The cut is in performance based/ variable pay. This is in keeping with the principal of sharing a portion of the money the organisation makes with it's employees who drive it's success. When the enterprise performs worse than expected it indicates the performance has suffered and a variable pay cut is justified.
RE:It's performance pay that's been cut, not fixed pay so it's fine.
by hae Ram on Jan 31, 2008 07:00 PM Permalink
If one look at the long term strategy of major IT companies based on their vision for future after 2010 with the following background
1. Rate of exch : INR is appreciating day by day. ( Continuous inflow throu FDI, NRI deposits etc ., ). Predictions that it will touch INR 30.00 / usd by 2008 end if it RBI does not intervene in forex control measures.
2. Potential threat from China once the first batch of mass programs in English coaching ends by 2011. China can even work at half the manhour rate of india. chinese are best alternatives for india in Maths and logic.
3. Control of human capital cost through shifting from Tier I to Tier II cities in india and employing local people with lesser salaries.
will be reduce "Manpower cost" since their revenue is going to get screwed.
The ages old questions : 1. Why have we taken birth ? 2. What should we consider before our actions ? Ans. : 1. We have taken birth to help The Americans to make good money. 2. Before you act think if this action of yours is going to help American economy ? If not, Please do not procced.
All Indian Companies should standardize their rates in Indian Rupees (INR) rather than US Dollars (USD). In this way let the client pay more money rather than supplier getting less. In case people think that this way we will get less Business then I dont think that will happen as India is very strong in IT and Indian IT Companies has made a very good name in the international markets. Someone has to do the job na... Why India pay the price for its valuable manpower...
RE:Indian Companies should Standardise their Rates
by Naman Sood on Jan 31, 2008 06:23 PM Permalink
If India is a real software superpower, India should be in dictating terms including quoting in Rupees and not vice versa.
RE:Indian Companies should Standardise their Rates
by Munish Oberoi on Jan 31, 2008 06:40 PM Permalink
@ Naman... You said it mate... u r right... none of the Indian companies has the guts or the belly to quote in INR they do it in USD as their master demands... so when the USD tanks they take a hit... in this regard I feel proud for one thing... my comapny has all along quoted in INR not USD
RE:Indian Companies should Standardise their Rates
by Naman Sood on Jan 31, 2008 06:24 PM Permalink
Now I am sure some bonehead Indian will come and say nuke America
RE:Indian Companies should Standardise their Rates
by Souvik Jana on Jan 31, 2008 06:26 PM Permalink
Correct... And in this way the Development of the IT Company will be on Business rather that the Currency values between India and the Client Country...
RE:RE:Indian Companies should Standardise their Rates
by SSS AAAA on Jan 31, 2008 06:43 PM Permalink
Indeed a very good suggestion from Souvik. Why always look at every thing from US perspective. Its time the World and in partilcuar India realize the strength of a Rupee and India's true potential. In every business, both parties agree to do the business basis mutually agreed terms and conditions and this should be one of the terms for doing business. Well done Souvik.
This is surely a glipse of future... For long there were inflated payments in the IT sector and the main reason was the Dollar and Rupee exchange rate. Has anyone noticed the trend that Indian doctors are prefering to come back to India, esp. specialists, and settle down here itself? The reason is the same, payment in dollar/pound/rial/dinar terms remains same while ruppee earnings here have increased. Same way these tech guys were earning more due to the differential which has closed down now. They were getting AMERICAN SALARIES in India. So in effect they will be getting normal salaries and dont you worry the prices of real estate will come down in a short time! A coffee and a sandwitch in Hyderabad CyberCity cost Rs 180/- while in Kanpur the combo costs Rs. 100/-. In effect everything evens out in the end. What is most important is that Indian Babus are increasing their salaries in the garb of these salaries through 6th pay commision, WILL THEY ROLL BACK THEIR HIKE? This will be an inflationary pressure which we all hard working people in private sector will have to subsidize! Kapil
RE:TCS Pay Cut
by Girish on Jan 31, 2008 06:39 PM Permalink
well no dude they are coming back becuase they are being thrown out so that the local folks can get some jobs...some cases being UK and Malaysia.
