October 2008: Credit Crunch & Tech Layoffs

This is not the golden time for tech community. Specially a lot of my friends in US and India are in fear of the recent layoffs of many IT companies. This is just another post October 2008 credit crunch effect, that is mainly affecting the BPO and IT industries which were mainly dependent on US based business.

Many start-ups in the US have started preparing for an uncertain economic future by cutting costs and improving on efficiency. And the most common way to achieve this has been through layoffs. Also many major players in the South Asian IT industries, such as Infosys, TCS, IBM India, Sathyam, Virtusa India, Virtusa Sri Lanka and many others have already started this and most of there core businesses were US client based. The companies that sustained this are the one who has there own products or the service based companies who focused on non-US markets.

I just think of all these as an undergraduate who is supposed to get into the industry in another 6 months. I hope things could get better in days to come, but still our IT industry should divercify itself to sustain this kind of cricis that could arise in future.

Few Related Links:
TechCrunch Layoff Tracker
Yahoo! News Full Coverage: Downsizing & Layoffs

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