Latest reports from Indian newspapers suggest that the party may be coming to an end for Indian software developers whose rise has corresponded with a steady decline in fortunes for American programmers.
India’s leading daily The Times of India reports that Satyam Computers could fire up to 4,500 employees, about 9% of the company’s 51,000 employees.
With Lehman Brothers filing for bankruptcy, the fate of its information technology division in India, which is reportedly 1000 people strong, remains uncertain.
Bank of America’s acquisition of Merrill Lynch is another blow to both Merrill’s direct IT staff as well as programmers working on Merrill projects at companies like Satyam and Tata Consultancy Services.
Not surprisingly, shares of major Indian IT companies fell sharply in Mumbai today.
According to Bloomberg, Satyam declined 9.5% to 368.5 Rs, TCS fell 5.9% to 762.8 Rs; Infosys fell 4% to 1,578.15 Rs and Wipro Ltd fell 3.8% to 403.9 Rs.
Party Over for Indian Software Coolies added by SearchIndia.com on
View all posts by SearchIndia.com →
Scary news, indeed.. Many of those guys probably got a multi-lakh house loan even before getting their first paycheck.
But could it just be Satyam-specific.. struggling against the big 3?
SearchIndia.com Responds:
The worst is yet to come.
You write above: But could it just be Satyam-specific.. struggling against the big 3?
While Satyam (as you suggest) is the weakest of the big Indian IT majors (others include TCS, Wipro & Infosys), the macro-economic forces will leave no one unimpacted. The WSJ recently had a piece on how Indian IT majors are now aggressively focusing on large domestic IT projects.
Well, I am very keen to see what reasons infosys gives to fire their employees. TCS fired around 700 employees and said ” Performance based reasons, Fake CV’s Etc..”
Same reasons were given by Satyam and Wipro. But they all maintain the same mantra ” We dont have Fire policy in our company, We have not fired a sigle employee on bench till date !! ”
SearchIndia.com Responds:
The folks at Infosys are not saints. They’ll probably think of some BS to justify the layoffs.
just as we expected…….
SearchIndia.com Responds:
If Churchill were alive, he’d probably describe it as the beginning of the beginning.
Watching morning news in BBC World Business Report, I just wondered how these powerful business entities suddenly caught up in a storm.
This means, there’ll be aftershocks hitting all corners of the the world economy as it was already reported. Does the rulers of US have anything to do with this?
The mainstream media???? for hiding the fact from the general public??? the real facts behind US economy slides???
SearchIndia.com Responds:
You write: Does the rulers of US have anything to do with this?
Our prez is a dodo.
You write: the real facts behind US economy slides???
Wall Street’s greed & stupidity manifested in the sub-prime mortgage & its offspring, the CDO (Collateralized Debt Obligations)
just a recession would last for few quarters
party goes on !