Wednesday, January 30, 2008
Software slowdown?
ET reports: Tata Consultancy Services, India's largest software exporter, is effecting a small across-the-board cut in employee salaries based on the company's performance in the 3rd quarter, a move reflecting caution amid tough times for the outsourcing industry.
The company has shaved off a portion of the variable pay due for the current quarter, translating into a 1.5% cut in the annual paypacket.
Nothing drastic but it signals that the software industry is tightening its belts. Increments could get affected next year, and not just at TCS but across the industry.
For young graduates who joined in the boom period all this could come as a shock. And even those who are about to join should stay prepared.
A final year engineering student remarked that TCS has become very strict in confirming its trainees. Although TCS is still generously doling out appointment letters at engineering colleges, gthose who do not qualify in the exam held after the training period are asked to leave.
All in all, a reality check ahead!
The company has shaved off a portion of the variable pay due for the current quarter, translating into a 1.5% cut in the annual paypacket.
Nothing drastic but it signals that the software industry is tightening its belts. Increments could get affected next year, and not just at TCS but across the industry.
For young graduates who joined in the boom period all this could come as a shock. And even those who are about to join should stay prepared.
A final year engineering student remarked that TCS has become very strict in confirming its trainees. Although TCS is still generously doling out appointment letters at engineering colleges, gthose who do not qualify in the exam held after the training period are asked to leave.
All in all, a reality check ahead!
Labels: Indian IT, software, TCS
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