Satyam staff worried new employer may cut jobs

G. Naga Sridhar
M. Somasekhar


Hyderabad, April 12 A day ahead of the start of the stake sale process of Satyam, worries about a possible “optimisation” of human resources by the new owner bother many employees.

“There has been widespread talk about a reorganisation of human resources and changing the business focus in line with the interests of the successful bidder,” Mr Ramesh, a Satyam staffer for four years, told Business Line. Jobs at the company could go if the new investor feels that there are more jobs than could do justice to projects in hand. After all, if the scam-hit company has inflated revenues, it could mean that there are more employees than are necessary.

In anticipation of losing jobs, some employees are already seeking opportunities elsewhere. “There has been a noticeable rise in the number exit interviews being done by the HR department,” an important Satyam official said.

Soon after news of fraud at the company’s helm broke out earlier this year, recruitment agencies reported a sharp rise in resumes, of Satyam staffers, suddenly appearing in their databases and in mass recruitment web sites.

“Even the top managers are also not clear about the continuity of their jobs after the completion of the sale process,” Mr Navin, a senior professional in the marketing department, said.

However, in the last four months the company has been in the news for the wrong reasons, attrition has not gone beyond industry average which is in the 10 to 15 per cent range. The reason could be lack of opportunities rather than belief in the revival of Satyam, he added.
The mood among Satyamites abroad is no different.

A Satyam employee posted in San Diego, US, said over : “Most of us here are trying to shift before something (unpleasant) happens after the sale. Some employees are in the process of joining client companies.”

Satyam's clients such as Coca-Cola (which has terminated a contract) and Bank of America have already hired some Satyam employees, though not in big numbers.

Satyam's competitors are also understood to be extending offers on selective basis.

Given the choice between joining clients and competitors, the trend is towards the former, because of the uncertainty perceived in other Indian IT companies, sources in Satyam indicated.

The company, however, has been able to pay salaries on time. For most employees, this helped in keeping hopes alive for a while.

The admission of the Rs 7,136-crore fraud by Satyam founder Mr Ramalinga Raju on January 7 has caused a big shift in the operational and management environment, employees said.

"Prior to January 7, 2009, there was much dynamism and a competitive spirit pervaded all levels, which is missing to some extent now,'' said Mr Ramesh.

While there is no lapse in the quality of deliverables and schedules, the work environment is marked by a lack of enthusiasm and optimism, he said.

Source: THE HINDU Business Line
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  • RE will optimise

    Interesting post, there are several angles one should lookout, 1. Political outcome 2.IT job losses 3.proximity to city 4. Location in the city itself 5. proximity to schools,college,hospitals etc and there are various other aspects. For example the costs in prime location can still appriciate only that takers are few, and on the outskirts defanitely it will go down,but if you have the money and can wait for 3 years its a best bet, the flair for outskirts has evaporated.
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  • WIPRO offers jobs with less salary

    Wipro Technologies to honour job offers, with a rider
    13 Apr 2009, 1056 hrs IST, P P Thimmaya, ET Bureau



    BANGALORE: Wipro Technologies, the third-largest IT services exporter from India, will be honouring all the remaining job offers made to the





    engineering graduates during 2008-09 fiscal, but with a rider.

    In the letter dispatched to remaining 6,000 fresh engineering graduates, Wipro Technologies has said that these students would come onboard between May and December 2009, undergo training for two months, and if they are not engaged in any billable project, will be paid only a stipend of Rs 6,000 per month.

    Wipro had made offers to 14,000 engineering graduates to join the company during 2008-09 fiscal with salaries in the range of Rs 2.75-3.25 lakh per annum and the induction of 40% has been delayed by six months.

    Pradeep Bahirwani, vice-president of talent acquisition, Wipro Technologies, said that this step was taken due to the changed business environment. He further said that if these fresh hires are not put onto any billable project, they would be given further training through the web.


    Of the 14,000 offers made by Wipro Technologies, it is estimated that around 6,000 have already joined the company. This changed offer status will apply to those who are joining in the next six months or so.

