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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  • Ambanis and Pemjis are not going to buy 1000s of flats. It is IT guys who did becuase of which RE rates went up.

    Now no more that market. That is why it is falling.
    CommentQuote
  • Contra, Capitalism has failed ...

    Originally Posted by contra
    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 or with working class mindset.


    Contra,

    For every Premji, there are a thousand other jis who have failed at enterpreneurship. Besides, trying out various businesses myself, I have a good insight into the top tier of the VC business as well. VCs have virtually shut shop for the most part. So, there are a large number of startups (I would say the majority) that are very likely to go belly-up and fail due to their model of ongoing dependence on endless rounds of funding and selling at huge and suspect valuations to the greater fool! The VCs are equally culpable since its they who have taught these budding enterpreneurs to look for valuations rather than concentrate on generating profits. It has come back to bite them now.

    But coming to Capitalism. It is now increasingly being agreed-upon in the US that the unbridled Anglo-saxon brand of Capitalism (EU, US) is also going the way of the Dodo. The US, with its bailouts has become even more soci.ali.st that the soci.ali.sts - except in a criminal way by suporting the criminals and using public funds to bail them out. The Bosses in the US thought only of themselves and this is the result!!! So, I think the bosses in India are not too keen to be following the money-at-any-cost policies of the American flavor of Capitalism. Please note the various statements of people like NRN, etc which is trying to play down their capitalism and play up the soci.ali.stic goal of jobs for everyone even if it means all-round sacrifice by everyone in terms of salary cuts.

    It appears that now there is increasing interest on the mixed model of India - with all its pros and cons - and the relative strength of India in the current downturn is being used as an indicator that the Indian model - capitalism with a human face and a social agenda - seems to be the way for countries to go. Whether it will work or not is another issue we will face in the future :)

    cheers
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  • Originally Posted by lovebird
    Ambanis and Pemjis are not going to buy 1000s of flats. It is IT guys who did becuase of which RE rates went up.

    Now no more that market. That is why it is falling.



    Dear friend,

    I fully agree with you.

    ks2071746
    CommentQuote
  • TechM indicates layoffs, salary cuts at Satyam


    Chairman of Tech Mahindra, Anand Mahindra listens to a question during a press conference in Hyderabad on Monday.

    ="http://www.expressbuzz.com/edition/searchresult.aspx?AliasName=nzGj2|6Fjvz6KsBIWm/bcX3ig1csqgFF"]ENS Economic Bureau
    First Published : 21 Apr 2009 01:04:00 AM IST
    Last Updated : 21 Apr 2009 11:20:14 AM IST

    HYDERABAD: Tech Mahindra, the new owner of the fraud-hit Satyam Computer Services Ltd., said reviving the financial position of the company will be a top priority and that they are determined to catapult Satyam into one of the top IT firms.

    Officials said a Chief Financial Officer (CFO) will be appointed in the next few weeks and that Satyam will continue to be an independent entity in the foreseeable future.

    Hinting that the management will certainly look at cost-cutting measures including layoffs and salary cuts to minimise input costs and maximize returns, Vineet Nayyar, Vice- Chairman & Managing Director, Tech Mahindra said, “Salaries will never be an issue as Rs 1,750 crore will go directly into the company. We have enough cash to meet the working capital requirements.” Addressing the media after interacting with leadership teams and Satyam employees, Nayyar said, “We are studying the pending litigations and liabilities aspect and it’s too early to put any numbers at this stage.” Tech Mahindra, which deposited Rs 2,990 crore in the escrow account to acquire 51 per cent controlling stake in Satyam, said that at this stage it is not looking beyond acquiring more stake in the company.
    Stating that the company raised the required cash in just 72 hours, Anand G Mahindra, Vice-Chairman & Managing Director, Mahindra & Mahindra (M&M) Group said, “the short time span in which we raised cash goes on to show that the Indian economy is strong and sends out positive signals.” Of the Rs 2,990 crore, Rs 700 crore was from internal accruals, while Rs 875 crore was raised through non-convertible debentures and commercial papers, the rest was borrowed from non-banking finance institutions and mutual funds.
    “Satyam is not a sinking ship anymore. There’s a palpable sense that Satyam is going to be a viable entity soon,” added Mahindra.
    Meanwhile, Tech Mahindra will be issuing the open offer to acquire 20 per cent stake in Satyam.

