Recently, about 400 senior executives of Cognizant accepted the company’s voluntary separation package. Cognizant had announced this programme for directors, associate VPs and senior VPs a few months ago.
Peter Bendor Samuel, CEO of IT consulting firm Everest Group, said industry growth has slowed and the ‘arbitrage first’ segment (traditional IT services) is in secular decline. “When this is added to the pyramid factory model, which requires new freshers to be brought in every year to keep cost low, it results in an excess of more experienced employees,” he said in an interview to ET in May.
