'Disclose & clarify': Infosys co-founder Kris Gopalakrishnan calls moonlighting issue of job contracts

India's much-vaunted information technology sector has, of late, seen itself come under microscope. From global macroeconomic headwinds to the ongoing debate on moonlighting, and concerns over delay in onboarding of new employees, the sector at large has had to face tough questions. Talking exclusively to Business Today, co-founder of Infosys, Kris Gopalakrishnan, said concerns about headwinds were legitimate, but one should look at the sector holistically, and from that perspective, there was much to be optimistic about.

"What I can say is that in the near term I am very optimistic about the IT industry. During Covid, for example, the use of digital technology has accelerated phenomenally, both in business and in our lives. And this has impacted positively the work done in India and from India, in terms of services delivered," he said.

However, Gopalakrishnan did agree that one will continue to witness ups and downs, at least on a quarterly and even annual basis because the sector cannot be seen in isolation and is intricately connected to the global economy at large.

Gopalakrishnan's views are buttressed by data. As per a recent report put forth by the market intelligence firm International Data Corporation (IDC), despite the existence of strong global macroeconomic headwinds, spending in Indian IT sector is expected to grow by 13.8 per cent this year, however, this number is down from 25.3 per cent by which it grew last year. IDC pegs the reason behind this contraction to several factors, with one key being a reduction in consumer technology spending. And yet, the report argues that the sector still has within it the wherewithal to demonstrate a much-needed resilience.

Gopalakrishnan sees this as cyclical. "Right now, we are having inflation, an impact on global GDP due to macroeconomic factors, which means we will see ups and downs, or cycles basically. And we are seeing this now. And not just in IT sector. But across the board in all industries. So, there is a secular trend of growth and there is a cyclical trend of ups and downs," he said.

Moonlighting

Addressing the much-discussed issue of moonlighting -- or the practice of an employee to take a side employment despite being employed by a particular company for some additional salary -- the IT stalwart told BT that the issue needed to be seen from the perspective of employee-employer contracts. "It is an issue of contracts and trying to make sure that the people comply with contracts," he explained.

According to him, one way to resolve this issue is to have a clear-cut conversation between the employer and the employee right at the outset. "You take a permanent employment with an employer, and you are supposed to work full time with that employer. It is as basic as this. Now if you want to do part-time work, you need to take part-time employment, and get these things disclosed, clarified and accepted by your employer. So, essentially, we are looking at a different type of employment relationship," he said. As he categorically puts it, there is a tendency to mix up a lot of unrelated things while discussing moonlighting. And Gopalakrishnan agrees that compared to before, now there is a much-needed clarity within the IT industry at large over the thorny issue.

Delay in onboarding of IT employees

As per Gopalakrishnan, the delay in onboarding is a temporary issue and the sector at large continues to recruit. "Different companies react differently when there is a downturn. I am very optimistic about the industry, and it is a fact that it continues to recruit, it continues to grow and from the medium to long term, we will emerge strong. These are temporary things," he explained.

 

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