IT job loss at satyam and other Indian companies

This was the news no one was expecting from any Indian companies. Everyone was aware that the recruitement was at its lowest or practically non-existence in the Indian IT sector for last six months but all of a sudden future of over 50,000 employees in IT will come to an practical end was unimaginable.

Well, there has no been any formal announcement of job losses at the company but it is anyone guess what will happen to the workforce when they do not have senior management in place and I am sure most of the customers will cancel their projects with a company involved in huge financial frauds. Client will also give much more credibility to the allegation by the World bank about the irregularities in the invoices from Satyam computers.

As such the software companies have no assets of any value. They run on knowledge of the employees and trust from their customers. Though the employees will have very little option to go elsewhere because other companies are not recruiting anyway. But the customers have option to run away from the company.

Some of the most talented executives will still be able to find jobs in Infosys, Wipro and TCS and this will reduce the chance of Satyam computers to compete with these rivals. Good enough, average and below average employees will be one who will be left on bench for some time in the company. As the share price have gone down drastically and it is no more listed on NSE, the company will find extremly hard to arrange for the cash to pay the salaries.

I can only wish good luck to the employees of the Satyam computers. Poor chaps decided to become IT champions and earn good bucks but will have really hard time.