Reality of High Utilization | IT Layoffs 2024 - Will TCS Wipro Infosys FIRE Bench Employees?
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- Опубликовано: 3 июл 2024
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IT layoffs 2024 in India have been a tough phase for all IT employees. The future of IT industry looked shaky because of back-to-back TCS Layoffs, Infosys Layoffs, and Wipro layoffs as well. In this video, we try to cover how bench period in TCS or bench period in Infosys is linked to IT layoffs 2024. IT layoff news can be predicted with some certainty if we look at the TCS bench policy in the last few years.
Bench period in WIpro or bench period in Capgemini is very similar to bench period in IT companies across India. During this period, an employee is not actively working on any project. Did Infosys fire bench employees during the recent infosys layoffs? This question can be answered if we look at the historical employee utilization data from different IT companies.
Starting with TCS, we can notice that employee utilization has dramatically increased over the last few years. This means that more TCS employees are now working on active projects rather than being on the bench. This can sound like positive news until you hear that this might be because of the clients’ unwillingness to pay more for the IT employees at TCS. Bench period in Cognizant and bench period in HCL can also be linked to the news related to their hiring slowdown or even layoffs.
IT layoffs India have definitely been impacted by the bench period in IT companies. The future of IT Industry India depends on the factors related to the bench period policy in various IT companies. TCS bench policy or Wipro bench policy may have a big impact on the layoffs 2024 and the way it impacts the overall future of the IT industry in India. Hope you find this video valuable, see you in the next one.
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Chapters
0:00 - Intro
0:30 - Utilization Metric Importance
1:08 - What is Utilization Rate?
2:22 - Old Utilization Rate
3:13 - Why Utilization rate increased?
6:03 - Bench to layoffs
6:56 - Banking Collapse
8:31 - Impact on IT Employees on bench
10:14 - Outro 
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Clients don't know how AI helps. So how clients can Automate tasks by themselves without help an IT company?
Your explanation of utilisation missed a very very major point. The utilisation rate, is factoring in ALL employees including HR, Senior management, sweepers, electricians, etc. Obviously the admin, and sernior management and people like VP's, many DM's, sales. etc do not get billed. Thats the reason even if EVERY programmer worked 100% billable and the bench was zero the utilisation may still not show 100%. Infact in the current mix of the indian IT sector about 15-18% of the staff is non-programmers. So the utilisation of 85% is probably the peak any organisation can achieve in the current indian IT services sector.
Nice content pavan sir kindlly guide me I am working in public sector bank as manager (age 35) I would like to shift my career by learning latest courses on Artifical Intellligence or data analysis . Kindly guide me right courses to learn
@@505sudhakar Hi one of my friend has the same story and he has also done a course from OdinSchool and right now working as data analyst.
It is not at all because of Ai. There is not enough enterprise use cases of gen ai. It is more of supplementing contact centres and not really replacements. The reality is interest rates have been persistently high and that has caused a dip in client spends and especially the discretionary spending has been affected. The portfolio size of cost transformation multi year deals have only gone up. Liked how you packaged the course by using gen Ai as the reason 😅😅
You are correct bro, none is using Gen AI
Hype about Ai.. these guys want to show profit due to recent hike I'm employee salary.. that's why they are forced to increase utilisation rate.. else profit will go down.. attrition rates are helping them now..
You're right, Definitely not GenAI
Kartik's utilization rate: 100 %🗿
Kartik's pay rate: 5% 🤡
Karthik is not sexy in the job market to get laid with another employer
Maybe Kartik is working in TCS
I have over 2 years of experience in genAI, but I have been unemployed for the past 4 months. Despite the hype around data science and AI, I am finding limited job opportunities, with most requiring 5+ years of experience
Few opportunities and exponential rise of alicante is dooming the job market.
Gen AI is as good as the EV cars in India. Hype is there but economies are missing. Moreover when the thing is bad, companies focus on fiscal prudence and cost cutting. The great money printing saga has come to an end.
Yes you already mentioned. AI is a over hyped topic. No values as people think. It is just an international over hyped thing
Do you have experience in building ML models, MLOps. Because there is very little to do in GenAI.
