The Impacton Techiesdueto Layofffromtheir Employers

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A Study of Impact on Techies Due to Lay off from Their Employers in Service
Based Organizations
Thesis · May 2023

DOI: 10.13140/RG.2.2.20957.49127
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A STUDY OF IMPACT ON TECHIES DUE TO LAYOFF FROM THEIR EMPLOYERS IN SERVICE BASED ORGANISATION
A
Dissertation Report
on
A Study of Impact on Techies Due to Lay off from
Their Employers in Service Based Organisation
Master of Design
In
Faculty of Design
(With specialization in User Experience)
Supervisor: Submitted By:

Ms. Yasmeen Nazir Mr Ramesh Rawat
Faculty at ImaginXp Enrolment No: 13286
Department of Design
(Faculty of Design)
Vivekanand Global University, Jaipur
March 2023
Page | 1
Acknowledgement
I would like to place on record my deep sense of gratitude to Prof. Yasmeen Nazir and
Meher Vadehra of M.DES USER EXPERIENCE, VIVEKANANDA GLOBAL
UNIVERSITY, JAIPUR for her generous guidance, help and useful suggestions.
I also wish to extend my thanks to colleagues for their insightful comments and
constructive suggestions to improve the quality of this research work. I am extremely
thankful to Prof. Vishal Nambisan for guiding me throughout my research, without
which this work would not have been possible.
Page | 2
ABSTRACT
The purpose of this thesis is to evaluate whether layoffs have greater impact on
techies in service-based businesses than those at product-based businesses.
For the purpose of achieving their objectives, businesses mix internal processes with
outside services, nearly every imaginable corporate process may now be contracted
as an external service, which is an important component of the growing trend in global
services towards increased collaboration.
Service-Based MNCs like Infosys, TCS, Wipro, Cognizant brought the IT boom in
India and are the biggest employers for software engineering talent in India. These
companies are the steppingstone for most techies in India. These organizations are
a significant contributor to the Indian economy, with the service sector accounting for
over 55% of India's GDP in 2020. The service sector in India is diverse and includes
industries such as IT, healthcare, education, hospitality, and financial services. They
provide good training as well and might be useful if you do not have a tech
background. The focus is to find why these Big MNC’s (service-based organisation)
techies are forced to think again to work for the same during the financial crisis, this
report helps them to solve various problems. One of the alternative approaches is
used in this thesis. The term 'Crisis' refers to an event or period that will lead the
companies to shorten their workforce or force them to modify their business strategy.
As per the survey, through the Quantitative Research, which included 50+
respondents from the multiple modes, research shows the detail report of the
business module of service-based companies, its impact, pros, and cons. However,
the concept is still on the initial level to clarify users' perspectives. User experience of
the people working in these organizations can be useful for improving user
engagement. By understanding the core value can be improved, and the task will be
multiplied.
Keywords: Collaboration; MNC; Crisis; User Engagement; Organizations; Layoff;

Techies; Service based; Product based; businesses.
Page | 3
Table of Contents -
1. INTRODUCTION 6 - 10
1.1 Service Based Organisation 6-7
1.2 Layoff 7- 8
1.3 Common Impact of Layoff on employees in general 8
1.4 Physiological effect of layoffs 8-9
1.4.1 Post-Traumatic Stress Disorder (PTSD) 9
1.4.2 Carrier Anxiety 9
1.4.3 Survivor Guilt 9
1.4.4 Copying Strategies 9
1.5 Causes of Layoff in India and Globally 9 - 10
1.5.1 Low Demand 9 - 10
1.5.2 Changing Technology 10
1.5.3 Cost Cutting 10
1.5.4 Merger & Acquisition 10
1.5.5 Seasonal Changes 10
2. LIMITATION OF THE STUDY 11
3. LITERATURE REVIEW 12 - 30
3.1 Types of Companies for Techies 12 - 13
3.1.1 Product Based Companies 12 - 13
3.1.1.1 Product Based Startups in India 12 - 13
3.1.2 Service Based Organisation 13
3.1.2.1 Service Based Startups in India 13
3.2 Business Module and Revenue Structure of IT sector in Service based
companies 13 - 24
3.2.1 History and Growth of HCL (Service based MNC in India) 14 - 18
3.2.2 HCL Business Model and Revenue Generation 18 - 22
3.2.2.1 Cloud Smart 18 - 19
3.2.2.2 Strategic Alliances 19 - 20
3.2.2.3 IT and Business Services (ITBS) 20 - 21
3.2.2.4 Engineering and R&D services 21 - 22
3.2.2.5 Products and Platforms 22
3.2.3 HCL Client Profile 23 - 24
3.2.3.1 Financial Service Industry 23
3.2.3.2 Life Sciences and Healthcare 23
3.2.3.3 Public Services 23
3.2.3.4 Consumer Services 23 - 24
3.2.3.5 Manufacturing 24
3.3 Comparison b/w. Product based, and Service based Company24 - 26
3.3.1 Nature of Business 24
3.3.2 Tangibility 24
3.3.3 Production Process 24 - 25
3.3.4 Inventory Management 25
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3.3.5 Revenue Generation 25

3.3.6 Job Security 2
3.3.7 Flow of Business 26
3.3.8 Salary and Benefits 26
3.3.9 Hiring Procedure 26
3.4 Layoff 27 - 29
3.4.1 Rationale for Layoffs 27 - 29
3.4.1.1 Economic Downturn 28
3.4.1.2 Cost Cutting Measures 28
3.4.1.3 Technological Advances 28
3.4.1.4 Merger and Acquisition 28
3.4.1.5 Reorganisation 28
3.4.1.6 Covid -19 Pandemic 28 - 29
3.4.1.7 Ukraine – Russian war 29
3.5 Impact of Layoff in India 29 - 30
3.5.1 Financial Impact 29
3.5.2 Emotional Impact 30
3.5.3 Career Impact 30
3.5.4 Industry Impact 30
3.5.5 Social Impact 30
3.5.6 Decreased Loyalty 30
4. REVIEW METHODOLOGY 31 - 32
4.1 Research Design 31 - 32
4.1.1 Phase1: Literature Review 31
4.1.2 Phase2: Data Collection 31
4.1.2.1 Online Survey 31
4.1.2.2 Interview 31
4.1.3 Phase3: Data Analysis 32
4.1.3.1 Ethical Considerations 32
4.2 Population 32
5. DATA ANALYSIS 33 - 40
5.1 Data Analysis process for Secondary Research 33
5.2 Data Analysis Process for Primary Research 33
5.3 Primary Research Questionnaire and survey 34 – 40
5.3.1 Primary Interview Insights 34 - 37
5.3.2 Primary Survey Insights 38
5.3.3 Analysing Insights from Primary and Secondary data 39 - 40
6. CONCLUSION 41
7. BIBLOGRAPHY 42 - 44
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1. INTRODUCTION
1.1 Service Based Business
Service-based companies are businesses that provide services to customers instead

