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 natives.
Next major change being made silently by NASSCOM (with +2800 IT and related company members in india) 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 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 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. 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 wfh condition and lesser pay compared to before . So this year appraisal will see 0 hike, 0 variable and layoff of higher paid professionals.
How will it impact salaried IT professionals ?
Let's divide them in two categories .
Category 1 : professionals with own home or home loan in major cities like pune, Delhi, Bangalore.
Category 2: batchlors 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 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 percent. The properties will come for distress sales 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 lak covid profiles resumes in their portal. So it means 18 lak 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 u can by avoiding taxes . It's no more a desire to save but need of the hour to survive recession ..yes you heard it right .. recession for next 3-4 years .
4. Looking multiple streams of income
5. Looking for opportunities that are in healthcare and education