HOME > FIRST ON ULTRA > Cognizant layoffs may be heading to TN labour courts as FITE preps petitions

Cognizant layoffs may be heading to TN labour courts as FITE preps petitions

Forum for IT Employees or FITE — an organization that claims to speak for ordinary IT workers — said a group of employees of Cognizant Technology Solutions will approach the office of Labour Commissioner of Chennai today.

“Affected CTS employees file petition to the Labour Commissioner in Chennai,” the organization said in a communication to its members.

The filing of the complaint, it said, will take place at 2 pm. Two years ago, the organization had spearheaded protests against employee lay-offs at Tata Consultancy Services.

FITE had earlier urged employees not to submit their resignations if asked to by the company, asking them to instead explore their legal options.

Establishments coming under the Industrial Disputes Act have to provide compensation in case of lay-offs, but these provisions are not applicable in case the worker submits a resignation letter.

UPDATE: Cognizant said it will let go off more people this year and shut down some facilties.

There is still some confusion about whether the Industrial Disputes Act — aimed at resolving disputes between workmen and the management in factories — will apply to the IT sector. However, at least in Tamil Nadu, the government has taken an accommodative stand.

In 2016, Kumar Jayant, principal secretary for Labour and Employment of the Tamil Nadu, said IT services sector was covered by the Act. “IT company employees are free to form trade unions and can redress their grievances through evoking the provisions of the Industrial Disputes Act,” he had said.

Thousands of employees of Cognizant are reported to have been laid off or forced to step down in the last few weeks after completing their annual performance appraisal.

Cognizant was the first of the big IT companies in India to conduct the annual appraisal, which was completed in February-March.

Wipro and Infosys are conducting their annual appraisals, while Tata Consultancy Services too has largely completed the process. TCS too was in the news a couple of years ago for allegedly firing thousands of managerial employees.

Wipro too is learnt to be firing hundreds, or even thousands of workers, but the company has refused to reveal a number or estimate about the extent of lay-offs. It said that the matter is an internal issue and not something for public consumption.

Indian IT companies have faced a reversal of sorts in recent quarters due to rapid changes in technology.

While earlier, companies engaged in activities such as manufacturing, retailing, mining and other services relied on ‘local software’ installed on their office computers to meet their IT needs, most are now moving to cloud-based software.

As a result, they no longer need huge number of system administrators, testers and customizers for the software that they use.

Moreover, even corporations that work in IT-heavy sectors like finance — which do a lot of IT development — are also leveraging alternative technologies such as cloud computing and artificial intelligence to cut down on their IT costs — impacting outsourced Indian suppliers.

The problem has been compounded this year by the new American administration headed by Donald Trump, which is in the process of forcing Indian companies to stop sending lower-paid workers from India and instead use local US recruits.

This is expected to increase the cost of IT services provided by Indian IT providers and deprive them of one of their key selling point. The move also expected to further accelerate the adoption of cloud-based, non-labor-intensive solutions by clients.

Around 4 mln people are employed by the outsourcing industry in India, and the sector contributes about 10% of the GDP.