of tangible goods. These services range from consulting, accounting, marketing,
design, IT, and other professional services. For a service-based company, customer
needs are their topmost priority. This is because they offer services and solutions as
per the needs of the customers.
The IT industry is one of the largest service-based industries in India, (Chandak, n.d.)
with companies such as TCS, Infosys, and Wipro, HCL, L&T being major players in
the global market. These companies provide services such as software development,
IT consulting, and business process outsourcing to clients around the world. The IT
industry in India has grown rapidly over the past few decades, with the country
becoming a hub for outsourcing due to its skilled workforce and cost-effective services.
The healthcare industry is another significant service-based industry in India, with both
public and private healthcare providers offering services such as hospitals, clinics, and
diagnostic centres. The healthcare industry in India has seen significant growth in
recent years, with the government investing in initiatives such as Ayushman Bharat to
improve access to healthcare for all citizens.
The education industry is also a significant service-based industry in India, with a large
number of private schools, colleges, and universities offering a range of educational
services. The education industry in India has seen significant growth in recent years,
with the government investing in initiatives such as Digital India to improve access to
education for all citizens.
The hospitality industry is another significant service-based industry in India, with

hotels, restaurants, and travel agencies providing services to both domestic and
international tourists. The hospitality industry in India has seen significant growth in
recent years, with the government investing in initiatives such as Swadesh Darshan
to promote tourism in the country.
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The financial services industry is also a significant service-based industry in India, with
banks, insurance companies, and other financial institutions providing services such
as loans, investments, and insurance to clients. The financial services industry in India
has seen significant growth in recent years, with the government investing in initiatives
such as Digital India to promote digital payments and financial inclusion.
Service-based organizations in India are diverse and contribute significantly to the

country's economy. These organizations provide a range of services to clients around
the world and have seen significant growth in recent years. The Indian government
has invested in initiatives to promote the growth of service-based industries, and these
industries are expected to continue to play a significant role in the country's economic
development.
1.2 Layoff
A layoff, commonly defined as an employee reduction, is the process

wherein a company suspends or permanently fires an employee or
group of workers in order to diminish the size of an organization’s
workforce an increase its effectiveness (Muhammed, 2023).
Employees are not laid off because of poor performance or negligence

of duty. People are typically let go as a result of a fall in revenue, sales,
or some type of financial difficulty. For a variety of reasons, many
businesses all around the world remove personnel and lay off workers.
The act of an employer choosing to suspend or fire a worker, either
temporarily or permanently, for reasons unrelated to the employee’s
actual performance is known as being laid off.
Even for the survivors and potential hires, the impact of layoffs on
employees is much more detrimental. Layoffs lower the chances that the
unemployed and underemployed will find employment. Job applicants
become discouraged by the hardship experienced by those who lost
their jobs, and some give up totally on ever finding employment. Here
are some impacts of layoffs on employees.
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With the current economic climate, many companies are unfortunately

facing tough decisions about their workforce. Layoffs have become a
common occurrence, causing immense stress and uncertainty for both
employees and employers alike.
There can be many reasons for a layoff in India. The most common
reason is due to the global economic recession. Other reasons can
include downsizing of a company, change in management, or even poor
performance at work. However, whatever the reason may be, a layoff
can have a profound impact on an individual's life.
A layoff can cause immense financial stress on an individual. It can also

lead to depression and anxiety. Losing one's job can be a very traumatic
experience. It can shatter one's confidence and self-esteem. A layoff can
also cause social isolation as individuals may find it difficult to interact
with others.
1.3 Common Impact of Layoff on Employees in General
The impact of layoffs in India can be devastating, both for the individuals
who lose their jobs and for the economy as a whole. Layoffs can lead to
a decrease in consumer spending, which can in turn lead to a decrease
in economic activity and an increase in unemployment. This can have a
ripple effect throughout the economy, leading to decreased economic
growth. Additionally, layoffs can cause social instability and an increase
in crime.
The layoffs in 2022 were not due to issues with employees’ performance,
but more of an investor-pleasing exercise,
Few of the reasons behind the layoff in the past 2-3yrs as describe
below: -
• Russia Ukraine War Put Macroeconomy in Distress
• COVID-19 Pandemic
• Investors Focussed on Profitability over funding
• Founders Resorted to Laying off Employees as a path to profitability
1.4 Psychological Effects of Layoff
Layoff can have a range of psychological effects on employees, including

feelings of loss, grief, anger, and anxiety. Employees who are laid off
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may feel a sense of betrayal and a loss of trust in their employers,

particularly if they had been with the company for a long time. The
sudden loss of income and status can cause financial difficulties, which
can lead to depression and anxiety. The social identity theory suggests
that people derive a sense of identity and self-esteem from their work
and losing their job can lead to a loss of identity and a negative impact
on their self-esteem.
1.4.1 Post-traumatic stress disorder (PTSD)
Layoff can also trigger post-traumatic stress disorder (PTSD) in

some employees. PTSD is a mental health condition that is
usually associated with traumatic events such as war, sexual
assault, or natural disasters. However, research has shown that
job loss can also be a traumatic event that can lead to PTSD.
Symptoms of PTSD may include flashbacks, nightmares, and
feelings of anxiety.
1.4.2 Career Anxiety
Layoff can also cause career anxiety in employees. They may

worry about their future job prospects, particularly if they are in an
industry that is experiencing high levels of unemployment. They
may also worry about their ability to find a job that matches their
skills and experience.
1.4.3 Survivor Guilt
Employees who are not laid off may experience survivor guilt,
which is a feeling of guilt that arises from being spared while
others are let go. They may feel guilty that they still have a job
when their colleagues do not, and this can lead to a range of
negative psychological effects such as depression and anxiety.
1.4.4 Coping Strategies
There are several coping strategies that employees can use to

manage the psychological effects of layoff. These strategies
include seeking social support from family and friends, engaging
in physical exercise, practicing mindfulness and meditation, and
seeking professional help from a therapist.
1.5 Causes of Layoff India and Globally
1.5.1 Low Demand
This is one of the most common causes of layoff in India and

across the world. When demand for a particular product or service
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declines, companies may have to reduce their workforce to cut

costs.
1.5.2 Changing Technology
With the advent of technology, many roles that used to be

performed manually are now being automated. This has resulted
in layoffs in many industries as companies are able to do more
with fewer people.
1.5.3 Cost Cutting
Companies often lay off workers in order to save money on labour

costs or other overhead expenses.
1.5.4 Mergers & Acquisitions
When two companies merge or one company is acquired by

another, there is often a need to streamline operations and
eliminate redundant positions, resulting in layoffs for those
affected employees.
1.5.5 Seasonal Changes
Certain industries may experience seasonal fluctuations which

can lead to layoffs during slower periods when demand is low, and
less labour is required. For example, some parts of the tourism
industry may lay off workers during the winter months when
business slows down significantly.
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2. LIMITATION OF THE STUDY
As secondary and primary data are related to the service-based industry tech
employees in order to get the clear insights from them, the study will concentrate
specifically on layoffs in Tech industry employees and the effect they are facing in
the service-based organisation. This research will not cover other types of layoffs
or businesses outside of the tech industry and avoiding very old data available in
the internet, in this research most recent secondary data has been considered to
get the current market scenarios of both the companies. The effects of layoffs on
stakeholders like shareholders, suppliers, or customers would also not be
covered. The study will be based on information that is publicly available, possibly
excluding confidential information or opinions from current employees or
management.
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3. LITERATURE REVIEW
3.1 Types of Companies for Techies
Everyone wants to work for a company that supports them in developing

their talents and offers them a better learning environment. The correct
organisation must be chosen because the abilities and skills one
developed will affect their entire career. Almost every student must
decide between a Product-based and a Service-based business before
choosing their ideal employer (Aman1699, 2023). The biggest
misconception among techies is that the top tech companies, including
Google, Amazon, etc., only hire students from IITs or NITs. Even if you
graduated from a tier-3 college, you could still land a job at your ideal
company if you have the aptitude and the necessary abilities. All you
need is perseverance and hard effort.
3.1.1 Product Base Companies
Product-based businesses are those that manufacture high end

