Infosys announces salary freeze. This came with tons of employees of the IT major venting their frustration blaming HR head with taking such harsh decisions when the reality seems to be otherwise. It all looks that these employees are being exploited and Infosys is simply taking advantage of their position in market.
In reality, it seems this is the beginning of the end of the IT business model which started more than 25 years back. I would term this nothing more than a standard change process where one form gives way to another and change keeps happening.
“India although is largely an IT services provider has absolutely no credible intellectual property even after 25 years of experience …”
The most unfortunate part is that Infosys is not alone in this mess but they will be soon joined by the rest of the folks in IT industry in India. It is unfortunate that most of the IT companies are still living in fool’s paradise where the warning signals are ignored and managing such issues are addressed by salary cuts.
A little more far sighted approach would have made things very different. Isn’t it food for thought that India although is largely an IT services provider has absolutely no credible intellectual property even after 25 years of experience. Facebook, Google, Microsoft, Oracle, Amazon, eBay and so non are all non Indian phenomenon. With such a vast IT pool, we could have created ten times more such properties, but for the short sighted approach of IT leaders in India.
IT companies are still very proud if they get some basic work which may not be even worth mentioning by such companies. This will certainly have an impact as no action has been taken so far to remedy this. The body shopping has gone farther than what was reasonable.
Good part is that it has just started with Infosys and with salary increase freeze. Indian IT professionals have to start adjusting to a new normal very quickly where the mantra will be perform or perish. Days of hefty pay hikes will be replaced with satisfaction of retaining the jobs. We need not go too far, but just look into what has happened in US on job front.
This is high time for every IT leader and Indian Government to wake up and start looking at harnessing the real intellectual power of Indians and not keep happy with data entry and basic technology work which will soon dry.
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