    “The offer document is being prepared and the open offer will begin tomorrow (on Tuesday). Since we are yet to get some regulatory approvals from Europe and Germany, we can’t disclose specifics,” said Deepak Parikh, board member.

    While four senior officials from Tech Mahindra will be inducted into the board after approval from the Company Law Board (CLB), the existing directors will continue until further orders from the Government
    CommentQuote
  • Satyam: no layoffs now, but salary cuts possible


    By Corporate Bureau

    Tech Mahindra chairman Anand Mahindra on Monday ruled out immediate job losses among the 45,000-odd Satyam employees but added that an integration team "is already in place in Hyderabad to decide on the staff strength" for the acquired company. Speaking at a press conference after the first detailed meeting with the staff of the company taken over by Tech Mahindra last week, he said, "Our immediate plan would be to retain current customers, win back businesses and retain the key 100 associates."
    The plans also include finding a CFO for Satyam, said Vineet Nayyar, CEO of Tech Mahindra. "We are on the lookout for a CFO, who would be decided in the next few weeks." One of the first tasks of the new incumbent could be asking for a salary cut of at least 10% across all categories, a source close to the company said.
    ]http://in.biz.yahoo.com/090420/50/batgnq.html
    CommentQuote
  • Dear friends,

    My personal opinion is that Tech Mahindra is not the right buyer of Satyam. It should have been IBM or TCS or Infosys or WIPRO for a early turnaround. But none of these firms were interested as they felt it would be too risky?

    ks2071746
    CommentQuote
  • Originally Posted by ks2071746
    Dear friends,

    My personal opinion is that Tech Mahindra is not the right buyer of Satyam. It should have been IBM or TCS or Infosys or WIPRO for a early turnaround. But none of these firms were interested as they felt it would be too risky?

    ks2071746


    Everyone of the IT Heavyweights were only interested in the SAP expertise of Satyam and scared on managing the other verticals.

    They were equally worried on the lawsuits & remedy which none can estimate the risk at the moment.

    As TechMahindra only had exposure to Telecom and interested in other Application Development and Support & were of the opinion that it could add strength. But surely they will get rid of the major chunk if not now in months.
    CommentQuote
  • Dear friends,

    Even had Satyam was not pushed into fraud by Rajus, under today's IT downtrend, there would have been salary cuts and job losses in the normal circumstances. The position today will warrant salary cuts and job losses to a larger extent as the new owner will have to get return coming to their invesment and I am sure, they will definitely go in for salary cuts and job reduction though not immediately, but in the near future.

    ks2071746
    CommentQuote
  • Source: THE HINDU

    Salary freeze at Wipro, campus hiring depends on business


    Bangalore (PTI): Wipro Ltd, India's third largest exporter, has freezed salary increase for the current financial year and gave no commitment on campus hiring, saying the recruitment depended on how business shaped up.

    "Outlook for wages and salaries... given the current scenario, we have no plans for increase in the course of the year", the Bangalore-headquartered, New York Stock Exchange-listed company's Executive Vice-President, Pratik Kumar said.

    On campus hiring in the current fiscal, he said the company would visit the colleges (only) in January-March (unlike previous years when they selected students a year before they got the degree) but gave no firm numbers.

    Mr. Kumar said campus hiring depends on how business shaped up, adding, it cannot predict a year before about the kind of numbers (hiring) they require. "It's difficult to put a number right now".
    According to him, from this year onwards, Wipro would hire students only in their final year, and not a year in advance.
    But Mr. Kumar said the company would honour the 7,000 campus offers made in the previous year.

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

    So RE is loosing this market. No wonder RE, rental market etc are falling
    CommentQuote
  • Ravi Ramu, director, Puravankara Group had accepted what bears in this forum had been saying for a long time

    From Dnaindia
    Ravi Ramu, director, Puravankara Group, said, "We are looking at new territories and evaluating projects. We have learnt that valuation of the land is 30-40% cheaper than last two years' prices. Even the payment terms are better, which is making the deals feasible."
    CommentQuote
  • Originally Posted by BigBear
    Ravi Ramu, director, Puravankara Group had accepted what bears in this forum had been saying for a long time

    From Dnaindia
    Ravi Ramu, director, Puravankara Group, said, "We are looking at new territories and evaluating projects. We have learnt that valuation of the land is 30-40% cheaper than last two years' prices. Even the payment terms are better, which is making the deals feasible."


    The same person Ravi Ramu, was the CFO of Mphasis an IT company. He left that job shifted his career to Times internet, an internet media firm. Now he is with Puravankara group, a real estate firm.

