Business   

TCS raises performance bar

CHENNAI: Tata Consultancy Services (TCS), the biggest Indian IT major, has decided to tighten its belt. In this process, it has frozen the recruitment of experienced professionals unless they are approved by the respective business heads for project-specific skills. Wherever possible, it will re-train experienced professionals within the company to take on these roles.

On the offshore movement, it has pointed out that though in the current context, increasing its offshore leverage was a win-win situation for customers and the organisation alike. This will result in offshore movement of people who are now located on-site. Similarly, promotions for the current fiscal year have also been deferred, as was done last year. With current uncertainties, the deferment continues for now.

The company has finally asked the operating units to raise the performance bar and utilise resources in a most effective manner. The process for undertaking this is a detailed one and will result in some involuntary attrition. The company is helping these employees with out-placement, counselling, alternative positions in subsidiaries, if available, or a fair exit.

As part of optimisation, route rationalisation in transportation has also been looked in to. These measures were stated in a recent circular issued by the company’s higher officials to its employees.

TCS has decided to take these measures with immediate effect to ensure that the company is well-equipped to deal with the sharp contraction in global economic activity. It is also stated that the company has taken these steps to mitigate the risks emerging from the current economic slowdown and uncertainties.

Most TCS customers have started feeling the pain of the slowdown and are looking to extract maximum efficiencies from their reduced IT budget. In this context, it needs to work on bringing in greater operational efficiencies across the organisation by conserving and controlling costs.

At the same time, it wants to continue to invest in people, technology and training to ensure that it can adequately respond when the economy does turnaround.

Though TCS has come forward with these announcements, there are other IT companies, which are quietly issuing pink slips to their employees based on their performance.

Many firms have cut down the strength of employees on-site, while some have even sent out the employees waiting in the bench.

This economic slowdown will act as a correction methodology for many IT companies.

They will re-look at the factors such as quality, pricing, efficiency, productivity and delivery in a more stringent way. Similarly, the industry which went on recruiting heavily during the boom period, now adopts go slow tactics.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Nasscom urges Obama not to take ‘protectionist measures’
Satyam clamps curbs on information flow
TCS raises performance bar
SkodaAuto launches Superb variant
Volvo Buses India augments capacity
Norwegian bank opens office in Mumbai
Radhakrishna Hospitality in Sodexo fold
No staff reduction at Sahagunj unit, says Pawan Kumar Ruia
Bullion Rates
Tata Motors ties up with Union Bank
Welch Allyn partners BPL Healthcare
MetLife strengthens North Indian operations
Equitas’ micro-loan pool backed transaction
Jyothy Lab launches ‘Fabric Spa’ venture

Copyright © 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu