Satyam mulls job cuts for non-performers

In what could be a decisive move for the company, Satyam Computers is exploring ways to scale down its workforce based on performance metrics. The software major currently has 51,000 employees on its rolls, and company sources say that 1,500 employees have been put under the Performance Improvement Plan (PIP).
Apart from this another 3,000 employees have not been given any increment in the last appraisal cycle thereby indicating to them that their services are dispensable. “This 1,500 plus 3,000 totals 4,500 which indicates the total number of persons who could be eased out of the company,” the source said.
Interestingly, on Friday, all employees received an e -mail from the company chief Ramalinga Raju warning them, especially the ones on the bench, to not bunk offices and be in their best ‘dress code’ failing which they might face strict disciplinary action.
Last week some 400 employees from across different locations of the company were given the pink slip. One hundred and fifty were from Hyderabad. The sources also indicated that getting the message many among the 3,000 have also started leaving their jobs on the own, but an estimate of the numbers who have left on this account is not known.
A company spokesperson when queried said: “The bottom 5% of those who have got a bad appraisal have been put under PIP and given dummy projects to prove themselves. If they fail they will be shown the door.” But some of them marked for PIP said that they have been given very little time to come up as winners.
But even as it downsizes, Satyam continues to hire new employees in thousands. Over 40% of them are flesh blood just passing out of college.
Employee sources say that the plight of the 3,000 who have not got any increment is pitiable: they are neither on the bench nor into any high-revenue earning project. “Some of us cannot quit even though we know that we will be eventually sacked. This because we have paid a bond amount of Rs 2 lakh undertaking to serve the company for two years,” said an employee.
Industry analysts say that inspite of the current economic slowdown due to which big projects aren’t coming the way of Indian IT companies, Satyam is still maintaining a buffer of 3-8% on the bench. “It’s like a contingency plan,” says an analyst. “Sometimes when a big project comes all of a sudden and the company can’t show enough resources which could be employed to deliver the work, the company could lose deals. Which is why this behaviour,” he adds.
Finmin to decide on tax sops for IT cos
Chennai: With a section of the IT industry in India requesting further extension in the tax concessions given to units in Software Technology Parks of India (STPI), union minister for IT and communications, A Raja on Monday said his ministry would take up the issue of extending the benefits by another year, with the prime minister and the finance minister.
CII’s annual ICT event held in Chennai, the minister said it was up to the finance minister to take a call on giving further extension, but added that it would be considered after talks with the finance minister. The sunset clause for STPI units was initially supposed to expire on March 31,2009 but was extended by one year. Now, the industry is seeking an extension of one more year. TNN