IT bubble has not burst yet, but it's certainly leaking
The IT sector has its hands full this year with sub-standard performance; muted growth and Trump's H-1B visa policy eating into profits. By the looks of it, the worst is yet to come, as these circumstances would continue to disrupt proceedings. Unless there is a way to stop the plummet and stabilize the sector, till then, it's pure chaos. Here's all about it.
Hiring will come to a standstill
The present approach of the IT sector resembles cutting off a limb to save the body routine. In a bid to keep the operating costs under check, the IT giants will have to go on a hiring freeze, which would cost them dearly in the coming years. An IT industry that's stagnant in talent acquisition is a recipe for disaster.
Working around the problem
The firms have already initiated mass layoffs to eradicate what they are calling an "unproductive workforce," but in the process, they are also losing skill sets that took years to develop in-house. Firms are now planning to walk the middle path and hire semi-experienced workforce with 2-3 years under their belt to fill the void and keep salary costs in check.
The Trump-et is too loud for them to ignore
The IT sector will also have to adjust accordingly with the H-1B visa policy breathing down upon their neck. Offshoring may again be back in the cards in order to keep the delivery costs from ballooning out of proportion. Clients have to be coaxed to increase their offshoring limits if the firms want to survive in these troubling waters.
Running against the clock
Desperate times call for desperate measures but the massive number of casualties, the IT companies are leaving behind during their journey to sustenance, poses a grave concern. Upcoming quarters are going to a give a premonition about where the IT sector actually stands at the moment and most importantly, will the industry reach a further low before it again starts to show promising returns.
