IT firms gain weight in the middle level, lead to large scale lay-off

Hyderabad: Despite an almost non-existent bench in IT companies and a smaller entry level, the number of mid-level employees has grown from 30 per cent to 70 per cent, requiring a restructuring, leading to lay offs in the companies.

While this not the case in other countries, in India the faster growth from fresher to mid-level is being blamed for the current state of affairs in the industry.

Read: IT firms cut down bench

“In countries like the US, people are into coding for 40 years and they do not want to move from coding even when they are given managerial roles. But here, if you do not give senior positions to employees within three to four years, they will be at the top of the HR. This way of working has led to a huge bulge in the mid-level of IT firms,” said Neerja, manager of Hyderabad Software Exporters Association.

During the boom period in the IT sector, companies were in a competition to recruit and felt the pressure to retain employees by offering them managerial roles and quick promotions. This had also led to a huge bench strength.

“The employees did not have any issue when climbing up the ladder quickly and being recruited and being kept on the bench for long periods till their jobs were secured. They enjoyed the benefits of the sector. But now, since the market dynamics are playing out and they are losing jobs.  They have started complaining,” said a senior official from ITES.

“Recruitments have been made without actual need, just on the whims and fancies of managers as each wanted more people to work under them. This led to 80 per cent people being at mid levels,” said Pranjal, one such employee.