Let’s approach this with data. The IT industry employs 4.5 million people right now. It has an attrition rate of 12 per cent, which means 5.4 lakh people change jobs every year. The big five companies together employ more than 10 lakh and are working at an utilisation rate of 85 to 87 per cent. They are cutting out the non-billable senior people, but not letting go of anyone billable as they need them for work and would otherwise have to hire replacements. When 87 per cent of the employees are billed, there is no way companies will let go of revenues. All these companies have said they will grow between six to eight per cent this year. Nobody expects to grow at a slower rate.
So, maybe 8,000 to 10,000 or even 12,000 people may be asked to go because of bad performance, which is normal. It happens every year and it will continue to happen. But some head-hunting firms are making alarmist predictions—one says two lakh people will lose their jobs in the next three years, but the first month (April) is over and 18,000/20,000 people have not lost their jobs, nor are we hearing of any layoffs. Companies have not said they are laying off people for lack of business. Nasscom is saying companies will still hire around 1.5 lakh people. So I don’t know what is this alarm about, apart from the fact that much of it is being sensationalised.