Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 31st January 2008, 11:15   #1
Senior - BHPian
 
Join Date: May 2007
Location: Bangalore
Posts: 3,652
Thanked: 242 Times
Question IT pay-packets head for squeeze

Mumbai: Fat pay-packets in the IT sector could soon be a thing of the past – at least for a while.

IT majors like TCS, Wipro and Infosys are planning to reduce the salary increases for the new fiscal year starting in April, according to industry sources. Increases are expected to be around 7-8 per cent as against 15 per cent last year.

According to placement firms, hiring could also be reduced by 20 per cent as IT companies make better use of staff hired but not deployed – called ‘the bench.’

“I am not expecting a major salary hike this time,” says Hari Iyer who is working for a software firm.

“From my interactions with the HR department and my colleagues, I have learnt that the salary hikes will be 8 per cent across the board,” he adds.

Anjali Ramanathan, another employee working for a Mumbai-based IT major, says that she will pass up the Skoda car she was planning to buy as she can no longer manage monthly payments on a car loan in addition to an existing home loan.

A rising rupee which has appreciated by 13 per cent over the past year against the US dollar has made exports more difficult, while a likely recession in the US is threatening demand for Indian software exporters who bill clients in US dollars. Salary squeezes and higher efficiency in staff utilization are the obvious ways out.

Spokespersons at Infosys and Wipro said they do not comment on wage hikes in advance. TCS had sent an email to its employees saying that there could be across-the-board cut in salaries based on its recent performance. "The pay cut of 20 per cent was due to internal targets that were not met for the October-December quarter 2007," said a TCS spokesman.

“The HR department has not officially communicated with us but in our informal communication, we get a sense that wage hikes would be not more than 8 per cent,” says Ramanathan.

IT companies could also be recruiting less than in 2007, when the top five IT companies added more than 50,000 employees. “Companies will be more conservative in their hiring and they will reduce people on the bench,” says Vikram Bharadwaj, Managing Director, Redileon, a staffing company.

Source
dadu is offline   Reply With Quote
Old 31st January 2008, 11:28   #2
BHPian
 
deepaktpatil's Avatar
 
Join Date: Dec 2006
Location: KA 05, MH 10
Posts: 282
Thanked: 71 Times
Default

Dadu,
Yesterday Mohandas Pai of Infosys was having a contrarian view on this subject. His argument was based on the fact that there will be a slowdown, but nobody in India has said that business will be impacted, which may result in demand for people being stable if not increasing.

In my view, we need to wait and watch until March to understand the trend. I also feel that this is more of a publicity stunt to tone the expectations of job hoppers.
deepaktpatil is offline   Reply With Quote
Old 31st January 2008, 11:34   #3
Senior - BHPian
 
spadival's Avatar
 
Join Date: Oct 2004
Location: Dayton, OH
Posts: 1,770
Thanked: 15 Times
Default

TCS has cut salaries by 1.5% for the next 2 months for its employees. read on..

The Hindu Business Line : TCS staff to lose 1.5% of total salary

I really wonder if they have increased salaries when the EVA target was exceeded. Imagine that you wont know what your pay is gonna be at the beginning of the financial year. Because it can be cut at any time during the year.. All your financial planning will go out of the window !!
spadival is offline   Reply With Quote
Old 31st January 2008, 11:45   #4
Distinguished - BHPian
 
BlackPearl's Avatar
 
Join Date: Aug 2005
Location: Calcutta
Posts: 2,176
Thanked: 3,275 Times
Default

Quote:
Originally Posted by spadival View Post
TCS has cut salaries by 1.5% for the next 2 months for its employees. read on..

The Hindu Business Line : TCS staff to lose 1.5% of total salary

I really wonder if they have increased salaries when the EVA target was exceeded. Imagine that you wont know what your pay is gonna be at the beginning of the financial year. Because it can be cut at any time during the year.. All your financial planning will go out of the window !!
I was already bankrupt and now I have to look for a second job, but I dont have the skill set to do any other job than driving :-(
BlackPearl is offline   Reply With Quote
Old 31st January 2008, 11:54   #5
Team-BHP Support
 
Zappo's Avatar
 
Join Date: Oct 2005
Location: Hyderabad
Posts: 5,631
Thanked: 1,975 Times
Default

Quote:
Originally Posted by BlackPearl View Post
I was already bankrupt and now I have to look for a second job, but I dont have the skill set to do any other job than driving :-(
Ah! Thats a cool skillset to have BP Chauffers here in hyderabad earn more than what a fresh rookie in IT industry earns. Maybe you can take a transfer here and then take a driving job for a IT head honcho while retaining your job. Drive him to office and then hop in to yours. Reverse process at night. cool eh?

P.S. : With the kind of my-ka-laal sachumaker that you are I suspect that your middle aged employer will either die of a heart attack soon or you will get thrown out. haa haa haaaa...
Zappo is offline   Reply With Quote
Old 31st January 2008, 11:55   #6
Senior - BHPian
 
Join Date: Dec 2007
Location: Dubai
Posts: 3,854
Thanked: 123 Times
Default

Quote:
Originally Posted by BlackPearl View Post
I was already bankrupt and now I have to look for a second job, but I dont have the skill set to do any other job than driving :-(
Rallies or F1 are a good option; else be the driver for King of Brunie!


OT: does anyone know what will be the salary for the King's driver?
HappyWheels is offline   Reply With Quote
Old 31st January 2008, 12:02   #7
Senior - BHPian
 
greenhorn's Avatar
 
Join Date: Apr 2007
Location: TN-14
Posts: 6,709
Thanked: 1,073 Times
Default

Infosys apart, firms see moderate hikes - livemint
at least some of them are claiming that it wont affect them.

