IT Layoffs: The opportunity

Every now and again, IT industry layoffs in India (and other parts of the world too) create a furore and generate extreme reactions. IT companies declare that "its routine and is performance based", the stock market thinks that its a sign of a "slowing economy", non-IT folks think "it was overdue and much deserved for the obnoxiously high salaries that they get". Whilst, such layoffs are still a speck in the overall numbers, they should give an opportunity to the IT industry leaders and employees alike to rethink the way they work, train and deploy resources:

• Use this to cleanup the system, cut costs (not just direct employee costs) such as travel related perks, outbound program costs and other "non essentials". Gives employees a clear message that the IT business, like all other businesses, runs on the real business basics of Revenues Vs Costs.
• Give a message to society at large and aspiring IT aspirants in colleges and their parents that there is just that much growth that can happen in the industry and that IT engineers are just like all other engineers, where real business needs determine engineer demand. That there are many more sunrise industries that they should train for!!
• Gets the stock market to realize that IT has had its run of 15+ years and that they should look for other industries that has true intrinsic value
• Gives an opportunity to the IT industry to re-focus resources, manage the bench better and think of redeploying some of the bench costs to develop differentiating "products, processes and services" for the future. Get their best people on their bench and have them work on these, to create capabilities for the future. Juggle your bench to achieve this!!
• Give a clear signal by getting the dead wood out, but at the same time give a differentiated "fast track" to their best by motivating them to create value and a signal that they will be valued for their initiative and unique contributions.
• The public at large and IT engineer aspirants in particular that they need to train and (continually) work hard to retain their place in the industry and be part of the quality workforce that can then create differentiated offerings for the world.

The strengthening rupee and competition will force the IT industry to take these tough decisions, which in itself the IT industry has not been faced with or has been unwilling to do. The hegemony of middle level managers and HR managers who always seem to convey that they will lose their people if their salaries are not increased will also be held in check. These layoffs will force them to focus on other "values" such as responsibility, productivity, real motivation and leadership.

It will perhaps, also force a number of "over the hill" middle/top level managers who have reached their levels of incompetence to seek out other things to do in life and make way for younger, brighter engineers with new ideas!

Spring cleaning?