Tuesday, February 05, 2008
TCS variable pay cut
On January 30, India’s largest software company Tata Consultancy Company (TCS) has announced to cut the variable component of its employee and on an average, the cut will affect the employee’s salary by anywhere between 1.5 – two per cent less this month and onwards. Though 1.5 – two per cent cut does not look very huge in the industry, which is suffering, but getting less salary is certainly pinching the employee. But it appears that the company may not have any other choice keeping in view that they have maintained the same level of salary despite appreciation of rupee since last one year.THE STRENGTHENING of rupee, imminent recession in US, sub prime mortgagee crisis in US and its worldwide coupling effect - it seems that everything is going against Indian software industry. On one side, due to slowdown in US economy and effect of sub prime crisis in US as well as in Europe, search of new clients and increasing the contracted rates are becoming tough for software companies.