    Mr Bahirwani said that it has also waived the Rs 75,000 bond requirement which was placed upon these students, if they leave the company within 15 months. During the training period of two months, these fresh employees are paid a stipend of Rs 15,000.

    The Wipro official claimed that they have received positive response from the remaining students of the revised offer as they are being absorbed by an IT major and they would be put on a project, depending on the orders they receive.

    Wipro Technologies, at the same time has already made offers to 8,000 engineering graduates for joining them during the 2009-10 fiscal.

    This is the second time in the recent past, that Wipro Technologies has tweaked the hiring policies of fresh engineering graduates. Earlier, it had made a one time offer to students with the option of joining the BPO division of the company and later getting back into the IT services segment.

    The process of giving offer letters to engineering graduates one year in advance by the IT companies in India has undergone a change with Nasscom saying that firms would approach colleges only during the last two months before the academic graduation

    =================================

    All these actions point out less pay/jobs for IT people upon whom RE was depending upon for the past couple of years.

    Now all are doomed
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  • Satyamites on bench in US asked to quit
    ‘Those engaged in on-going projects safe for now’.



    “The non-billing staff (who are on the bench) here have been told by their managers to return to India by stating that they might also follow their team-members soon.”

    G. Naga Sridhar
    M. Somasekhar

    Hyderabad, April 14 Satyamites currently on the bench in the US have been reportedly told to quit after the naming of Tech Mahindra as a buyer of majority stake in Satyam Computer Services.

    While employees who are holding a green card have been told to quit, staffers who hold work permits have been asked to return to India, according to reliable sources.

    “The non-billing staff (who are on the bench) here have been told by their managers to return to India by stating that they might also follow their team-members soon,” a Satyam employee told Business Line over from San Diego.

    The positions of those who are engaged in on-going projects appear to be ‘safe’ for the time being as the projects cannot be discontinued in the middle, she said.

    “But the general advice is to keep an early exit in mind as the continuity/renewal of projects is a matter of speculation once Tech Mahindra completes the transaction,” she added.

    While Satyam has over 5,000 associates in the US, the company is not willing to disclose the exact number of people on the bench currently.

    The Hyderabad-based company has been suffering attrition in the US following the exit of clients such as State Farm, an insurance agency and others such as Coca-Cola and Cisco in the last couple of months.
    Meanwhile, the good news for Satyamites, both in India and abroad has been that the company has paid up all the dues with regard to perks and allowances (night duty allowance, LTA etc) since January 2009, when it was hit by the financial fraud. It has also updated payments for employee insurance and Provident Fund.
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  • Dear friends,

    Satyam neither controls the IT market nor the RE market in India. The misdoings of a few at the top in Satyam has put thousands of the Satyamites into real problems, be it the salary or the marriage market of some of the employees, as there are less takers, for the girls or the boys now for fear of job loss. Every sphere of the market is on the downtrend, including the GOLD, as could be seen in the last few days, which definitely impact not only the RE market but also all the other markets.

    ks2071746
    CommentQuote
  • Originally Posted by ks2071746
    Dear friends,

    Satyam neither controls the IT market nor the RE market in India. The misdoings of a few at the top in Satyam has put thousands of the Satyamites into real problems, be it the salary or the marriage market of some of the employees, as there are less takers, for the girls or the boys now for fear of job loss. Every sphere of the market is on the downtrend, including the GOLD, as could be seen in the last few days, which definitely impact not only the RE market but also all the other markets.

    ks2071746

    Dear Friend,

    Hope you are talking about Satyam Computers Ltd and not any other Satyam.

    Due to the Satyam-Scam,approx 5 Lacs people have lost their invested money on Satyam.

    Of the 45000 SAT Employees, almost 90 % of them are looking for a job elsewhere.

    On Jan 6th there have been 6000 Satyamites floating their resume on job search portals.On 07 Jan 2009 by 14:00 IST the number of resumes with the job portals have become 14000 ..hours after Raju's confession.Am sure the number now would have reached 40000.

