This is not the 1st time that TCS is going for a cut.Just before the TCS IPO they had cut the salary of employees en-mass (5% - 25%) just to show profit & growth,that year TCS posted 45% net growth Y-O-Y and their IPO launch was a HIT.Neither SEBI nor RBI took a notice of that.
Does any one know what's the projected EVA at the begining of the year ? NO because they don't show it to employees.
This is just another TCS stunt,may be they are coming with a FPO.
Its not sign for all other companies, its only for TCS. They are planning to layoff some more people. Bascially their intension is that to remove the senior resources and recruit freshers and run the show. You will here this news shortly.
I am working in TCS presently ,worked with previously in Infosys.Variable pay concept is not nothing new .Its varaibale so it changes with company performance this concept aleady with Infosys long time ago.They used to cut evry month from salary even the company performing well infy never given these components atleast TCS is very much better than infy
RE:TCS salary cut-Nothing new concept
by tapo on Jan 31, 2008 05:33 PM Permalink
from one sick company to anotehr which is even worse.....dude, not a great career move.
I am working in TCS presently ,worked with previously in Infosys.Variable pay concept is not nothing new .Its varaibale so it changes with company performance this concept aleady with Infosys long time ago.They used to cut evry month from salary even the company performing well infy never given these components atleast TCS is very much better than infy
I agree with the decision that if EVA decreases and it should be shared by the employee. But nothing has been told about Q1 and Q2 results. If EVA was more in Q1 and Q2 (hope it was otherwise recovery would have been initialized)then whether increased amount was given or it is not clear whether the current decrease has been taken into account? No body knows. If this is a net EVA loss then profit reported is not correct. It is better if there is some transparency in the process
Reducing pay to its employees is not only demoralising/retrograding but also deters the prestige of the organisation like TCS. May be they are not getting targeted profit but they are getting profit as well as concluding MOUs after MOUs. The salaries could continue status-quo since the Company has already earnt more than the targetted profits in the past years and might be retaining the profits cumulatively besides reemploying the retained profits into the business. So retained profits can easily offset the temporary phase of Rupee appreciation and resultant short-incomes and it will not be prudent to tax the employees for meeting the targeted profits. Rather , while entering MOUs with US etc., it would be prudent and better that if internal inflation , FE - Rupee conversion fluctuations etc., could be encapsulated into a clause like " Exchange rate variance/variation (Escalation clause)" and charge the same from the Clients as being done by Govt.Sectors., who would not dare to reduce the pay of their employees on the basis of exchange rate variance. i.e. Price of prouduct to be delivered at a particular scheduled date on the basis of say Rs.40/$ rate and if it falls short of that, apply percentage of such fall say. 5 or 10% as the case may be and be collected from the client. Base conversion rate should be fixed at the time of entering MOQ not to have fiscal or legal complications at a later date . Thus volatility in currency can be met without taxing its own employees
RE:NOT A HEALTHY STEP!
by bagsnsave on Jan 31, 2008 05:26 PM Permalink
Its easy to preach biz economics rather then sale...better get in BD and get some business. Try to work in terms of target and pay the shareholders back. THen you will find that cutting 5% money is worthwhile then losing jobs
They are not cutting salaries. Previously they are paying say $3000(Rs1.25L), same they are paying now, only $ value depreciated, that results say(1.18L).
They are not cutting salaries. Previously they are paying say $3000(Rs1.25L), same they are paying now, only $ value depreciated, that results say(1.18L).
