Protect Citizens - this should come from govt., if this type of situations arises. They are the only promoters. But employee is the key person for any organization. If he works then get good results. Problems arises, this happens for humanbeings not for others. There should be wait for sometime. Projections may or may not fullfilled, Don't go by projections, next time may raises their income / profit. Companies generally taking profits, at that time they are enjoying with profits. At that time, employees not recognized, but for this type of situations they come to first.
To forwardlooking is compulsory.....for a wiseman.
RE:Should frame suitable rules and regulations by the govt.,
by anuj on Jan 31, 2008 08:18 PM Permalink
i think govt has clearly mentioned that "start living with INR 37 per dollar" why people not understanding and still want rate to be INR47 per dollar...???
TCS IS JUSTIFIED....IN CUTTING SALARY.FOR SOME EMPLOYEES COMING TO OFFICE MEANS
TCS= Tea Coffee Snacks......then go home.
Its like a SARAKARI COMPANY...AND THEY ARE ALREADY BEING OVERPAID....IF THEY WANT TOI PROTEST THEY SHOULD PROTEST WITH 6TH PAY COMMISIION...AS THAT IS MEANT FOR SARKARI COMPANIES LIKE TCS...
RE:TCS IS JUSTIFIED....
by on Jan 31, 2008 08:18 PM Permalink
The strategy adopted by TCS management is a tried and tested one. This strategy is recorded in the history of TCS back in 2003, before going public. The salary were cut then and now too.
The only reason I could see that Tata group is facing liquidity issues to raise money for huge acquisitions like Corus, Jaguar or implementing projects like Tata Nano and others in pipeline.
Hi, Bonus cut is not salary cut. bonus is always connect to individual performance and company target. so if company is not reaching target bonus can be affected. With recession IT companies will grow; simply because foreign company will cut cost and do more offshoring. It is just stock market slide and cheaper dollar which is affecting IT companies. So in future if they start billing in Rs than dollar then everything will be ok. There is no need to panic. IT companies still offering decent hike and trend will continue for while.
RE:Make no sense....
by S D on Jan 31, 2008 08:44 PM Permalink
thats true, it is bonus cut, not salary cut and wipro has been paying less than 70% of the variable pay for the past 9 months. TCS is not the first one to do it in the current scenario.
RE:Make no sense....
by on Feb 01, 2008 03:34 AM Permalink
It is ok to make a pay cut based on company's performance. But the company should disclose what their EVA targets are for the Quarter/Year. Transperncy would help in difficult times
Its all over now. End of body shopping. These body shoppers came into business for only two reasons. Cheap Indian labour, Cheap Indian currency. If both are gone, these guys are also gone. Businesses in UK and US will have not reason to outsource if these guys dont provide any cost advantage. What will they do. They cut salaries. But the long term effects on quality will fall back later. What will these companies do then???
RE:Its all Over!!!
by Indian on Jan 31, 2008 08:07 PM Permalink
You are wrong, nothing over and IT is not yet exploded in India, for that matter even at global level, so few hick ups and chlenges which is always there in any business,t hats why there are many strategic managers and risk managers, i d't see any need to be either panic or worried, even USD goes down to 20 Rs, there will not be any problem
TCS on its quarterly result early this month told all exchanges and analysts, that they met there top-line and bottom-line expectations. Then how come they failed on their EVA. If I recall my school days, EVA is Economic Value Added (which is measurable) and not Emotional Value Add ... Emotion can't be valued, true but economics can. So where have those blowing when they announced their result. I thing for a listed company, SEBI should ask this questions. Cheers Sidd
I do not know why we are calling it a paycut and media is making a big event out of this. The very concept of having a VARIABLE pay is for this - it VARIES as per company's, unit's and individual's performance. This time if there is a small reduction (1-2%) in the variable pay, what is the big deal? When TCS paid the variable in full or more than the committed amount when the market was booming, did anyone report this as TCS hikes salary? Let us be fair before creating any sensation!
RE:Its not a pay cut!
by prince on Jan 31, 2008 07:48 PM Permalink
"more than the committed amount"...This has never happened before & will never happen..They are cutting but will not INCREASE so suddenly....this is the issue....
RE:Its not a pay cut!
by Rajkumar V on Jan 31, 2008 08:02 PM Permalink
Have you heard ever that salaries increased in middle of the year. salary increase is always given within the timeframe already annouced ie either in new fin. year or employee's new year. then why salary cut in the middle of year. why dont they cut in the next annual hike due to the employee so that they are prepared in advance for it.
People were cribbing and moaning when every year they got a hike of 20 to 30%. They are still moaning when the variable (not salary) has been reduced by what amounts to 1.5% of the annual compensation. It has nothing to do with the cut, all to do with 'we are the god's gidt to humanity' mindset of IT employees. On a different not, don't you guys know what 'variable' means? The whole world knows conditions are tough - is it a surprise that the variable has indeed become variable and for once gone the other way? Come on guys grow up. This kind of a reduction happened across the IT industry during the slowdown of 2000-2001 as well. These ate temporary blips.
RE:TCS variable component reduction
by Gaurav Lohiya on Jan 31, 2008 09:51 PM Permalink
I have been working in IT industry for more than 4 years and I have never got a pay hile of more than 10% except the first year when I was made a confirmed permanent employee of my first company. So, it is just a media made hype about IT cos. providing 20 - 30% hikes. And mind you my appraisal ratings have been very good throughout my career. Basically, it is the BIG-shots who get huge hikes and this cost is averaged per emloyee by the media to make a bloated figure. Now, this cut in Varibale pay is going to hurt junior level employees the most, becuase the variable pay is much more than the basic salary in IT industry, sometimes even more than twice or even thrice. So, it is really a PAY-CUT for IT employees.
