IT service companies to suspend hiring this year: Mohandas Pai

India’s information technology services industry would see hiring freeze this year, and top-level staff would take a 20-25 percent pay cut due to the adverse impact of the coronavirus pandemic, says the industry veteran of TI TV Mohandas Pai.

Former Chief Financial Officer for IT services, Infosys Ltd, said the IT industry has done a “fabulous, incredible and remarkable job” in transitioning more than 90 percent of its employees to work from home.

He has accomplished this task by establishing infrastructure in the home, obtaining permission from his clients, and ensuring that “security and supervision are there.”

The chairman of private equity fund Aarin Capital and Manipal Global Education said that 25 to 30 percent, may be more, that employees of IT companies will always work from home on a rotation basis, even after the blockade is lifted. inflicted by the coronavirus and the situation returns to normal. .

Speaking to P T I, Pai said he does not expect demand for office space in the IT sector to decrease in the future because companies now would need to maintain social distancing in their small office space.

“Now, with social distancing, more space per person is needed. Therefore, the 25 percent who work from home will provide additional space. I think the office space for people would grow; therefore, during the next year, the market (office space segment) could be very smooth, and then it will grow at the normal rate, “he said.

On the arrests in some quarters about job losses and pay cuts, Pai said IT companies would not hire more and suspend recruitment, except to meet commitments already made.

“Secondly, if people leave, I don’t think they will fill the order book, because this quarter and next quarter, the market is going to be weak. All the clients are in the West, they have not yet opened their offices, yet they’re going through trouble. So I think next year there will be recruitment, this year it will be smooth, they (IT companies) will not grow (in terms of) people, “Pai said.

“There will be salary cuts. There will be promotions but no salary increases for most people. For the top tier they will reduce salaries to adjust costs. People who earn Rs 75,000 to Rs one lakh and more per month will see salary cuts , it can be 20-25 percent, “he added.

Pai sees no pay cuts for staff who receive less than that.