I'd vote for a separate thread to discuss all the negative news like the TCS reduction in salaries or the new IBM layoffs. Any idea why this happened ?
http://economictimes.indiatimes.com/IBM_dismisses_700_freshers_in_India/rssarticleshow/2749778.cms
IBM dismisses 700 freshers in India
2 Feb, 2008, 0503 hrs IST,Kalyan Parbat & Sutanuka Ghosal, TNN
KOLKATA: This may literally be a bolt from Big Blue! IBM is learnt to have delivered the pink slip to a sizeable chunk of its entry-level trainee programmers (ELTPs) across major offices in India.
Most of these ELTPs, who were engineering graduates, had put in nearly a year and were working in numerous technology practice groups under IBM India?s global delivery business.
Though IBM is silent on the actual number of ELTPs dismissed, the total is likely to be in excess of 700 across company locations nationally, including 180-odd in Kolkata alone.
Layoffs and Paycut thread
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manuchabria
- Posts: 100
- Joined: Mon Dec 31, 2007 3:45 am
Layoffs and Paycut thread
TCS has cut salaries of employees in India
Layoffs and Paycut thread
This year my company(a major semiconductor equipment h/w vendor) has already announced 2 weekly shutdowns(in the weeks of President's day(Feb) & Memorial Day(May)...
Basically all employees are forced to take the week off(without pay) or borrow from their vacation...
This could be a portent for more shutdowns down the year or layoffs...
Basically all employees are forced to take the week off(without pay) or borrow from their vacation...
This could be a portent for more shutdowns down the year or layoffs...
Layoffs and Paycut thread
It would be good to know which country / region this is happenning as well.
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manuchabria
- Posts: 100
- Joined: Mon Dec 31, 2007 3:45 am
Layoffs and Paycut thread
MUMBAI: India’s software and BPO industry may see a human resource (HR) crisis unfold. On the one hand, there is a shortage of talent and on the other, the ability to pay is shrinking. Companies are likely to cut down overheads, expense accounts, variable pays and if needed, even core salaries, to stay profitable, said industry insiders.
Following the variable pay cut by TCS, HR departments within IT software and services companies seem to be ready to shift to a cautious approach towards their salary structures.
Hexaware Technologies chief people officer Deependra Chumble said: “With the rupee getting stronger against the dollar, companies are becoming cost-conscious. The significant salary hikes on job switches will certainly see a decline in two to three years, besides decreasing variable pay within companies.” The salary hikes, too, should stabilise within the same period, he added.
For years, technology companies have been battling to capture the best talent, at whatever salary it may take. It was alright when these companies enjoyed 30%-plus profit margins, but now they’re in a position to count every rupee they spend. Nasscom has estimated that by 2010, India could face a shortfall of 500,000 IT professionals. Executive VP (HR) at Firstsource, Aashu Calapa, said the salary increases given out this year would definitely be less that the average increases in the past few years.
“Generally, an IT/ITES company’s average increase tends to be around 13-15%, but with factors like a probable US slowdown and the recent Fed rate cut affecting the bottomlines of technology companies in the country, this would come down to 9-11% for the coming year,” he told ET, adding that rather than starting salaries for freshers coming down initially, the first to be hit would be the salary increments that experienced employees get. He added that this would come down by nearly 3-4% in the current situation.
Having said this, the salary cuts would also bring a silver lining for the IT industry. Crystalgazers said attrition may come down as employees won’t gain much by jumping jobs and productivity may improve as companies would also think about increased working hours.
Ma Foi chief operating officer E Balaji said: “Companies would look to reduce frills such as excessive office parties. Travel by business class by senior management will definitely come under microscope, along with companies increasing their work hours to compensate the salaries.”
Corroborating Mr Balaji’s views, Mr Calapa added: “As market congestion happens — and there is a climate of uncertainty due to the US companies cutting their IT costs — employees would not jump jobs very often, and the high rates of attrition in the industry in India would definitely decrease significantly allowing companies to freeze the salary structures and not give excessive increments.”
