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Is cutting development and training in a recession a good idea? Looking at the IT and ITeS sector in India

M.S. Rao (Consulting Editor, based at Icfai Research Center, Hyderabad, India)

Development and Learning in Organizations

ISSN: 1477-7282

Article publication date: 21 August 2009



The article highlights the importance of corporate training in knowledge sectors like Information Technology and Information Technology “enabled services” sectors during times of recession. It treats recession as a boon not as a bane – as an opportunity for employees to spend time learning and for employers to gain a competitive edge.


During recessions, organizations should not sack employees but engage their support to battle against recessions. They should find ways and means to cut down on unwarranted expenditure elsewhere; partly through the ideas and ingenuity of the employees themselves. Recession is also the right time to focus on innovation and creativity. An emphasis on greater market research (which is often neglected because of complacency when times are more profitable) would definitely pay off. Creating new products or services can open the gates for new consumers of products or services.


It concludes that training is only a comma not a full stop. Training is an investment not an expense. Despite any recession, it should be maintained as a continuous process to ensure organizations remain competitive and productive.


The article focuses on IT and ITeS sectors in India, looking at the value of training from a different perspective. It converts the threat of recession to an opportunity. It is aimed at senior executives, busy practitioners, HR executives, training consultants and trainers.



Rao, M.S. (2009), "Is cutting development and training in a recession a good idea? Looking at the IT and ITeS sector in India", Development and Learning in Organizations, Vol. 23 No. 5, pp. 7-9.



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