ALSO SEE

LAYOFFS: Cognizant says will optimize employee costs this year

Follow ULTRA.news
Cognizant says will layoff employees, close facilities this year Cognizant, one of the largest employers in India, said it will let go off some of its employees and shut down some of its facilities as part of its ongoing shift away from traditional outsourcing to 'digital transformation work'.The company said it is 'accelerating its shift...
TCS opens drone facility in the US Tata Consultancy Services said it has opened its first research lab for drones in the US at its Seven Hills Park Innovation Center located in Cincinnati, Ohio.The lab will address the rapidly expanding demand for unmanned aerial vehicles and business Solutions across industr...
Larsen & Toubro Infotech changes to ‘LTI’ as it seeks an independent identity Larsen & Toubro Infotech, which started out as a unit of construction major L&T, has rebranded itself, dropping its parent's name from its own and projecting a more independent brand.The new logo reads 'LTI' in blue, bold letters with the tagline 'Lets Solve', and the new br...
Wipro rebrands itself, reveals new logo Outsourced services provider Wipro Ltd said it was undergoing a rebranding to reflect its evolving business."The new brand identity signifies a higher level of engagement and brand permission that helps clients leverage Wipro’s expertise to address their business requirement...
Bots cut Wipro employee strength by 12,000 A NASA RobotA pioneering artificial intelligence program that started getting deployed around mid-2016 has helped Wipro Ltd reduce its employee numbers by 12,000 people, the company said in its recent quarterly update."The HOLMES platform generated productivity worth ove...
Wipro refuses to reveal how many employees are being laid off Wipro Ltd, one of India's top employers, refused to confirm the exact number of people that it was laying off as part of its annual appraisal process."It is part of the internal appraisal process," company officials said, refusing to go into further details.The media ha...
Indian IT industry facing layoffs as conditions worsen, warns Assocham Trump unveiled his 'Buy American, Hire American' program yesterdayIndian IT companies are bound to see "some laying off" of their work force back home due to various negative forces impacting the industry, Assocham -- an association of various industries -- warned."With ...
After Cognizant, Wipro employees on edge as annual appraisal starts India IT growth: Nasscom Strategic Review 2016Employees of Wipro Ltd are nervous as the information technology giant has kicked off its annual appraisal process this month.The first of the several reviews, known as L1 or level 1, has been completed, and at least some emp...
WATCH LIVE – Moving towards a less visa-dependent model : TCS New TCS CEO Rajesh GopinathanTata Consultancy Services has reported Q4 revenue of Rs 29,642 cr, a decline of 0.3%, and said his company will wait and see about new US visa regulations that are scheduled to come out today.NEW VISA RULESOn new visa regulations expected...
Govt likely to intensify efforts to create All India Judicial Service High Court of Karnataka, DharwadDespite setbacks and opposition from both state governments and the judiciary, the central government is not ready to give up the proposal to set up an all India service for recruitment of judges modeled on the Indian Administrative Service an...
We expected better numbers: Vishal Sikka of Infosys Infosys Chief Executive Officer Vishal Sikka said the company's performance in the January-March period was below his expectations for various reasons."It is a challenging performance," Sikka said in a post-result press conference. "We were expecting a higher number," sai...
Infosys guides for FY18 growth of 6.5-8.5% in constant currency Infosys Q4 resultsInfosys Ltd said it expects its revenue to grow by a modest 6.5-8.5%, stripped off the impact of currency movements, in the year that started this month.The street was expecting a guidance of 7-9% growth.The guidance is well below the traditional gu...
FITE urges Cognizant employees not to submit resignations FITE rose to prominence protesting layoffs at TCSForum for IT Employees or FITE, a web-based IT workers' collective, has urged employees of Cognizant Technology Solutions not to resign voluntarily if asked by the company's human resources department."If the employee resi...
DoT lifts freeze over BSNL’s 2016 JE exam, document verification starts Students attend an examThe Department of Telecom has lifted its freeze over the recruitment of 2,700 junior engineers into Bharat Sanchar Nigam Ltd, India's state-owned telecom operator.The results of the recruitment exam, conducted in September last year, were put on ho...
Fitch withdraws ratings on Rolta India Fitch Ratings has withdrawn its ratings on India-based Rolta India Limited, after the Indian IT company said it was no longer interested in continuing with the arrangement."Fitch is withdrawing the ratings as Rolta has chosen to stop participating in the rating process. T...
Wipro buys InfoSERVER, a Brazilian IT outsourcing company Weeks after acquiring Appirio, Wipro is at it again. This time, it is buying InfoSERVER, an IT services provider focused on the Brazilian market, for $8.7 Mn (Rs 60 cr). Two-decade old InfoSERVER provides custom application development and software deployment services, th...
Tech Mahindra opens robotics, AI and digital services center in Dublin IT services provider Tech Mahindra opened a new facility in Dublin, Ireland to focus on emerging technologies such as Robotics and Automation, Business Analytics, Cloud Infrastructure and Digital Services.The new centre would employ around 150 engineers over the next three ye...
TRUMP THREAT: TCS not worried, says we’re not the villains source: NasscomTata Consultancy Services, the largest Indian-owned outsourcing company, said it is able to manage with 75% less new visas this year as it has changed its business and recruitment models in recent years. It also said that outsourcing was key to protecting US j...
N Ganapathy Subramaniam appointed new TCS COO COO N Ganapathy SubramanianTata Consultancy Services said it made two appointments in the wake of the departure of Chief Executive officer N Chandrasekaran: N. Ganapathy Subramaniam, elder brother of outgoing CEO Chandrasekaran, has been appointed as the chief operating offi...
BSNL JE 2016 recruitment frozen after complaints to DoT – CMD Shrivastava BSNL Chairman and Managing Director Anupam Shrivastava said the recruitment of Junior Engineers (JEs) into the telecom company has been frozen by the Department of Telecom on the basis of complaints."It is being held up by the Department of Telecom... due to complaints," Shri...
Industry welcomes move to include made-ups in apparel package SIMA has welcomed the move include made-ups in the apparel packageThe industry has welcomed the move by the government led by Narendra Modi to extend support to the made-ups export industry and said it would help the sector break out of its current slump.The cabinet had ...
Exports increase share of jobs in India – Study A new study by the Exim Bank has found that around 15% of the total jobs in India are related to India's exports sector, including both IT, BPO and material goods such as garments.The total number of jobs supported by aggregate Indian exports increased from about 34 milli...
‘Book My Chotu’ sends helpers to stand in ATM queue for you @ Rs 90 Bookmychotu.com, which providers helpers and handymen for various household and other chores, is now offering to send people to stand in queues in front of ATMs at Rs 90 per hour.An eight-hour shift for a 'chotu' costs Rs 550, or Rs 69 per hour."Are you short of cash? Nee...
Hiring slows in October due to festival effect – Naukri.com Hiring activity fell 8% October this year compared to the same month a year ago, according to Naukri.com's Job Speak Index.This dip was primarily caused by the festive season which saw Dussehra, Durga Pooja and Diwali fall in October, the company said. "Hiring activity ge...
Ramco Systems wins Rs 53 cr contract from German logistics company Ramco Systems Ltd. said it secured a 7.3 million euro order from Schenker AG for implementing its Ramco HCM & Payroll software.Schenker AG is a German logistics company and a subsidiary of Deutsche Bahn, the German railway company.DB Logistics offers land, sea, and ai...