IBM downsizing contract employees in India

Economic uncertainties among other reasons are shrouding the career prospects of several contract-bound employees of prestigious IT firm IBM, in the country. According to reports IBM has already begun downsizing its contract-bound workforce in India. A report in Times of India confirmed that since August, IBM has asked as many as 1000 of its contract-bound employees to quit the organization. 

Downsizing?

The report further suggests that while these employees work for IBM, they are on the payrolls of either some recruitment agency or some other IT vendor. The report further stated that factors like completion of existing projects and the increasing global economic pressure is affecting the demand of service clients. Furtheron, it is also being learnt that this trend comes up seasonally in organizations, wherein this particular quarter, each year witnesses a low trend in the business. During such times, instead of adding on to their resources, organizations look at optimizing the existing ones, which seems to be the case with IBM. 

However, this downsizing, it is learnt is not uniform across all vendors. Several vendors in the country claim to have not reported any such notice.