IT Giants have started to vacate Rented Buildings at all major IT Parks

IT Giants have started to vacate Rented Buildings at all major IT Parks.. They have planned to open "Supervising Hubs" (controlling Offices) in small Buildings.. 75 to 90% Staff are going to work from own native areas.

Next major change is being made silently by NASSCOM (with +2800 IT and related Company members in india). They have approached Central/State Govts to,

i) Amend or Abolish major (75%) portion of Labour Laws to suit IT Sector "work from Home." Central Govt has ostensibly given consent in the last week of May 2020 itself and advised NASSCOM to give Blue Print of Amendment in Labour Laws for suitable changes.

ii) To Amend Income tax Act to include expenses by Employer/Employee incurred at Home.. Amendment to cover Insurance for working from Home & done other amendments as well. 

So it is a matter of time before Acts/Laws are crystallized. "Work from Home" has come to stay & no more necessity for IT people to stay at Tier 1,2 cities.

Also the hiring has started by Major IT Companies but offers are being rolled out with pre- conditions and lesser pay compared to before.. So this year's appraisal may see 0 hike, 0 variable and Layoff of higher paid Professionals.

How will it impact Salaried IT Professionals.?

Let's divide them in 2 Categories:

Category-1:

Professionals with own Home or Home loan in Major Cities like Mumbai, Pune, Delhi, Bangalore..

Category-2:

Bachelors with few years of experience who lived in rented places..

Category 2 will relocate happily to their Hometown and able to save more.. Even Companies will give less pay but still they will be able to create a balance between Earnings and Savings & quality of life.

Category-1 will face double impact of inflation in Cities as already can be seen with jacked up prices of Vegetables, and FMCG, Lower Property rentals (almost halved) and a small negligible reduction in existing Home loan rates of around 2%..

The Properties may come under duress due to Job loss or non availability of Rents.. Forget buying new House from builder, as Market is already flooded with resale and distress sales.

The best example one can see is that monster.com has introduced a category of "Covid impacted" profiles and there are already 18 Lakhs Covid profile resumes in their portal.. So it means 18 Lakh Professionals already lost their Job / fearing loss of job and selected "Covid impacted" option.

Credit


Advocate Sudhir Kumar Gupta - who initially started his practice in Revenue Courts, Labour Courts, and Consumer Courts. After a brief stint at lower courts, Mr. Gupta moved his focus and starting practicing at various National Tribunals at Delhi, Delhi High Court, and Supreme Court of India.
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