There have been continuous layoffs of IT roles in Singapore, ranging from Microsoft to Twitter, Accenture to Google, from 2022 until today.
Why do companies lay off in Singapore and not in Germany, for example?
Singapore’s workers can be laid off at any time with just a one-month notice.
In Germany, strong workers’ protection laws exist. A company can lay off people only if they have a strong justification, such as bankruptcy.
Companies like Microsoft or Google have hundreds of millions of dollars in income each year and are far from bankrupt.
In Singapore, workers are considered disposable; therefore, it is preferable to employ in other countries with lower living costs.
Are we really at the end of IT experts’ and specialist roles here in Singapore?
Covid-19 has proven to many companies that work can be done remotely, especially for IT projects and operations.
This would translate to saving on the budget assigned for projects and/or these roles because employees don’t need to be physically present in Singapore.
Similar to how “made in China” allowed all of us to benefit from the lower cost of consumer products, probably soon the “made in India” will lead to a reduction in overall IT costs for companies in Singapore.
What would this mean for all the IT people in Singapore?
If you are a Singaporean with a high level of IT skills, it will be harder for you to find a well-paid job where your knowledge and background will be valued.
If you are a foreigner with a high level of IT skills, it is good news because you can go back home to your family and work from there, making you more competitive with salary requests.
Is it still worth it for Singaporeans to upgrade their skills in IT?
Probably only for IT competency roles that are required to be done on-site. All roles that can be done remotely will be assigned to overseas employees.
Will Singaporean companies benefit from this shift from local to overseas IT workers?
Yes, companies will save money.
In the long run, the quality will be affected, and there will be a flattening of services and outcomes.
Singapore’s environmental factors are unique, and being on-site has the advantage of catching details that would be lost otherwise. This is especially true for companies offering local services. A different note would apply to those companies providing global services.
What does this mean?
While in certain countries like France, Germany, or Italy, the language factor is an important contributor to the recruitment of local workers, here in Singapore, we don’t have such an identity. Singaporean companies will adapt to this scenario of using overseas ITs, and there will be a reduction of on-site IT roles with further layoffs in other connected roles, such as recruiters for IT positions.
Unfortunately, money is everything today, and meritocracy is losing the battle against the “cheap cheap” culture.
I hope you found this article interesting. If so, please share it with others.
“Knowledge is Power but without Actions is useless.”
Roby Osamu