40,000 middle-level IT professionals in India may lose their jobs in a year


New Delhi, In a bid to slash expenses and resources to battle mounting costs, the technology services companies may shed as many as 40,000 mid-level jobs by next year.

According to the report, one fifth of the work force across IT companies comprises of mid-level resources, with work experience of 10-20 years. So, this figure comes close to 6,00,000 professionals, which means about 7% of mid-level IT professionals could lose their jobs in the next 12 months.

A typical pyramid structure is followed by the Indian IT firms. At the wide base it has more employees with less cost per head, the mid-level comprises of  experienced professionals, while, at the top there are senior level decision makers.


With weakening business, companies are in the hunt to shed the mid level employees with experience in the traditional services which have a shrinking future-demands. Instead, the companies are looking to have relatively low-cost resources, with expertise in newer digital skills.

“I don’t think people have the luxury to carry on in a long term cost structure. Profitability is a concern and everybody is walking a tightrope,” Rituparna Chakraborty, cofounder of TeamLease, a staffing company was quoted as saying.

“While reduction of people is not the first choice for any organisation, there is little choice for companies than to let go people either not performing or adding value,” Chakraborty added.

Employing over 3 million people, India’s software industry registered 137 billion dollars in exports in FY19. The top six Indian IT services firms have earned a revenue of more than 60 billion dollars and employ more than a million professionals.

These firms are seeing revenue from traditional services, such as application development and maintenance contribute two-thirds of their business, either drop or remain flat. Only the newer digital services business is growing faster – in double digits.

“As in all sectors in the west, in India too, when a sector matures, there will be many in the middle level who will not be adding value to the salary they get,” former Infosys board member TV Mohandas Pai was quoted as saying in the media.