Categorized | Companies, India

IBM To 700 New Recruits – You are Fired

IBM had been on a full throttle drive to hire thousands of Indian engineering graduates when it hit heavy turbulence. Almost 700 newly recruited engineers have been fired by the American computer services behemoth when they failed to measure up to Big Blue’s standards.

700 is a big number and how much this affects IBM’s India operation would be hard to say but it would definitely be felt. No matter how big the talent pool is in India, the number of employable graduates is way less compared to the demand. According to rough estimates, only 15 percent of the millions of graduating engineers are worth employment and NASSCOM also went on record in saying India would soon have labor shortage.

IBM has boasted big of making India its major hub for international operations and had been on an hiring spree. Not to forget India has been the outsourcing destination of choice for the United States and Europe. The company has about 73,000 people here in the country.

IBM released a statement saying –

“IBM is driven by a high-performance culture, a place where employees are able to contribute at the upper limits of their potential and
continually build market-valued skills and capabilities in both formal training and experiential learning. In support of that expectation on
the part of our workforce, we are pioneering new ways for our people to certify their skill levels as both a validation of their value to
clients and to reinforce the quality of our employees’ personal skill sets.”

There was a fair share of complaints from those who were laid off with one engineer bemoaning – “Firing is a common thing in the corporate world; but unethical behavior such as informing the media that it is our poor performance standards, not giving us projects/platforms to perform, delayed joining dates after graduation, etc is not doing good to any”.

Hiring engineers in droves and then keeping them on the bench for months is a practice not only restricted to IBM. I have heard it personally from engineers working other companies like Wipro, HCL, Infosys, TCS etc.

US is on an economic slow down and this could be another reason why companies are retrenching employees now.

Note – Indian newspapers are reporting 700, whereas American ones are reporting 200. Truth could be somewhere in between.

    8 Responses to “IBM To 700 New Recruits – You are Fired”

    1. Naveen says:

      This is very shocking news for all guys, Those who are associated with IT.

    2. gregory says:

      shocking, ok, if you want to feel that, go ahead… but it is also an eye-opener, something to learn from, what is global quality, what is real education and innovation… the top guys don’t have to worry, but the middle ones cannot become complacent, or it will be back to the village and your father’s shop … not a bad life, but not what you wanted

    3. Kaka Nirvikar says:

      I guess software employees will now learn that they don’t rule the world. Till now, the trend had been for employees to dictate terms to employers irrespective of their real skills.

      Now companies are kicking ass & getting their own. Good for the industry & its participants.

    4. krishna says:

      i feel dis is d problem of entire software industry….why becoz no company is giving proper guidlines to d freshers especially abt the industry,and thr work

    5. IT Pro says:

      This looks to be a secret drive where newly inducted engineers(B.Tech and B.Sc graduates who even had a tie up M.Sc IT program) were shown the way out by conducting a complex performance exam which was targetted to achieve this objective.
      The newbies were threatened with having to pay back their M.SC IT course fees (about INR 70000) to submit their own resignation letters indicating personal reasons to cover up the retrenchment.
      Also heard they a couple of mainframe deals they had, got cancelled which may have been another factor.
      In fact, they have recruited these B.Sc graduates with a combined MSC IT program (a reason why many of them joined IBM, instead of pursuing higher studies, so that you could be on the jobs well as earn a degree in 2 years) and then left them on the roads without the job, the MSC program as well as losing out an academic year if they had gone for higher studies.

      As somebody said, though retrenchment is common, it is a truly unethical and shameful the way how they did it, and what they anounced to the media. Nothing truly graceful for a company like IBM.

    6. Raghu says:

      It’s a big game happening here! A perfect script that needs to be told to public by a good filmmaker like Madhur Bhandarkar who has shown the hard realities of day to day life..

    7. Somo says:

      One fact that I cannot resist to pen here. Being in IT/ITeS industry one must be prepared for this ! When its hay-day, we bring home much more than other’s do in their life-time … and when otherwise, obviously will get kicked like this only .. ! Life is either too kind or too cruel for people in this industry. So,no hard feelings .. live life king size and store some grains for harder times :)
      Cheers to this profession !

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