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More Satyam staffs may be axed

Last updated: June 17 2009
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  • #81

    #81

    Re : More Satyam staffs may be axed

    Originally posted by BigBear View Post
    Many IT companies are doing mass layoffs silently without any news in media.People working in IT industry know this very well.
    See below another layoff story reported in media

    From Economic Times

    CHENNAI: Consulting and outsourcing firm Capgemini has laid off nearly 100 employees at its Chennai centre. The pink slips were issued for
    employees mostly in the middle management positions. This comes on the back of reports that said Capgemini sacked 600 employees in Hyderabad and Pune.
    Very soon these CapGemini fellows will start working for 5K p.m. along with the French imports, since they are probably only worth that much. Only then Sethugm will remember that his salary in 2004 was Rs 6384.97.

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    • #82

      #82

      Re : More Satyam staffs may be axed

      Originally posted by BigBear View Post
      Many IT companies are doing mass layoffs silently without any news in media.People working in IT industry know this very well.
      See below another layoff story reported in media

      From Economic Times

      CHENNAI: Consulting and outsourcing firm Capgemini has laid off nearly 100 employees at its Chennai centre. The pink slips were issued for
      employees mostly in the middle management positions. This comes on the back of reports that said Capgemini sacked 600 employees in Hyderabad and Pune.
      This is true. Capgemini has laid off people in Pune, Chennai and Hyderabad where they are mainly set up.

      When the recovery happens which will happen (the world is not going to end) Capgemini will not be preferred by any IT candidate in India due to job insecurity perception. Actually Capgemini is the one which is going to suffer in the long term as they are sending wrong signals to hundereds of IT professionals and students in India.

      As far as the laid off employees are concerned they will find jobs elsewhere and those companies would benefit.

      Comment

      • #83

        #83

        Re : More Satyam staffs may be axed

        Dear friend,

        I thought Capegemini is a better IT company? I am getting proved wrong now? They are silently gving pink slips to the employees. If it is in the middle management level, the guys will find jobs elsewhere, may be at the existing salary or slightly less. However, I feel, the company is sending out mid level people with higher salaries and may take in new recruits at much lower salaries as a cost cutting measure?

        ks2071746
        Last edited by ks2071746; May 14 2009, 08:46 AM. Reason: spell

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        • #84

          #84

          Re : More Satyam staffs may be axed

          Originally posted by contra View Post
          This is true. Capgemini has laid off people in Pune, Chennai and Hyderabad where they are mainly set up.

          When the recovery happens which will happen (the world is not going to end) Capgemini will not be preferred by any IT candidate in India due to job insecurity perception. Actually Capgemini is the one which is going to suffer in the long term as they are sending wrong signals to hundereds of IT professionals and students in India.

          As far as the laid off employees are concerned they will find jobs elsewhere and those companies would benefit.
          Lay-offs does not send any wrong signals but its sending good signal atleast for Promoters/Investers. No company lay offs people affecting their operations but trim to the optimum size.

          If you feel lay-offs means wrong signal , then almost every other company has sent wrong signals or sending it.As per my understanding ,TCS is the only exception among the top 30 Indian IT Companies.

          The earnings per employee in Indian IT Companies has come down drastically from the earstwhile USD 50000 per annum to USD 40000 per annum in 2008. This can be directly attributed to the reduction in the billing rate charged from clients. If its fixed cost projects , the IT company itself will downsize its team both in on and off-shore.

          Laid-off will have serious troubles as the number is increasing heavily and they have to compromise atleast 20-30 percent of the previous salary save 5-10 % exceptions. As Tech Mahindra's only interest is Satyam's SAP division, 20-25 thousands Satyamites are increasing the number of potential job seekers reducing the salary bargain for others...

          Am of the opinion that had there been no Satyam chaos , the lay-offs could/would have been easily managed as people may find jobs somewhere else. Satyam personnel is making things worser though none is blaming them as its not their fault.Anyone has different opinion ?
          Last edited by sethugm; May 14 2009, 11:29 PM.

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          • #85

            #85

            Re : More Satyam staffs may be axed

            Dear friend,
            Even without considering the Satyamites possible lay offs, the situation would not have been very much different. Many Satyamites may like to continue even with some cut in the salary rather than shifting to some other company as they may have to look for different city/ place / location etc. and relocating at the present juncture is not advisable. However, there is some truth in what you say that those Satyamites who may get pink slips are likely to affect the IT job market/salary structure, being large in numbers.

            ks2071746

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            • #86

              #86

              Re : More Satyam staffs may be axed

              Originally posted by sethugm View Post
              Lay-offs does not send any wrong signals but its sending good signal atleast for Promoters/Investers. No company lay offs people affecting their operations but trim to the optimum size.

              If you feel lay-offs means wrong signal , then almost every other company has sent wrong signals or sending it.As per my understanding ,TCS is the only exception among the top 30 Indian IT Companies.

              The earnings per employee in Indian IT Companies has come down drastically from the earstwhile USD 50000 per annum to USD 40000 per annum in 2008. This can be directly attributed to the reduction in the billing rate charged from clients. If its fixed cost projects , the IT company itself will downsize its team both in on and off-shore.

