a large number of in-house delivery and capability centres based out of India, there is a higher level of work moving to the country. This is despite labour arbitrage between India and other countries reducing over the years.

"A dipstick of 25 Indian bellwether GCCs and their affiliates across banking, big tech, Big Four consultancies and pharmaceuticals sector shows a significant concentration of hiring action in India versus their rest of world locations,” said Karanth. “The list also includes big tech players who have announced waves of layoffs globally and some in India as well.”

Neeti Sharma, president and cofounder of Teamlease Edtech, said many companies have started upskilling and reskilling their employees to take over roles--in part or entirely--for the jobs rationalised elsewhere.

She said companies are looking at adding freshers and lateral hires. “It is not feasible to shift every role. But we see demand for entry level roles which require up to three months of skilling. In addition, existing employees are also being upskilled to deliver part of the roles that can be delivered remotely,” Sharma said.

Outsourcing hubs like India to bag 40% of jobs lost to layoffs

Over the last year, global technology companies and technology service arms of multinationals such as Google, Microsoft, Meta, Amazon and Salesforce have announced multiple rounds of layoffs. So have large banking and telecom majors.

www.google.com

 

[Olympus81]

There has been quite alot of discussion around this topic in Thailand.

Earlier the agreement was to provide Chinese submarines with German engines. Now that’s off the table.

With the new Thai government and military having to take a backseat, post election results, the deal might end up going nowhere for the foreseeable future.

 

[Samlee]

This Might Provoke A Strong Reaction From The West.Remember It's Election Year in USA

 

[GreatHanWarrior]

There has been quite alot of discussion around this topic in Thailand.

Earlier the agreement was to provide Chinese submarines with German engines. Now that’s off the table.

With the new Thai government and military having to take a backseat, post election results, the deal might end up going nowhere for the foreseeable future.

？？？

Thailand ultimately accepted Chinese gas turbines. Just like Russia.

 

[CallSignMaverick]

This Might Provoke A Strong Reaction From The West.Remember It's Election Year in USA

Nope it won't, the jobs created in India will only reduce inflation in the states and improve the finances of the companies even if it means tens of billions of dollars worth additional services imports from India.

 

[pikkuboss]

Nope it won't, the jobs created in India will only reduce inflation in the states and improve the finances of the companies even if it means tens of billions of dollars worth additional services imports from India.

Yes, also the current regime in the US is teaching its population to live off of social security benefits and not seek jobs. This is one of the reason, unemployment rate is so low in the US.

Also H1B was a political talking point because, it had a physical presence of numerous brown people infiltrating in every sector of jobs in the US. These outsourcing jobs don't have any optical presence which can't be exploited by politicians.

 

[Ali_Baba]

View attachment 935073
Experts say that 30-40% of the more than 300,000 technology jobs lost to layoffs globally could move to outsourcing hubs like India in the coming months.

A lot of these jobs are likely to be redistributed across the existing workforce of large tech companies in India, they said.

Sanjay Shetty, director-professional search and selection, Randstad India, expects 30-40% of tech jobs that were cut globally to move to India by 2024-25.

"India is going to be the biggest gainer in the medium to long term, as almost every company that we speak to is looking at expanding its India base,” Shetty told ET.

Over the last year, global technology companies and technology service arms of multinationals such as Google, Microsoft, Meta, Amazon and Salesforce have announced multiple rounds of layoffs. So have large banking and telecom majors.
View attachment 935072
Data from staffing firm Xpheno shows that while the India workforce of big tech companies accounts for about 17% of their global staff strength, it has grown by 35% in the last 12 months compared with 12% headcount addition in the rest of the world.

The banking, financial services and insurance sector saw the next highest growth in headcount at 21%.

According to data from tech industry body Nasscom, India has more than 2,700 global capability centre (GCC) units, of which more than 65% are of US-headquartered companies. The Indian GCCs cohort added a little over 150,000 employees to grow from 1.45 million in fiscal 2022 to 1.6 million by end fiscal 2023, said Kamal Karanth, cofounder, Xpheno.

"While companies are facing a slowdown in North America and the Europe-UK markets, they are keen on improving their profitability through more work addressed out of India centres,” Shetty said.

He added that since several multinationals have a large number of in-house delivery and capability centres based out of India, there is a higher level of work moving to the country. This is despite labour arbitrage between India and other countries reducing over the years.

"A dipstick of 25 Indian bellwether GCCs and their affiliates across banking, big tech, Big Four consultancies and pharmaceuticals sector shows a significant concentration of hiring action in India versus their rest of world locations,” said Karanth. “The list also includes big tech players who have announced waves of layoffs globally and some in India as well.”

Neeti Sharma, president and cofounder of Teamlease Edtech, said many companies have started upskilling and reskilling their employees to take over roles--in part or entirely--for the jobs rationalised elsewhere.

She said companies are looking at adding freshers and lateral hires. “It is not feasible to shift every role. But we see demand for entry level roles which require up to three months of skilling. In addition, existing employees are also being upskilled to deliver part of the roles that can be delivered remotely,” Sharma said.

