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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  • Dear friend,

    Can anyone dispute it in the case of flats? May be or may not be true in the case of plots in city areas. The IT guys are the ones, in their 25+ age, made the builders go in for highly escalating rates for their projects within city or outskirts? NRIs are also to blamed to some extent for the fast escalation in the prices.

    ks2071746
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  • ]http://www.mydigitalfc.com/jobs/tcs-set-axe-3000-more-employees-895
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  • Originally Posted by ks2071746
    Dear friend,

    Can anyone dispute it in the case of flats? May be or may not be true in the case of plots in city areas. The IT guys are the ones, in their 25+ age, made the builders go in for highly escalating rates for their projects within city or outskirts? NRIs are also to blamed to some extent for the fast escalation in the prices.

    ks2071746

    You bet! So flats wont be sold out, but their prices wont come down. In other words new projects will reduce but not price.
    Incidentally what percentage of the workforce has been retrenched in 2008. I bet it wont cross 15% which is nothing in this country where at many points of time even in 2000s 15% of the total population was employed in SPEED JOBS. In summary these retrenchments teach a lesson to the arrogant PUDU PANAKKARANS. However it wont even dent RE, leave alone kill it.
    One madman was telling that I had bought land from farmers in Saligramam since it has a name gramam. Do you know that in 2004 the price in Saligramam was around 40L a ground. In 1966 when the plot was made it was sold around 5K per ground. So dont imagine any price corrections in RE. Just that those who missed the bus are waiting for ever!
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  • Blaming IT is wrong attitude

    Originally Posted by ks2071746
    Dear friend,

    Can anyone dispute it in the case of flats? May be or may not be true in the case of plots in city areas. The IT guys are the ones, in their 25+ age, made the builders go in for highly escalating rates for their projects within city or outskirts? NRIs are also to blamed to some extent for the fast escalation in the prices.

    ks2071746


    Why is everyone blaming IT professionals and NRIs for increasing Real Estate prices. Now bears want these IT people to lose jobs and real estate prices to fall.

    Keeping aside the back office clerks and IT services companies, There is a lot of R&D work, new Product Development also being done in Indian IT especially in Bangalore. The fact that we have a Indian Real Estate forum as a platform to discuss our views is also a product of IT my friend.

    Even in humble IT application services, India's best Infosys has Rs. 10,000 crore in cash, hard cash in the bank. Tell me which company in which industry in India can match the financials of this fantastic company. I am a Infosys shareholder and will never sell.
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  • http://www.cnbc.com/id/30192550/site/14081545

    Interesting ..

    Bottom line, it's not just about location, location, location.

    It's about jobs, jobs, jobs.
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  • The IT space has taken it on the chin. ="http://www.moneycontrol.com/india/stockpricequote/computers-/infosys-technologies/IT"]Infosys is gearing up for tougher times. CNBC-TV18 learns from sources that the company is offering about 25% of its entire workforce who are on the bench the option of joining its BPO arm. Wipro, which tried this same move earlier, faced a huge backlash.
    Sunanda Jayaseelan of CNBC-TV18 reports
    Less than a month ago Infosys Technologies, for the first time, has offered its employees on the bench — which is about 25% of over one lakh employees — the option of joining Infosys BPO. At the moment it has a huge bench but it expects the size of the bench to go up even further. Infosys Technologies has made job offers of 20,000 for FY10 and all of which it plans on honouring and therefore, it says that the size of the bench will go up.
    Infosys BPO has and is in a process of making job offers to all those people on the bench of Infosys Techologies. It will then test these employees for requisite skills sets and hire those employees whom they think fitted with the job profile they are looking for. If it does not find the requisite skills sets only then will they go and hire externally.
    Amitabh Chaudhry, CEO, Infosys BPO said, “The salary of these employees won’t change. You need to earn your salary and you cannot sit on the bench. If there are opportunities in the Infosys environment – you have to take them on. Third, BPO is not a bad career choice. There are a lot of interesting things to do in a BPO and you should be looking at it.”
    Mohandas Pai, Head- HR, Infosys Technologies said, “People are idle and so we are giving them an opportunity to go work there. The services part of the business was always resource constrained so we always said that the BPO work for the services and services a small number of people work for the BPO but not many. Now services got a bench and they are already getting their salaries, so we are requesting them to work in the BPO where there is work of similar basis on the same terms and conditions so at the group level we all benefit.”
    The company is quick to point out that all such employees will continue at the same salary at which they were hired. Infosys Technologies offers a starting salary of between Rs 3 – 3.25 lakh , slightly higher than what Infosys BPO offers at a Rs 2.7 lakh. The company says that all differences with regard to either salary or job profile will be sorted out going ahead.
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  • Originally Posted by sethugm
    ]http://www.cnbc.com/id/30192550/site/14081545

    Interesting ..

    Bottom line, it's not just about location, location, location.

