Fear of recession rerun to hit Indian IT companies

indian it companies alok kumar
High demand for technology skills had been a standard for more than two decades now, barring the 2007 recession. However it seems, the recession is too stubborn to get over. We can see signs of large economies creaking and still limping with the wounds of recent recession.
It is almost clear that the recent US financial issue is going to take toll on not only the US jobs but on Indian jobs as well. IT sector will be hit because IT budgets are being slashed. The challenge to maintain the high cost resources would be a real issue for Indian IT companies if the cost is not justified.

“ Higher salaries coupled with high inflation have already put stress on viability of companies who depend completely on US market “

An Indian government doctor gets paid INR 400,000 per annum after fifteen years of job. This money is earned by IT engineer in the second year of his job. An engineer with armed forces would earn about INR 700,000 after fifteen years with good performance which is easy to get money after four years of job in IT sector. They get paid less just because they service India and Indian customers.
IT Industry on the other hand had to pay very high salaries because the customers were overseas and could afford high payouts. Higher salaries coupled with high inflation have already put stress on viability of companies who depend completely on US market. Next one year will decide if India also has to adopt pink slips the way US companies do. We hope, the day never comes.
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Picture Credits : capgemini,For representational purposes only

Alok Kumar

Alok Kumar is Managing Partner of SRKay Consulting group, a private equity company, nurturing innovative ventures. Alok also serves on the board of ICCL (Indian Clearing Corporation Limited - A subsidiary of BSE- Bombay Stock Exchange) as an external advisor for technology and information security. Prior to this, Alok had been Managing Director of Sears IT & Management Services India Private Limited (SHI) since its inception in December 2009 and served in the same position till very recently. Having been in senior IT management positions in Fortune 500 companies, Alok has won several national and international awards. Alok is instrumental in planning and setting up SHI and thereafter growing it to a multi-locational thousand-plus people organization. Over the last five years, with his strategic vision, Alok helped SHI grow roots in India, develop and support technology applications and infrastructure across core mainframe, cutting edge e-Commerce and big data technologies. With his unique people-oriented transformational leadership style, Alok turned SHI into one of the most valued investments of Sears, garnering great ROIs, and creating value much beyond cost arbitrage. Under his tutelage, SHI has filed two patents and is recognized widely for its best practices in various areas, the latter, currently featured in Indian Institute of Management (IIM) case studies. SHI also became a CMMI Level 3, PCMM Level 3, and ISO 20000 certified organization. Alok is a widely acclaimed corporate leader in India today. He regularly participates and leads various forums as a keynote speaker and is an author of several books in different genres. Alok has several awards to his credit. He is particularly known in the industry for his people management skills and innovative ideas in improving the productivity of employees through unique people practices. He has been credited with the following industry awards: ¬ Emerging Leader of the Year award 2013 by IndiasGreatest.com ¬ Game Changer CEO of the Year 2013 (SHRM) ¬ CIO 100 - The Bold CIOs - 2008 (Reliance Infosolutions) ¬ CIO - Ones to Watch Award 2008 (Reliance Industries) ¬ Extended Manager Award - CIOL 2004 (Tata Teleservices) As an able leader of SHI, Alok got SHI recognized widely in the industry with the following several awards: ¬ CII Award for HR Best Practices in 2014 ¬ Global Excellence in Outsourcing Award - AIOP (Phoenix 2013) ¬ IT Innovation Award (Design & Engineering) - Computer Society of India 2012 ¬ Golden Company of the Year - Economic Times 2011-12 ¬ 7th Employer Branding Awards - World HRD Congress (Mumbai, India) 2013: • ‘Asia’s Best Employer’ Award • ‘Best HR Strategy’ in line with business • HR Leadership Award • Talent Management Award by Bloomberg TV India ¬ Employer Branding Awards - World HRD Congress (Singapore, Asia) 2013: • 7th rank in ‘Asia’s Best Employer’ award • Award for ‘Best HR Strategy’ in line with the business • HR Leadership Award Other recognitions: Alok had served on the distinguished panel of NASSCOM's GIC (Global In-house Centers) National Council members. The council members play a key role in major initiatives of the industry and include the torch bearers of IT industry as panel members. Books and Papers: Alok is an established author, with three books to his credit. Alok’s third and latest book, a novel, “The Spy from Unaula” is a 2015 publication. A handwriting analysis enthusiast, Alok collaborated with his wife Nandani on the book, “Handwriting Speaks” in 2006. “Value Sourcing – Future of IT Outsourcing” was co-authored with Keith Sherwell (currently CIO, Altice USA) and was released in 2013. Alok also researched and published two whitepapers: a. “Creating next generation captives” talks about the best practices that are helping generate higher value from the IT company captives.

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2 Responses

  1. Varun V T says:

    Future look uncertain.Obama ask Indians to join the dangerous game(Live Free or Die Hard).Let’s hope so that there ll be a less pink slip compared with the last fiscal year.(An Optimistic approach)

    By an IT Profession

  2. Alok Kumar says:

    This is not the time for corporations to find ways to make money without adding real value for the customer and society. The maximum hit in India will certainly be for IT companies who will have to find ways and method to be as valuable as Apple else, downsize or reduce their costs.

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