Quote:
Originally Posted by Zappo View Post
P.S. : With the kind of my-ka-laal sachumaker that you are I suspect that your middle aged employer will either die of a heart attack soon or you will get thrown out. haa haa haaaa...
or you will get promoted to their job
greenhorn is offline   Reply With Quote
Old 31st January 2008, 12:12   #8
Senior - BHPian
 
maddy42's Avatar
 
Join Date: Aug 2007
Location: Phoenix, Coorg
Posts: 1,817
Thanked: 426 Times
Infractions: 0/1 (5)
Default

Well what i heard is that people having a variable pay in TCS will have more than 1.5% cut in salaries for the next 2 months as the company didnt reach their unrealistic target which had been set for the quarter
maddy42 is offline   Reply With Quote
Old 31st January 2008, 12:18   #9
Team-BHP Support
 
benbsb29's Avatar
 
Join Date: Nov 2006
Location: Brisbane
Posts: 7,971
Thanked: 3,387 Times
Default

This may affect the Indian IT companies although for all i care, Mohandas Pai of infy has said Infy wouldnt be indulging in any immediate pay cuts.

What about those working in non Indian product based companies?
benbsb29 is online now   Reply With Quote
Old 31st January 2008, 12:27   #10
BHPian
 
deetee's Avatar
 
Join Date: Oct 2007
Location: Hyderabad
Posts: 222
Thanked: 85 Times
Default

Quote:
Originally Posted by maddy42 View Post
Well what i heard is that people having a variable pay in TCS will have more than 1.5% cut in salaries for the next 2 months as the company didnt reach their unrealistic target which had been set for the quarter
well ,its not something which you 'heard'-its being implemented. Actual scenario , is that the company set a goal for EVA at begining of Financial year,accordingly are the V(ariable) A(llowances) paid to employees. Now, because it could not achieve the set goal for quarter of oct-dec; it started collecting the extra-VA paid in those months interms of salary cuts in feb and march; i wonder whether they had crossed the EVA goal in may-Sep and then why didnot they pay the bonus-- i am loosing 7.5K as part of the cut.
deetee is offline   Reply With Quote
Old 31st January 2008, 13:23   #11
BHPian
 
gkrishn's Avatar
 
Join Date: Aug 2004
Location: Bangalore
Posts: 584
Thanked: 36 Times
Default

Quote:
Originally Posted by deetee View Post
i wonder whether they had crossed the EVA goal in may-Sep and then why didnot they pay the bonus-- i am loosing 7.5K as part of the cut.
Wont tcs tells its employees if they have met this EVA target every quarter? Why are you wondering, you should be knowing about it...
gkrishn is offline   Reply With Quote
Old 31st January 2008, 13:30   #12
Senior - BHPian
 
madan80's Avatar
 
Join Date: Jan 2006
Location: Santa Clara, CA
Posts: 1,356
Thanked: 73 Times
Default

i dont get it, they are hiring from b-schools at salaries higher than existing, but are not increasing the existing salaries. In a way - they are saying- "you worked here? too bad! someone from outside is going to get more! "

At the nd of the day - who see's all these profits? CEOs and CXOs- and thats it.. so for them cutting salaries and "increasing" profits is the best way to do it, rather than increse billing rates and cut down on the obscene offices!

I dont remember which company it was- since it was doing badly - all the top people took pay cuts instead of laying off employees. Man, thats something.
madan80 is offline   Reply With Quote
Old 31st January 2008, 13:39   #13
BHPian
 
deetee's Avatar
 
Join Date: Oct 2007
Location: Hyderabad
Posts: 222
Thanked: 85 Times
Default

Quote:
Originally Posted by gkrishn View Post
Wont tcs tells its employees if they have met this EVA target every quarter? Why are you wondering, you should be knowing about it...
No it was not announced earlier(not even on internal site).Also they did not specify how they arrived at the particular(individual) figure of cut-thats for the transparency part.

just have spoken to my HR..seems they too are wondering what happened to earlier two quarters of EVA targets- but everyone is accepting it like that- too busy to brood hard over it.

Last edited by deetee : 31st January 2008 at 13:44.
deetee is offline   Reply With Quote
Old 31st January 2008, 13:57   #14
Senior - BHPian
 
akroy's Avatar
 
Join Date: Feb 2006
Location: San Francisco, CA, USA
Posts: 2,414
Thanked: 27 Times
Default

Quote:
Originally Posted by madan80 View Post
I dont remember which company it was- since it was doing badly - all the top people took pay cuts instead of laying off employees. Man, thats something.
I think it was SASKEN, it happened during the post 9/11 slowdown in 2002.

Abhi
akroy is offline   Reply With Quote
Old 31st January 2008, 13:57   #15
BHPian
 
Matt's Avatar
 
Join Date: Jan 2008
Location: Christchurch NZ
Posts: 130
Thanked: Once
Default

@Madan... I second your view.
Matt is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
How much do you pay for your broadband? Rtech Shifting gears 892 14th August 2017 22:27
Figo ZXi TDCi Squeeze : The Green Ghost glides into my home. Brix Test-Drives & Initial Ownership Reports 191 22nd March 2013 18:05
My Figo Titanium TDCi Squeeze trrk Test-Drives & Initial Ownership Reports 94 8th August 2010 14:57


All times are GMT +5.5. The time now is 07:48.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks