US & European economies are stuttering. Dollar sliding against the rupee.
What effect has the above had in Indian IT companies (in India & US)? If you or someone you know work for one, have you seen changes in day to day affair, in strategy etc.
For e.g. heard that Infy is working on a new pricing model that will let them move away from an hourly resource based model to software as a service model.
Anything that stands out? What are the subtle changes? Are they communicating them to employees?
Would be great to know from people who are on the ground.
Effect of economic slowdown on Indian IT
Effect of economic slowdown on Indian IT
My cousin got an offer from Cognizant scheduled to join in Aug/Sep 08. Their seniors who are supposed to join in Aug/Sep 07 were put on hold for some time.
I read that some companies (Eg. Wipro) are considering 6 day weeks with more hours for employees now.
The recent salary raises were in the range of 8-10% for senior employees whereas it was around 15% the year before.
Recently heard that Wipro started quoting $5/hour for an off-shore junior Java programmer resource at GE Insurance, USA. Tough to beat that price. It's like a rounding error in US. Wipro is able to pull it off by employing non-engineering graduates paying them Rs. 6000/- per month.
I read that some companies (Eg. Wipro) are considering 6 day weeks with more hours for employees now.
The recent salary raises were in the range of 8-10% for senior employees whereas it was around 15% the year before.
Recently heard that Wipro started quoting $5/hour for an off-shore junior Java programmer resource at GE Insurance, USA. Tough to beat that price. It's like a rounding error in US. Wipro is able to pull it off by employing non-engineering graduates paying them Rs. 6000/- per month.
Effect of economic slowdown on Indian IT
There is visible focus on followings:
1. Utilisation: No unbilled resource outside India and reduced unbilled resource in India. This is being implemented severly. No reservation of resources unless committed billable opportunity exists. Tagging and untagging of resources to projects is closely monitored.
2. Hiring outside India: strictly billable unless it is for support or sales functions and has been budgeted for.
3. Reduction of flights and general SG & A: Unless absolutely mandatory even the sr executives are not travelling. Close monitoring on Sales expenses and it's ratio to sales generated.
4. I heard some companies have put new recruitment on hold, new offers being held back even after interview process.
5. Profit % is key parameted before submitting bids, RFPs etc. It has to be above organisational norms and has to be approved by higher authorities in case of deviation.
6. Clauses in contracts to cover exchange rate fluctuations, year on year revisions (this was not done sometimes believe it not)
7. Lower increments etc
Most are usual rhetorics - improve productivity, reduce waste and costs, increase billing rates and squeeze employees
1. Utilisation: No unbilled resource outside India and reduced unbilled resource in India. This is being implemented severly. No reservation of resources unless committed billable opportunity exists. Tagging and untagging of resources to projects is closely monitored.
2. Hiring outside India: strictly billable unless it is for support or sales functions and has been budgeted for.
3. Reduction of flights and general SG & A: Unless absolutely mandatory even the sr executives are not travelling. Close monitoring on Sales expenses and it's ratio to sales generated.
4. I heard some companies have put new recruitment on hold, new offers being held back even after interview process.
5. Profit % is key parameted before submitting bids, RFPs etc. It has to be above organisational norms and has to be approved by higher authorities in case of deviation.
6. Clauses in contracts to cover exchange rate fluctuations, year on year revisions (this was not done sometimes believe it not)
7. Lower increments etc
Most are usual rhetorics - improve productivity, reduce waste and costs, increase billing rates and squeeze employees
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Old-Spice2
- Posts: 1898
- Joined: Wed Jan 17, 2007 11:38 pm
Effect of economic slowdown on Indian IT
Heard the following from an employee in ODC of a MNC finance company in BLR.
- 300 employees laid off recently in his company
- severe control on expenses
- Satyam laid off or planning to cut back 1500 (he heard from his friend)
- $5/hr for offshore work by Indian service companies like Wipro, Infy, TCS
- Biggies like Accenture are also planning lay off
- Employees in service companies are given one month to find a new project within the company or they are out.
- annual increment in the range of 5-7%.
- 300 employees laid off recently in his company
- severe control on expenses
- Satyam laid off or planning to cut back 1500 (he heard from his friend)
- $5/hr for offshore work by Indian service companies like Wipro, Infy, TCS
- Biggies like Accenture are also planning lay off
- Employees in service companies are given one month to find a new project within the company or they are out.
- annual increment in the range of 5-7%.
Effect of economic slowdown on Indian IT
Slowdown? What is it?
