Lay-offs fine, downturn should not be the excuse: Murthy

By SiliconIndia  |   Friday, 27 November 2009, 09:28 Hrs   |    7 Comments
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Lay-offs fine, downturn should not be the excuse: Murthy
Mumbai: Layoffs are an inevitable aspect of the corporate world, especially in recession. But a poor economy should not be an excuse to cut jobs, says NR Narayana Murthy, Chief Mentor of Infosys. "In today's economic downturn, the challenge lies in having the courage to set an example that responsible profitability is a realistic achievement. And by using data to demonstrate that it is possible to preserve jobs in an economic downturn, while innovating to increase profits, productivity and efficiency," Murthy said.

It is simply too risky to pour money into projects or assets that may or may not yield the desired results. Therefore, from the perspective of resource management, there is a compelling case to be made for creative thinking and innovation to create new productive and efficient solutions from existing resources, he said. "The other imperative of Indian companies is to improve the lives of the largest number of Indians because that is how you can make this a better society," Murthy added.

India needs to find a balance between remaining competitive and being financially secure and stable in a troubled economic climate, Murthy said. The Indian corporate sector has been extremely fortunate in escaping the worst of the global financial crisis. While U.S. and other western countries posted sluggish growth rates and witnessed spiraling unemployment, India's economy grew 6.8 percent during the financial quarter in June, up from 5.8 percent in the previous quarter, Murthy added.

"Despite the relative health of the Indian economy, we should be mindful of the fact that the danger of an economic downturn in India has not yet passed and situation could change rapidly," Murthy said. We must be alert and careful to temper our optimism with realism, he added.

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Reader's comments(7)
1: I am saddened to note this coming from Shri Narayana Murthy after so long- one year has passed since Infy, TCS and Wipro started suddenly using performance management system (PMS) to layoff people! Does it mean they were sleeping all these years without a PMS?

Instead of using Indians for Indian Projects-they went into knee jerk reaction and sacked many honest and hard working Indian IT professionals to favor foreigners and NRI. This is know in all IT companies!

In fact they created slow down in India! Why did they not go to Indian government and put all resources to do e-governance projects in India. These IT pros could have been given half salary instead showing DOORS! We don't have any safety net like the Westerners have! No Dole system! To show off on wall street, greedy companies have become heartless!

There is no humanity! Its all greed and lust that prevail in this society and even well known companies have fallen a prey! Where have all thought leaders gone? Shame!

Many leaders are diluting their own stake in these companies!

pravi202 gmail com
Posted by:Ravi Parthasarathy - 27 Nov, 2009
2:
Your perfectly right, please know about ethical, we dowant theory, we need practical implementation
Vinay Replied to: Ravi Parthasarathy - 27 Nov, 2009
3: here people are either let go, laid off, they give up a few days of income so that the company can survive (to keep at least "some" workers), or the company goes under altogether leaving no jobs. So your backup plan needs to be benefits the government gives out for unemployment and food, and then a dependence on family if one cannot find another job or another job quickly.
Posted by:Christie Fox - 27 Nov, 2009
4: The dim whits at TCS are laying off. TCS has no real intellectual property and it's internal library is useless. The culture does not allow for sharing or horizontals and verticals working together. Each and every proposal is done by the seat of their pants and the resulting SOW is a kluge.
The company's culture is so screwed up that Infy and Wipro will be beating them at every turn.
Posted by:Samuel Adams - 27 Nov, 2009
5: It is always bad when companies use recession as an excuse to sack people.
Posted by:Salim - 27 Nov, 2009
6:
I am feeling very positive after reading this article. coz i was thinking that all entrepreneur are same nd they all r using recession as in excuse to hire freshers on a lower packeage.
Tarun Bansal Replied to: Salim - 27 Nov, 2009
7:
what Murty told i.e wrong. Why Layoff. After that what type of job he would accept. Infosys is not a good company as compare to IBM & ACCENTURE. My suggestion better to avoid layoff & give the time to the candidate to serch other job.So NARAYAN Murty he has to revert back his own voice.
Monalisa Das Replied to: Tarun Bansal - 27 Nov, 2009
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