EkaLore has released our look at talent reductions in the USA and elsewhere thru early 2023. It is clear for many global colossal tech enterprises that reductions of workforces, including restructuring of talent requirements and team compositions, will never return to “the good olde days.” The total size and timing of these reductions across specific geographies and enterprises are unclear. The normal business conduct of the USA enterprises is to:
1) Reduce “contracted” (not full-time employees) talent prior to reductions of employees
2) Reduce “workforce” (total talent available for effort) across global pools
3) Reduce “classifications” (different kinds of talent) across global pools
4) Reduce “costs” (total costs of talent) across global pools
5) Reduce “projects” (number of different work efforts)
The resulting changes affecting Dynamic India are:
A) Indian nationals will be disproportionately displaced during the ongoing reductions in force
B) Indian enterprises/individuals will have limited time to find new positions amidst a downturn in the USA (typically 60-90 calendar days due to Federal regulations)
C) Highly qualified talent in many specialties and competencies will become available for new work
D) The tech workforces in India from venture/startup monies are also cutting their workforces
E) The growth in tech workforce demand is insufficient to offset losses from overseas jobs and foreign direct investment for green projects, electric vehicle and vehicle software development, payment processing and finance, retail, business processing outsourcing, and similar
Indian enterprises are challenged to:
(a) Maintain rosters of the highest qualified and experienced staff as individuals have traditionally been mobile across enterprises. Traditional high rates of “workforce attrition” (approaching 25-30% in some enterprises) can be reduced while ongoing knowledge and competencies can see gains. Simply train and build experience while reductions are going on globally.
(b) Maintain flows of new, inexperienced personnel (“freshers”) where better margins can be billed against their costs. Avoiding a ‘notch’ in age groups of people is critical (as USA/EU firms have seen in the lack of people at the 10-15 point from reductions of inflows during “The Great Recession” (2008-2012).
(c) Choose investment in talent, investment in technology R&D, or investment in customer relationships (lower pricing) – and try to adjust the balance between these expenditures continually. The deployment of investment capital and increased expenses must be understood by many stakeholders to be successful. Government policy, bank/financial policy, investor expectations, and foreign direct investors must get clear messages and act collaboratively for their long term interests.
(d) Continue expansion of customer bases, relationships, and contract value outside of India. Confidence in maturing global enterprises in the global landscape requires a focus on customer value, not short-term considerations.
(e) Compete during Challenging Times when customers have much greater power to get good deals. Customers can learn confidence and long term stability in dealing with Indian global enterprises.
If you’d like to read this “Golden Opportunity” series about how US layoffs may benefit a Dynamic India, you can find the start of the series here. Otherwise, you can find more articles about Dynamic India at www.ekalore.com/india-business
Comentarios