The axe will fall mainly on midlevel employees and those who haven’t picked up relevant skills.
Though Indian IT is predicting strong growth this year, a slump in US & Brexit may upset plans.
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Though Nasscom cannot initiate a formal enquiry, sources ET NOW spoke to say the software lobby is in touch with TCS over the issue.
There’s wariness among some of those who have not received increments, considering the Indian IT industry is witnessing layoffs.
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.
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 compensation increases have come at a time when the company said it was laying off as many as 200 senior executives.
Two things happened around 2016 that might provide a clue to this collapse.
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.
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.
Chandrasekaran, who climbed to the top at TCS before becoming Tata Sons chairman earlier this year, also denied any impact of protectionist policies.
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.
“TCS is on 26%-28% margin trajectory in several areas”
“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.
The chief executive officer of Tata Consultancy Services Ltd. argues the industry’s opportunities today are bigger than they’ve ever been.
In the Nifty50 pack, 30 stocks were trading in green, while 20 stocks were in red.
Viswanathan will be based in Chennai, and his earlier role - managing emerging geographies - has been given to HR head Ajoyendra Mukherjee.
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
TCS, which has a registered office in Helsinki is in negotiations with the employee representatives over the move to cut jobs.
"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.
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.
A report says the two companies gave money to Clinton either via donations to the Clinton Foundation or paying Bill Clinton to deliver speeches.
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.
Tata Consultancy Services reported flat revenue growth sequentially in the third quarter, the company’s worst performance in at least four years.
Over the past few months, Indian IT companies are confronted with closer scrutiny and tighter visa norms in the US, a market that accounts for nearly 60 per cent of India's IT exports.
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.
"Layoffs are regular, performance-based things that we do every year. The number is really 300-400," Infosys COO UB Pravin Rao said.
Although details of this remain sketchy, the Mumbai-based software exporter calls it a regular exercise undertaken by the company.
TCS is a best performing company, last they did 8.5 per cent in constant currency terms.
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.
Prasad, who also holds the law and justice portfolio, was in Gandhinagar to participate in the 'Gujarat Gaurav Yatra' organised by the state unit of the BJP.
The job cuts are also affecting mid-to-senior employees who are at the centre of the reskilling and restructuring conversations happening across the sector
"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."
To retain margins, IT cos are increasing proportion of fixed cost projects in revenue, tightening costs and recruiting more freshers, less experienced staff.
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.
If various reports are to go by, aggregate job losses at 7 IT companies will be 56k in 2017.
"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.
However, experts said the situation definitely does not warrant such panic, especially at a time when residential market is seeing the green shoots of a recovery.
TCS’ total headcount fell to 385,809 in Q1, while that of Infosys declined to 198,553.
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.
TCS is planning to sack 172 employees at its Finland offices by August as part of the process to streamline its operations.
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.
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).
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.
Most Indian firms stick to a business model and execute it repeatedly, although shoddily. Worse, they pay only lip service to corporate entrepreneurship.
As customers seek to lower IT spend, many Satyam employees fear that Tech Mahindra could look at rightsizing the company.
IT firms are hoping that digital deals will offset decline in traditional services. But any pushback in deals will weaken growth momentum, experts said.
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.
A stable corporation is one where every employee is happy, says Narayana Murthy
According to the latest lobbying disclosure reports filed with the US Senate, Nasscom paid a total amount of $1,50,000 to its two registered lobbyists in the first quarter of 2017.
If you look at our Mode 2 and 3 business (non-traditional spend), that has really grown by 30%, said HCL Technologies’ CEO C Vijayakumar.
The Indian market is expected to open flat-to-negative. Here is a list of top fifteen stocks that are likely to be in focus today.
As part of cost-cutting measures, outsourcing firm Tata Consultancy Services said that it will relocate staff abroad into India.
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.
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
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.
Mid-sized software products firm, Persistent Systems, is targeting to hire 1,500 people next fiscal as it sees a steady surge in demand from key markets.
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.
Indian markets are expected to trade in a range. Here is a list of ten stocks which are likely to be in focus today.
Indian software companies are stepping up hiring in the United States –– both from colleges and experienced professionals.
Onsite employee cost as a percentage of revenue came down to 38.5% against 39.3% in same period last year
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.
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.
Some of the steps include re-training experienced professionals, offshore movement of people located onsite and deferment of promotions. Top Indian outsourcing cos
Infosys, TCS and HCL Technologies have delivered on their guidance when they declared second quarter numbers.
Middle managers, who have forgotten coding, face an uncertain future, who account for 10-15% of the payroll at companies including TCS, Infy and Wipro.
The employees who face job threats are actually former Nokia staff who were transferred to HCL Technologies in March 2013.
The one positive in the numbers could be the commentary of company winning large deals – for the last two quarters, Wipro has surprised many be winning large deals.
With opportunities shrinking and markets transforming, a fifth of 40 lakh Indian software engineers are likely to lose their jobs by 2020.
“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.
NASSCOM, which represents the more than $120 billion IT-ITeS industry, expects the sector's exports to grow by 13-15 per cent in 2014-15.
Nasscom says the software industry, which employs over 3 million professionals, will see a 17% decline in annual hiring.
Francisco D’Souza said by implementing IPA technologies, Cognizant is driving savings and transforming core processes to help companies become digital enterprises.
Today we believe that we are among the foremost technology banks globally.
Among the top Indian IT firms, Infy gets 36% of revenues from BFSI clients, and Wipro gets about a quarter of its revenues, are more vulnerable, some said.
Infosys & other outsourcing providers indicating a near-term blip on imminent drop in business volumes, say analysts.
The banking, financial services and insurance (BFSI) segment is the largest outsourcing vertical for Indian technology players.
Here's why India is fast becoming the never centre of innovation centres, and how this could be the solution to our IT companies' woes.
The top players of the $100 billion IT industry have developed an unhealthy bench strength and the bulge is expected to grow from next quarter.
The IT major, which has most of its facilities in Chennai and Bangalore, is paying employees the full variable pay component this year. Cities that are IT hubs | Nine trends for IT
This is partly because the number of new jobs being created has dropped, and partly because even when new jobs are available, companies are preferring freshers over experienced employees, who are more expensive.
MNCs in India in the BFSI and captive BPOs space may axe at least 5,000-8,000 people in the coming months. Retain your job | Pink slips back at IT companies
After TCS and IBM Global Services, Patni Computer Systems has laid off close to 400 employees citing non-performance issues. Making a comeback into worklife
Banking, financial services and insurance (BFSI) segment is the largest outsourcing vertical for tech cos in the country. Work before MBA? | Facts on foreign study loans
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.
Wipro, India's third largest software exporter, has lifted freeze on promotions & hikes on a selective basis. Satyam restores variable pay of 28,000 employees
In what could be the first signs of a turnaround in the IT sector, Wipro, India’s third-largest software exporter by sales, has lifted the freeze on promotions and hikes on a selective basis.
Satyam Computer said it is continuously getting new software services orders and existing clients have showed faith in the company.
US-based health insurer Cigna Corp, one of the biggest Satyam clients put the co on 3-month 'notice'. How board cleared Maytas deal | Staff count, deals under scanner
Top deck IT companies has already announced slackened hiring and layoffs could soon be the order of the day. Pink slips back at IT cos I How to retain your job
Here are a few tips to help you prepare for the future and prevent a layoff from hitting you too hard.
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