Wipro has said that the sacking comes as a part of its 'rigorous performance appraisal process' that aligns its workforce with business objectives, strategic priorities of the company and client requirements'.


The company statement adds that this could lead to separation of employees and these numbers vary every year. While 600 to 2000 are being touted to be figures, the company has been tight lipped about the numbers. Now, Wipro is the third largest software services is also said to be pushed by investors for profits, and expected to report its fourth quarter results on 25 April.


This is becoming a trend, of sorts. Recently, Cognizant was reported to sack thousands of its employees as the company plans to adapt to the changing business model. A Business Standard report says that 10,000 employees are expected to be fired.


One of the main reasons for the layoffs, in both cases – Wipro or Cognizant, is widely reported to be automation replacing human force. With everything going digital, certain jobs are becoming redundant. And, this is believed to be slowly yet steadily becoming a norm across the IT sector. The report adds, "Analysts say the job cuts are directly related to the company’s use of both intelligent and robotic process automation to eliminate human contact."


This isn't all! It is also the time when IT companies are facing hostile environment with curbs imposed on H1-B visas. Stringent norms are being set by companies like the US, Australia and Singapore for hiring work force from other countries including India.


IT companies send employees to work on the client side using the visa programmes offered by these countries. However, the new norms are placing hurdles in doing so.  IT companies reportedly get more than 60 percent of their revenues from the North American market, 20 percent from Europe and the rest supposedly comes from other countries.


These norms, coupled with automation and Artificial Intelligence, are posing tough challenges to IT companies. Now, it is to be seen if other companies will follow the same path.


With inputs from PTI