According to Nasscom estimates, the employee base for FY07 in the IT/ITES industry was nearly 1.6 million people with IT software and services adding over 177,000 employees in the period and the BPO sector adding nearly 138,000 employees in the same period. The overall IT software and services sector is expected to grow by 24-27% clocking revenues of $50 billion in FY08.
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Following the variable pay cut by TCS, HR departments within IT software and services companies seem to be ready to shift to a cautious approach towards their salary structures.
Hexaware Technologies chief people officer Deependra Chumble said: “With the rupee getting stronger against the dollar, companies are becoming cost-conscious. The significant salary hikes on job switches will certainly see a decline in two to three years, besides decreasing variable pay within companies.” The salary hikes, too, should stabilise within the same period, he added.
For years, technology companies have been battling to capture the best talent, at whatever salary it may take. It was alright when these companies enjoyed 30%-plus profit margins, but now they’re in a position to count every rupee they spend. Nasscom has estimated that by 2010, India could face a shortfall of 500,000 IT professionals. Executive VP (HR) at Firstsource, Aashu Calapa, said the salary increases given out this year would definitely be less that the average increases in the past few years.
“Generally, an IT/ITES company’s average increase tends to be around 13-15%, but with factors like a probable US slowdown and the recent Fed rate cut affecting the bottomlines of technology companies in the country, this would come down to 9-11% for the coming year,” he told ET, adding that rather than starting salaries for freshers coming down initially, the first to be hit would be the salary increments that experienced employees get. He added that this would come down by nearly 3-4% in the current situation.
Having said this, the salary cuts would also bring a silver lining for the IT industry. Crystalgazers said attrition may come down as employees won’t gain much by jumping jobs and productivity may improve as companies would also think about increased working hours.
Ma Foi chief operating officer E Balaji said: “Companies would look to reduce frills such as excessive office parties. Travel by business class by senior management will definitely come under microscope, along with companies increasing their work hours to compensate the salaries.”
Corroborating Mr Balaji’s views, Mr Calapa added: “As market congestion happens — and there is a climate of uncertainty due to the US companies cutting their IT costs — employees would not jump jobs very often, and the high rates of attrition in the industry in India would definitely decrease significantly allowing companies to freeze the salary structures and not give excessive increments.”
According to Nasscom estimates, the employee base for FY07 in the IT/ITES industry was nearly 1.6 million people with IT software and services adding over 177,000 employees in the period and the BPO sector adding nearly 138,000 employees in the same period. The overall IT software and services sector is expected to grow by 24-27% clocking revenues of $50 billion in FY08.
var RN = new String (Math.random()); var RNS = RN.substring (2,11); b2 = ' '; if (doweshowbellyad==1) bellyad.innerHTML = b2;
Layoffs and Paycut thread
As per NDTV, TCS has laid off 500 employees citing performance review as the criteria for dismissal
Tata Consultancy Services Ltd, software services exporter, said on Tuesday about 500 of its staff had resigned after their performance was rated poorly.
"Those who cannot meet the performance requirements of our company are asked to look for another job commensurate with their abilities," a spokesman for Mumbai-headquartered Tata Consultancy told media.
"This (financial) year so far about 500 people have resigned voluntarily." The company's financial year runs from April to March. "It's not an exceptional thing, it happens every year and it's part of our annual performance exercise. Last year also similar number of people left the company," the spokesman said.
In the December quarter, Tata Consultancy, part of the Tata Group that has interests in cars, commodities and services, added 4,037 net staff taking its total headcount to 108,229, up from 83,500 a year ago.
Tata Consultancy Services Ltd, software services exporter, said on Tuesday about 500 of its staff had resigned after their performance was rated poorly.
"Those who cannot meet the performance requirements of our company are asked to look for another job commensurate with their abilities," a spokesman for Mumbai-headquartered Tata Consultancy told media.
