The pandemic had led to a suspension of the conglomerate’s several businesses including aerospace, automotive and aviation depressing its earnings in key markets across the world. The conglomerate has already made moves to cut contract workers engaged in manufacturing and other functions at its various facilities.
He also emphasised on the need for experienced IT professionals to embrace automation and other new technologies to remain competitive even as youngsters, who could be native to these new tools, enter the workforce.
Many of those laid off were mid- or upper-level techies, with low lateral skills for other industries.
Tata Consultancy Services (TCS), Wipro, and Infosys have deferred hikes. Reliance and Oyo have cut pays.
Though Indian IT is predicting strong growth this year, a slump in US & Brexit may upset plans.
The compensation increases have come at a time when the company said it was laying off as many as 200 senior executives.
Many from India's IT majors who had travelled to client locations on business and work visas, got stranded.
The axe will fall mainly on midlevel employees and those who haven’t picked up relevant skills.
The country’s largest software exporter has declared 100% of the target variable pay to all employees on its India payroll for the quarter ended December 2017.
“TCS is on 26%-28% margin trajectory in several areas”
Hemanth Kappanna's research exposed Volkswagen’s decade long conspiracy to lie about its diesel cars’ emissions.
Defending the industry as a whole, Viswanathan said that early estimates from Nasscom indicate that the IT industry will be net hirers as the year ends.
The H-1B visa is a non-immigrant visa that allows US- based companies to employ foreign workers, typically for three to six years, in various sectors that require theoretical or technical expertise.
Chandrasekaran, who climbed to the top at TCS before becoming Tata Sons chairman earlier this year, also denied any impact of protectionist policies.
"We are here to create jobs, not to downsize," he asserted after TCS launched a BPO centre here to create new opportunities as part of the government's Digital India push.
Though Nasscom cannot initiate a formal enquiry, sources ET NOW spoke to say the software lobby is in touch with TCS over the issue.
Infosys in its results said it had managed to keep its attrition rate low in December quarter, thanks to salary hikes and higher variables.
“The growing realisation among Indian workforce that reskilling is the only way to stay competitive led to a 37% increase in registrations during the February-April period compared to last year," said Raghav Gupta, India country director, Coursera.
Those in support of laid-off workers say the firing policies based on performance reviews are often discriminatory.
This year, the company had already given out job offers to 20,000 on-campus candidates which had been the same as in the previous year. Off-campus hiring had been 4,000, the official said.
Cognizant, Infosys, Wipro won’t disclose how many jobs they cut, but it appears the industry is going through one of the largest retrenchments in its history.
Global corporations, the paymasters of Indian software vendors, are no longer so keen to ante up for application development and maintenance.
It is upskilling employees which will help it cut attrition and acquire future-ready workforce.
TCS said that it is working to ensure that employees get opportunities in Noida and other centres across India as part of its UP consolidation.
"We do it every year. Involuntary attrition at TCS has been about 1 per cent every year in that range and this year, it is no different," Chandrasekaran said.
Emerging technology poses a big threat to jobs and companies. It can force companies to rationalise workforce and even finish certain jobs.
TCS, which has a registered office in Helsinki is in negotiations with the employee representatives over the move to cut jobs.
There’s wariness among some of those who have not received increments, considering the Indian IT industry is witnessing layoffs.
Tata Consultancy Services reported flat revenue growth sequentially in the third quarter, the company’s worst performance in at least four years.
Two things happened around 2016 that might provide a clue to this collapse.
The new policy envisages a detailed documentation of a legitimate employer-employee relationship while the latter is working at a third-party worksite.
The Nifty was at 8114.55 down 263.85 points. It touched a high of 8327.85 and a low of 8114.55 in trade today.
The chief executive officer of Tata Consultancy Services Ltd. argues the industry’s opportunities today are bigger than they’ve ever been.
In October, the Tata Group company had announced that it will hire 35,000 freshers from tech schools in FY16, up from the 25,000 hirings done in FY15.
Combined capabilities of TriZetto & Cognizant can let us cash in on big opportunities: Rajeev Mehta, CEO of IT services, Cognizant
"We have to retrain and reskill our staff and I think you saw a conscious effort on that over the last couple of quarters….we still have some work to do."