goods to meet the needs of their clients. These businesses are
concentrated on developing or releasing goods with a significant
market value (Chandak, n.d.). They are the businesses that
continuously develop new items and modernise existing ones in
order to compete. Amazon, HP, Microsoft, Facebook, Adobe,
Intel, Informatica, Amdocs, Cisco, and others are some of the
well-known product-based businesses in Indian job market.
3.1.1.1 Product based Startups in India
In the past few years, product startups have become

increasingly popular in business. It is a really promising
idea for business owners who have some cutting-edge
products to offer in one manner or another. To be
addressed here, though, is whether or not the product
start-up has been able to genuinely get off on the correct
foot and connect with customers' demands (Valecha,
2016).
Indian entrepreneurs have gotten a lot of capital in

recent years, creating many unicorns (50 as of August
2021). (Chandak, n.d.)Due to their substantial financial
resources, these businesses typically pay on par with or
even higher than the best tech firms. Swiggy, Razorpay,
Unacademy, Phonepe, Cred, Zeta, and more top
unicorn companies in India include these.
Current business approaches are unable to easily meet

the diverse expectations of new age customers.
Whatever the business kind, the entrepreneurs have
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tried their best to address the problems that the people

have been having. Yet using their current commercial
methods, they simply can't do the same thing justice.
(Valecha, 2016)Product startups can help business
owners in this situation by assisting them in creating
goods that consumers will find beneficial.
3.1.2 Service Based Companies
The service sector is made up of professions that provide

consumers with services or intangible products. Accounting,
education, health care, and hospitality are a few examples of this
(Henderson). The service sector does not create anything, in
contrast to the manufacturing sector, which creates tangible
goods for sale to the general public. The people who make up this
industry are only employed to complete duties. Some of the
popular service-based companies are TCS, Infosys, Wipro,
Tech Mahindra, HCL etc.
3.1.2.1 Service Based Startups in India
After the US and the UK, India has the third-largest

startup ecosystem. The new generation entrepreneur
may now compete with the old firms thanks to
deregulated economies and reasonably priced
technologies (Madki, 2021). Since many of the new
ideas have been so successful for customers, many
service-based firms are flourishing in India. And as a
result, the start-up environment in India is currently one
of the fastest-growing. In contrast to product-based
startups, service-based startups are dominating the
market. The top service startups in India include
Flipkart, Quikr, Sulekha, Ola, Yatra, and POPxo, as
examples.
India's service-oriented industry is expanding at a rapid
rate since it considerably boosts employment,
commerce, investment, and the GDP of the nation. The
majority of the pie goes to e-commerce in the service-
based industry in India. By 2020, the country's e-
commerce sector is anticipated to grow from $102 billion
to $119 billion, according to Morgan Stanley Research.
3.2 Business Module and Revenue structure of IT Sector in Service

Based Company
When one ventures into the professional world, one is naturally

overwhelmed by the various employment opportunities. There are a
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variety of employment opportunities for educated people in a service-

oriented business where their skills and knowledge are in demand in
various industries. A service-oriented firm sets the most value on the
level of customer service provided. (Garg, 2023)From the perspective of
a candidate, job placements after the completion of a Data Science
course (Knowledgehut, Knowledgehut, 2023), a software testing
certification (Knowledgehut, Knowledgehut, 2023), or a PMP
certification (Knowledgehut, Knowledgehut, 2023) bootcamp will
frequently direct you to service-based businesses.
Thankfully, India is home to top service-based businesses that provide
their customers with a wide range of services, including strategic
solutions, IT services, research, and software development services,
and more.
To get the data more precise and to get the detailed structure of how
service-based organisation works, shown below the data from HCL
technologies.
3.2.1 History and Growth of HCL Tech (A Service Based MNC in

India)
Hindustan Computer Limited (HCL), a $27 billion market leader in

the technology and IT sector, is comprised of the Indian-listed
HCL Technologies and HCL Infosystems and HCL Healthcare.
(Engageforsuccess, 2012) One of the early Indian IT garage
start-ups, HCL was established in 1976 led by Shiv Nadar. They
setup their business in near about 52 countries worldwide. Its
founding principle is "Employee First, Customer Second," which
gives its approximately 77,000 employees the freedom to engage
consumers and create genuine value for them.
Although the company has tried to maintain its hardware
expertise, HCL Technologies' primary areas of interest are
software and services (RishitaJain, 2022) . A business called
HCL Overseas Limited was established in November 1991 to offer
technology development services. On February 10, 1992, it got
the certificate authorising the start of business, at which point it
started operating. The firm name was changed to HCL Consulting
Ltd two years later, in July 1994, and subsequently to HCL
Technologies Limited in October 1999.
Revenues of $1,1.48 billion were produced by HCL Enterprises in
2022. For the fourth quarter of FY22, the company generated $2.9
billion in operating revenue. In 52 different countries, HCL
employs more than 208,877 professionals as mentioned in below
fig 1
Page | 14
Fig1: Revenue Distribution of HCL

Source: https://startuptalky.com/hcl-enterprise-case-study
HCL Technologies is a leading worldwide technology company

that aids businesses in reimagining their industries for the digital
era. (RishitaJain, 2022) Leading businesses, including 250 of the
Fortune 500 and 650 of the Global 2000, receive comprehensive
services across industry verticals from HCL thanks to its global
network of R&D facilities and co-innovation labs, global delivery
capabilities, and over 150,000+ "Ideapreneurs" across 49
countries.
HCL Technologies began as the R&D Division of HCL Enterprise,

a company that was a contributor to the development and growth
of the IT and computer industry in India.
In 1978, HCL Enterprise created a homegrown microcomputer; in
1983, it created a networking operating system and a client-server
architecture. HCL Technologies was established as an
independent division to offer software services on November 12,
1991.
HCL Revenue and Operation Model in FY2021-2022 as per HCL
report mentioned in their website (HCL, 2022) in the below fig2.
Fig 2: Revenue and Operational Model of HCL Tech

Source: - https://www.hcltech.com/hcl-annual-report-
2022/index.php
Data show below are the last 3Year of CAGR
Page | 15
Revenue from Operations shows 14.1% growth in CAGR in the

FY22 since last 3yrs as shown in Fig 3:
Fig 3 : Revenue from Operations (₹CR) HCL Tech

2022/index.php
The below data shows 13.2% growth in CAGR of profit before

taxes, finance costs and other income
Fig 4: Profit before taxes, Finance costs, and other Income (₹CR)
HCL Tech
2022/index.php
Below mentioned data shows 11.5% growth in CAGR in Profit

after Tax.
Fig 5: Profit after Tax (₹CR) HCL Tech
Page | 16
2022/index.php
As of today if we see the different types of services HCL have, out

of which IT and business service has the highest no of clients and
services which is 72.1% followed by Engineering and R&D
Services which is 15.8% and Products & Platforms which is 12.1%
, data are shown in the below fig 6.
Fig 6: A differentiated and Integrated portfolio of HCL

