It is now official. Tata Consultancy Services (TCS), the largest software company in terms of sales, in May to freeze the variable pay more than 1 lakh workers as part of a series of initiatives for the cost of the anguish of iron base. The company has also decided that the employee worked 1 April 2009 to 45 hours per week of 40 hours must TCSer clock each week. This was indicated by the TCS and the Chief Executive Director S. Ramadorai here Thursday.
"In an attempt to Rein of total labor costs and spruce of the effectiveness and productivity of employees, TCS relooking its performance related to variable pay practices. Variable compensation accounts for 7 , 5 to 8% of our income, which will now be revised, "said Mr Ramadorai. Staff costs represent 53% of total costs TCS.
The impact on other beef initiaitives internal efficiencies, Mr. Ramadorai TCS has also confirmed that the employee has increased working hours to 45 hours per week of 40 hours per week level. "We believe that the additional five hours of work can be used effectively to improve employee skills, where appropriate," said Mr Ramadorai.
In addition, the variable component of remuneration TCS employee is tied to company performance, the unity of the individual and the individual performance. At present, it ranges from 20 to 35% of a gross salary of the employee. Composed of various "business" and "employee" of components, the fee for each variable TCS is used on a monthly and quarterly basis, respectively, said an official of TCS. More importantly, the variable pay increases with seniority.
The latest developments at a time when TCS is under increasing pressure from customers for the cost of the service and even lose customers who are trying to go hard. "I can not share information about customers. But it is true that we have lost customers. One client, for example through a discount of 70% which was simply unbearable, "said Mr Ramadorai, in response to a specific request.
TCS house plans for the Liberation of internal efficiency in periods when the company was cut to growth, Mr. Ramadorai said: "Our investment is Rs 1.400 crore in 2008-09. There is now hope that our future infrastructure projects going on, either delayed or reduced. It will be rationalized based on decisions in real time when we rely on the infrastructure budget for the next year.
TCS Director S. Ramadorai is not ready to confirm if the software deployment Rajarhat campus before arriving at a roadblock in the context of the corporate decision to reduce infrastructure spending.