Viswanathan will be based in Chennai, and his earlier role - managing emerging geographies - has been given to HR head Ajoyendra Mukherjee.
In the Nifty50 pack, 30 stocks were trading in green, while 20 stocks were in red.
"If technology changes and people don't have those capabilities, you've to re-skill them and re-orient them," Infosys's Pravin Rao said.
Raj was on a conference call Monday evening with US-based technologists when he collapsed. He was taken to The Chettinad Health City in Kelambakkam by a colleague.
Domestic IT giants are bracing for tougher rules for H-B1 visas in the US and disruptions due to new technologies
Former Chief Financial Officer of Infosys, TV Mohandas Pai said such "exaggerated" reports are based on a few events and there are attempts to blow them up.
Employees at the Finland offices of India's largest software services exporter TCS staged a walkout today protesting against job cuts.
The Indian IT industry, according Head Hunters, is likely grow 8-9 per cent in FY2017 and could grow at the same pace or accelerate in FY2018.
According to the 2017 annual report of Infosys, payouts of at least four Infosys executives have increased by over 50 per cent in the previous fiscal year.
The zero-distance programme was one of CEO Vishal Sikka’s first major implementations at the company. It asks employees to create innovative solutions in each project.
IT companies have been under pressure as it grapples with both tailwinds in terms of currency; and headwinds in terms of US Immigration bill.
Priyank Kharge said that even though Karnataka has not done such hiring, but has been constantly looking out to skill and reskill these employees through its centres of excellence.
A report says the two companies gave money to Clinton either via donations to the Clinton Foundation or paying Bill Clinton to deliver speeches.
Most Indian firms stick to a business model and execute it repeatedly, although shoddily. Worse, they pay only lip service to corporate entrepreneurship.
This year our hiring onsite is going to be higher compared to what we have been doing: Ajoyendra Mukherjee, Head- Global HR
"We are training people internally and we had given more trainees offers the prior years. The trainee offers that we had given last year was about 40000 plus."
TCS’ total headcount fell to 385,809 in Q1, while that of Infosys declined to 198,553.
Onsite employee cost as a percentage of revenue came down to 38.5% against 39.3% in same period last year
IT firms are hoping that digital deals will offset decline in traditional services. But any pushback in deals will weaken growth momentum, experts said.
TCS is a best performing company, last they did 8.5 per cent in constant currency terms.
A stable corporation is one where every employee is happy, says Narayana Murthy
"We are in dialogue with Apple and once the nature of exchange is formalised, we shall come up with a structured response," Prasad told ET in an interview.
Closer look at the trend in the top line growth, attrition rates, and attrition as a percentage of the total workforce over the past seven years.
While terming these exits as "involuntary attrition", TCS claimed it does not plan to initiate any large scale layoffs of any section of its staff in any part of the organisation.
With opportunities shrinking and markets transforming, a fifth of 40 lakh Indian software engineers are likely to lose their jobs by 2020.
TCS has reiterated over the last two weeks that there is nothing out of the ordinary in these job cuts & hiring target of 55,000 for FY15 remains on track.
To retain margins, IT cos are increasing proportion of fixed cost projects in revenue, tightening costs and recruiting more freshers, less experienced staff.
A bunch from the workforce in Chennai is preparing for conciliation proceedings with the state labour department in what they claim is a fight against retrenchment.
Although details of this remain sketchy, the Mumbai-based software exporter calls it a regular exercise undertaken by the company.
The latest contract to be scrutinised is one with Walt Disney, which recently signed a deal with US-based Cognizant Technology Solutions.
TCS is planning to sack 172 employees at its Finland offices by August as part of the process to streamline its operations.
India Inc has become more conscious of the bottom line. Companies are ruthlessly shedding flab in the quest for higher profitability.
Besides the Indian army, govt departments like the Indian Railways and India Post, and PSU cos like CIL, there's perhaps no other co that has more employees.
Infosys, TCS and HCL Technologies have delivered on their guidance when they declared second quarter numbers.
The move comes days after report that hundreds of employees at entertainment giant Walt Disney were laid off and replaced with Indians holding H1-B visas.
