*Representational image credit: wikipedia
IT Giants have started to vacate Rented Buildings at all major IT Parks in Mumbai, Delhi, Hyderabad and Bengaluru, according to available information accessed by www.jharkhandstatenews.com.
They have reportedly planned to open "Supervising Hubs" (controlling Offices) in small Buildings.. 75 to 90% of Staff are going to work from their own Natives in these cities of India.
The next major change is being made silently by NASSCOM (with +2800 IT and related Company members in India) have approached Central/State Govts demanding as follows.
i) Amend or Abolish major (75%) portion of Labour Laws to suit IT Sector "work from Home." Central Govt has given consent in the last week of May 2020 itself and advised NASSCOM to give Blue Print of Amendment in Labour Laws.
ii) To Amend the Income Tax Act to include expenses by Employer/Employee incurred at Home. Amendment to cover Insurance for working from Home.
So it is a matter of time before Acts/Laws are amended. So, "Work from Home" has come to stay, it seems.
So no more necessity for IT people to stay at Metropolitan Cities. Also, the hiring has started by Major IT Companies but offers are being rolled out with condition and lesser pay compared to their salaries in the past. So this year's appraisal can see 0 hike, 0 variable and Layoff of higher-paid Professionals.
How will it impact Salaried IT Professionals?
Let's divide them into 2 Categories:
Professionals with own Home or Home loan in Major Cities like Pune, Delhi, Bangalore.
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.
Category-1 will face the 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 will come for distress Sales due to Job loss or non-availability of Rents.. Forget buying new House from the builder, as the 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 Lakhs IT Professionals already lost their Job and selected "COVID impacted" option.
What can one do to safeguard their future.?
1. Try to keep your unnecessary Expenses under control.
2. Avoid Loans.
3. Save as much as you can by avoiding Taxes. It's no more a desire to save but the need of the hour is to survive the recession. Yes, you heard it right.... recession for the next 3-4 years.