2022/index.php
Since the last 46yrs HCL has shown a tremendous growth in

terms of their global presence as well as show in Fig 7. Which
shows that HCL has expended its network to 210+ of delivery
centres which supports customers and partners globally by
providing access to the latest technology expertise and business-
oriented technology solutions.
As of now 60+ of innovation labs have been formed across
globally which help to ideate, develop, and deliver futuristic
solutions through next generation technologies for the business
transformation journey of their clients.
100+ of Engineering labs have been made to help design, test,
and accelerate product development and certification by
leveraging the latest technologies to create immersive customer
experiences.
Page | 17
Fig 7: Global Presence of HCL

2022/index.php
3.2.2 HCL Business Model and revenue Generation
Sustainability is embedded with everything in HCL technologies

with a comprehensive ESG framework, they are creating harmony
between people, planet and prosperity and their sustainability is
based on three guiding principles: -
ACT, Pact, and Impact.
ACT - HCL (HCL, 2022) Understand that impact starts with them,
so they behave in the most ethical and sustainable way
necessary. They also make sure that every resource is used as
efficiently as possible to increase its value in the market.
PACT - HCL interactions with their stakeholders go beyond a

written agreement. In cooperation with their clients, partners,
employees, communities, and all other stakeholders, they are
striving towards a sustainable future.
Impact - Through all of their projects and activities, HCL focuses

on producing sustainable, long-lasting impact.
HCL's business model and income streams are composed of five

primary components that enable it to become a top provider of
services in India.
3.2.2.1 CloudSMART
The ability of every organisation to swiftly modify its

business plan and adopt fundamental digital
technologies by leaning on the cloud was put to the test
in response to the global health crisis. CloudSMART, a
proactive, consultative, and ecosystem-led strategy,
Page | 18
includes a collection of Offerings and Services created

and provided by "one HCL" — a high-velocity
collaboration of HCL's three business sectors with the
active engagement of a robust worldwide network of
ecosystem partners.
Clients and top analysts have supported the
CloudSMART (HCLTech, 2022) strategy and the core
HCL CloudSMART Ways throughout the past year.
Whether transitioning to the cloud, developing in the
cloud, or relying on HCL's extreme automation, FinOps,
and operational agility for the cloud, HCL CloudSMART
Ways provide readiness, resilience, and sustainability.
Clients who use CloudSMART become more dependent
on HCL for ongoing cloud modernization and digital
transformation. Investment is still being made to
guarantee CloudSMART adoption across the board.
Continuous cloud modernization for business
transformation is shown in the below fig 8
Fig 7: Continuous cloud modernization for business

transformation
2022/index.php
3.2.2.2 Strategic Alliances
HCL along with the Global market leaders centred on

the Cloud Ecosystem, Digital Platforms, and Data and
Analytics. HCL co-develop solutions, products, and
accelerators through their strong ties with these
platform, product, cloud, and SaaS leaders. They also
offer systems integration and managed services.
Through quicker time-to-market, lower costs,
measurable ROI, and the capacity to quicken digital
transformation projects, they assist customers in getting
the most out of their financial investments with these
businesses. In some cases, these partners also use
Page | 19
HCL to design, oversee, and maintain their product

lines.
In the start-up industry, HCL also cultivates beneficial
relationships with venture investors, trade missions, and
industry associations. (HCLTech, 2022) The Open
Group, Cloud Native Computing Foundation (CNCF),
and Cloud Foundry Foundation are a few major
organizations with whom there are connections. HCL's
own startup accelerator and innovation platform
(eSTiP), which promotes co-creation of solutions
through an open innovation methodology, is a major
distinction as mentioned in the below fig 8:
Fig 7: Continuous cloud modernization for business

transformation
2022/index.php
3.2.2.3 IT and Business Services (ITBS)
ITBS (HCL, 2022) enables global enterprises to

transform their business via Digital Foundation,
modernized infrastructure stack built around hybrid
cloud, software defined networks, the digital workplace,
and other elements; Digital Business, a combination of
application services and consulting capabilities; Digital
Operations, a three-pronged setup for modernized and
efficient operations at enterprise level. A comprehensive
suite of end-to-end digital offerings to address the
traditional and transformational needs of large
enterprises, these three pillars of our IT & Business
Services are fundamental in driving progress for
enterprises adopting next-generation technologies.
HCL provide a highly effective collection of capabilities
that provide more value than the sum of their individual
parts by merging these areas. Their significant
investments in people, innovation laboratories,
Page | 20
experience centres, centres of excellence, and world-

class partnerships form the foundation of
their established competence in these fields.
Fig 8: Building the resilient digital Enterprise

2022/it-business.php
3.2.2.4 Engineering and R&D Services
Engineering and R&D Services (ERS) from HCL

Technologies assist clients in modernising their
companies for the digital age. Utilising the newest digital
technologies to monetize product offerings and produce
top-notch customer experiences, HCL collaborate with
multinational corporations to speed the development of
products and platforms (HCLTech, 2022).
Fig 9: End to end Engineering R&D services Portfolio

2022/Business-highlights-engineering.php
Businesses are focusing on sustainable business

practises and green technologies. A clear transition
from sustainable operation to sustainable value chain is
required in response to the rising demand for renewable
energy sources, low-carbon goods, and circular
economy models. The move to sustainability is driven,
in addition to legislative obligations, by investment
Page | 21
interest and customer preference for intelligent and

energy-efficient products.
A green leap is easier said than done. Most
organizations find it difficult to make the switch to
sustainability without a strong ecosystem due to rising
costs, excessive complexity, and a lack of specialised
solutions.
From product conceptualization and design to end-of-
life and sustenance, HCL's Sustaineering portfolio offers
end-to-end sustainability solutions and services
supported by strategic alliances across the value chain.
HCL provides extensive, tailored services at every level
of the transformation journey, from planning to creating,
transferring, and deploying solutions perfectly matched
to client requirements.
3.2.2.5 Products and Platforms
In HCL Products & Platforms (P&P) was launched with

the dual goals of building its credibility as an enterprise
software player and opening up global client base and
sales channels. (HCLTech, 2022) HCL currently have
6,800 Global Clients—540 of whom are G2000—along
with 775 Business Partners, and they have a presence
in 132+ different countries worldwide. Their
comprehensive product line targets four important
markets which are Telecom/Manufacturing, Digital
Transformation, Intelligent Automation and AI and Data
and Analytics.
Fig 10: Four Key market of Product & Platform

2022/products-platform.php
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3.2.3 HCL Client Profile
HCL Technologies Ltd. offers services to a wide range of

industries, including public services, consumer services, life
sciences and healthcare, and financial services and
manufacturing with geo presence across America, Europe, and
APAC/MEA.
3.2.3.1 Financial Service Industry
Customers of HCL are from the banking, capital

markets, and insurance industries. In order to recast
themselves as technology platform companies with a
banking licence, (HCL, 2022) HCL is assisting
conventional players who offer core banking solutions.
Through extensive automation, alliances with leading
solution providers, cutting-edge technologies, and
creative engagement models with the following best-in-
class features, HCL Technologies seeks to provide
disruptive competitive advantage to financial market
infrastructure providers (FMI), investment banks,
broker-dealers, wealth managers, asset managers, and
financial market infrastructure providers (WWM) in the
capital markets.
3.2.3.2 Life Sciences and Healthcare
HCL have been a 'partner of choice' for top life sciences

and healthcare companies for the past ten years. Ten of
the top twenty pharmaceutical companies and seven of
the top manufacturers of medical devices are among
their clients.
3.2.3.3 Public Services
HCL have customers within the public services industry

in industries like energy utilities, mining and natural
resources, oil and gas, travel, transportation, logistics,
and hospitality.
3.2.3.4 Consumer Services
HCL have customers within the consumer services