"This (financial) year so far about 500 people have resigned voluntarily." The company's financial year runs from April to March. "It's not an exceptional thing, it happens every year and it's part of our annual performance exercise. Last year also similar number of people left the company," the spokesman said.
In the December quarter, Tata Consultancy, part of the Tata Group that has interests in cars, commodities and services, added 4,037 net staff taking its total headcount to 108,229, up from 83,500 a year ago.
Layoffs and Paycut thread
Nasscom has estimated that by 2010, India could face a shortfall of 500,000 IT professionals. -- This NASSCOM is the root cause for many problem. I dont understand where they get the numbers. For the past 10 plu syears they are stating this and so the whole country is full of engg colleges, institues - all with low quality IT people - leading to all issues in India. Stupid idiots misleading the public to get into IT and be in the cross roads of life, high cost of living and IT....
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aagrawal98
- Posts: 33
- Joined: Thu Sep 06, 2007 7:27 pm
Layoffs and Paycut thread
sv117;80191Nasscom has estimated that by 2010, India could face a shortfall of 500,000 IT professionals. -- This NASSCOM is the root cause for many problem. I dont understand where they get the numbers. For the past 10 plu syears they are stating this and so the whole country is full of engg colleges, institues - all with low quality IT people - leading to all issues in India. Stupid idiots misleading the public to get into IT and be in the cross roads of life, high cost of living and IT....[/quote]
If you don't understand, try to understand. Usually all Nasscomm figures are well researched and come with a scientific explanation. Holding them responsible for all the ill-wills of the industry is way off the mark. They've done a lot to create awareness about Indian S/W Industry abroad. They lobby as an umbrelly orgnization for the IT Industry with the Indian Government to get favourable bills passed in parliaments / assemblies. They try to put forth Industries' problems to various governing bodies and seek solutions for those. To call them "Stupid Idiot" is not only uncivil and arrogant but also ignorant.
Layoffs and Paycut thread
Given the Market conditions should the IT sector continue to recieve the SOPS thye been gettign fromthe Govt
1 SEZ
2 Tax Breaks
3 what else Training etc may be they look to compensate for the Currency fluctuations
I would say rate of Inflation in India is directly proprtional to the IT sector and the sectors indirectly depending on IT .
No wonder all the "Laid off" IT employees would feel the burden now caused by themselves .
In my OPINION IT /ITES in India is no more a sunrise Industry so the sops must go let the companies face the same tax sturcture as the matured industry and let sectors like Biotechnology and Green revolution etc
1 SEZ
2 Tax Breaks
3 what else Training etc may be they look to compensate for the Currency fluctuations
I would say rate of Inflation in India is directly proprtional to the IT sector and the sectors indirectly depending on IT .
No wonder all the "Laid off" IT employees would feel the burden now caused by themselves .
In my OPINION IT /ITES in India is no more a sunrise Industry so the sops must go let the companies face the same tax sturcture as the matured industry and let sectors like Biotechnology and Green revolution etc
Layoffs and Paycut thread
Tata Consultancy, IBM Dismissing Workers In India
Subprime fears put jobs at risk, link salaries to performance
Indian IT Prepares for a US Recession
everyone in IT is only talking now a days about layoffs....rumours are spreading like fire to the extent I just heard someone saying 200000 yes 200K being sacked......wow what a panicking mentality we have got here.....
no one looks at the data that 700 people at entry level laid off because their performance and aptitude were not up to the mark......no one looks that in last quarter alone TCS added net 3500+ people....
Subprime fears put jobs at risk, link salaries to performance
Indian IT Prepares for a US Recession
everyone in IT is only talking now a days about layoffs....rumours are spreading like fire to the extent I just heard someone saying 200000 yes 200K being sacked......wow what a panicking mentality we have got here.....
no one looks at the data that 700 people at entry level laid off because their performance and aptitude were not up to the mark......no one looks that in last quarter alone TCS added net 3500+ people....