Hyderabad: With the COVID-19 pandemic wreaking havoc world over, where a huge economic down-slide is on the cards, the IT sector back home, though not that badly affected as yet, is pinning its hopes on the economic revival of the US and UK.
Murali Bollu, President of the Hyderabad Software Enterprises Association (HYSEA), said the IT sector in general would not have much impact with a short-term lockdown in the country. However, he said that if the lockdown persists for months together, it will definitely mean big trouble for IT companies and their employees.
If the US and European countries recover from the COVID-19 pandemic and and return to normalcy, the Hyderabad IT sector can again be seen in a boom. He explained that some IT companies have already taken steps to reduce their financial burden and as a result, have postponed the promotions of most of their employees.
"There is a possibility of at least 5 per cent of job cuts in the IT sector at the moment," he said, in an exclusive interview with Eenadu. Here are the excerpts from the interview:
How are IT companies equipped to face the corona effect?
For the first time in the IT sector, due to the ongoing lockdown in the country, around 90-95 per cent of employees have been working from home for the last two weeks. About five per cent of them are working from office.
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Companies have made all suitable arrangements for employees to work from home. Many companies have begun to cut costs. Promotions to employees and the decision on increase in wages have temporarily been postponed.
Have you found any problems with the 'Work from Home' system?
We have found that many employees are requesting for holidays complaining of back problems due to inappropriate seating in the house. Many schools have also opted to conduct online classes, due to which Internet usage has increased by leaps and bounds. As a result, there are technical problems arising out of this huge demand.
Employees are usually talking to each other through Skype and other chat modes and meetings are also conducted in a similar manner. However, these meetings are getting disturbed due to interference back home such as children playing, people talking etc.
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Employees opine that though the clients are understanding the current scenario and adjusting, it may not be expected for a long time, especially in case they lose their patience!
Does COVID-19 have an impact on project extensions and contracts?
In fact, this period is a key time for the IT sector. We now have contracts with clients and impending decisions on renewal of contracts. If there is a speedy recovery in the situation of America, projects will continue without much harm. However, if that does not happen any sooner, cancellation and revival of contracts may result in our IT Sector. Thus, COVID-19 does have such an impact on the renewal of expired contracts too.
Propaganda on a huge cut in IT jobs?
Our IT projects are mostly from the US and Britain. The business will return to normalcy if the spread of virus deteriorates and normalcy returns in those countries. However, a futuristic situation cannot be determined as of now.
Representatives of IT companies have approached for further details on job cuts. They opined that as of now, the situation is stable. However, they stated that unless employees upscale their skills, they will be facing the wrath of the situation.
Small companies are already working on cutting down their expenses through various ways and means. Wage cuts are being implemented in small companies. Up to 10 per cent of this is likely to result in job cuts. There is no fear of losing jobs for those who are working in large firms and are completely geared up for the technical advancement.
Experts who are already ready to quit their current jobs in order to move out for better prospective, are already on the verge of withdrawing their resignations, fearing the worst, due to the impending recession and economical slowdown in the country.
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