IT firms slash down operational costs
By Sikta Samantaray   |   Tuesday, 19 May 2009, 18:51 IST   |    15 Comments
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IT firms slash down operational costs
Bangalore: The mounting pressure of the economic slowdown has forced several Indian IT firms to resort to innovative methods of cost cutting on operation front, other than layoffs. Larsen and Taurbo, a global IT service provider, believes that it is essential to rationalize the operational costs to provide better quality products and service. "We are preferring teleprescence to the travel, which helps reduce expenses. Also, the recruitment process is squeezed", said one of the strategy managers at the company on the request of anonymity. The small and mid-sized companies in India too are adopting cost cutting measures so that the slowdown does not impact the competence of the service delivered by them. Mahesh Shenoy, Managing Director of ThoughtNet said, "As we are a startup, so there is not much reduction except in the salary." However, some employees are feeling the grit of cuts on salary and the perks given to the employees. Infosys Tecnologies also is scheduling to withdraw its home loan facility for employees, which will come into action from July 1. "Now we have limited access to things. Before six months, they used to give us Rs 800 for business travels and now we pay from our pocket", says an employee from TCS, a pioneer of IT services. Considering the reduction of operational costs in a company a wise move, a financial analyst at Accenture Services said, "Businesses should have taken the step of cutting costs much earlier to prevent such unwanted economic status. But, it started after the sub-prime crisis happened."

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