How to survive an IT slowdown?

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TCS shows the door to 500 techies. IBM does the same to 700 ELTP’s. Will there be more?

US economy is not in the best of shapes. Neither is its currency. Rupee is appreciating. Will there be an IT slowdown? Should you worry?

I don’t know. (I think no one can predict these things).

But I think one can do few things to be ready for a slowdown, if and when it happens. I have split my thoughts into 2 parts. Career based and finance based.

(NOTE: I do not foresee any slowdown. I am incompetent to do that. My view is purely on how to be ready for a slowdown. )

Career based:

1. Top up your skill set.
   Add more to your repertoire. Learn that new skill. Upgrade your existing skill. Widen your wings. Become an expert. Press the learning accelerator. The more skilled you are, the lesser you are prone to a downsizing move.
2. Go that extra mile.
   Give more than you get. Provide more value to your employer and client. Practise customer delight. Show more commitment than ever. Aim to exceed expectations. Make yourself inevitable to your employer even during hard times. You will never be let off.
3. Make explicit efforts to make your value known to your manager.
   Let your manager know about the good work you have done. This will increase the perception of your value by your employer. But do not go around tooting your horns all the time… you could end up being considered as a cheap skate.
4. Hop jobs only if you have a strong reason.
   Any job change poses difficulties. The biggest being establishment of your value at the new place. It could take around 6 months at least to let your employer know your value. If there is a slowdown just as you change your job, you could end up being on the receiving side of things even if you are a star performer.
5. Move to an employer whose USP is ‘skilled’ and not ‘cheap’ labour.
   Cheap labour is used until it stays cheap. With rising rupee, our labour is no longer cheapest. If your employment is based on the ‘cheapness’ factor… beware!
   Try to move to an employer where your service is required by the client because of the ‘quality’ and ‘skill’. Usually clients don’t mind paying that extra rupee if the labour is skilled.

Finance based:

1. Build a war chest to dig into during uncertain times.
   Save money for a rainy day! Be ready for anything. Start saving today if you haven’t so far.
2. Do not get locked into big ticket liabilities.
   Avoid the new car loan. Avoid that plasma TV and adjust with the existing 10 year old one. Avoid loans if you do not have enough assets to back you up.
3. Keep 3-6 months expense in liquid assets.
   Keep at least 3-6 months of expenses in a liquid asset, preferably a floating rate fund.
4. Take adequate medical insurance for family. Do not depend on employers insurance.
   You might argue that you already have adequate insurance from your employer. But it will serve you only until you are employed. Take personal medical insurance today. A family floater should do good.
5. Make a plan for the next 2 years expenses.
   Draw a plan. Note down all the probable expenses in the next 2 years. See how you can provide for it without having to depend on your monthly salary. See where you can cut costs. See where you are placed to handle uncertain periods.

All this sounds too gloomy and negative. But let me clarify. I do not foresee any drastic slowdown soon. And I am the last person capable of predicting such things. But it is good to be cautious. Once you have insured yourself against a few possible mishaps, there is nothing to worry about. Keep your focus on your growth… not on the negative news (noise) around you.

Wish you a great career ahead!

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