Organisations increasingly reduce enterprise costs via cost cutting measures of downsizing/layoffs as a short-term strategy. The purpose of this paper is to illustrate the scenario of downsizing in the Indian IT/ITES sector and also identify enablers to develop and engage talent in downsized firms.Design/methodology/approachThis paper is a general review.FindingsDespite higher growth rates in the recent years, the IT/ITES sector faces an uncertain future due to economic recession, which has changed the business scenario across the globe. Organisations need to resuscitate employees’ confidence and self-efficacy through psychosocial support mechanisms like professional guidance by an emotionally intelligent leader, capacity-building measures, and continuous learning opportunities. They should prepare scheduled reviews by taking into account individual needs, learning styles, and current work priorities. Provisions for adequate pay, fringe benefits, job security, and healthy working conditions can further enhance morale and motivation of survivors.Originality/valueThis paper contributes to the literature of downsizing in the Indian context. Moreover, it emphasises on the significant roles of communication policies, knowledge sharing, and learning in rebuilding the psychological contract of employees.
Industrial and Commercial Training – Emerald Publishing
Published: Jan 2, 2018
Keywords: Employee engagement; Downsizing; Talent management; Indian IT/ITES; Survivors