    It's about jobs, jobs, jobs.

    He was commenting this about US real estate. It is wrong to extrapolate this to India's real estate. US rules or myths work only in US not here.

    The most interesting line I found in this article is

    " Greene also talks about what he's investing in now: making money shorting 30-year Treasuries through interest rate swaps,"

    Anyone who knows a little bit of Economics can interpret the above sentence. Those who don't I will explain, only a person who is extremely bearish on US dollar, only a person who is extremely bearish on future of US as an economic power would short 30 year Tresasuries I repeat would short 30 Year Treasuries.

    This is what I've saying Short the US, go Long on India and Asia. on India and Asia. on India and Asia. on India and Asia.
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  • Associated Press

    ="http://online.wsj.com/public/quotes/main.html?type=djn&symbol=dal"]Delta Air Lines Inc. no longer is outsourcing reservation calls to India after years of complaints from customers who preferred to speak to someone in the U.S.
    Chief Executive Richard Anderson told employees in a recorded message late Thursday night that the world's biggest airline operator is in the process of bringing all customer calls back in-house in the U.S. Customer calls were no longer forwarded to India as of the first quarter of this year, he said.
    Foreign call centers remain in Jamaica and South Africa, though Mr. Anderson indicated that staffing at those locations likely will be reduced in the future as the global financial crisis cuts call volume.
    "The customer acceptance of call centers in foreign countries is low, and our customers are not shy about letting us have that feedback,'' Mr. Anderson said.
    Difficulty understanding the call center agents in India was a concern among some customers over the years.
    Atlanta-based Delta said in 2002 that it would send some reservations work to India to save money. In 2004, amid an earlier bout with hard financial times, Delta shuttered one of its three call centers in India. At the time, Delta said outsourcing some call center functions had saved Delta about $25 million a year.
    After the Sept. 11, 2001, terrorist attacks, UAL Corp.'s United Airlines outsourced some reservation calls to India. In 2007, Hawaiian Airlines outsourced most of its reservation call center to the Philippines.
    A United spokeswoman said Friday that some of the call center work the airline was outsourcing to India has been brought back to the U.S., though some reservation calls are still forwarded there. United also has call center operations in Chicago, Detroit and Hawaii, she said Inc. no longer is outsourcing reservation calls to India after years of complaints from customers who preferred to speak to someone in the U.S.
    Chief Executive Richard Anderson told employees in a recorded message late Thursday night that the world's biggest airline operator is in the process of bringing all customer calls back in-house in the U.S. Customer calls were no longer forwarded to India as of the first quarter of this year, he said.
    Foreign call centers remain in Jamaica and South Africa, though Mr. Anderson indicated that staffing at those locations likely will be reduced in the future as the global financial crisis cuts call volume.
    "The customer acceptance of call centers in foreign countries is low, and our customers are not shy about letting us have that feedback,'' Mr. Anderson said.
    Difficulty understanding the call center agents in India was a concern among some customers over the years.
    Atlanta-based Delta said in 2002 that it would send some reservations work to India to save money. In 2004, amid an earlier bout with hard financial times, Delta shuttered one of its three call centers in India. At the time, Delta said outsourcing some call center functions had saved Delta about $25 million a year.
    After the Sept. 11, 2001, terrorist attacks, UAL Corp.'s United Airlines outsourced some reservation calls to India. In 2007, Hawaiian Airlines outsourced most of its reservation call center to the Philippines.
    A United spokeswoman said Friday that some of the call center work the airline was outsourcing to India has been brought back to the U.S., though some reservation calls are still forwarded there. United also has call center operations in Chicago, Detroit and Hawaii, she said
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  • See what CEO of Barclays Wealth says about property market in India(From Business Line)


    What’s your prognosis for the property market? What are you telling your clients?

    We haven’t come out with any formal view on property. Many of the investors in India have a very strong personal involvement with their property purchases and consider it a physical investment. But our broader reading is that the property market is heading for some more correction in the immediate future. That’s for the simple reason that the sector is facing a liquidity crunch and is unable to bring in users at current price levels, leave alone investors.

    There is a lot of doubt in the minds of users on whether the project will be completed on time. That is changing the face of the industry. An industry which was running almost on negative capital, when the advances on projects were used to complete the project, now has to have much higher cash flows.

    You need to have 100 per cent of the cash in hand before you start a project and realise cash from it. That is a complete shift in the way the business of real estate was being run. Therefore, if you leave aside local nuances, I believe that the real estate market will correct further. I would not be surprised if that correction is another 25-30 per cent from here.
    We must also keep in mind that the rise in the Indian property market was much steeper and happened in a shorter timeframe than other global markets. The fall has to be in line with the rise. In stocks, prices start eroding ahead of volumes; but in real estate volumes decline ahead of prices.
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  • Excerpts from interview of EXECUTIVE DIRECTOR, ASK INVESTMENT HOLDINGS (BusinessLine)

    So, do you expect the demand to revive by the time the projects you enter into are completed?