industry in industries including retail, consumer goods,
media and entertainment, and telecommunications.
HCL have worked with four top-tier publishing firms, two
industry leaders in gaming solutions, three major global
music conglomerates, and two top casinos during the
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past ten years. HCL currently hold the top spot among
Indian IT service providers for publishing.
3.2.3.5 Manufacturing
HCL have customers in areas including aerospace and

military, automotive, chemical and process, high-tech,
and industrial manufacturing when it comes to
manufacturing.
3.3 Comparison Between Product based and Service Based Company
Product-based and service-based companies are two different types of

businesses that operate in different ways. While product-based
companies produce and sell physical goods, service-based companies
provide intangible services to their clients.
Product-based and service-based companies have several differences
in terms of their nature of business, tangibility, production process,
inventory management, revenue generation, job security, flow of
business, Salary and Benefits, Hiring Procedure. An employee must be
aware of these distinctions in order to select the best employers with
whom to work and to be motivated, few of the comparison are mentioned
below to help people to understand how both the companies focussed
and runs their business
3.3.1 Nature of Business
(SurbhiS, 2022) Product-based companies manufacture and sell

physical goods, while service-based companies offer intangible services
to their clients. The primary focus of product-based companies is on the
production and distribution of goods, while service-based companies
focus on providing services that meet the needs and requirements of
their clients.
3.3.2 Tangibility
(Aman, 2023) Products are tangible goods that can be seen, touched,
and felt, while services are intangible and cannot be seen or touched.
This means that customers can physically examine and inspect products
before purchasing them, but they cannot do the same for services.
Instead, customers rely on reviews and feedback from other customers
or rely on the reputation of the service provider.
3.3.3 Production Process
Product-based companies typically have a more complex production

process than service-based companies. They require raw materials,
production facilities, and a supply chain to manufacture and distribute
their products. On the other hand, service-based companies do not
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require a production process as they offer services that are delivered by

skilled professionals.
3.3.4 Inventory Management
Product-based companies require inventory management systems to

keep track of their goods and ensure that they have enough stock to
meet demand. Service-based companies, on the other hand, do not
require inventory management as they provide services that are
delivered in real-time.
3.3.5 Revenue Generation
(Pereira, 2023) A product-based company generates revenue by

selling its products to customers, while a service-based company
generates revenue by selling its services to clients. Revenue for
product-based companies is typically generated through one-time
purchases, while revenue for service-based companies is often
generated through recurring contracts or subscriptions. This
difference affects how companies manage their finances, plan for
growth, and measure their success. Also, Product-based
businesses cannot generate recurring revenue. This is due to the
company's requirement to develop new items in order to draw in
more clients and make money for your company.
On the other hand, service-based businesses profit from the
possibility of recurring income. This is due to the fact that the client
continues to pay a regular cost for their services. Additionally,
recurring revenue is advantageous since it credits a certain
amount to the business account of the organisation each month
or year. Additionally, this sum multiplies as the company's
customer base expands. Long term, it increases the company's
revenue in this way.
3.3.6 Job Security
(Kaamde, 2022) According to several surveys conducted by

recruitment portals and placement agencies, job security is typically
stronger in product-based than in service-based organizations, but a
service-based employee feels more pressure because of the
constrained deadlines and targets. Recently, it has been noted that
service organizations now frequently hire huge numbers of people, and
following the training phase, the majority of those individuals are
benched for a number of months.
Because of this, job security is generally lower in service-based
businesses, while part-time employment is more common in product-
based businesses, where internships and part-time employment are
both commonplace. All of this, though, is quite arbitrary and might vary
from company to company.
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3.3.7 Flow of Business
(Kaamde, 2022) In businesses that are product-based, the

process of product analysis, design, development, and launch
comes first. Once the product's development is finished and it is
ready for usage, it is put on the market. Even before the clients
approach the business, the products and apps are ready. In
contrast to service-based organizations, it is totally the reverse.
The process starts when a customer approaches these
businesses with a predetermined list of demands. These criteria
are confirmed, and project activities are planned and carried out
in accordance with the specific requirements of the client.
3.3.8 Salary and Benefits
(Indeed, 2022) Product-based businesses prioritise talent more

and are generally better pay masters. It's possible that the product
or application doesn't yet have a customer base. In order to pay
their employees, businesses do not rely on customer billings.
These businesses offer their employees benefits that are
dependent on the cost of living as well as high pay and raises.
Service-based businesses place a strong emphasis on client
billing; as a result, a rigid range in terms of pay and benefits is
followed. Employees typically receive performance-based raises
in compliance with organisational and client regulations.
3.3.9 Hiring Procedure
(FacePrep, 2020) Product-based businesses place a strong

emphasis on domain expertise and abilities when employing new
employees. Due to a lack of skills and expertise, it is typically
difficult for beginners to pass interviews and get hired by product-
based organizations. These businesses don't necessarily care
about an employee's capacity to interact with customers; instead,
they want them to be able to work on their software or products.
Priority is given to domain-specific skills above other skill sets.
Service-based businesses are involved in a variety of project
lifecycle activities. They might want their staff to interact with the
stakeholders, promote the product, develop a specific service,
and much more. These organizations seek candidates with a
broad skill set, with an emphasis on interpersonal, decision-
making, and communication skills in addition to subject and
technical knowledge. The businesses also employ new
employees and train them in accordance with the functions and
industry of the firm. Due to this, it is significantly simpler to
succeed in job interviews and the recruiting process for service-
based businesses.
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3.4 Layoff
(Savitha, 2023) Layoffs refer to the temporary or permanent termination

of employment of one or more employees by an organization, usually for
economic reasons. Layoffs can be due to a variety of factors, such as
declining sales, cost-cutting measures, mergers, and reorganizations.
Layoffs can have a significant impact on both the employees who lose
their jobs and the organization itself.
Recently we all have been heard of massive layoff across the globe
which includes top industry tech giants in India as well as globally.
(BahaudinG Mujtab, 2020)The term "layoff" is identical with and
frequently used in conjunction with ideas like reduction-in-force (RIF),
downsizing, rightsizing, termination, firing, reengineering, restructuring,
and voluntary separation options (VSO) when a large number of
employees' employment with an organisation is ending. Organisational
layoffs are intended to boost productivity, the economy, and overall
competitiveness, and they are frequently seen as the only way to prevent
businesses from going under. When layoff announced, it can be a huge
disappointment to those who are immediately impacted by it. For
example, (Anand, 2022) in the recent news says that Meta layoff
Himanshu V who was a graduate of the IIT (Kharagpur) and that he had
been let go just two days after relocating to Canada to take up his new
job with Meta. It’s not just the Product based companies who are
affected during this recent Crisis but some of the Indian Top service-
based organizations are highly impacted as well. Top service-based
organisation like Accenture, Wipro, HCL, L&T has shortened their
workforce since the pandemic 2019.
(Thaker, 2023) Since the early 1990s, IT services have been the
aspiration of the Indian middle class. The latest turn of events, however,
tells a different tale. According to the Naukri Job Speak Report (January
2023), there has been a 25% decrease in hiring in the IT sector
compared to last year. In Q3, the top four IT companies in India added
a net total of 1,940 personnel, the fewest in the previous eight quarters.
The majority of these businesses have been delaying the onboarding of
new workers, and several allegedly provided up to 50% compensation
reductions in exchange for quick placement. Staffing service Xpheno
reports a roughly 50% decrease in active job volumes in the tech
industry year over year.
3.4.1 Rationale for Layoffs
Layoffs seems to be becoming a more frequent practise as a first

