Is IT economy heading for another recession?

With all the news about a lot of Indian firms laying off their workforce are these signs of a low in IT sector. Well, following is what news agencies are reporting.

Satyam Computers has just started giving pink slips to its employees, could potentially downsize its workforce by a whopping 4,500 employees.

Hewlett-Packard Co plans to cut 24,600 jobs, seeking to realize savings from its recent acquisition of Electronic Data Systems Corp.

Patni Computer Systems sixth-largest exporter has laid off close to 400 employees citing non-performance issues.

The country’s second-largest software-services company plans to recruit 25,000 people this year. Infosys may also recruit about 1,000 workers in China in the next two to three years.

Wipro Technologies has put about 4-5% of its workforce, about 2,400-3,000 employees, under the scanner for non-performance.

These figures which are quoted by IndiaTimes are alarming. I am sure they suggest a recession! I am not sure if under performance is one of the reason. The unfortunate part about cheap labour is that you compromise on quality and hence none of the Indian IT giants can claim to have a technologically advance projects. Have we seen any organization developing an Operating System. I guess that gives a picture of security in such jobs.

My opinion doesn’t apply to any individual, it’s a macro level perspective and I could be utterly wrong. But I still would take my chances of making a point here.