    A revival may take another 18 months. By then some amount of interest rate decline and price correction is likely to happen. I do not rule out another 25-30 per cent correction. So, a total correction of 50-60 per cent from the peak prices is very much possible. While we would reach a neutral stage in the December quarter, with a stable Government, clarity on jobs and income and improvement in global economy, transactions will start happening from the September quarter of 2010 onwards. The current journey of developers launching projects, at lower rates and lower sizes is a step towards liquidity and affordability for various segments. So we will use the next 24 months to deploy our funds.
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  • Dear friend,

    The fact remains, IT guys of all sorts, due to better salaries to start with, say Rs. 20000+ PM and possible increase every year by 10 to 20 % , went on booking spree and added to this is, if both the boy and the girl are in IT field, then they felt their financial muscle is still more to face large EMIs and went on buying/booking spree. NRIs expecting very large percentage of increases for their dollar invensment in RE in India also fuelled the increase. Now most people have become very careful and shifting the age range to 35+ atleast for RE investments and till such time they may decide to live in rented flats/houses. After all, there are many flats/houses available now for rental. ( Incidentally both my son and daughter-in-law are in IT field and it is me who forced them to go for a 3 bed flat buy some 6 months ago in a location best suited to both and we, the parents, the flat is ready to move in now)
    The very fact that even far away places in OMR or ECR prices raised much faster is only due to the IT guys booking there as also NRIs. Their otherwise idle Dollars will fetch better return in India, though temporarily at this juncture it may get into some negative, but in the long run, there will be good positive returns.

    ks2071746
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  • Originally Posted by contra
    He was commenting this about US real estate. It is wrong to extrapolate this to India's real estate. US rules or myths work only in US not here.

    The most interesting line I found in this article is

    " Greene also talks about what he's investing in now: making money shorting 30-year Treasuries through interest rate swaps,"

    Anyone who knows a little bit of Economics can interpret the above sentence. Those who don't I will explain, only a person who is extremely bearish on US dollar, only a person who is extremely bearish on future of US as an economic power would short 30 year Tresasuries I repeat would short 30 Year Treasuries.

    This is what I've saying Short the US, go Long on India and Asia.


    The situations are almost similar especially in US and India.

    Easy Credit , Good Job prospects & High Speculation have artificially inflated the prices. A Leading Swiss bank says if the prevailing RE Prices are marked to market , Investors have lost USD 40 Trillion in the recent Stock Market & RE Bubble. Both India and US have lost money in these asset classes .Job prospects have vanished.Both they have huge unsold inventory .Both they have job uncertainty.

    Thats why its time to put your money directly in FD & there is no need get into interest rate swaps.With the interest one earns from FD,can easily manage the rent & some house-hold expenses and when the RE market corrects on its own with the actual prices ..can own one...
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  • Originally Posted by contra
    He was commenting this about US real estate. It is wrong to extrapolate this to India's real estate. US rules or myths work only in US not here.

    The most interesting line I found in this article is

    " Greene also talks about what he's investing in now: making money shorting 30-year Treasuries through interest rate swaps,"

    Anyone who knows a little bit of Economics can interpret the above sentence. Those who don't I will explain, only a person who is extremely bearish on US dollar, only a person who is extremely bearish on future of US as an economic power would short 30 year Tresasuries I repeat would short 30 Year Treasuries.

    This is what I've saying Short the US, go Long on India and Asia.

    US and Indian RE may not be similar but the fact is Indian RE is heavily dependent on IT people who inturn are heavily dependent on US projects.More than 60%of IT projects come from US.

    Why is India suffering everytime US goes into recession.This proves we are dependent on US money for growth.We will need atleast 30 more years to catch up with them.Until then if US sneezes we will catch cold.
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  • Thats what every politician is denying,the fact is we are dependent on US,
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  • Originally Posted by BigBear
    US and Indian RE may not be similar but the fact is Indian RE is heavily dependent on IT people who inturn are heavily dependent on US projects.More than 60%of IT projects come from US.

    Why is India suffering everytime US goes into recession.This proves we are dependent on US money for growth.We will need atleast 30 more years to catch up with them.Until then if US sneezes we will catch cold.


    You are only talking about employees, that is working class mindset.

    I am talking about entreprenuers, business owners like Ranbaxy ex-owners, Azim premjis, Infosys founders, Anil Ambanis have already made thousands of crores which is in cash and they are just waiting to invest. When they realize that real estate in India given its intrinsic demand is best asset class they will pour that cash into indian real estate and hold for another deacde.

    Bosses and owners don't care if new projects are not coming from US, they will lay off employees who are now only a burden. They have personally made lots of money which they will still invest.

    Understand capitalism and think as a capitalist and not with a working class mindset.
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