step to prevent bankruptcy or to boost profits. Layoffs are thus a
terrible fact of the local, national, and global workplace today.
Companies Management sometimes assume that downsizing is
something businesses undertake during tough economic times or
during spurts or stretches of underperformance, but in reality,
according to (Noe, 2020), "many businesses that are doing pretty
well nonetheless downsize for strategic reasons.
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There could be many reasons for layoff as some of the common

reasons for the recent Layoff in India are mentioned below.
3.4.1.1 Economic Downturns
Economic recessions, market downturns, or a decline in

demand for a company’s products or services can lead
to a reduction in the workforce.
3.4.1.2 Cost-Cutting Measures
(Reddy, 2018) Organizations may lay off employees as

a cost-cutting measure to reduce expenses during a
period of financial difficulty.
3.4.1.3 Technological Advances
(Ramlall, 2014) , (Shetty, 2022) mentioned in their

report that with the advancement of technology,
companies may choose to automate some functions or
outsource them to other companies, leading to layoffs.
3.4.1.4 Mergers and Acquisitions
(Avinash Chandra, 2020) In case of a merger or

acquisition, the resulting company may need to reduce
the workforce to cut costs and streamline operations.
3.4.1.5 Reorganization
Companies may undergo reorganization to improve

efficiency or to address the changing market landscape,
which may result in layoffs.
3.4.1.6 Covid -19 Pandemic
(Avornu, Wang, Solomon, & Nyedu, 2021) The usage

of technology increased considerably during the
pandemic's peak as everything shifted online. People
were working from home, doing their shopping online,
getting their groceries picked up or delivered, watching
films on demand at home and taking classes virtually
rather than in person. People spend more time online
because they were advised to stay at home and were
under quarantine.
Tech companies saw record-high earnings as a result
of the increase in online activity, which also sparked a
recruiting frenzy to meet the demand. Tech firms
increased their staffs and experienced rapid growth
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because they believed this would become the new

standard.
(Helter, 2023) As per the report the number of

employees at Meta roughly doubled. Meta estimated
having 48,268 employees in March 2020 and over
80,000 by September 2022. The firm revealed its
intention to fire 11,000 workers in November 2022.
Some work is now returning to its pre-pandemic ways.
People aren't using technology as much as they were
when working from home full-time if they have hybrid
work schedules. Instead, they spend their time
shopping, travelling, going to sporting events and
concerts, as well as dining out. The need for these new
workers also declined as the demand for tech services
dropped.
3.4.1.7 Ukraine – Russia War
(Aggarwal & Dogra, 2022) It is difficult for any nation to

remain detached from the conflict in a globalised
society. Inflation has been caused by the war's
disruption of the world's supply networks, which has
carried on for ten months. Russia and Ukraine are both
key producers of commodities, and the International
Monetary Fund (IMF) issued a warning in March that
any disruptions there will limit development and raise
inflation, particularly for oil and natural gas. Up to 30%
of the world's wheat exports come from Ukraine and
Russia, and food prices have also increased.
Businesses all throughout the world were hurt by the
high attrition rate and increased prices.
The globe was expecting to recover from the effects of
the Covid-19 pandemic, but as the margins grew
thinner, the war in Ukraine delayed the process. One of
the hardest damaged industries was information
technology (IT).
3.5 Impact of Layoff in India
3.5.1 Financial Impact
Layoffs have a significant financial impact on techies. Losing a job

means loss of income, and this can be a significant blow to the
techies. The financial impact of layoffs is more severe for those
who have taken loans or have other financial obligations.
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3.5.2 Emotional Impact
Layoffs can have a severe emotional impact on techies. Losing a

job can be traumatic, and it can lead to stress, anxiety, and
depression. Many techies may have to cope with the loss of their
colleagues, which can be challenging, especially for those who
have been working in the same organization for a long time.
Layoffs can decrease morale among remaining employees, as
they may fear losing their jobs or feel a sense of survivor’s guilt.
3.5.3 Career Impact
(Kumar, 2023) Layoffs can have a long-term impact on the

careers of techies. Losing a job can led to a gap in their resume,
which can make it harder for them to find another job. The tech
industry is highly competitive, and the skills of techies may
become outdated over time, making it even harder for them to find
a new job.
3.5.4 Industry Impact:
(Flanagan, 2005) Layoffs in the tech industry can have a wider

impact on the industry as a whole. It can lead to a loss of talent,
which can negatively impact innovation and growth in the industry.
It can also lead to a negative perception of the industry among
potential employees and investors.
3.5.5 Social Impact
Layoffs can have a social impact on techies. It can lead to a loss

of status and identity, as many techies identify themselves with
their jobs. Losing a job can also led to a loss of social connections
and networks, which can make it harder for techies to find new
job opportunities.
3.5.6 Decreased Loyalty
(Sharma, 2023) It is normal for employees to feel uncomfortable

and uneasy when something macroeconomically significant
occurs or is beyond their control. In addition to causing dread and
anxiety within the affected teams, such layoffs often affect
individuals from other teams and functions. Layoffs can decrease
employee loyalty, as they may feel that their job security is not
guaranteed, and they may seek employment elsewhere.
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4. REVIEW METHODOLOGY
The approach involves taking the user experience process into consideration. In
This thesis consider the UX method and understanding the organisational
structures of both product- and service-based businesses, as well as every aspect
of the potential these two industries are offering to tech employees, and the
reasons of layoff in for tech employees which is a highest in number happen
recently in last 3 yrs.
4.1 Research Design
This study will be conducted using a mixed-methods research design,

which involves both qualitative and quantitative data collection and
analysis. The study will be conducted in three phases.
4.1.1 Phase 1: Literature Review
The first phase of the study will involve a comprehensive review

of the relevant literature on the topic. The literature review will
help in identifying the existing research gaps and the key
variables that influence the impact of layoffs on techies. It will also
help in developing a conceptual framework for the study.
4.1.2 Phase 2: Data Collection
The second phase of the study will involve data collection. The
data will be collected using two methods
4.1.2.1 Online Survey
A structured online survey will be developed to collect

quantitative data from the techies who have
experienced layoffs in service-based organizations. The
survey will include questions related to the impact of
layoffs on their professional and personal lives, the
factors that led to the layoffs, and their perceptions of
the organizational support provided during the layoff
process.
4.1.2.2 Interview
Semi-structured interviews will be conducted with a

sample of techies who have experienced layoffs in
service-based organizations. The interviews will be
conducted to gather in-depth qualitative data on the
impact of layoffs on their professional and personal
lives, the coping strategies adopted by them, and the
support they received from their social network and the
organization.
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4.1.3 Phase 3: Data Analysis
The third phase of the study will involve data analysis. The data
collected through the online survey will be analysed using
descriptive and inferential statistics. The qualitative data collected
through interviews will be analysed using thematic analysis. The
quantitative and qualitative data will be integrated to provide a
comprehensive understanding of the impact of layoffs on techies
in service-based organizations.
4.1.3.1 Ethical Considerations
The study will follow ethical guidelines for conducting

research involving human participants. Informed
consent will be obtained from all the participants before
their participation in the study. The participants'
confidentiality and privacy will be ensured, and their
identities will be kept anonymous.
4.2 Population
User Segment
User segmentation is the process of distinct users into different groups

according to their characteristics. There are most common types of user
segments Demographics, Behavioural, geographical, and
Psychographic. In this study, the user segmentation has been done
based on Secondary research data and Statistics. The participants are
from the aged of 25 - 40 years from HCL. The young Generation users
are maximum in number who are laid off during this recession so this
user base is more prominent towards this research.
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5. DATA ANALYSIS
5.1 Data Analysis process for Secondary Research
As Gathering secondary data will be the first step to start the research. The
secondary data collected from the literature review will be analysed using a
content analysis approach. The data will be coded into themes and sub-themes
based on the research questions and objectives. The themes will be analysed
using a deductive approach, where the themes will be linked to the research
objectives and research questions. The analysis will help identify the key factors
that influence the impact of layoffs on techies in service-based organizations.
5.2 Data Analysis process for Primary Research
Data Analysis for Primary Research:

The primary data collected from the online survey and interviews will be
analysed using both qualitative and quantitative data analysis methods.
Quantitative Analysis:
The data collected from the online survey will be analysed. The data analysis
will help identify the factors that contribute to the impact of layoffs on techies in
service-based organizations.
Qualitative Analysis:
The data collected from the interviews will be analysed using thematic analysis.
The data will be transcribed and analysed for common themes and patterns.
The analysis will involve coding and categorizing the data into meaningful
themes and sub-themes. The analysis will help identify the key themes and
patterns that emerged from the data and provide a more in-depth understanding
of the impact of layoffs on techies in service-based organizations.
Integration of Data:
The qualitative and quantitative data collected will be integrated to provide a
comprehensive understanding of the impact of layoffs on techies in service-
based organizations. The findings from the quantitative and qualitative data
analysis will be compared and contrasted to identify similarities and differences.
The integration of data will help to provide a more robust understanding of the
impact of layoffs on techies in service-based organizations.
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5.3 Primary Research Questionnaire and Survey Insights
5.3.1 Primary Interviews Insights
1. How did the layoff from your organization impact your work and job
security?
Insights: - The impact of layoff on an employee's work and job security can
be significant, as it creates uncertainty and instability. It can cause
employees to feel anxious about their future prospects, and it can also lead
to decreased productivity and morale. Additionally, the loss of colleagues
and support systems can also have a negative impact on an employee's
work.
2. Did the layoff affect your morale and job satisfaction?

Insights: - Layoffs can have a significant impact on employee morale and
job satisfaction. When an employee feels that their job security is
threatened, it can cause them to feel anxious, stressed, and unhappy. This
can also lead to decreased motivation and productivity, which can further
affect job satisfaction.
3. Did you feel that the layoff was necessary and justified by the
company?
Insights: - Employees may have different perspectives on whether a layoff
was necessary and justified. Some may understand that it was necessary
for the company's financial or strategic reasons, while others may feel that
the company did not consider other options or that the decision was unfair.
4. Were you given adequate notice before the layoff?

Insights: - The amount of notice given before a layoff can vary depending
on the company's policies, legal requirements, and other factors. Adequate
notice can help employees to prepare for the layoff, make necessary
arrangements, and start looking for new opportunities.
5. Do you feel that the company handled the layoff process in a fair and
transparent manner?
Insights: - The perception of how a company handles a layoff can vary
based on employees' individual experiences and perspectives. However, a
fair and transparent process can help to minimize negative impacts on
employees and maintain trust in the company.
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6. Did the company provide any communication or explanation about

why the layoffs were necessary?
Insights: - Providing communication and explanation can help employees
to understand the reasons behind the layoffs and can also provide some
closure. This can also help to maintain trust and transparency.
7. How did the layoff affect your personal finances and lifestyle?
Insights: - Layoffs can have a significant impact on an employee's personal
finances and lifestyle. Without a regular income, employees may have to
make difficult decisions about their expenses and lifestyle.
8. Did you feel that your company valued your contributions and loyalty
towards them?
Insights: - Employees who have been affected by layoffs may feel
undervalued and unappreciated by their former employers. Layoffs can be
a difficult and emotional experience for employees, especially if they have
been loyal to the company and have made significant contributions to its
success. However, it's important to remember that layoffs are often a result
of larger economic or business factors beyond an employee's control.
9. Did you have any warning signs that the layoff was coming, or was it
a surprise to you?
Insights: - Employees may have different levels of awareness about a
potential layoff before it occurs. Some may have noticed changes in the
company's financial performance or heard rumours from colleagues. Others
may have been completely caught off guard. In some cases, the company
may have provided advance notice to employees before the layoff occurred.
10. How did the layoff affect your overall career plans and aspirations?
Insights: - Layoffs can have a significant impact on an employee's career
plans and aspirations. They may have to reassess their career goals and
consider new opportunities in different industries or roles. However, some
employees may use the layoff as an opportunity to pursue new career paths
or start their own businesses.
11. Did the layoff affect your trust in the company and its leadership?
Insights: - Layoffs can erode trust in the company and its leadership,
particularly if employees feel that the layoffs were unfair or poorly handled.
Page | 35
However, employees may also recognize that layoffs are sometimes

necessary to ensure the long-term viability of the company.
12. Did the layoff affect your ability to maintain a work-life balance?
Insights: - Layoffs can have a significant impact on an employee's work-life
balance, particularly if they are forced to take on additional responsibilities
or work longer hours to make up for the loss of staff. However, employees
may also have more time to devote to personal interests or family
obligations after a layoff.
13. Did the layoff affect your overall perception of the tech industry or the
service-based sector?
Insights: - The impact of a layoff on an individual's perception of the tech
industry or the service-based sector can vary greatly depending on the
circumstances of the layoff and the individual's experience with the
organization. If the layoff was handled poorly, with little communication or
support from the company, it could lead to a negative perception of the
industry or sector as a whole. However, if the layoff was handled
transparently and with empathy, it may not affect the individual's perception
of the industry or sector at all.
14. Were there any opportunities for you to transfer to another department
or role within the company before the layoff?
Insights: - In some cases, some organizations may offer employees the
opportunity to transfer to another department or role within the company
before a layoff occurs. This can help retain valuable employees and
minimize the impact of the layoff on the organization. However, the
availability of such opportunities may depend on the specific circumstances
of the layoff, such as the size of the organization and the nature of the work
being done.
15. Did the layoff affect your ability to find new employment in your field
or industry?
Insights: - The impact of a layoff on an individual's ability to find new
employment in their field or industry can vary depending on a number of
factors, including the individual's skills and experience, the state of the job
market, and the reputation of the company they were laid off from. If the
layoff was due to external factors, such as economic downturn or industry
consolidation, it may affect the individual's ability to find new employment.
However, if the individual has a strong skill set and network, and the industry
is in a healthy state, the impact of the layoff on their employment prospects
may be minimal.
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16. Did you receive any support or guidance from your former colleagues
or managers during your job search?
Insights: - Support and guidance from former colleagues and managers
can be invaluable during a job search, both in terms of providing referrals
and recommendations, and in providing emotional support and
encouragement. If an individual received support and guidance from their
former colleagues and managers during their job search, it could help them
feel more confident and supported during a challenging time. However, if
they did not receive such support, it could make the job search process
more difficult and isolating.
17. Did the layoff affect your overall trust in the stability of the tech
industry and the job market?
Insights: - Layoffs are not uncommon in the tech industry, and they can
have a significant impact on the employees who are let go. It can also shed
light on the employee's level of confidence in finding another job in the same
field and it depends on the factor how layoff been done from person to
person.
18. How can organizations mitigate the negative impacts of layoffs on

