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Indian IT Industry: Problems and Applicable Labour Laws
Indian IT Industry: Problems and Applicable Labour Laws
Indian IT Industry: Problems and Applicable Labour Laws
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Indian IT Industry: Problems and Applicable Labour Laws

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The Indian IT and BPO industry is famous as the world's back office. It generates hundreds of billions of dollars in revenue and employs millions of people. Yet, there are serious problems with the industry. In this book, we give an overview of the problems with the IT industry in India, particularly concerning mass layoffs or forced resignations by IT companies but also covering health issues and other problems. We review a few important books about the conditions in the tech industry in US and India. We also discuss the applicable labour laws in India, including the newer labour codes introduced in 2020 by the Indian government.

It is hoped that this book will help in spreading awareness about the IT industry problems and how affected people can exercise their rights as per the laws.

LanguageEnglish
PublisherJoy Bose
Release dateJul 8, 2024
ISBN9798227844804
Indian IT Industry: Problems and Applicable Labour Laws
Author

Siva Prasad Bose

Siva Prasad Bose is an electrical engineer by profession. He is currently retired after many years of service in Uttar Pradesh Power Corporation Limited. He received his engineering degree from Jadavpur University, Kolkata and has a law degree from Meerut University, Meerut. His interests lie in the fields of family law, civil law, law of contracts, and any areas of law related to power electricity related issues.

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    Indian IT Industry - Siva Prasad Bose

    Contents

    Dedication

    Preface 

    Acknowledgements

    Chapter 1: Problems in the Indian IT Industry

    Chapter 2: Case study of an Indian IT Employee Who is Asked to Resign

    Chapter 3: Contract Labour in the Indian IT Industry

    Chapter 4: Books About Working in the Tech Industry and IT Sector

    Chapter 5: Introduction to Labour Laws in India

    Chapter 6: Industrial Employment Standing Orders Act

    Chapter 7: Trade Unions Act

    Chapter 8: Bharatiya Nyaya Sanhita Code of Wages 2019

    Chapter 9: Bharatiya Nyaya Sanhita Occupational Safety, Health and Working Conditions Code 2020

    Chapter 10: Bharatiya Nyaya Sanhita Code on Social Security 2020

    Chapter 11: Bharatiya Nyaya Sanhita Industrial Relations Code 2020

    Chapter 12: Remedies for Unfair Dismissal from a Job

    Chapter 13: Laws Related to Sexual Harassment at Work

    Chapter 14: Conclusion

    About the authors

    Other books by Siva Prasad Bose

    Dedication

    This book is dedicated to all people employed by the IT industry and BPO industry in India.

    Preface

    In this book, we give an overview of the problems with the IT industry in India, particularly concerning mass layoffs or forced resignations by IT companies but also covering health issues and other problems. We review a few important books about the conditions in the tech industry in US and India. We also discuss the applicable labour laws in India, including the newer labour codes introduced in 2020 by the Indian government.

    It is hoped that this book will help in spreading awareness about the IT industry problems and how affected people can exercise their rights as per the laws.

    Acknowledgements

    In writing this book, the authors gratefully acknowledge the following sources:

    Labour and Industrial Laws Bare Act 2022, Commercial Law Publishers Pvt Ltd, 2022.

    The Law Book: Big Ideas Simply Explained. By DK Publishing, 2020

    Wikipedia https://www.wikipedia.org/

    Ministry of Labour and Employment, Government of India https://labour.gov.in/

    Chapter 1: Problems in the Indian IT Industry

    In this chapter, we discuss the phenomenon of layoffs and other problems in the Indian IT Industry.

    1.1 Scale of the Problem of Involuntary IT Layoffs

    The Indian IT industry has been pivotal to the rise of India as the world’s back office. According to NASSCOM, the Indian IT industry association, Indian IT companies command 55 percent of the $190 billion global IT and Business Process outsourcing market in 2017-18.

    India’s IT and BPO (Business Process Outsourcing) sector reportedly employs up to 5.4 million persons during financial year 2023 and generated around $245 billion in revenue 2023, including export revenue of $194 billion. The IT services and BPO sectors constituted, 7.4 percent of India’s total GDP in financial year 2022.

    Since the 1990s, the rapid growth of India’s IT and Business Process Outsourcing (BPO) industries has been hailed by the Indian government as a means of becoming a developed country. Successive Indian governments, both at state and national level, have supported the IT and IT-enabled sector, including providing tax breaks and cheap and easy land acquisition, and setting up Special Economic Zones (SEZ) with tax holidays and exemptions from standard labor and workplace laws.

    However, growth in outsourcing is slowing down and India’s IT companies do not have the expertise in developing software products to compete with major US software companies like Google and Microsoft. India’s IT sector, which in 2018-19 has grown to a revenue of $181 billion, with the majority of this coming from the export of IT services, are therefore adopting savage cost-cutting strategies to try to grow profits.

    The Indian IT sector is a major source of dollar income for the economy. However, it is hit by periodic waves of mass layoffs every few years. These are in by multiple companies employing thousands of IT workers. The mass firings have been common in Bangalore as well as other IT hubs like Noida, Hyderabad and Gurgaon. Both Indian and foreign-based IT companies have slashed their workforces.

    After higher number of layoffs between 2014-2017, especially by the huge IT service companies like TCS, Infosys and Wipro, the reports of layoffs were subdued for the next two years before picking up again in 2019, again becoming low during the Covid pandemic and picking up after that.

    There are rumors of involuntary termination of around 5-8 percent of

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