    A person who keeps changing his mind so often moving from industry to industry without a long term commitment is like a day trader shouting in the stock market.

    Will it make sense to listen to some trader's view and foresake India's real estate, the best asset whose long term fundamentals are superb with favourable demographics.
    CommentQuote
  • Dear friend,

    Good news.

    ks2071746
    CommentQuote
  • Originally Posted by lovebird
    Source: THE HINDU

    Salary freeze at Wipro, campus hiring depends on business



    "Outlook for wages and salaries... given the current scenario, we have no plans for increase in the course of the year", the Bangalore-headquartered, New York Stock Exchange-listed company's Executive Vice-President, Pratik Kumar said.


    According to him, from this year onwards, Wipro would hire students only in their final year, and not a year in advance.
    But Mr. Kumar said the company would honour the 7,000 campus offers made in the previous year.

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

    So RE is loosing this market. No wonder RE, rental market etc are falling


    see it this way

    NO LAYOFFS IN WIPRO,NO PAY CUT.WILL HONOUR JOB OFFERS.WILL HIRE ON NEED BASIS

    GREAT RESULTS LOOKING FORWARD .pat >>>
    CommentQuote
  • Originally Posted by BigBear
    Ravi Ramu, director, Puravankara Group had accepted what bears in this forum had been saying for a long time

    From Dnaindia
    Ravi Ramu, director, Puravankara Group, said, "We are looking at new territories and evaluating projects. We have learnt that valuation of the land is 30-40% cheaper than last two years' prices. Even the payment terms are better, which is making the deals feasible."


    Good atleast now we accept what the builders say.
    cutthroats have become saints:D

    will you accept if a builder says prices will not fall
    CommentQuote
  • Infosys, TCS, Tech Mahindra ask staff to use public transport

    Pune: They have been travelling to work in air-conditioned cabs and luxurious coaches all these years. IT employees of Pune will now also have to get used to public transport buses

    Cost pressures are forcing IT majors like Infosys Technologies, Tech Mahindra and Tata Consultancy Services (TCS) to opt for public transport buses that come at cheaper rates and have a better reach in the city. This leads to cost cutting as compared to cabs and private bus services.

    Infosys Technologies, for instance, recently placed a request with Pune Mahanagar Parivahan Mahamandal Ltd (PMPML), the local public transport body in Pune, for an additional 20 buses to ferry its staffers from all over the city to its office locations in Hinjewadi. Infosys already has 16 PMPML buses operating for its staffers for some time.

    Even TCS has now placed a request for 13 PMPML buses within Pune city. “Information technology companies have been considering PMPML for transportation of staffers. We provide cheaper and safe service that has better reach and efficiency. Infosys, especially has asked for CNG buses, which we are trying to provide. But we have excellent low-emission buses that would soon be deployed to ferry Infosys staffers,” PMPML Managing Director Nitin Khade told Business Standard.

    Top officials from Infosys as well as TCS confirmed that they have placed requests with PMPML but declined to give any details. Wipro Technologies and Tech Mahindra, too, are reportedly exploring possibilities to hire PMPML services instead of private bus operators.

    The advantage PMPML draws out of providing bus service to IT companies is higher compensation than average running. “In addition to this, we ferry common people during the afternoon hours to improve connectivity to Hinjewadi region,” Khade said.

    The PMPML charges between Rs 55,000 to Rs 60,000 per month, for a single bus with a 50-passenger capacity it provides to a company.

    “Some 16 PMPML buses are already operating for Infosys, while 20 new have been asked for. We expect services to TCS and Tech Mahindra companies will also begin soon,” said PMPML traffic manager Sunil Gavali.

    If a company hires a bus from a private operator, the monthly charge for a 50-seater bus goes up to Rs 68,000. The PMPML service, is hence, cheaper and has a better reach across the city. “Information technology companies have realised the advantages of ferrying employees in PMPML buses as against private buses. Hence, we are getting more and more demand for transportation services,” added Gavali.

    A number of IT professionals expressed satisfaction over the PMPML service. “We used to think public transport is pathetically maintained. But we are ferried in good buses and the service is really prompt,” said K Sandeep, working with Infosys Technologies.

    Another professional working with a BPO unit said, “From air-conditioned cabs, we had moved to private buses. And now, we are being picked up by public transport buses. Cost pressures are really making companies think in a different way.”

    Source: Business Standard
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