In a major restructuring effort, the 260,000 workforce Global IT major Cognizant has rolled out a cordial exit plan for several of its senior officials. The company has decided to roll out the said exit plan to a few officers by offering them up to nine months of salary as severance pay and leave the organization cordially. As the company prepares to complete the entire process by the end of second quarter, it is confident that this move will not hamper the day-to-day operations of the company.
The company’s spokesperson added that the exit offer to its senior executives is a step forward to accelerate its efforts towards going digital, as the move would help the company align its workforce to achieve its targets. He has also added that the company has plans to recruit and hire across all practices, to offer expertise to its existing accounts and fuel its global expansion plans.
“The exit plan affects only a small section of the eligible senior management – ranging from director levels to senior vice-presidents and the final decision on eligibility for exit rests with the Cognizant leadership team,” added the company’s spokesperson without disclosing the exact number of those who may get the cordial exit offers.
Analysts say this is an ongoing trend indicating a tough road ahead for Indian IT firms, Cognizant is not alone, earlier last month, Wipro – India’s third largest IT services provider, has asked 300- 600 of its officials citing similar reasons of, “aligning workforce effectively to meet the set business objectives.”
Earlier, Infosys – India’s second largest IT services provider has indicated a rough road ahead for IT firms in the years to come. Accordingly, it has severely cut down its hiring initiatives; last year in 2016, it hired half the number of employees as compared to the total number of employees hired in the year 2015. Additionally, it has trained its about 9000 lower level employees and assign them to higher roles.
Tech experts point to the slowing global economy, pricing and margin pressures, and the growing threat of tough visa norms as responsible factors for downsizing of Indian IT workforce. IT companies, on the other hand looking towards automation to help them wither the many factors that pose a threat to their ambitious growth plans and even their very existence in case of some small companies.