The IT Sector in India is in turmoil. Many experts predict a crisis worse than the 2008 recession. A popular executive search firm Head Hunters India, has said that job cuts in information technology could be around 1.75 - 2 Lakhs each year.Just take a look at the layoffs in the IT Sector.
Infosys could layoff around 1000 senior, mid-level employees as it carries out bi-annual performance reviews. Employees are being laid-off in Tech Mahindra, Cognizant and Wipro. Media reports of IBM firing 5000 employees are pouring in. IBM has reacted to these reports saying, they are factually incorrect. If you are working in the IT Industry, you need to be very afraid.
So why are so many pink slips being handed out in the IT Sector? It's a double whammy of automation and lack of key skills like Artificial intelligence (AI), Big Data and Internet Of Things (Iot). It could be a while before these employees reskill themselves and make the digital shift.
SEE ALSO: Aadhaar Card Check Online
So why are job layoffs in the IT Sector, affecting residential real estate in India? Let's find out. Want to know more on residential land and apartments? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
Job Crisis: IT Layoffs Could Affect Home Sales
1. IT Sector drives the job market in India
The IT Sector has been driving jobs in India for more than 2 decades. It has fueled the consumption boom in the country. The IT Sector is the darling of residential real estate in India.Now, the IT Sector in India is laying off lakhs of employees, frightening major property markets in cities like Bengaluru, Pune, Chennai, Hyderabad and Gurugram. This has dealt a major blow to the housing market in IT hubs, which had just started to gather pace.
Many middle and senior level employees in the IT Sector with 10-12 years of experience, draw salaries in excess of INR 12-18 Lakhs a year. If you are a senior employee in an IT Firm, you can easily afford houses/apartments costing lakhs and even a crore in cities like Bengaluru, Pune, Chennai and Hyderabad.
Residential real estate is all about sentiment. This sentiment is fueled by a booming job market and rising income. Do you think the housing market is happy with employee layoffs in the IT Sector?
2. Homebuyers are reluctant to avail Home Loans
You and other citizens working in the IT Sector, like to avail home loans and buy your dream home/apartment. Apartments in Pune, Bengaluru, Hyderabad and Chennai costs lakhs and even crores of rupees.Home loan is a long term commitment. You have to pay home loan EMI's for maybe 15 or 20 years. Would you have the confidence to avail a home loan if your job is under threat?
Your confidence and that of many employees in the IT Sector has been badly shaken with all these layoffs. Do you think availing a home loan is a good idea in this season of layoffs?
So what conclusions do you draw from this article? IT and ITES in India, employ lakhs of citizens and are sacking many employees. Residential real estate in IT hubs are feeling the heat. IT employees who generally make purchases in the property markets of Bengaluru, Chennai, Hyderabad and Pune are reluctant to avail home loans and purchase homes and apartments. Residential Real Estate which was recovering from demonetization is again feeling the pinch. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.