I think salary cut is not a long term resolution. I think to recover there loss, the company should stop flying people from India to other countries and not buying any hardware equipment for a month or so. By which they will recover large portion of there money. This way employees are not effected by any ways and doesnot set a bad example.
RE:Cost Cutting Strategy !!!!
by kamala on Feb 05, 2008 05:19 PM Permalink
I feel its very good decision. Now a days cost of land and buildings are going up mainly by IT sectors only. Since they are paid more salary.
They are ready to buy the things they want at any cost. Because of these people working in other jobs are not finding it difficult to manage their life.
For example,
there are 3 peoples like to take a rent house. Only 2 house is available at that time. The person who is ready to give more rent will get that house. Now think about the third person and his life position.
So cutting of salary for IT people is good for our economy.
RE:Cost Cutting Strategy !!!!
by Anish on Feb 07, 2008 01:14 PM Permalink
Well said... but remember its the bachelors and dbl income pple (husband and wife in IT) who do as you say... and its because of them bangalore became costly.. anyway i seriously hope that it has a cascading effect... and real estate prices fall!!
RE:Cost Cutting Strategy !!!!
by vinakota venkatasuresh on Feb 05, 2008 05:00 PM Permalink
One more solution is make the underperformers as out performing employees with training instead of recruiting new employees, waiting for them and giving training to them. Also a scale to 1-5 rating is wantedly so that whoever gets 1 and 2 should quit. This doesn't mean that he is an underperformer but his relative performance is less.If someone gets 1 or 2 they are the victims and doesn't know how to apply soap to bosses.
RE:Job security in TCS
by pooja on Feb 06, 2008 07:44 AM Permalink
Did anyone tell you the way it can be compared to a govt. organization? Coming to EVA cut, it's a bold step taken by the management. The only solution to have good operational profits is to filter out the scrap, grown on experience (not with efficiency) workforce.
RE:Home Rent/Intrest Rates Up salary Down
by EPICal on Feb 05, 2008 03:55 PM Permalink
The economic planning of any corporate is always unique and bidirectional. But TCS being the giant one amongst IT industries, should always take positive remunerative scheme before restructure of salary & perks. I think in any industry ups & downs are there alike IT industry is also an industry where it may so happen. But the situation is not at all alarming and saturated as claimed by TCS.
If the shortages of Q3 has been recovered from our pay of Q4, then what happened to the earlier surpluses against targets? There is no fair share in this organization.
1. Moving up the value chain. Most tier 1 companies have already realised this and have started to enter into turnkey projects. It is difficult to make money of these projects in the initial years and the margins are a bit stiff but this is a consistent and a stable stream of revenue and the margins on such projects can increase considreably over time by more and more automation and better processes.
2.Training IT service companies need to spend a lot more on training. The traning budget for these companies should be equivalent if not more to amount of money deployed by the Oil and Gas companies to find additional reserves or by the product companies as their R&D. This would provide for additional help in controlling attritions in boom time.
3.Cost Cutting The services companies should invest in the lower tier cities to reduce the cost of providing these services and also be in a position to bid for the lower end services. This would also allow the services companies to get projects from the medium size business instead of the large corporations.
4.Diversify revenues and production Much has been said about making attempts to diversify. There has been an attempt to diversify the production from different countries in an attempt to effectively have a near shoring capability. But having said that the revenue stream is not quite diversified and a lot of offshoring is being done only from developed countries. I would think that the need of the hour with future
Any employee who has some self-respect left out in them after working for marwari companies (which is very difficult to expect from) would definitely quit the moment such measures started coming out in your organization - instead of waiting for it to happen to everyone individually.
Even to represent such organization will be seen as professionally unethical in the future, when they look back your previous experiences.
I still remember the elephant story about TCS and I feel they are no better at any point in time.
RE:Will other company jump into salary cut with TCS?
by krishna yalla on Feb 05, 2008 04:04 PM Permalink
chances are very high.....bcz TCS is not a small organization, this decision will be reflect in other companies also....
RE:Will other company jump into salary cut with TCS?
by on Feb 06, 2008 02:32 AM Permalink
I understand that HCL which does have a variable is known employee first company does not even think of pay cuts ?? Any thoughts
