Is telecom Industry A Sinking Ship?

Dear Friends,

In last few months we have seen tremendous change in the market dynamics of Telecom Industry. At one point of time when people were talking about Telecom as one of the largest growth sectors and hirer’s of professionals for next 5-10 years, a sudden change of the Management/Company structures in almost all the telecom companies have brought a halt and the hiring have come to minimal. Above this we have also heard Pink slips being issue to employees not only at junior level but at very senior level as well. This has come as shocking news to all of us related to talent Acquisition and people from telecom organizations.

Suddenly a lot of movement is seen from people working in telecom companies and professionals from these sectors have started approaching search firms and exploring their network to find out some opportunities outside this industry.

Why is this so? Are telecom companies in losses? Are they loosing revenues? Is their no growth left in telecom companies or are these companies actually playing intelligently by cutting down their manpower, saving cost thus resulting in higher revenues!

Recent news gives some clarity on this which is to be read this way:

“India’s telecom story is over. Industry revenues have not gone up in two years,” admitted the promoter of one of the largest mobile phone companies.”

“Six top executives of mobile phone companies are hunting for new jobs, signalling bad times for a sector that was once touted as the symbol of India’s growth story. Those looking for a career change include the CEO of one of India’s largest telecom operators and the heads of two new entrants.”

More answers are expected to come during next financial year when the manpower projections would be out and companies are back in the market with hiring trend. We have to just keep a close watch on the movement of this industry.

Thanks

Nitin Jain