Gaurav, one troubling disconnect for me in this article is why is there a stress in IT salaried employees TODAY? The net hire number is zero, so that means that employees aren't being laid off. There is inter company churn so the current IT sector employees are finding jobs (in case of retrenchment) in another IT company. If my assumption is correct, then why is there a default and that too in the secured book. Assuming that some IT workers (eg the younger lot) who are cash strapped and still awaiting their annual increments need to default on their EMI, then logically they would do so on a credit card payment or CC loan or a personal loan etc etc. Why jeopardize a vehicle or a house? Perhaps you could clarify
Where do you get the figure of net hire is zero?. 6 years in the industry as a techie. Hiring in GCC and the PBC Faangs in India is completely paused except for critical engineering roles. SBC are silently laying off. My ex Team lead of 12 years is without a job for last 8 months when Walmart laid off.
The disconfirming comment being worth a hundred confirming ones is right, and it's also why management calls are structured to prevent one. In lending, the safest part of the book is safest because nobody's stress-tested the origination vintage that built it.
I would never gone this much deep and connected the things like this article have done
very much thankful to the team who puted a lot in such a small article
Loved this and would love to connect with research team
Gaurav, one troubling disconnect for me in this article is why is there a stress in IT salaried employees TODAY? The net hire number is zero, so that means that employees aren't being laid off. There is inter company churn so the current IT sector employees are finding jobs (in case of retrenchment) in another IT company. If my assumption is correct, then why is there a default and that too in the secured book. Assuming that some IT workers (eg the younger lot) who are cash strapped and still awaiting their annual increments need to default on their EMI, then logically they would do so on a credit card payment or CC loan or a personal loan etc etc. Why jeopardize a vehicle or a house? Perhaps you could clarify
Where do you get the figure of net hire is zero?. 6 years in the industry as a techie. Hiring in GCC and the PBC Faangs in India is completely paused except for critical engineering roles. SBC are silently laying off. My ex Team lead of 12 years is without a job for last 8 months when Walmart laid off.
Well written! Thanks for sharing this knowledge to us!
Osho
Very nuanced insight. Gone are the times when financiers would easily lend to folks with IT jobs. It’s a tough cohort now!
The disconfirming comment being worth a hundred confirming ones is right, and it's also why management calls are structured to prevent one. In lending, the safest part of the book is safest because nobody's stress-tested the origination vintage that built it.