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MindTree to slash salary and campus hiring

By Sudarshan Kumar,Sunday, 20 September 2009, 23:44 Hrs
Bangalore: MindTree, an international information technology (IT) company is planning to take similar steps like TCS and other IT giants by revising the salary of employees to stabilize the company's performance.

On the current trends, S Janakiraman, President, Group CEO - Product Engineering Services, MindTree said, "Revising salary is the need of the hour. This will bring a change in mindset of employees, and variable pay should not be linked only to the company's revenue, but also on productivity of the employee. We have already revised the variables in the R&D division, and this segment has shown great recovery in the last few months."
MindTree to slash salary and campus hiring


The company, which offered jobs to 750-780 students in 2008-09 fiscal, is planning to decrease the number in the next year. Janakiraman said, "To maintain our strong relationship with some prominent colleges, we will keep hiring from the campus, but seeing the affect of slowdown, we are planning to hire lesser number of engineers next year."

As the economy has started recovering, all the companies have started looking beyond the boundary. On the similar note, MindTree is planning to open a bridge office in China by the end of 3rd quarter (December 2009) of the current fiscal. Janakiraman said, "We are in the process of registering the subsidiary shortly. The engineers to China centre will be outsourced from India as there is a language barrier for local hiring. The subsidiary will act as a bridge for Chinese customers and global giants who have presence in China." Currently, the company has only one customer 'Huawei' in China.

In the quarter ended June 30, 2009, the company's total revenues were at $62.1 million, indicating an increase of 36.3 percent Year over Year (YoY). The profit after tax (PAT) was $11.56 million with an increase of 554.6 percent YoY. However, Quarter over Quarter (QoQ), revenues declined by 9.8 percent in rupee terms.

   
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Reader's comments (46)
1: Mindtree by looking
Posted by: quick gun murgon - 24 Sep, 2009

2:Mindtree is the worst company to work with run by the jokers and eunuchs. One should never join this company. Integrity is only their propaganda.The company actions betrays diametrically opposite aspects.One will regret if joins the company.
 aks replied to: quick gun murgon 
 post - 18 Sep, 2010

3: MindTree has cut the salary 15% (last year) across the company and 30% for people on bench (Bonus + 15%).

To show it to the media that they have reached the a billion dollar company in revenue. They do all these.

What kind of company is this? They don't give salary to employees but they are billion dollar company.
Posted by: Ragu - 24 Sep, 2009

4:These guys do force employees to take 7 days leave and if the first 7 days leave is taken, then carry forward leave is over. Is it not the last 7 days? Is it not against the Indian Law? where is the integrity?

So they use all possible ways to save money from employees salary but not from the actual profit of the company.

Beware Indians against IT companies like this.
 Ragu replied to: Ragu 
 post - 24 Sep, 2009

5: MindTree had 10% layoffs and this was not due performance issue but billing. One should think before joining such companies and even freshers should think twice while taking up the offer from such cheap gimmick company. MindTree has a dream of reching one billion turnover and i believe they will with such a kind of cheap business model and with the blood of the low level employees. So better think next time when you join MindTree. Ban this company from your job search.
Posted by: roshan - 23 Sep, 2009

6: The CEO seem to have said "Revising salary is the need of the hour."

Just look at the last paragraph in the article:

"In the quarter ended June 30, 2009, the company's total revenues were at $62.1 million, indicating an increase of 36.3 percent Year over Year (YoY). The profit after tax (PAT) was $11.56 million with an increase of 554.6 percent YoY. However, Quarter over Quarter (QoQ), revenues declined by 9.8 percent in rupee terms."

Does this warrant a cost cutting initiative? Even after 554.6% increase in profits they take such measures. If the Management feels that the trainees are overpaid (or hired in excess numbers), what were these guys doing while planning Manpower. Should the Management and HR guys not be sacked for improper wage structure / man power planning? If this is seen as an productivity enhancing measure this should have been done from day one - not when they perceive difficulty at recession alone - which clearly shows their lack of vision. These guys take huge bonuses leaving the lower level employees at peril.

Lots of these trainees would have chosen the offer from MindTree instead of the offers from other companies considering the Salary offered. Reducing the salary is going back on the commitments made to these employees. Not sure if any of these companies value their commitment! These Giant companies take advantage of the market situation and come down hard on the employees.

Reduced hiring can be a cautious approach considering the recession. However, in my personal opinon,reducing salaries of employees - particulary when the company is making huge profits - is a blatant violation of the Employee Rights.

