In a bid to reduce costs and increased offshoring focus, Tata Consultancy Services, India's largest information technology company, has recalled close to 1,200 employees from the US and has decided not to hand out any salary increment this year.
The company had announced a 10 per cent increment across the board during the last financial year. TCS has almost frozen its lateral (experienced) hiring and will look at this only on an as-required basis. Instead, it will hire fresh college pass-outs. Over the next three quarters, it will hire 24,885 young men and women from various campuses.
As large users of information technology services abroad have cut their budgets, companies like TCS have been looking at ways to control costs. Employees account for over 50 per cent of TCS' revenue; hence, the company has relooked its salary bill and policy on hiring.
Though there will be no increments this year, employees will still get a component of their variable pay. "We have two components to the variable pay: One that is paid every month and the other that is paid at the end of the quarter. This quarter we will pay that as well," said TCS vice-president and head (global human resources) Ajoy Mukherjee.
Mukherjee, however, added that the company will promote over 9,000 employees, who could not be promoted last year due to cost issues. "We were looking at this every quarter but it could not be done," said Mukherjee.
TCS has also not filed for a single H1-B visa, which allows people to work in the US, till date this year. The company, as of now, has about 18,000 people with valid visas (H1-B and L1). "We do have sufficient people with valid visas. The 18,000 employees include those who are already in the US. Looking at this, we decided not to apply for any fresh H1-B visa," said Mukherjee.
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