    This huge presence of Satyam employees in the job market will have a direct impact on the salary of IT professionals and will undergo salary corrections.The same jobs which were offering Rs 10 Lacs per annum will be filled for Rs 5-6 Lacs per annum(If at all there is a job outside).

    Not only Satyam but all the IT companies are normalizing their headcount.

    Soon there will be trend to get rid of the high paid jobs as the quality of the jobs off-shored are not great and can be done by anyone who has little commonsence & many of them are document driven.Result is normalization of IT Salary in India is on the cards.

    All the IT companies are being asked by Clients to reduce their billing rate atleast by 10-15 percent and some companies have already cut the on-site salary by 5-10 percent.

    Needless to say that the RE in Chennai/Bangalore are dependant on jobs(IT/ITES) & Satyam has big say on both Indian IT and RE.

    Even the marriage market is undergoing corrections. The IT Guys who were demanding more dowries will no longer be much-sort-after and their expectations and dowry will come down.He will become a common man who will earn as same as other guys.Good for the society ...right ?

    Can you please confirm that you refer 'Satyam Computers Ltd' as it would help me to understand your postings ?

    Cheers...
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  • Originally Posted by ks2071746
    Dear friends,

    Satyam neither controls the IT market nor the RE market in India. The misdoings of a few at the top in Satyam has put thousands of the Satyamites into real problems, be it the salary or the marriage market of some of the employees, as there are less takers, for the girls or the boys now for fear of job loss. Every sphere of the market is on the downtrend, including the GOLD, as could be seen in the last few days, which definitely impact not only the RE market but also all the other markets.

    ks2071746


    Satyam alone does not control IT or RE. But it is one of them who makes impact on RE.

    Do you think any satyam guy will invest in RE or flats now like thye did couple of years ago. This itself is a part of blow to RE
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  • Dear friends,

    I meant the Ramalinga Raju's Satyam. To a little extent, I agree there will be impact on IT salaries RE market due to Satyam fiasco. But to a larger extent, the overall IT downtrend will impact RE market in India for atleast another 2 years till some recovery can start in both IT and RE fields.
    The rent is also on the downtrend and not only office space is vacant but also the flats. I happened to cross through GST road a few days back when I saw Arun Excello Desh buildings at Urapakkam both during the day time on a holiday and in the late evening. Not many flats are filled. I could very roughly count hardly about 25 flats or so in the large complex filled up as could be seen from the open windows, clothes drying and lights on in the flats in the late evening. I gather, many are NRIs who invested here and they may not be real sufferers by way of locked flats/no rental or lower rentals, but those guys who invested here about Rs. 2500/sq. ft. with the hope that the rental may be anywhere over Rs. 7000/pm even for a 2 bed flat are the sufferers at the present juncture of salary/job cuts. Of course, to a little extent, the reduction in the interest rates may help them but not to a large extent. It will be too tight for them to manage atleast another 2 years time.

    ks2071746
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  • Infosys says no salary hikes for staff
    16 Apr 2009, 0317 hrs IST, ET Bureau




    BANGALORE: On a day when Infosys Technologies forecast its first ever revenue decline in dollar terms for FY10, the company maintained that it will

    not seek to trim its payroll by laying off professionals.

    There will, however, be no salary hike this year, as the company plans to keep its operational costs under control. “We are not laying off anybody and there are no such plans,” said Infosys Technologies HR-director, TV Mohandas Pai. The company hired around 28,231 professionals in the year ended March 2009, with the net intake being 13,663. The total headcount at the end of last fiscal stood at 1,04,850.

    Infosys plans to hire 18,000 professionals in the current fiscal, including almost 16,000 fresh graduates and experienced hires. It will also recruit around 1,000 non-Indians outside the country to increase the number of foreign professionals in its workforce.

    Denying plans of large-scale layoffs, the company clarified that almost 850 employees were let off for failing to meet the performance criteria.

    Infosys has honoured all the 20,000 campus offers made last year, but has extended the training period from 16 weeks to 29 weeks. The freshers would be employed in the company following their training and could become a part of the internal project teams, Mr Pai said.