Posted by: Bushan - 23 Sep, 2009

7:Ha ha bushan, it's always the chaff that gets beaten...so until and unless we reach those management seats, if at all we make it there, we can afford no mercy. Once we reach there we can also make decision and screw people...
 bijunator replied to: Bushan 
 post - 30 Sep, 2009

8: Ya...when china becomes costly, they'll move to Nigeria, from there to Uganda, from there to their own backyard...because after all the ordeal, the management will have to work themselves rather than hiring people...then they'll know what's really to work rather than making decisions.
By the way, this whole situation has taught us one good lesson. it's not that we Indians suddenly become brainy so that all those MNCs came looking for us, it's just that we were cheap labor. now Chinese are more cheaper than us...hahaha...
Posted by: bijunator - 22 Sep, 2009

9: MindTree is not the only Indian company planning to move to China with ambitious plans to utilize further cheap labour and comparatively low cost infrastructure. Once China make its Graduates fluent in English, we can see how it is going to affect India. When Indian companies or the firms those who are outsourcing work to India start switching their operations to China, millions of IT/ITeS workers in India may loose job. Is there any guarantee that India's own multi billion enterprises will continue their back office operations in India? Don't be surprised, when you get a call on Insurance or Credit card from Chinese CSR!
Can you guess the future of outsourcing?
Posted by: Sreekumar J - 22 Sep, 2009

10:It is really a pathetic approach to beg some foreign countries to get the order by reducing our Indian currency and wasting good engineers brains to use for IT maintenance activities. We just fooling around ourselves by showing people working for foreign nationals are great and people working for Indians are fools due to more salary difference. After some time, our Indian currency should be on par with US $ ie., 1 Rs = 1 USD. Then no one will beg for jobs from other countries. What you people need...Good food, Good dress and Good Shelter. By allowing this salary disparity..common people are not able to sustain themselves and creating jealous... And IT professionals also spoiling their good Engg brain to useless Maintenance coding (90% case) and spoiling their health by working in different time zones. What are we doing and where are we going ? I consider the IT era as a learning era for the Indian Youths and they should come back to India and develop our Nation. Do not bark like DOGS to beg the IT orders from US. What we need to do is .... fight to get all our Indian money from SWISS bank. We will be the number one country in the world.
 Ramasamy Sujatha replied to: Sreekumar J 
 post - 22 Sep, 2009

11: Ya its a very right decision..You can get exp 1 to 2 people within 2.5 to 3.5 package..Why to waste huge money on fresh brians..

It's not always 100 percent true that only top-top institutions are having great brians,because i have seen the cases where greta minds doesnt get the opportunity to sit for campus placement ..either they are lacking 60 percent aggregate or they are studying in the ordinary colleges..

So if we see in general..companies like mind tree,TCS,IBM..etc only goes to the reputed institution and they will select ..but to judge the real performer..this 60 percent aggregate and students from the well reputed institution will not do...

I have seen the guys who are great programmers but still they are roaming...so my question is

Is there any great method to collect great people \?
Posted by: Khateee - 22 Sep, 2009

12: one way it is good,no point taking freash brains and simply paying them high salary.
Posted by: raj - 21 Sep, 2009

13: Reading some of the comments shows that most people ar enot practical or pragmatic.

Jobs, salaries, economy all these level of based on supply and demand.

In the US, there was a time, consultants could bill $300/hr. Now, it is not possible at all. In India, salaries (IT and even other fields) saw significant increases and such. Now, there is too much of supply (and also lot of lower quality engineers with mushrooming of colleges). Salaries will take a hit. Jobs will not grow endlessly.

A for-profit company has to be profitable for it to sustain. If it tries to philanthropic, it will become bankrupt. Based on some of the comments, if companies kept on hiring, increasing salaries, after a few years, they would have to shutdown - expenses > revenues.

Someone mentioned - October revolution, mind you, your bank account will be confiscated. Of course, if you had nothing, then you wouldn't care. But, when you have something of your own earning, you would feel the pain.
Posted by: Pragmatic - 21 Sep, 2009

14: Inspite of all the big positive news painted by the media, bottomline is companies will slash and cut as per their will to keep their bottomline intact. Mindtree is no different. All it is interested in is minding their own tree (of profits!). - Nisha (iITPRO.NET)
Posted by: Nisha Gupta - 21 Sep, 2009

15: Bad decision, as we are recovering from recession. This compnay may also be one of the slow reactors to the recession start and event.

IT jobs are distinguished skilled jobs, and not every engineer can do, its not same as the job done by "Non-skilled", "low-skilled", "Mid-skilled" employees in GULF/ or East Asia. These are high-professional, high-result oriented, highest-skilled job.

