Infosys has committed to adhering to any regulations and guidelines that Karnataka introduces regarding reservations for local candidates in private companies, according to a top company official on Thursday.
Infosys, which currently employs over 315,000 people worldwide, stated its intention to align with both state and central government regulations. “We plan to comply with all forthcoming state and central government regulations. We will adapt as needed and support any new guidelines that emerge,” said Infosys CEO Salil Parekh.
The Karnataka State Employment of Local Candidates in Industries, Factories, and Other Establishments Bill, 2024, recently approved by the state Cabinet, was set to be presented in the Assembly. The bill proposes that 50% of management positions and 70% of non-management positions be filled by local candidates. However, it has been put on hold following strong criticism from business leaders and industry figures.
The National Association of Software and Service Companies (NASSCOM) has warned that such restrictions could compel companies to relocate due to a lack of local skilled talent. This move mirrors a bill introduced by Haryana, which mandated 75% reservation in private sector jobs for residents. That bill was struck down by the Punjab and Haryana High Court on November 17, 2023.
PhonePe CEO Samir Nigam criticized the proposal on social media, describing it as a “shame.” Nigam questioned the fairness of denying job opportunities to individuals whose families have moved around the country due to professional reasons.
Industry veterans have strongly opposed the proposed quota, labeling it as ‘fascist’ and ‘short-sighted.’ TV Mohandas Pai, a well-known entrepreneur and former CFO of Infosys, called the bill “regressive” and “discriminatory,” arguing that it undermines constitutional principles and introduces undue governmental oversight in private sector recruitment.
Biocon Managing Director Kiran Mazumdar Shaw expressed concern that while the bill aims to provide local employment, it could jeopardize Karnataka’s status as a tech hub by impacting the availability of skilled talent. She suggested that exemptions should be made for highly skilled positions.
ASSOCHAM Karnataka co-chairman R K Misra also criticized the bill, describing it as a “genius move” that would deter Indian IT and global capability centers (GCCs) due to its short-sightedness.
