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January 31, 2008
In what could be an indicator to the tough times ahead for IT companies, Tata Consultancy Services [Get Quote] plans to cut employees' salaries.
In an internal note sent to employees, TCS said that the company had not met its the third quarter internal economic value-added (EVA) target and as such it plans to make up for the losses with a cut in the variable pay given to employees.
The slowdown in the United States, the subprime crisis and the rising rupee are gradually taking a toll on the performance of Indian IT companies and employees are bearing the brunt of it.
Is this a sign of more trouble to follow for the IT sector? Are the days of high salaries and bonuses over? Is the TCS move good if it were to be a short-term strategy? Do you think more companies will cut staff wages? Tell us
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