              Laid-off will have serious troubles as the number is increasing heavily and they have to compromise atleast 20-30 percent of the previous salary save 5-10 % exceptions. As Tech Mahindra's only interest is Satyam's SAP division, 20-25 thousands Satyamites are increasing the number of potential job seekers reducing the salary bargain for others...

              Am of the opinion that had there been no Satyam chaos , the lay-offs could/would have been easily managed as people may find jobs somewhere else. Satyam personnel is making things worser though none is blaming them as its not their fault.Anyone has different opinion ?
              What we are seeing now is just the pre-emptive laying off people by the IT companies who are not willing to compromise on their profit margins.They are using this lull as an opportunity to trim themselves, unload the excess baggage and get into better shape.

              I feel the greater problem is that clients are cutting down on their IT budget and spending, they are putting off new development and re-engineering projects. Job positions are getting abolished every day.

              More availability of people from satyam are just making things worse.

              Today companies hire one person to fill the vacuum created by the laying off 2-3 jobs.No new jobs are getting created.

              people who have lost jobs in the U.S. are unable to find one for 3-6 months now.No interview calls unless you are a resident green card holder.

              Every renewal/extenstion application of L1/H1B visa, is being scrutinized and majority being rejected.

              They dont want to R2I fearing ridicule, and are eating up their savings.They are scared to even come back home on vacation for a week.

              With country like U.S. which accounts for more than 60% of IT business adopts protectionism, Things are not rosy for Indian IT industry.

              For the first time in IT industry, We are witnessing survival of the fittest.Have to see how the mighty IT giants adapt and evolve.

              Comment

              • #87

                #87

                Re : More Satyam staffs may be axed

                Originally posted by nabishek View Post
                What we are seeing now is just the pre-emptive laying off people by the IT companies who are not willing to compromise on their profit margins.They are using this lull as an opportunity to trim themselves, unload the excess baggage and get into better shape.

                I feel the greater problem is that clients are cutting down on their IT budget and spending, they are putting off new development and re-engineering projects. Job positions are getting abolished every day.

                More availability of people from satyam are just making things worse.

                Today companies hire one person to fill the vacuum created by the laying off 2-3 jobs.No new jobs are getting created.

                people who have lost jobs in the U.S. are unable to find one for 3-6 months now.No interview calls unless you are a resident green card holder.

                Every renewal/extenstion application of L1/H1B visa, is being scrutinized and majority being rejected.

                They dont want to R2I fearing ridicule, and are eating up their savings.They are scared to even come back home on vacation for a week.

                With country like U.S. which accounts for more than 60% of IT business adopts protectionism, Things are not rosy for Indian IT industry.

                For the first time in IT industry, We are witnessing survival of the fittest.Have to see how the mighty IT giants adapt and evolve.
                Very well said nabishek.

                Comment

                • #88

                  #88

                  Re : More Satyam staffs may be axed

                  Originally posted by nabishek View Post
                  What we are seeing now is just the pre-emptive laying off people by the IT companies who are not willing to compromise on their profit margins.They are using this lull as an opportunity to trim themselves, unload the excess baggage and get into better shape.

                  I feel the greater problem is that clients are cutting down on their IT budget and spending, they are putting off new development and re-engineering projects. Job positions are getting abolished every day.


                  With country like U.S. which accounts for more than 60% of IT business adopts protectionism, Things are not rosy for Indian IT industry.

                  For the first time in IT industry, We are witnessing survival of the fittest.Have to see how the mighty IT giants adapt and evolve.
                  My view is that india will emerge stronger (particularly in IT)from this recession alongwith other countries which have the cost advantage.
                  the western corporates priority is to cut cost and the IT industry here is already being proactive by cutting salaries and 'flab' and will be in better shape to offer better pricing to the cash starved MNCs
                  the volkswagon- TCS deal may be a harbinger of this.overall india will stand to gain from this recession in the long run

                  Comment

                  • #89

                    #89

                    Re : More Satyam staffs may be axed

                    The biggest IT company in India TCS is still a $5 Billion Company. IBM the largest IT company in the world is a $100 Billion company. See the difference.

                    IBM has increased the headcount in India quietly to 70,000 now which is more then Cognizant. Even if IBM increase headcount by another 60-70% it will beat Wipro, Infosys and TCS to become largest IT company in Indian soil also.


                    This shows 2 types of oppotunities
                    1. Bigger MNCs like IBM, Accenture, HP which still have 60% staff in high cost locations have a lot more offshoring to do. No Client is a fool to pay $85-$100 per hour for a job in US if it can be done for $25-$32 in Chennai or Bangalore. (In my billing rate example I have taken rates of high end skills like Middleware,etc under current market conditions).
                    2. Indian IT companies are still kids friends when you look at global market where IBMs and HPs are real giants. So Indian IT companies still have a lot to grow and they have to hire even more freshers every year.
                    Last edited by contra; May 15 2009, 11:29 PM. Reason: relevance

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                    • #90

                      #90

                      Re : More Satyam staffs may be axed

                      lol... bookmarking this page.. will revisit this page again in 6 months! what fun!

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