The company said it would give a clearer picture on the company’s prospects in its next meet in October. The September quarter will be better than Q1, it said.
As customers seek to lower IT spend, many Satyam employees fear that Tech Mahindra could look at rightsizing the company.
The hiring includes data scientists and professionals in domains like design visualisation, user experience and the 'Internet of Things'.
The hiring includes data scientists and professionals in domains like design visualisation, user experience and the 'Internet of Things'.
Chicago-based Tribune Publishing Company said it has informed its IT employees last month that it is moving work to India-based IT company Tata Consultancy Services (TCS).
Francisco D’Souza said by implementing IPA technologies, Cognizant is driving savings and transforming core processes to help companies become digital enterprises.
“People acquiring new skills in new technology areas are the future. So, there will be flattening of the pyramid,” he told ET in an interview last month.
As part of cost-cutting measures, outsourcing firm Tata Consultancy Services said that it will relocate staff abroad into India.
TK Kurien is poaching star performers from rival firms as he approaches the final stages of a mass cull of middle and senior management staff.
TCS is likely to lay off less than a percent of its global workforce over the next few months.
Lay-offs have already started happening at TCS' development centres in Chennai, where over 200 employees have been asked to leave.
The volatility of the rupee is a matter of concern though the recent Rupee depreciation vis-a-vis the US dollar would benefit Tata Consultancy Services (TCS), its Chief Financial Officer, S Mahalingam, said.
Re has exhibited weakness against the dollar over the last few days and closed at a low of 51.97. Where Re comes from, and goes | Forex Converter | Remittances
TCS serves customers such as British Airways & BT in UK. The firm has around 4,800 staff working at almost 65 sites in UK and Ireland. Nine trends for IT in 2009
US, Europe woes may take toll on banking, financial services and insurance-focussed Indian IT Companies
Infosys & other outsourcing providers indicating a near-term blip on imminent drop in business volumes, say analysts.
Indian software companies are stepping up hiring in the United States –– both from colleges and experienced professionals.
IT cos are now walking the extra mile to keep 'benched staff' engaged, even as they seek to balance P&L pressures and talent management compulsions.
Nasscom says the software industry, which employs over 3 million professionals, will see a 17% decline in annual hiring.
Tata Consultancy Services (TCS), which faces uncertainty from auto clients such as Chrysler and General Motors, will undertake a review at the end of the first quarter to decide whether to offer any promotions in the current financial year.
Some of the steps include re-training experienced professionals, offshore movement of people located onsite and deferment of promotions. Top Indian outsourcing cos
Employees across industries are preparing to receive an average salary increment of 10% in the new financial year, as companies battle falling demand and a weak global economy.
Plans are also afoot to start massive recruitments in many parts of the world including in India soon, said Infosys CEO Salil Parekh.
If the AGR revenue definition is not narrowe and payment period not extended beyond 10 years, it is very dangerous for the banking sector, the economy, for India’s digital push as well as the companies themselves.
To address the issue of cash outflows, FAITH has recommended "a complete deferment for twelve months of all statutory dues payable by tourism, travel and hospitality industry at the central government, states and municipal governments level without attracting any penal interest".
Its staff function as outsourced service providers for its over 2,000 Indian clients, including many biggies.
The Federation of Associations in Indian Tourism & Hospitality (FAITH) also said there should be a support fund for twelve months to support basic salaries with "direct transfer" to the affected tourism employees. "As a result of this pandemic, Indian tourism industry is looking at pan India bankruptcies, closure of businesses and mass unemployment," FAITH said in a letter to PM Modi.
The Federation of Associations in Indian Tourism and Hospitality (FAITH) has written to prime minister Narendra Modi stating the tourism industry is in dire straits because of the COVID-19 pandemic and is staring at mass unemployment and bankruptcies.
Global Indian giants would come from the IT pack because we do IT the best globally
The pandemic has made the virtual real overnight. Utility quotient has outpaced novelty factor.
CPI inflation stood at forty months high of 5.54 per cent in November, up by 92 bps from October. Increase in CPI was mainly led by lower base of food inflation and uptick in prices of vegetables and pulses.