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IT firms will not sack employees,assures cornered Modi Govt

New Delhi: A visibly shaken government has denied large-scale retrenchment in the Information Technology sector. The new of job losses have rocked the government at a time when it is in a celebratory mood to mark 3 years of PM Narendra Modi, and is leaving no stone unturned to highlight the achievements of PM Modi in three years.  

The government on Tuesday said IT industry has assured it that there will be no large scale job losses in the technology sector which continues to demonstrate 8-9 per cent growth.


IT Secretary Aruna Sundararajan said there could be some cases were contracts are not renewed as part of the regular annual appraisal cycle.

Besides, she said, the industry is also undergoing a shift in the job profile given the advent of cloud, big data and digital payments.

"Some of the companies which have been named (as undertaking job cuts) have clarified that there is nothing big this year," she said on the sidelines of Broadband India Forum event.


Sundararajan added: "As part of annual appraisals, they may not be renewing contract of some people but it is absolutely incorrect to assume that suddenly this year a large number of jobs are being shed."

The government has categoric assurance from the industry in this regard, she emphasised.


The industry is growing at 8-9 per cent and there is nothing to suggest that the growth is going to slow down "dramatically".

IT sector, she said, will continue to hire and has added 5 lakh jobs in the last 2.5 years. The issue needed to be looked at "holistically", she added.

Over the past few weeks, there have been reports of layoffs across the IT sector. Tech majors like Wipro, Infosys, Cognizant, and, more recently, Tech Mahindra have initiated annual performance reviews, a process that weeds out bottom performers or non performers.

There are fears that thousands of employees in the sector could be shown the door over the next few weeks.


PTI/News24Bureau


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