Growth is a cycle. IT companies are good. India can do better than any other country in this field. It will continue to grow. But during such growth, there will be some problem like this. So the employees must adjust with it. Dont spend all the money they have, save for the furture also. And dont take too much loan and credit. That is always good. It is not good to blame the company for it. I think what TCS decided is right. At the time of growth they paid. At the time of crisis you have support them. If you are not satisfied chage to another company. But there also they have to face the same problem sooner or later. Some time they will loose even jobs in the furture. If so they have to work or other companies for lower salary. It is wise, try to save a good portion you earn. spend wisely. That will make your life happy. Dont blame others. Good luck.
As per the Nasscom and other IT/ITES recent studies statitng that this sector would receive more business and they have enough business but companies wants to meet their targetted revenue growth (for various reason) so they decided to cut their employees salary.....
We should take this as a "WARNING" and government and companies should focus on the other sectors and this is the warning for the Government to intitiate the R&D and other sectors
RE:controversial figures....
by Manoj K on Jan 31, 2008 06:26 PM Permalink
NASSCOM is plain unreliable organisation. They are only working on behalf of S/W company to reduce tax burden and create hype about indian IT power.
RE:controversial figures....
by sarv vel on Jan 31, 2008 06:42 PM Permalink
no...Few software companies upgrade NASCOMM studies and they turned big.... if you blame NASSCOM you should also blame World Economic Forum where Chidambaram, Tony Blair, Bill Gates provide and comments the research papaers and so on...
The think these standard org provide information which can build other software concerns...
As most of the people fearing, the US recession has not really started. It is just showing the symptoms. Sofar no US company has seriously started the cutting down of their IT spending. As far as the indian IT cos are concerned, as of now the client base is intact and no need to be panic at this point. But the worry as of now is $ and growing competition. The weak dollar is killing most of their margins. these kind of cost cutting initiated by TCS would help them to maintain the margins atleast as temp measures. But biggest problem is still waiting for us, that is the US recession. But it may not be as bad as in the yr 2K1. Because the IT spending in the developing countries is also increasing and they will keep the IT market alive. But other problems are, techies cannot be costly anymore, and growing competition from the other countries like Philippines, China etc, and narrowing gap betwen Supply and demand forresources - they will hugely impact the future. Time for the techies to make sure that they are competent enough to handle the challenges. The slump is going to bring the high fliers on to the earth and they will come to know how a "problem" looks like. It is good in oneway. It is going to be an eye opener for many. As somebody said, to know the true value of "peace", you should have a war in between. It will make the people better. Infact we need this guys. Believe me.
As most of the people fearing, the US recession has not really started. It is just showing the symptoms. Sofar no US company has seriously started the cutting down of their IT spending. As far as the indian IT cos are concerned, as of now the client base is intact and no need to be panic at this point. But the worry as of now is $ and growing competition. The weak dollar is killing most of their margins. these kind of cost cutting initiated by TCS would help them to maintain the margins atleast as temp measures. But biggest problem is still waiting for us, that is the US recession. But it may not be as bad as in the yr 2K1. Because the IT spending in the developing countries is also increasing and they will keep the IT market alive. But other problems are, techies cannot be costly anymore, and growing competition from the other countries like Philippines, China etc, and narrowing gap betwen Supply and demand forresources - they will hugely impact the future. Time for the techies to make sure that they are competent enough to handle the challenges. The slump is going to bring the high fliers on to the earth and they will come to know how a "problem" looks like. It is good in oneway. It is going to be an eye opener for many. As somebody said, to know the true value of "peace", you should have a war in between. It will make the people better. Infact we need this guys. Believe me.