Problem of management is they do not give opportunities to internal employees which are on bench (experienced or fresher )rather they hiring from Other organisation with more packages 😅. Reality of Service based company.Always try for job in Product Based Companies
Such mgmt is called sick mgmt
So true. Bullshit management
I am from the 2024 batch and received an offer off-campus, but now I got the email that the graduate trainee role has been withdrawn. 😢 I can't understand what is happening. Also, in college, companies come, but mainly they hire girls. 😢"
Keep trying other companies! There are plenty you'll get better
Hi Pavan, can we have a video on how and why most IT firms in India arrived at a 3 months notice period? Why is this not moving back to 2 or 1 month , given the murky project prospects in 2024?
None of these labour laws apply to IT services firms...so no one can even challenge a 3 months notice in contract/appointment letter!
Thank you sir for this and congratulations for sponsorship 🎉
that is why India sucks, as more and more supply increase, the condition of IT in India is going to degrade more, I am 100% sure , unless demand increase drastically , IT sector is going to great downfall.
Unless and until hiring back to normal.......
Write or not???
Unless the west comes out of recession , especially stable banking and interest and starts investing in new areas , the situation won't improve,
Mass hiring needs mass waterfall projects and not maintenance projects...
True
Very insightful analysis
This was the most insightful and calm video I saw in a while. Excellent explanation @pavan satiraju. Keep up the good work
I think it's not only genAI but also a level of saturation that has reached the tech sector where there r less project renewals and more supply, so it's difficult to allocate ppl .... i guess this happens with every industry post 30 yrs of domination, be it bcoz of AI or bcoz of too many ppl in 1 industry eyeing for pie in the sky.... let me know of ur thoughts
Really great content Pavan. Thank you 😊
Forget Utilization matrix just compare ceo salary with employees in tcs,Wipro and Infosys. Truth is clear.
Points you broadcasted is True. Evening as Junior role and in morning lead/managerial role, apt saying.
In 2021-2022, bench utilization rose to 90-95% due to high attrition, that's why they were hiring like crazy.
Hey Pavan
I have been following your channel over 3 months. Appreciate the contents. I feel your explanations are much more succinct and sensible over other news channels such as First Post and many more who try to blame international companies. And your view is always bang on the individual’s ability to handle the situation and thrive.
❤️ continue to shed your light, all the best.
I work for a product business(a company that was acquired) within an IT services giant..so it's a bit different because a product businesses work a little differently....so how will that affect someone like me...
Depends on your sales team
Thank you Pavan for sharing your thoughts. I dont see a logic in your mention of reducing billing rates leading to higher utilisation, it cannot be because the same resource weather paid 40$ or 50$ is expected to deliver same amount of work per day. In my opinion, there is a strong competition now in Indian IT firms and on top highly matured processes, hence the higher utilization. Layoffs will be invitable because Indian staff is no longer cost advantage and % of westerns graduating in IT is higher and govts are compelled to create local employment.
We are yet to feel the impact of Gen AI........ Infy has been getting some great projects in Europe especially UK.... most of the numbers are fudged to use it to lay off and squeeze the staff
It's bcoz of rushi sunak😅😅
See how humans are treated as product . This is ruthless how can someone work without a reasonable break
We are treated as machines and raw material. Employers are using us and throwing away.
Working in Infosys currently as a Project manager.
The work has doubled for me since i joined last year. Now I understand why
Hi Sir Can you😢 make a video on areas of improvement in edtech companies focusing on IT as feedback I got is they don't give importance on where learners are struck up simply focus on Making videos and giving access to Students or learners doubt nut has focused on this Clarifying doubts for JEE but not successful
(When IT companies do not focus on employees training can training companies work on win win for Training companies and Students)
(No training company focus on really buying a domain and give access to students to give real-time exposure to How websites work specially to BTEC students)
Please make a video on GCC (Global capability centre)
IT layoffs always arrives in wave, the good thing out of it is that a lot of amazing talent will support the next generation of startups and disruptors. I'll surely hire some of them in my next endeavor.
It's all going downhill from here. Rather than explaining requirements to Offshore Team, if we explain it to GPT, we will get immediate output.
Waiting for 100k subscribers. 😊
In USA TCS guys layed off 1800 employess without proper notification even they we got selected without listening they wantedly kept us unallocated and removed us from the company
If someone is in onshore with non billable means they do layoff
@@VM-zp1cz but i got allocated in one project billable they just layedd off not only many people in TCS usa they are wantedly keeping us unallocted and removing us
@@jagdishchandra5220 because onshore billing rate is higher than offshore.. so they converting more opportunities in India... Rather than US...
