Techies Hard Hit in TCS

Hard decisions are being taken at TCS as the Indian IT tightens its belts for the cuts in pay. The business environment is getting tougher and tougher, this necessitates tough decisions to be taken by the indian IT companies to survive and expand in not so easy times. Thus, Tata consultancy services has made up its mind to effect a marginal cut in employee compensation illustrates the corporate india's capacity to take difficult decisions. It is been said that the employees earnings are being reduced by 1.5%. The trend of the employee cost has been decreasing in the past 3 yrs. although, it is very hard for any employee to take a pay cut, it is small sacrifice to make to secure the health of the company in toto, especially when the threats to the IT sector are more. A strong rupee , subprime crisis and slowdown in the US have ached the growth in the previous quarters. but the new clients and increase in the business volume have helped. As the hedging currency also diminishes in months to come, the companies should pro actively broaden the range of services they are going to come out with in these harsh conditions. In addition to these, the companies need to take up high-end works like developing products for various segments. Also to provide services to new clients, companies need to recruit and train more people. TCS has made some 20000 offers or even more across campuses in India. Now as the strength is increased, this would necessarily translate into high wage bill for a company. generally, IT companies cannot afford bigger employee cost and therefore this wage moderation becomes necessary. In this situation, TCS is not the only company. Global companies such as IBM have cut wages to survive a demanding economic environment.

In a clear cut view, those energizing annual increments and bonuses are over for the employees across some sectors such as IT globally. India's salary growth is rich compared to the developed world the rate of growth has dropped. Now these companies are required to soften the blow of wage cuts by reasoning the compulsions that necessitate such steps.

As we all know, Temporary pain is better than risking the health of the sector.