I got to know about this question through Quora and got excited to answer this in my full consciousness.
That was bound to happen. The reason is simple – many IT giants like Infosys and Cognizant and Accenture overshot the ROI and got into business planning based on hollow speculation.
Let me explain this into simple words.
Since the advent of the Internet and digital technologies, landscape about business and opportunities and skills have been changing constantly. People working in the IT field are not knowing what set of skills is right and what is basic and what needs to be changed regularly. They run pell-mell. They might gain something in short term, but in long term it is devastating.
But today, for any data or value-driven business, trending skills like Python and its libraries and frameworks are used, instead of HTML, JQuery or Java or C. So, here itself, they are defeated.
Next strong reason for massive layoff or IT recession is being overconfident about digital services, like content development, digital marketing, digital publishing, SEO, SMO, PPC, Online Adverts – these niches are well-handled by startups or even freelancers. Also, big IT giants failed to streamline a simple process for delivering these services. The death bolt was hammered by automation services in the field of mobile app development, testing, website and blog creation, and many more.
On the other hand, due to easily available internet facilities, awareness and knowledge sharing become easy and this led to formation of many online business ventures. Nowadays, people learn web development, ML, AI, and data science at their own pace and leisure. The world’s business has expanded, so do the chances of getting it done.
In fact, IT giants held traditional and orthodox outlook in their business, just like Kodak camera – it died when smartphones were introduced with in-built cameras.
And psychologically people who started earlier in the IT companies, thought that it will not update so soon. So, they turned lazy and now new talent with new skills awaiting them to oust them from their dens.
There are many reasons for the IT recession. And countries like India, which is considered a major hub will see the impact on its economy. Also, IT hub is spreading across the world, programming languages are being learnt by all as they are becoming easy to learn, and Europe and many other nations have woken up to eke out their share from the IT world which earlier was confined to some regional players like the US and its offshore destination India.