{"id":2141,"date":"2017-05-06T12:55:00","date_gmt":"2017-05-06T12:55:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/end-of-the-line_050617\/"},"modified":"2017-05-06T12:55:00","modified_gmt":"2017-05-06T12:55:00","slug":"end-of-the-line_050617","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/end-of-the-line_050617\/","title":{"rendered":"Is your current job the end of the line?"},"content":{"rendered":"
<\/p>\n
<\/p>\n
A new trend is developing in the tech and business world and the speed at which it is happening is alarming. The need for people<\/em> is waning as companies seek to scale themselves profitably on a digital backbone – and it’s having a serious impact on our career paths.<\/p>\n When companies historically did layoffs, it was because they were in financial peril and had no choice but to saw off costs to stay solvent on the balance sheet. It was always painful, because you needed people<\/em> to grow your business. Sacking people was not a good thing to do.<\/p>\n Suddenly it’s in vogue to shed people<\/strong><\/span><\/p>\n However, if you were unfortunate enough to get caught in a layoff, you dusted off your CV, went out on the job market and (usually) found yourself something pretty quickly. Companies needed people – whether they were superstars, or solid foot soldiers; when you needed an employer, you would always find something.<\/p>\n Now something different<\/em> is happening in the mindsets of business leaders – companies which are doing really well<\/em> are in the process of proactively removing staff – both at junior and senior levels. You really don’t want to get caught up in one of today’s layoffs if you’re eager to stay in a similar job in future, because the modern business is adopting a new mentality – cut costs and scale profitably with a digital backbone. Adding armies of people is no longer the order of the day when you peer into an uncertain future, and many savvy businesses are eagerly looking to get ahead of making savage future labor reductions by making them now, in a more incremental fashion.<\/p>\n Case in point, Cognizant has been the golden child of IT services growth over the past decade, the firm ballooning from $2bn in 2007 to $13.5bn exactly a decade later, and yesterday announced 11% year-on-year revenue growth and a 26% increase in year-on-year net profits to $557m. The company continues to outperform the market with relentless growth. Meanwhile, the same firm has recently (reportedly) laid off ~6,000 staff in India and has just offered voluntary redundancy to 1,000 director-and-above US staff – a sizeable chunk of its US workforce.<\/p>\n Meanwhile, we witness firms merging together, such as CSC and HP, with the prime goal to rationalise their armies of people, while IBM’s US marketing employees were recently instructed that they must report to and work at one of these main offices in America: New York, San Francisco, Austin, Cambridge, Atlanta, or Raleigh – and offering redundancy options to those unwilling to make the move (who have renamed their firm “I’ve Been Moved”). And expect similar activities involving many of today’s IT juggernauts, such as Accenture, Capgemini, Deloitte, Infosys, TCS, Wipro, etc – all these firms are looking to deliver more “digital” services for clients with less people, as part of their “digital automation” drives. We’ve also been hearing about leading BPO providers bragging about delivering their traditional services on 10-20% less people, because they have figured out how to automate their services using RPA software and are making progress adopting machine learning techniques to speed up data driven work.<\/p>\n This isn’t just about corporate greed anymore – firms just don’t need people like they used to<\/strong><\/span><\/p>\n One constant between now and the Great Recession of almost a decade ago is the insatiable greed of corporations and their shareholders to maximize quarterly profits at whatever cost to society and long-term planning. However, the rapidly emerging trend that is really causing alarm, is this determination to grow businesses while reducing their workforces, because the majority of people are now very replaceable with technology. We’ve never seen a situation where firms are growing their revenues, maintaining (and often growing) fat profit margins, but eagerly looking to trim whatever “fat” they can find. <\/p>\n New data from our 2017 State of Operations and Outsourcing Study<\/a>, covering the dynamics of 454 global enterprises, highlights the emerging dynamics of C-Suites seeking both to slash costs (85%) but also to digitize their operations by breaking down the barriers between front and back offices and driving real-time data to support decisions (four-fifths see this as mission critical \/ increasingly important). Most alarmingly, only 26% of C-Suites now view developing talent quality as mission critical, while only 12% have not yet embarked on investments in automation and machine learning to reduce reliance on both low-end and mid\/high-level labor:<\/a><\/p>\n