Indian IT services companies may shrink their workforce catering to the banking and finance sector by 5-7 percentage points in the next quarter, analysts and recruiters said after Accenture Plc. decided to cut 7,000 employees in India as part of a global layoff. Overall, the sector is expected to reduce 5% staff across business segments. “As one of the top consumers of technology, the BFSI (banking, financial services and insurance) sector’s shake-up and austerity will impact order books of the Indian IT services cohort. Margin-sensitive bellwethers will hence look at optimizing spending by resizing BFSI-focused teams," said Kamal Karanth, co-founder of Xpheno, a recruiter specializing in tech hiring.
More layoffs are on the anvil. “We believe a 5% to 10% headcount drop in BFSI-focused teams could be triggered to get through the stress of a larger BFSI shake-up. The next few weeks are critical to see if the BFSI shake-up will trigger the next wave of layoffs in the Indian IT sector," Karanth said.
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