The staff downsizing by a major player like L&T Infotech is one of the early signs of slowing IT spends in areas outside the crisis-hit financial services industry. Unlike the majority of Indian IT and BPO firms which earn a large part of their revenues from banking and financial services clients, L&T Infotech gets most of its revenues from manufacturing clients.
So far, most of the downsizing in the IT industry was a fallout of troubles in the financial services sector and in many cases, a direct impact of customers closing down and project cutbacks and delays. This is one of the first instances of an IT firm with significant focus on the manufacturing sector being affected. "Rather than give out pink slips, people are being forced to hand in their resignations," said one person familiar with the development.
Sources close to the company estimated the number of forced resignations till date to be around 100. Market sources, however, quoted a higher figure and said it could be as high as 5% of the company's total strength of 10,000. L&T Infotech responded to a mail from ET saying it had no comments.
In the past, the company's growth has lagged some of its larger peers because of its focus on the manufacturing sector. Financial services players have far more aggressive tech spends than those in the manufacturing. The latest Nasscom survey ranks the company as the tenth largest software exporter from India.
For the fiscal 2008, it had revenues of Rs 1,573 crore and a net profit of Rs 211 crore, compared with revenues of Rs 1,278 crore and a net profit of Rs 151 crore in the previous fiscal. The company had also had plans for an IPO and recently made a high profile appointment — Wipro's Sudip Banerjee — to the post of chief executive. At that time, V Magapu, who represents all the knowledge-based businesses on L&T board, had said: "The running team is ready. We are only waiting for the sun to come out of the clouds now," in a reference to the bear market. This wait may now be longer.
9 comments:
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onnu podai appi ...
I was working with L&T Infotech and was fired . Wish to only tell that L&T Infotech needs to shed a lot of the older lot at the DGM and GM positions. They survive on just talking and there is nobody really worried whether they are really contributing to the company.
Even I worked for lnt for more than 3 yrs. I know people who've been fired. They are not talented and they don't deserve to be in lnt. There are many such people in lnt who r surviving just coz of their so called yrs of experience in their resumes.
i was also a former employee of the company and i still do not understand the reason why they forcefully told me to resign and did not even let me use the bus service. took my ID and bus pass in such a shrude manner. I dont really understand y such inhuman attitude??
How about to break the bond in L&T without paying them the amount of 2 lacs ? ? will they take serious actions if we resign after 5 months f joining ? ? ? pls help me ., i'm in a dilemma so as to whether join or not ! bcoz my future looks like that
I have offer from LnT infotech Pune. I just want to know is it good company to join and how is growth there ?
Hello Rakesh..who told you that people who have laid off are not talented.i got a spot excellence award before a month i was laid off in Lnt.so do you mean to say that people who get spot excellence award are not talented..I recommend freshers dont ever join Lnt.They dont have enough projects and clients..
what about the growth in L&T??
I have not joined yer but m having the offer,what to do??
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