TCS bells the cat
February 7, 2008, Shyamal Majumdar, Business Standard
Information technology companies have been traditionally excellent paymasters and yearly hikes for employees in this sector have often outperformed other sectors. However, it seems that external pressures like the rising rupee are having significant impact on the growth of IT salaries and a distinct slowdown can be expected. Tata Consultancy Services (TCS), the IT bellwether has provided an indication of the changed environment by effecting a small reduction in their employees pay cheques based on company performance, something which is very rare in the Indian information technology sector. As the cost arbitrage benefit is directly proportional to the amount of money spent on an employee, the IT sector employees should brace themselves for a more realistic compensation structure in the coming years.