KOCHI: The mass layoff by US-based medical analytics and coding firm CorroHealth has taken the IT and industry sectors in Kerala by surprise. Tech executives expressed concern over the impact the development will have on the pro-industry image Kerala has painstakingly built over the years. However, the IT department assured that all steps will be taken to ensure that the matter is resolved amicably.
“If the company is making the argument that operations in Kerala are being wound up because of unviable business conditions, we will counter it with the statistics and reports,” a top official with the department said.
Sharing the assertion that the numbers tell a different story, V K Mathews, executive chairman of GTech (Group of Technology Companies) and founder and executive chairman of IBS Software, said,
“Contrary to the company’s claim, which comes against the backdrop of its decision to move to Hyderabad, Kerala is the only state in the country that provides IT companies with good infrastructure at an affordable rate.
The immense talent pool is a big attraction, and these factors have been playing a big role in companies choosing to set up global capability centres (GCC) in the state.” The IT official concurred. “It’s not just infrastructure. Even spends on salary are low here compared to other IT hubs in the country. So, how does the state become unviable?”
According to Mathews, CorroHealth’s narrative is dangerous and, if not countered, might prove negative for the state, which has been attracting GCCs in good numbers. “The state government needs to take strong steps to counter the false narrative and resolve the present issue. It should also try to unravel the company’s real intentions,” he added.
Mathews pointed out that IT companies are largely employee-friendly. “However, the advent of artificial intelligence could play a major role in the reduction of employee numbers in some sectors, especially those associated with IT services,” said Mathews, adding that upskilling will be one way to counter the adverse impact of AI.
Meanwhile, the All India Professionals Congress (AIPC) has urged the state government to immediately implement an ‘office wellness policy’ to ensure the welfare, dignity, and security of employees in their workplaces. In a joint statement, AIPC state president Ranjith Balan, IT Vertical Kerala state president Fazalu Rahman, and his deputy Biju Sundaran pointed out that this policy is essential to establish operating standards beneficial to both employees and employers and to lay a strong foundation for the state’s IT industry.
AITUC state president T J Anjalose called on the state government to intervene in the issue. He pointed out that although the US company had stated that the measures were in accordance with the new labour policies of the central government, Kerala has taken a different stance on the matter. He said that the layoffs were carried out through an abrupt announcement in the office. “This is a violation of labour laws.”
