Tata Consultancy Services (TCS) - One of the world's leading information technology companies which boasts of processes like the Global Network Delivery Model™, Innovation Network, and Solution Accelerators has quietly laid-off 500 of its employees (or 1% of its total workforce). TCS has been in the news lately for all the wrong reasons - last week it was on the headlines for cutting down on variable pay across the board amd now this.Well, showing the door for 1% of its workforce for a large MNC like TCS maynot be a big issue as per the World Business Standards - but it sure is for the Indian IT Market. The cause could be easily attributed to the rising rupee vs the US dollar that has been building up the pressure on margins and revenues. Another factor that has been bothering most Indian IT companies is the signs of a slowdown in the US economy, the largest spender on IT systems and outsourcing.
TCS shrug off the layoff issue terming it as "not an exceptional thing". It says that it has an internal policy to review staff performance twice a year where staff are rated on a scale of 1 to 5. Staff with low scores( 2 or less) are either asked to re-train or are sent for counselling depending on their role. Staff who are still unable to meet the performance requirements are asked to find work elsewhere.
Just a sign of how the IT market is heading!!
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