Infosys has cut the variable pay for employees, with the cuts being deeper at the higher levels. For senior executives, the variable pay, which constitutes nearly 50 per cent of their total compensation, has been slashed by 58 per cent.
“Some boardroom executives have even taken a 70 per cent to 85 per cent variable pay cut,” said T V Mohandas Pai, head of HR in Infosys. The company's hiring has been steadily declining.
In Q4, it added (net) only 1,772 people, compared to 2,772 in Q3, and 2,586 in Q4 of 2007-08. In the whole of 2008-09, it hired (net) 13,663 people, down from 18,946 in the year before.
The company maintained that it will not seek to trim its payroll by laying off software professionals. There will, however, be no salary hike this year, as the company plans to keep its operational costs under control.
“We are not laying off anybody and there are no such plans,” said Infosys Technologies HR-director, TV Mohandas Pai.
Infosys plans to hire 18,000 professionals in the current fiscal, including almost 16,000 fresh graduates and experienced hires. It will also recruit around 1,000 non-Indians outside the country to increase the number of foreign professionals in its workforce.
Times News Network
Showing posts with label T V Mohandas Pai. Show all posts
Showing posts with label T V Mohandas Pai. Show all posts
Friday, April 17, 2009
Friday, February 6, 2009
Will Infosys freeze recruitment, mulls pay cuts?
Employees of Infosys Technologies may have to live with a salary cut and without any significant increment, even as the IT bellwether has virtually frozen fresh recruitments on account of the global meltdown, a top company official has said.
"A part of our salary is determined by variable sales component, which is the percentage of the company's revenue," said Infosys' director for human resources T V Mohandas Pai.
"Since the revenues are down, the salaries will naturally be trimmed."
Speaking to reporters on the sidelines of a press conference here, Pai said the leading software exporter and business process outsourcing firm may also opt out of salary hikes because of the slowdown.
"The increments may not happen this year. But, if they do, they will be subdued."
Pai also maintained that the company will honour the 20,000 campus offers made last year, but added that fresh hiring has been frozen.
Infosys, India's second largest IT firm, had reported a net profit of Rs.16.41 billion ($335.5 million) for the third quarter of this fiscal, to log a 33 percent year growth. The jump was above expectations but below what it had logged in the past decade.
Speaking about the fallout of the $1.43-billion Satyam Computer Services scam, Pai said Infosys had, indeed, received offers from some customers of the rival group, which were being analysed.
"Our chief executive officer (K. Gopalakrishnan) had earlier made an announcement that we have received offers from Satyam customers," he said, adding: "But we do not go and poach on customers."
Gopalakrishnan had also said last month that there was no pro-active move on the part of his company to approach Satyam customers. "But if they come on their own, we will look into their proposals case-by-case."
Agencies
"A part of our salary is determined by variable sales component, which is the percentage of the company's revenue," said Infosys' director for human resources T V Mohandas Pai.
"Since the revenues are down, the salaries will naturally be trimmed."
Speaking to reporters on the sidelines of a press conference here, Pai said the leading software exporter and business process outsourcing firm may also opt out of salary hikes because of the slowdown.
"The increments may not happen this year. But, if they do, they will be subdued."
Pai also maintained that the company will honour the 20,000 campus offers made last year, but added that fresh hiring has been frozen.
Infosys, India's second largest IT firm, had reported a net profit of Rs.16.41 billion ($335.5 million) for the third quarter of this fiscal, to log a 33 percent year growth. The jump was above expectations but below what it had logged in the past decade.
Speaking about the fallout of the $1.43-billion Satyam Computer Services scam, Pai said Infosys had, indeed, received offers from some customers of the rival group, which were being analysed.
"Our chief executive officer (K. Gopalakrishnan) had earlier made an announcement that we have received offers from Satyam customers," he said, adding: "But we do not go and poach on customers."
Gopalakrishnan had also said last month that there was no pro-active move on the part of his company to approach Satyam customers. "But if they come on their own, we will look into their proposals case-by-case."
Agencies
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