Following TCS all other IT Companies will implement the same strategy because there was too much artificial inflation created in the Indian IT Industry. This should be stopped immediately else we will go back to 90%u2019s where most of us were searching in the streets with our CV.
According to me TCS made big Blunder ...just by reducing 1.5% how much TCS can save,unfortunately TCS even now accepting the work at 13 to 16 USD per hour for software application development, I really can't understand this kind of cheap mindset by Indian IT companies, dog fighting between Indian IT companies actually benefiting US Companies,why US corporation gives the work to India,just to save the money, just simply they are dumping the work on Indian company 70K USD job will be done in India at15K USD, whey Indian companies need to accept tooo low cost billing,if u quote more.where US companies can go,can they move to anohter low cost country..let them.Indian IT companies now a days all over world...you can handle the contract from some other country...just low coast can't survive in long run and need stop over entertaining US MNCs like GE....for EX : TCS 38% revenue comes from GE and GE is master in screwing the Billing rates by encouraging dog fight between Indian IT companies in the form of best practices....once GE use to pay 25 USD per hour now it came down to 13 to 16 USD per hour...still TCS quite happy to take up the contract at such a low price...and in other side cost in India going up rapidly...in this kind USD low and billing low, how companies can survive,at least now wake up TCS strategic business managers, wake up and start increasing billing pricess, software Business is not Charity for US MNCs,GE saved more than 1B USD through Outsourcing in recent times
RE:TCS Blunder
by atul srivastava on Jan 31, 2008 08:03 PM Permalink
Grow up Mr. Indian!. 38% from GE in a revenue of USD 4.3 Billion. Are you joking? Do you know anything about revenues, etc. What is your source of USD 13-16/Hr. Its a misleading information. The fact is GE would contribute less than 4% of TCS revenue even if its the largest customer.
RE:TCS Blunder
by Indian on Jan 31, 2008 08:10 PM Permalink
just go and ask TCS managers who is handling GE GDC contract and see the billing rates and consolidation especially from 2003 onwards...as far as I know TCS 38% of Business volume is from GE...GE total IT budget is close to 5 B USD...out of that 90% more than out sourced to india between all biggies some other like Patni and Mindtree consulting...
RE:TCS Blunder
by Rajkumar V on Jan 31, 2008 08:11 PM Permalink
TCS is running in profit. Billing rates are quoted in competition. In India 100's are in que to grab even on lower. TCS do not want to shut down shop, so it will carry til in profit.
RE:TCS Blunder
by Indian on Jan 31, 2008 08:15 PM Permalink
Yup , right Low billing doggy fights between IT companies it self a big blunder, this is why Infy clearly decided they d't want single customer business volume more than 10% of company overall revenue...in case one client reduces billing, whole company effects also Infy d't accept low billing rates i guess
RE:TCS Blunder
by on Jan 31, 2008 09:34 PM Permalink
FYI - Infy's onsite rates are the best among Indian IT firms. TCS pays peanuts and take work also for peanuts. Well said Indian!!!
RE:TCS Blunder
by Indian NGO on Jan 31, 2008 07:47 PM Permalink
The idea is to put the maximum number of resources into a project to cover up the reduction in the billing rates. There are companies that have 10 to 15 people in a project but to the client it appears as 20 or 25. Most of the companies are trying to hide the fact of a loss to save their market value. We are still in the "services" mode rather than trying to be innovative...
RE:TCS Blunder
by gaurav arora on Jan 31, 2008 07:44 PM Permalink
Yes I agree ..but tell me what product do we have in india..Could we even make an operating system..could we manufacture any technology...how many patents and research do we have in india.How much spent in india in research....when you do not own the house you can only enter the house as a maid or servant but cannot be be the boss
RE:TCS Blunder
by Indian on Jan 31, 2008 07:53 PM Permalink
Man Gourav,let me tell u few things...for Ex Vista, who developed it....80 to 90% In India...by wholm....TCS, Satyam, Infy and Wipro...MS in india follows I2I model...which is India to India....as far as I know most of Microsoft products recent times developing India with the help of 1tier companies in India....if indian companies d't accept low billing rate what Microsoft can do or GE can do or some other bigge can do...will they give to China...just talk to few Chainese guys...by the time u explain and he understands, u can sit and complete the work....IT is craze in india in reality just IT is not good for wealth creation...innovation is the one going to make a diff...this is where MS or GE or IBM is smart enough...our companies not. I personally seen how Indian IT companies works and US based works...research d't mena that just govt need to spend, that we also can do....we just need one laptop and innovative mindset and ability to handle our own mind first....we as indians tend to satisfy with decent job and we d't like to take any risk, this is the key reason for lack of focus on research
ITS QUITE UNLIKE TCS....EARLIER TCS WAS KNOWN TO HAVE VERY EMPLOYEE FREINDLY POLICIES...NOW IT LOOKS LIKE THE POLICY MAKERS ARE THINKING LIKE THE LALAS WHO HIRE LABOURERS...
VERY SAD...
HAVENT THEY MADE BUFFER WHEN THEY MADE EXCESS PROFIT BECAUSE FO THE SAME EMPLOYEES, WHOSE SALARIES THEY ARE CUTTING?
RE:ITS QUITE UNLIKE TCS....
by on Feb 01, 2008 05:41 AM Permalink
Oh when was that? TCS has always been exploiting and so is the case with all Indian companies. but the worst is TCS. They got a feeling that they are the trend setters and revolutionary leaders in the IT world (which they clearly are not). Where were they till 2002 they were nowhere. They are greedy and always try to exploit the situation. Now they know that the situation is not too good for IT consultants and so they have reduced (knowing that the employees wont quit now). They dont have any concern about employees.
