In an increasingly flat world, significant complexity and uncertainty is getting attached to the unprecedented economic crisis. The Indian economy has also been impacted by the recessionary trends, with a slowdown in GDP growth to seven per cent. The focus and exponential growth in the domestic market has partially offset this fall and insulated the country, resulting in net overall momentum. The IT-ITeS industry in India has today become a growth engine for the economy, contributing substantially to increases in the GDP, urban employment and exports, to achieve the vision of a “young and resilient” India. During the year, the sector maintained its double digit growth rate and was a net hirer. This growth has been fuelled by increasing diversification in the geographic base and industry verticals, and adaptation in the service offerings portfolio. While the effects of the economic crisis are expected to linger in the near term future, the Indian IT-BPO industry has displayed resilience and tenacity in countering the unpredictable conditions and reiterating the viability of India’s fundamental value proposition. Consequently, India has retained its leadership position in the global sourcing market.
India is now the leading country in providing IT Enabled Services in the world. According to a recent study, Indian IT & ITES is expected to grow at 10.8% in 2009, the lowest in the last five years, due to the current global meltdown. But in next four years, it would grow at 13.9% to touch revenue of $110 billion. NASCOM, the premier institute which manages all the IT and ITES companies in India, estimated that the revenue of the IT Enabled Services will cross the revenues of IT industry by 2010.
The export revenue generated from ITES is about US$ 47.5 billion and has a projection of more than US$ 86 billion by 2012. Recession has brought an era of gloom and doom for HR and in the present scenario it is buzzing with terms such as lay-off, cost cutting, right-sizing and cash conservation and presently these are the defining terms. Infosys, Wipro Technology and TCS Ltd. have also economized through the reduction of power consumption, cutting travel and postponement of capital expenditure
This paper attempts to highlight various issues and dimensions of HRM during the time when organization experiences market upheaval posed by recession.
Ups and downs are the basic nature of a country's economy as well as organization. It must be remembered that there is always light at the end of the tunnel. Even though the road towards the tunnel may not be devoid of roadblocks, nevertheless, a little bit of optimism can make all the difference. Time will come when black cloud hovering over Indian Economy will be cleared and there will be sun shine every where, that is perhaps what P.B Shelly in his master piece, Ode to West Wind, meant when he said: "If winter comes, can spring be far behind?" No matter how big the problem is, no problem is insurmountable. (Dr Robert H Schuller's Tough Time's Never Last, But Tough People Do.)