IT, BPO Firms All Set To Leave Gurgaon Due To Reservation Rule; Noida Next Destination?

After Bengaluru and Hyderabad, Gurugram one of Haryana’s largest cities with companies like Google, Microsoft, Tata Consultancy Services (TCS), Infosys, Genpact has the largest IT and BPO employees. According to the job reservation bill, the Haryana government led by BJP Chief Minister Manohar Lal Khattar has decided to reserve 75 per cent of jobs in the private sector for the local people. The proposal applies to new jobs that are added by companies and not to existing roles.

Why do Companies Choose To Relocate Or Establish New Operations?

 Companies may look forward to expanding their business in Noida or other states under the circumstances of this reservation. But their headquarters may stay in Gurugram because the law does not affect existing industries. In the year 2020-2021 tech companies hired over 138,000 people across India, taking its total workforce to 4.47 million professionals. This year, business process management (BPM) firms are expected to hire 100,000 people. Haryana has previously said that nearly 5% of all global BPM workers are housed in Gurugram.

The industry is at a loss to understand the local job reservation mandate,” said an official at Nasscom.

 Officials On Job Reservation Bill

Genpact’s Chief Executive Officer NV (Tiger) Tyagarajan estimates that India-based IT and BPO services companies are critical to keeping global businesses and economies moving. He said “We believe in meritocracy and constraining talent by geography and reservations is not conducive to the competitiveness of the industry,” 

A Nasscom official said “The industry hires people based on merit and not their address. The industry is at a loss to understand the local job reservation mandate,” 

Chandrajit Banerjee, director-general, Confederation of Indian Industry (CII) said “We hope the state government of Haryana relooks at the legislation. With the prime minister’s vision of ‘Ek Bharat Shreshtha Bharat’ we look forward to an integrated and mobile labour market within the country,” he said.