Outsourcing hubs like India to bag 40% of jobs lost to layoffs

Over the last year, global technology companies and technology service arms of multinationals such as Google, Microsoft, Meta, Amazon and Salesforce have announced multiple rounds of layoffs. So have large banking and telecom majors.

www.google.com

Those recent tech jobs were lost because the revenue did not exist to support them - so relocation is not possible as the revenue does not exist - they are lost forever....

general outsourcing will continue based on projects - but the recent bulk layoffs wont translate into benefits for india - they are hard layoffs..

the cost difference between western and indian interms of billable hourly rates are not as great as they were once - so india will also see layoffs more than previously..

 

[Splurgenxs]

Western productivity is dwindling and the ego is swelling , they are hard to deal with and are a flight risk legaly speaking.

In my personal experience working with Europeans and Americans, the amount of vacations days and scope creep is very big compared to there Asian counterparts.
Asians rarely take vacations, a cultural thing.

More and more companies, even startup, are hiring from India, as they are orders of magnitude more cost effective.

Even High-end Indian engineers are 1/4th the cost of western engineers in CTC terms.(given that the money goes out of the economy)

Quality of work is equal in high niche sectors if not better.

Low complexity engineering can be better , but it is dirt cheap.

 

[Raj-Hindustani]

being a part of the IT sector...

I could say that the Indian IT business has advanced significantly over the last 7-8 years. Previously, there was no such thing as serious security or cyber security.

However, businesses like Wipro, TCS, and Infosys are flourishing at the moment and are catching up quickly in IT security. I also can say that many foreign businesses are now employing workers remotely rather than constructing brand-new, large IT branches in India and providing WFH completely by facilitating them with tables, seats, electric inverters, etc (additional amount).

It is still unclear to me why Indian IT is so successful compared to many other countries... Is it the education system or the incompletion of others that accounts for this...

 

[Splurgenxs]

It is still unclear to me why Indian IT is so successful compared to many other countries... Is it the education system or the incompletion of others that accounts for this...

Let me give a short answer ,
- No severance (companies actually take money from employees, if you don't know what your doing lol),
- Can slog like dogs even on the weekends (under Indian managers).
- Will not file a law suit in case of unfair mechanisms. Low liability.
- Great ROI as quality of work is better and CTC is way less.
- Non Existence of Unions

 

[pikkuboss]

Those recent tech jobs were lost because the revenue did not exist to support them - so relocation is not possible as the revenue does not exist - they are lost forever....

general outsourcing will continue based on projects - but the recent bulk layoffs wont translate into benefits for india - they are hard layoffs..

the cost difference between western and indian interms of billable hourly rates are not as great as they were once - so india will also see layoffs more than previously..

No, it had nothing to do with revenue and all. Recession, inflation was just optics to replace the bad apples with good apples in bulk. But what happened is, removing the bad apples was easier than finding a good replacement for them in the US. So the replacement job has been outsourced to India. They will still pay top dollars for the replacement but the replacement have to be good apples with latest technical knowledges.

 

[Indos]

I will try to grab that market as well here in Indonesia (service sector, not IT stuff). Working on it....

Any way, tech jobs lost is because during making the necessary work there is a need to employ many engineers. When the work is completed, then they can be lay off.

Similar thing happened around the world. Business cycle

After the period of expansion that needs huge engineers, many tech companies will try to turn into profit.

 

[Raj-Hindustani]

Let me give a short answer ,
- No severance (companies actually take money from employees, if you don't know what your doing lol),
- Can slog like dogs even on the weekends (under Indian managers).
- Will not file a law suit in case of unfair mechanisms. Low liability.
- Great ROI as quality of work is better and CTC is way less.
- Non Existence of Unions

I somehow concurred with

It's all about the cash. I'll use my own experience as an example. I work in direct payroll for a company, but we have a lot of outside IT suppliers. For instance, Wipro controls firewalls and routers, TCS runs Azure servers, and other vendor companies provide us with assistance across many platforms.

But for the same deal, Wipro can hire at least 3 security engineers, what I am getting paid off.


BUT BUt - Still, salary packages have been improved compared to 5 years ago, and talented engineers are getting very handsome salaries.

 

[Indos]

It is still unclear to me why Indian IT is so successful compared to many other countries... Is it the education system or the incompletion of others that accounts for this...

Very obvious, English speaking and low rate

In Korea, only 1 % University Graduates have Good English and they are all absorbed by Korean job market since they are the best talent in the country.

 

[Raj-Hindustani]

Very obvious, English speaking and low rate

Yeah, my 3 colleagues recently joined Microsoft (within 6 months) with over 50–60 lacs in annual packages.

Indian IT companies are low-paying and partially English-speaking, but they push Indian engineers from the Rockies/new babie to work harder and pick up faster skills. So that they can be more productive for the business.

Young, smart people learned more quickly, but the downside is that they could experience some sleepless days and nights. it comes with pros and coins..