Wipro, the 3rd largest software services firm, is said to have sacked around 600 employees as part of its annual “performance appraisal”. The numbers are anticipated to be much higher during the coming days and may go up to 2000 or about 30% of the total Indian workforce. The news that Wipro sacks around 600 employees must have had a huge impact on the moral of employees of other IT majors.
In response to an email from a Media house, Wipro said that it undertakes a “rigorous performance appraisal process” on a regular basis to align its workforce with business objectives, strategic priorities of the company, and client requirements.
It was further added that “The performance appraisal may also lead to the separation of some employees from the company and these numbers vary from year to year”.
As per Wipro, their comprehensive performance evaluation process includes re-training, up-skilling and mentoring of employees.
There is no official confirmation from Wipro on the number of employees who have been asked to leave.
It’s hard to believe that it can be a co-incidence that the timing of this “performance appraisal” is right after the announcement by US Government to tighten Visa norms as also the announcement from Australia to abolish 457 Visa.
These recent announcements are expected to be result in tougher times for the IT Companies. The companies may find it difficult to get visa for their employees hence resulting in less manpower being placed. The result could be that the Indian IT Companies would have to higher locals to meet project deadlines. This is sure to cost them much more than their Indian workforce. Operational costs are sure to increase because of this.
Almost 60% of the revenue for these IT companies comes from the North American Market while Europe and other economies together make it around 20% of their total revenue.
New and high-end technologies and automation of various processes are also resulting in reduction in manpower requirement hence to cut expenses/losses, IT companies are getting forced to ask their employees to leave.
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