their employees?
Insights: - Organizations can mitigate the negative impacts of layoffs on
their employees by being transparent, supportive, and proactive in their
approach to managing layoffs. By taking steps to provide support, training,
and job placement assistance, organizations can help employees navigate
the transition and emerge stronger and more resilient in the long term.
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5.3.2 Primary Survey Insights
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5.3.3 Analysing Insights from Primary and Secondary Data
Layoffs can have significant impacts on both product-based and

service-based companies. However, the benefits and payoff can be
differed from company to company.
Product-based companies typically have longer product

development cycles and are more susceptible to market fluctuations.
In times of economic downturns or when a product fails to meet
expectations, layoffs may become necessary to reduce costs and
keep the company afloat as in case of Meta (Facebook) who just
launched Metaverse before pandemic, but the users are not
adaptable to their technology as of now and due to this their product
fails in the market. Also, we can say that layoffs can provide short-
term financial relief for the company, they can also have long-term
consequences.
One potential benefit of layoffs for product-based companies is that

it allows them to refocus their resources on core products or
services. By eliminating positions in non-core areas, such as
marketing or research and development, the company can allocate
more resources to the development and improvement of its core
products. This can result in a more streamlined operation and a
more competitive product offering.
However, layoffs can also have a negative impact on product-based

companies and their employees. If layoffs are not handled properly,
they can lead to a loss of morale and productivity among remaining
employees. This can lead to a decline in the quality of work and a loss
of key talent. Additionally, layoffs can damage the company's
reputation and lead to a loss of customer trust.
On the other hand, service-based companies typically rely on a large

workforce to provide services to clients. Layoffs in service-based
companies are often driven by changes in client demand or a
reduction in contract renewals. While layoffs in service-based
companies can also provide short-term financial relief, they can have
different long-term consequences compared to product-based
companies.
Page | 39
One potential benefit of layoffs for service-based companies is that

it can allow them to adjust to changes in client demand and maintain
profitability. By reducing their workforce, service-based companies
can adjust their capacity to meet the needs of their clients and avoid
financial losses. However as per the Primary data it is observed that
most of the service-based company do not directly lay off the
employs they first put the employee on the “Bench” for 4 -6 months
until unless the project from the client is confirmed, if it is not then
in the worst case, they will release the employs after checking if there
is no other project running on. Still, we can say that layoff reasons
vary from company to company, as in case of HCL it is cost cutting
measures and economic downturns, while in case of Wipro we can
say that it is due to “moonlighting”.
However, layoffs in service-based companies can also have negative

consequences. If layoffs are not handled properly, they can lead to a
loss of key talent and a decline in the quality of services provided.
This can damage the company's reputation and lead to a loss of
clients.
In summary, while layoffs can provide short-term financial relief for

both product-based and service-based companies, the long-term
consequences can be differed from company to company. Product-
based companies may benefit from refocusing resources on core
products, while service-based companies may benefit from adjusting
their capacity to meet client demand. However, both types of
companies must handle layoffs properly to avoid negative
consequences such as loss of talent and reputation damage. But
once has to choose wisely before joining these company and startup.
Page | 40
6. CONCLUSION
Layoffs are a complex issue that can have significant impacts on both
employees and organizations. The impact of layoffs on techies in service-
based organisation can be severe and long lasting. Losing one's job can lead
to a range of negative effects, including financial hardship, decreased self-
esteem, and increased stress levels. It can also lead to emotional, career,
industry, and social impacts. In addition, the loss of institutional knowledge
and the disruption of team dynamics can have a ripple effect on the entire
organization. To mitigate these impacts, organizations should follow best
practices for handling layoffs, including clear communication, fairness,
support for affected employees, legal compliance, and prioritizing employee
retention, Outplacement Services, retaining programmes and access to
mental health resources. It is essential for organizations to be mindful of the
impact of layoffs on their employees and to provide support to those who are
affected by it. By doing so, organizations can minimize the negative impacts
of layoffs and maintain positive relationships with both their employees and
the wider community. Also, in regards of the service-based company and
product-based companies both having different reasons for the layoff which
varies from company to company, however we can say that as per our
research that in service base companies despite of having layoffs they are still
hiring the tech employs as the market recovers after the pandemic even
though it is recessions but there may be a large no of chances for tech
employees to not getting laid off in service base companies instead of product
based. It is also important for techies to take a proactive approach to their
careers, by networking, developing new skills, and staying up-to-date on
industry trends. By taking these steps, techies can increase their resilience and
adaptability in the face of layoffs or other career challenges.
Page | 41
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Keywords: Collaboration; MNC; Crisis; User Engagement; Organizations; Layoff;

3.3.5 Revenue Generation 25

1.1 Service Based Business

Service-based companies are businesses that provide services to customers instead

The hospitality industry is another significant service-based industry in India, with

Service-based organizations in India are diverse and contribute significantly to the

A layoff, commonly defined as an employee reduction, is the process

Employees are not laid off because of poor performance or negligence

With the current economic climate, many companies are unfortunately

A layoff can cause immense financial stress on an individual. It can also

1.3 Common Impact of Layoff on Employees in General

1.4 Psychological Effects of Layoff

Layoff can have a range of psychological effects on employees, including

may feel a sense of betrayal and a loss of trust in their employers,

1.4.1 Post-traumatic stress disorder (PTSD)

Layoff can also trigger post-traumatic stress disorder (PTSD) in

1.4.2 Career Anxiety

Layoff can also cause career anxiety in employees. They may

1.4.3 Survivor Guilt

1.4.4 Coping Strategies

There are several coping strategies that employees can use to

1.5 Causes of Layoff India and Globally

1.5.1 Low Demand

This is one of the most common causes of layoff in India and

declines, companies may have to reduce their workforce to cut

1.5.2 Changing Technology

With the advent of technology, many roles that used to be

1.5.3 Cost Cutting

Companies often lay off workers in order to save money on labour

1.5.4 Mergers & Acquisitions

When two companies merge or one company is acquired by

1.5.5 Seasonal Changes

Certain industries may experience seasonal fluctuations which

2. LIMITATION OF THE STUDY

3.1 Types of Companies for Techies

Everyone wants to work for a company that supports them in developing

3.1.1 Product Base Companies

Product-based businesses are those that manufacture high end

3.1.1.1 Product based Startups in India

In the past few years, product startups have become

Indian entrepreneurs have gotten a lot of capital in

Current business approaches are unable to easily meet

tried their best to address the problems that the people

3.1.2 Service Based Companies

The service sector is made up of professions that provide

3.1.2.1 Service Based Startups in India

After the US and the UK, India has the third-largest

3.2 Business Module and Revenue structure of IT Sector in Service

When one ventures into the professional world, one is naturally

variety of employment opportunities for educated people in a service-

3.2.1 History and Growth of HCL Tech (A Service Based MNC in

Hindustan Computer Limited (HCL), a $27 billion market leader in

Fig1: Revenue Distribution of HCL

HCL Technologies is a leading worldwide technology company

HCL Technologies began as the R&D Division of HCL Enterprise,

Fig 2: Revenue and Operational Model of HCL Tech

Data show below are the last 3Year of CAGR

Revenue from Operations shows 14.1% growth in CAGR in the

Fig 3 : Revenue from Operations (₹CR) HCL Tech