English हिन्दी
Connect with us

Latest business news

Is Indian IT in its last lap?

Published

9 years ago

on

Is Indian IT in its last lap?

[vc_row][vc_column][vc_column_text]The answer depends on the ability of the domestic economy to absorb the techie workforce

By Parsa Venkateshwar Rao Jr

The Indian Information Technology (IT) sector is not really at the end of its tether as reports pour in about more than 50,000 being laid off. Though it is a large figure in absolute terms, it seems to be hovering in single digits as a proportion of the total IT work force in the country, which seems to be around 10 million.

Despite the naïve optimism of the simple-minded spin-doctors of the liberalised economy that IT is the flag-bearer of the country’s rising fortunes, it was clear that IT, even as part of the service sector, was not the big thing it was made out to be. Indian IT was never in the forefront of technology breakthroughs as it was happening in America. It had always been the rearguard as it were, and it was only good at adding to the armies of cyber-coolies. But the money it raked in, for the promoters as well as the workers, was quite attractive and no one could complain. But it could not have been expected to last.

Let us remember that this was not the first time that Indian IT had hit the lows. It had happened during the turn of the millennium dotcom bust as well. The big players had survived on the back of continuing demand for IT services from the Western economies, especially the United States. So, the Indian IT sector had survived the dotcom scare.

Whatever may have been the exaggerated expectations of the country’s politicians and journalists from everywhere, including the simple-minded Thomas Friedman, India’s IT entrepreneurs knew very well the limitations of their businesses in terms of carrying the country’s economic growth on their shoulders. There was no getting away from the fact that Indian economy cannot do without the traditional sectors of agriculture and industry. The argument that India need not go through the sequence of economic development and that it could leapfrog into the future has turned out to be a false one.

Keeping in mind the fact that IT is but a factor in the economy of the country, a cyclical setback to the sector cannot be interpreted as economic disaster for the country. But the new situation does pose some difficult questions. If Americans and others are no more willing to depend on the IT services provided by the educated Indian workforce, do the IT czars of the country have a Plan B to re-deploy the force on the domestic front?

It has been quite clear from the beginning that the IT services that were on offer were not of much use in India, and therefore they have to look abroad. It was advantageous because work assignments in Europe and America meant handsome foreign exchange dividends. It brought in a whiff of prosperity to a segment of the Indian middle class. The challenge is two-fold.

Have the other sectors of the economy reached a stage where they can use IT-enabled services? It should be an obvious choice in the manufacturing sector because technology is now IT-oriented, and computer-aided design (CAD) is the norm in manufacturing. And India’s own service sector, from education to health to transport, would need IT services than at any time before. So, if Infosys is forced to employ 10,000 Americans for its operations over there, it should be possible to employ those displaced 10,000 IT workers at home. The question that crops up is, of course, the blunt one: Is the Indian economy ready to make use of its skilled and sophisticated IT work force?

The Chinese saying of a crisis being an opportunity should become the fulcrum for IT in India.[/vc_column_text][/vc_column][/vc_row]

Related Topics:
Continue Reading

Latest business news

Xbox announces 3,200 layoffs as Asha Sharma outlines major restructuring plan

Xbox has announced plans to lay off 3,200 employees over the next year while introducing a major restructuring programme that includes management changes, studio restructuring and cost-cutting measures.

Published

6 days ago

on

July 7, 2026

By

XBOX layoff

Xbox has announced plans to reduce its workforce by 3,200 employees, representing around 20 per cent of its total staff, over the coming year as part of a broader restructuring programme linked to Microsoft’s increased investment in artificial intelligence.

According to an email shared with employees by Asha Sharma, the company will begin the process immediately, with 1,600 employees leaving on Monday, while the remaining job reductions will take place during FY27. The company also plans to divest four gaming studios and is preparing to separate from another.

Business reset planned amid financial challenges

In her message to employees, Sharma said the company’s current financial position required significant changes, stating that Xbox’s business was operating at substantially lower margins than comparable platform and publishing companies.

She said the layoffs were not a reflection of employees’ commitment or abilities but were part of a wider effort to strengthen the company’s long-term business.

The workforce reduction comes as Microsoft continues implementing AI-focused cost-cutting measures across its operations. Overall, the technology company is reportedly cutting 4,800 jobs, with Xbox accounting for the largest share.

Sharma also described the gaming sector as experiencing one of its most challenging hardware periods and said the company needed to “reset Xbox” to improve its future performance.

Company to streamline operations and reduce management layers

As part of the restructuring strategy, Xbox plans to simplify its organisational structure, revise its content portfolio and improve platform operations.

According to Sharma, the company currently loses 64 cents for every dollar invested annually, making operational efficiency a key priority.

She said Xbox would increasingly support independent game creators by offering open development tools and broader audience access.

The restructuring will also see Mojang and King report directly to Sharma. She said both studios have evolved into major gaming platforms with large monthly active player bases and will play a central role in Xbox’s future strategy.

To improve decision-making, the company plans to significantly reduce its management hierarchy. Sharma said some departments currently have as many as 14 management layers, which slow down operations. Xbox aims to reduce this to no more than five layers, and in some cases, only three.

The company will also reduce vendor spending by 50 per cent as part of its cost-saving measures.

Helen Chiang promoted to Chief Operating Officer

Alongside the restructuring announcement, Sharma confirmed the promotion of Helen Chiang to the newly created position of Chief Operating Officer.

Chiang will oversee profit and loss responsibilities across Xbox’s content, hardware, platform and services divisions while reporting directly to Sharma.

According to Sharma, the new operating structure is intended to improve investment decisions, strengthen accountability and better integrate the company’s various business units.

Despite the ongoing restructuring and job cuts, Sharma said Xbox remains committed to long-term growth and plans to continue investing heavily in the business, while placing greater emphasis on disciplined spending and strategic priorities.

Continue Reading

India News

Bank holiday today: Are banks open or closed on June 29? Here’s what RBI calendar says

Banks in Himachal Pradesh and Mizoram will remain closed on June 29, 2026, due to regional holidays, while banking operations will continue normally in most other states.

Published

2 weeks ago

on

June 29, 2026

By

Bank Holidays

As June comes to an end, many customers are wondering whether banks across the country are open on June 29, 2026. According to the Reserve Bank of India’s (RBI) holiday calendar, bank operations will not be affected nationwide, but branches in some states will remain closed due to local holidays.

Banks closed in these states on June 29

Banks will remain shut in Himachal Pradesh on Monday, June 29, on account of Sant Guru Kabir Jayanti. In addition, bank branches in Mizoram will remain closed to observe Remna Ni, a regional public holiday.

However, bank branches in most other states and Union Territories are expected to function normally as June 29 is not a nationwide banking holiday.

Will online banking services remain available?

Even when physical branches remain closed, customers can continue using digital banking facilities. Services such as internet banking, mobile banking, UPI transactions, ATM withdrawals and cash deposits at ATMs will remain operational.

Customers planning to visit a bank branch are advised to check with their local branch beforehand, as holiday schedules may vary depending on the state and local observances.

Continue Reading

India News

Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

Published

5 months ago

on

February 1, 2026

By

Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

Continue Reading

Trending

© Copyright 2022 APNLIVE.com