    The reduced variable pay, which is linked to performance and profitability of the company, is likely to impact around 350 senior executives. The company has been giving an annual salary increase of 11-15% to its offshore employees. “There is greater degree of uncertainty and people are anxious. But we are not going to stand up and make false promises...,” Mr Pai added.
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  • Infosys freezes wage hikes, hiring

    Our Bureau
    Bangalore, April 15 Sensing a tough year ahead, Infosys Technologies has decided to freeze wage hikes and hiring for fiscal 2010 and maintained that it would honour all campus offers made last year.
    “Employees will not get salary hike or promotions this fiscal. At the same time, there will be no salary cuts,” said Mr Mohandas Pai, head of HR and board member of Infosys.

    Infosys has maintained the salary structure for the employees that includes a variable pay component which ranges from 15 per cent of the compensation package for junior employees to about 50 per cent of the compensation for the board members.

    “The board members have taken a steep cut and received only 58 per cent of the variable pay for the year,” Mr Pai said. Senior employees got 65-75 per cent of the variable component for the year, while junior employees received about 85 per cent of the variable pay. Mr Pai said Infosys would add some 18,000 employees for the year ahead including 16,000 freshers for whom the offer letters have been issued last year. (The company made 20,000 campus offers and assumes an 80 per cent acceptance – hence 16,000 offers.) It would add 2,000 laterals including some 1,000 laterals overseas.

    “We will absorb all the 18,000 people to whom offer letters were given (including lateral hires) last time despite staggering their joining dates over the fiscal,” Mr Pai said.

    Further, Mr Pai said the company has devised a strategy to utilise the current bench of 5,000 engineers by deploying them on internal projects and develop intellectual property. About 8,000 trainees for whom the training period has been extended are expected to join the system over the next few quarters.

    Top paid employees
    Mr B.G. Srinivas, head of European operations and an executive council member, was the highest paid employee at Infosys in the year-ended March 2009, earning about Rs 4.67 crore, up from Rs 3.07 crore in the previous year. The US-based Mr Ashok Vemuri, head of BFSI and capital markets, took home a total compensation of Rs 4.04 crore (Rs 2.81 crore last year).

    Among the board members, Mr Mohandas Pai earned the highest compensation package of Rs 2.59 crore (Rs 1.80 crore), followed by CFO Mr Balakrishnan at Rs 2.36 crore (Rs 0.63 crore).

    The CEO and MD, Mr S. Gopalakrishnan’s total compensation package stood at Rs 92 lakh (Rs 81 lakh), while co-chairman Mr Nandan Nilekani earned Rs 91 lakh (Rs 82 lakh). COO Mr S.D. Shibulal’s Rs 87 lakh (Rs 78 lakh) was the lowest among key management personnel.

    Mr N.R. Narayana Murthy, Non-executive Chairman and Chief Mentor, took home a commission of Rs 63 lakh (Rs 50 lakh). Prof Marti. G.Subramanyam was the highest paid non-Wholetime Director at Rs 96 lakh (Rs 59 lakh).

    =================================================
    Actions by all these IT companies directly impact RE. No wonder RE prices are falling
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  • TCS set to axe 2000 to 3000 people
    CommentQuote
  • Originally Posted by vijai5
    TCS set to axe 2000 to 3000 people


    Source please ?
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  • Dear friend,

    I agree. One will have to wait for atleast another 18 months to see the reversal of downtrend. Even Super Markets are feeling the pinch. Sales have declined.

    ks2071746
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  • Originally Posted by vijai5
    TCS set to axe 2000 to 3000 people

    The only argument bears are selling nowadays realising market is just not falling is trying to frighten people about job losses, whether true or false.
    Poor bears, but then those who believe them are PITIABLE TO THE CORE.
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  • Dear friend,

    Can anybody dispute on the job losses and salary cuts being experienced at present ?

    ks2071746
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  • Originally Posted by ks2071746
    Dear friend,

    Can anybody dispute on the job losses and salary cuts being experienced at present ?

    ks2071746

    Do job losses and salary cuts make price of essential RE lower?
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