Increasing automation and cloud computing have hit revenues. Now there is less business in maintenance and software services, the traditional domain of Indian IT companies. This is a major reason for companies reducing their campus hiring in India.
Plans at Cognizant to lay off more than 6,000 workers are due to a shift in business. New technology requires reskiling, and employees incapable of reskilling will be fired. Infosys had hired 5,000 people in April-December 2016 against 17,000 in the same period a year ago. Automation is reshaping its business too. The company released nearly 9,000 employees to other projects due to automation.