Does IT Companies Need to Fire Employees Due to Corona Impact

Does IT Companies Need to Fire Employees Due to Corona Impact

Does IT Companies Need to Fire Employees Due to  Corona Impact

The world is facing a tough time due to the new deadly virus named COVID 19 and it has taken the souls of many all around the world. So many countries have announced quarantine due to the virus spread, and this affected the usual life cycle of people for the past months. Let's see how it impacted the IT sector and the way to get rid of the absence of human power.

As of industry veterans, the IT sector has affected minimally, but still the minimal left scare that needs a remedy to get rid of it instantly. As we know everything has its pros and cons, the manufacturers of sanitizers are the only ones who can enjoy the time with the lucrative sales due to the virus.

There are so many prevention and screening activities are held by people from the healthcare sector, the beverage manufacturer PepsiCo announces a voluntary commitment to fight against the pandemic disaster by providing 25,000 COVID 19 testing and screening services with non-profit organization Foundation of Innovative New Diagnostics (FIND).

The Cause And Solution For The It Sector

The chief operating officer at Infosys, as well as vice-chairman of NASSCOM, Pravin Rao said that “The IT sector may see some indirect impact in the medium to long-term as some of the clients have exposure to manufacturing in China”.

China is the world’s largest manufacturing hub where so many IT giants established its branch offices with half of the local workforces. The virus outbreak will reduce the global GDP by almost 0.3% as of estimation by Economists.

Chief operating officer of Capgemini in India, Mr. Antoine Imbert said, "We don't see a big impact at this stage across global operations but we are analyzing our business continuity plans to see if more employees need to work from home. We have flexible work policies that can be leveraged in case we need it but there has been no need to take any specific actions right now. APAC is overall 5-7% of overall revenue so China is present."

As of the above statements from the tech giants has given a word of comfort to techies and business that deals with Information Technology.

Does IT Companies Need to Fire Employees Due to  Corona Impact

Remedy For The Lockdown

Even though the damage is minimal it may impact business activities for the short term or long term, there are some quick solutions to maintain a balanced business activity to withstand this quarantine.

Minimum Wages

The quick solution to leverage the business, as well as the life cycle of employees is to provide minimum wages that satisfy basic human needs such as rental allowance, food expenses to reduce the negative impact on both employees as well as the company.

For instance, Assume an employee is getting 30000 as a salary in an XYZ company, companies can give basic pay to the employees that are 40% of basic salary for non-metro cities, and 50% of basic salary for metro cities such as Delhi, Mumbai, Calcutta, Chennai. The above percentages are defined as Income Tax Department.

No Paid Holidays

Alternative no paid holidays are better decisions for employees when the whole country is on quarantine without downsizing, but still, companies may be forced to do that if the quarantine continues to shut everything.

For example, a set of people can work and get paid for January and a set of people does not work and get paid for a January. In the next month alternatively, people who got paid in January can be suspended for February and do not get paid for February so that people do not get paid in January can get paid in February. This can help people to survive in a tough situation without losing their jobs.