@@rameshpandian3220 even thogh after geting allocated why are they removing employess
@@jagdishchandra5220 let me explain clearly... Allocated or de allocated.. not make sense..client budget margin overall.. let say customer demands I will give this much budget.. you should run business in USA... If budget is less to run business in USA.. then those business get moved to offshore.. like India APAC region.. by the by which customer u billed into.. and how many years of experience u have.. what skills.. ??
😢 completed engineering in 2022 still didn't get any job..
Now started water filter buisness and it's going good with decent earning💲
Guys keep plan B don't spend too much money and time..
Do job that you get ..
From where did you learn
@@vijaygupta7066 MET's institute of engineering nashik
@@vijaygupta7066 MET's institute of engineering nashik
@@vijaygupta7066 MET's institute of engineering nashik
@@vijaygupta7066 pune
FYI - All major service based company started layoff in onshore still the reaction yet to hit in India
But not much news coming out..?
Who said here in Bengaluru IT capital of India , there is a tec recession going on from 2022 till date nobody is talking about this …. So many are unemployed
Great explanation Pavan. Thanks.
Q-Do clients pay for hours or quantifiable work? Pay for time or pay for Task/outcomes/results which are scientifically measured?
Kindly enlighten us on how the billing rate of 30 or 50 dollars per hour is decided by Infosys or if there is any Industry benchmark rate platform to get the billing rates? Any exchange that provides the billing rates?
Q-What about the fixed price projects? How do IT services companies decide what would be per employee productivity measure to tie to back to the project cost or profitability, etc?
The video is miss representing the market and going with the hype for genAi. Overhiring (move from it to core tech) , covid disruption and especially fall in european and non us economies are the main reasons.
Good to know about this metric but can I know the utilization rate in financial services industry Sir?
It is very high!!!
Lets be clear IT organization are concentrating only on international organizations revenue, we in india have long range of small cap, mid cap and PSU units which may require the latest IT services, here the revenue can be generated which is not been considered,
True Pavan it company will start layoff
We Feel Like Cheated When You Do Ads But Dont Say You Doing Ads of something. Even when google show ads there is small icon of 'ads or sponsored' is given on every item but you don't.
Arey bhai, i show right at the front that there is a paid promotion
My utilisation is 104% 😌
Nice
I'm teach layoff candidate
Why Infosys and Wipro hire students of 2022.....?
These companies build high infrastructure during the MOU with the government they will mention that some percentage of employment will offer on a yearly basis and other benefits purposes just hire and fire that is business
ok, i get the moto, first create subject according to your ad source, then create content
I wish I am that good:)
From Jan 1st to till date infosys already laid off more than 10k employees and it's already planned that more 10k will be laid off by 31st March. Infosys is going to create record by doing mass layoff
They are hiring on contract
Yes TCS is planning to fire employees in next quarter.
Is it true??? 🤔
Wrong interpretation of 70% utilization of each employee during 2013 or ealier. Only low performer employee would to have less utilization. Otherwise every employee have target utilization above 80% in last decade also.
Software engineers have to get ₹10 lakh per month without work because they are BL IT companies
That Palkhi from wion and you racing on predicting about IT layoffs....and I see this attracts lots of views...
Is it a good idea to shift to Infosys now from a product based company -- what do you think ! Thanks in advance for all help.
Be in product based buddy
Any day better than Infosys. Any bloody day
Not a good decision to move to infosys
All will die because if pressure
It seems there are less innovative and insecure mindset ppl at TOP mgmt. Who dose not have sufficient relevant industry or Technical knowledge and talking abt AI. Infact Layoff should start from such panicky ppl.
R u forced to create such videos to promote those courses?? Why u re creating FoMO in people??
Prathamesh, let me know if I am speaking something factually incorrect. I hope the videos will help individuals push themselves and act on it. Rather than getting scared.
Doesn't matter which course you choose - acting on it should be your priority.
Also, I was a data analytics professional a few years back. So, I know the importance of the field. Hence, highlight the same thing multiple times. And nobody forces me to do this:) It is my choice and I act based on my conscience.
😢😢
You can tell they are Squeezing all the blood out of employees.
Your channel has lost the moat. Initially i use to respect a lot, now ypur content is just to keep going than adding any real value. I still hav respect for your thought process and thinking logically but not to your content anymore
The snake 🐍 you fed so far is now coming after you 😅