"During the quarter ended in December last year, major IT companies in the country have added close to 33,000 professionals.The hiring for the full industry is expected to be 4,50,000 to 4,70,000 people in FY09, against an estimated 4,30,000 this year," said T.V. Mohandas Pai, Director, Human Resources, Infosys Technologies. "
""This year we gave employees 14 to 15 percent jump, against 12 to 15 per cent last year. Going forward, it is likely to be in 10 to 12 percent range," said S. Padmanabhan, Executive Director (HR), TCS."
http://www.siliconindia.com/shownews/38977
"During the quarter ended in December last year, major IT companies in the country have added close to 33,000 professionals.The hiring for the full industry is expected to be 4,50,000 to 4,70,000 people in FY09, against an estimated 4,30,000 this year," said T.V. Mohandas Pai, Director, Human Resources, Infosys Technologies. "
""This year we gave employees 14 to 15 percent jump, against 12 to 15 per cent last year. Going forward, it is likely to be in 10 to 12 percent range," said S. Padmanabhan, Executive Director (HR), TCS."
http://www.siliconindia.com/shownews/38977
Effect of economic slowdown on Indian IT
This is repost from other thread
--------------------------------------------
How much India growth story is depend on IT sector?
My question for IT-folks(India)
1) Are you seeing or feeling some kind of squeeze in your organization?
2) Pay cut? reduction in pay hike?
3) Offer are still very lucrative?
4) Do you see real estate is coming down? or it is kind of stagnant?
5) In % how much this sector depends on US vs India. (eg. icici IT dept will provide more Jobs or intel- GE- BoA)
The reason I am asking these questions because IT become most unfavorite sector in India in recent time, I mean if you look big boys like Infy TCS etc are very close to their 52wk low. Now with $ deprecation they all are taking hit, and I assume their major source of revenue is in $ and major exp (salary) is in Rs. so they must be feeling lot of pain.
Now I really don't know how much IT provide employment in terms of number but in service class people this group hold major purchasing power.
Now million $ (or say Rs) question is Can we see the ripple effect only due to IT in sector like real estate, Banking financial, Retail etc?
I would appreciate other member's opinion/view.
--------------------------------------------
How much India growth story is depend on IT sector?
My question for IT-folks(India)
1) Are you seeing or feeling some kind of squeeze in your organization?
2) Pay cut? reduction in pay hike?
3) Offer are still very lucrative?
4) Do you see real estate is coming down? or it is kind of stagnant?
5) In % how much this sector depends on US vs India. (eg. icici IT dept will provide more Jobs or intel- GE- BoA)
The reason I am asking these questions because IT become most unfavorite sector in India in recent time, I mean if you look big boys like Infy TCS etc are very close to their 52wk low. Now with $ deprecation they all are taking hit, and I assume their major source of revenue is in $ and major exp (salary) is in Rs. so they must be feeling lot of pain.
Now I really don't know how much IT provide employment in terms of number but in service class people this group hold major purchasing power.
Now million $ (or say Rs) question is Can we see the ripple effect only due to IT in sector like real estate, Banking financial, Retail etc?
I would appreciate other member's opinion/view.
Effect of economic slowdown on Indian IT
Its ironic. Here is a site which is campaiging for more local jobs since they feel jobs are leaving the country http://www.hireamericansfirst.org/
is the glass half full or half empty ?
is the glass half full or half empty ?
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cyberabadi
- Posts: 982
- Joined: Thu Jun 07, 2007 5:03 am
Effect of economic slowdown on Indian IT
Suri;75441
heard that Infy is working on a new pricing model that will let them move away from an hourly resource based model to software as a service model.[/quote]
I heard that INFY had recently recruited a few guys from top tier consulting firms to lead their fixed bid - bidding process teams. They are trying to win more fixed bid projects as that gives them some leeway to adjust their resources and meet their targets and depend less on body shopping.
Effect of economic slowdown on Indian IT
I hear driver and bawarchi salaries are also in the range of 6000pm in bangalore. At 6000pm one is better of as a driver to a software exec. typically the driver makes two trips a day - one to drop and one to pick up and rest of the time chat with other drivers.
ILuvHyd;75716My cousin got an offer from Cognizant scheduled to join in Aug/Sep 08. Their seniors who are supposed to join in Aug/Sep 07 were put on hold for some time.
I read that some companies (Eg. Wipro) are considering 6 day weeks with more hours for employees now.
The recent salary raises were in the range of 8-10% for senior employees whereas it was around 15% the year before.
Recently heard that Wipro started quoting $5/hour for an off-shore junior Java programmer resource at GE Insurance, USA. Tough to beat that price. It's like a rounding error in US. Wipro is able to pull it off by employing non-engineering graduates paying them Rs. 6000/- per month.[/quote]
Effect of economic slowdown on Indian IT
nand;75798I hear driver and bawarchi salaries are also in the range of 6000pm in bangalore. At 6000pm one is better of as a driver to a software exec. typically the driver makes two trips a day - one to drop and one to pick up and rest of the time chat with other drivers.[/quote]
the diff is future prospects....once this S/W guy gets Wipro on his / her CV for 2/3 years the future market val increases substantially....
there are many at that stage who will give money and get experience.....they dont look at paycheck....
my 2 cents....