So Please don't compare yourself with IT superstars.
Posted by: Krishna - 21 Sep, 2009

16:Too much arrogance code coolie , seems a case of core dump...Suggest u apply for the job of a " rotating equipment engineer " , in the gulf with shell,pdo,aramco....then u will know what a true engineer is...
 anoop replied to: Krishna 
 post - 22 Sep, 2009

17:IT people are paid less than Indian government Grade A employees as well members of the Assembly/parliment.
 deepa replied to: Krishna 
 post - 21 Sep, 2009

18: Thats the Mistake of Indian Govt. IT professionals are well qualified not like MLA or MP
 Sanoj Nambiar replied to:  deepa 
 post - 22 Sep, 2009

19: This is RIGHT decision,so many qualified Engineer are not getting half of the IT discipline employees salary, its social injustice & imbalance.every body should know the value of MONEY,because of this IT Culture so many things are spoiled.
Satish....BE,.MBA.
Dubai
Posted by: Satish - 21 Sep, 2009

20:We will not agree with you sateesh, IT People work culture is totally different from other verticle people, its full of pressures, and IT people is not having a job security too ( if they perform also), Please know the facts
 Vamsi replied to: Satish 
 post - 21 Sep, 2009

21:Satish is right. Morover the trainees salary deduction is right decision, because that time they don't perform but getting very high salary than the other engineers. Other engineers get high salary only after performing. so this is a good decision.
 Mridul replied to: Satish 
 post - 21 Sep, 2009

22: Thanks for your positive reply
satish/Dubai
satish.haklady@gmail.com
 satish replied to:  Mridul 
 post - 22 Sep, 2009

23: WE DO NEED AN OCTOBER REVOLUTION.....
Posted by: bijunator - 21 Sep, 2009

24: Its very RIGHT decision, compare to other sector IT paying too much salary hence responsible for social imbalance , injustice.So compare the other sector salary and then confirm the salary, then only the will come to know the value of MONEY, instead of lavish spending.
satish.
Engineer/Dubai
Posted by: Satish - 21 Sep, 2009

25:Satish, Can we have a list of other sector companies where salaries are paid lesser when compared to the IT pay scale. As we see all the Goverment jobs for a Engineering graduate the pay scale is atleast 20% higher than the pay which a fresher gets when joining a IT firm.

Its not a morning 9 to evening 6 job that a software employee enjoys,ask the people who are working on their projects, their daily statues,calls, release by release completion,,the stress they carried out. Its all the higher management who gets the lion share all the time, Please don't make a statement on their lives by just seeing the few examples around.
 Sridhar replied to: Satish 
 post - 21 Sep, 2009

26: I agree with Sridhar. Its not an easy task to come at 9 and leave at 9. People think IT guys live in the lap of luxury with AC offices, plush work stations and handsome salary. But they fail to understand times when we sweat due to stress despite of ACs. I've been working in such a project which demands working late and working on Saturdays and Sundays also. Not only me but there are many others who work day in and day out. But we are denied the deserved remuneration. How many of you know that few companies have denied their employees the annual bonus which is part of their CTC as per the company's salary structure? How many of you know that they have been denied their rightful promotions in the name of economic recession? How many of you know that employees are denied their well deserved Compensatory Offs for which they have been working on weekends and not visiting their families back home? Companies have taken advantage of people in the name of economic recession. Hope this condition does not prevail.
 Deserves right to speak replied to:  Sridhar 
 post - 25 Sep, 2009

27:Satish, you have no idea of what IT people go through...It's not a 8 hours fixed timing job. People screw around for 10-12 hours and that too at odd hours...Money is the only incentive they get. Corporates makes millions and pays out only may be 10-15% as salary to these revenue earning employees. Management always gets the lions share. Instead of commenting try looking at the facts...
 bijunator replied to: Satish 
 post - 21 Sep, 2009

28: if the corporates makes Millions maybe you should quit working and start one than complaining
 Joe replied to:  bijunator 
 post - 21 Sep, 2009

29: Joe...that's the slave mentality which resulted in 30 crore of indians ruled by meagre 3 lakh british because no had the balls to stand up. Everybody thought like u did.
There's a quote for people like you --
"First they came for the communists, and I did not speak out—because I was not a communist. Then they came for the socialists, and I did not speak out—because I was not a socialist. Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist. Then they came for the Jews, and I did not speak out—because I was not a Jew. Then they came for me—and there was no one left to speak out for me."
 bijunator  replied to: Joe 
 post - 22 Sep, 2009

30: This is ridiculous. Why trainees? why not CEO's and Managers who could not deliver to the top line. And govt should give any tax benefits to companies set up offshore center outside India.
Posted by: JiJo - 21 Sep, 2009

31:Should not give tax benefit I mean
 JiJo replied to: JiJo 
 post - 21 Sep, 2009

32: If US govt do anything to ban outsourcing , the same group of people says its wrong but demanding similar stuff from indian govt..why so..
If setting up offshore offices is really so bad, then u wont see so many IT professional working in india for companies based anywhere in globe..
 amit replied to:  JiJo 
 post - 21 Sep, 2009

33: This is really sad news. And I thought we were recovering from recession!
Posted by: ayshaa - 21 Sep, 2009

34: MindTree management does not have capability to make a billion dollar company. They are good at laying off employees when there is no projects available in their kitty. They simply assure of no layoffs to public, but everyone knows what they do.
I am a victim of such company, where i was asked to leave becuase of no projects. There are more than 2000 employees still now on bench ready to be layed off. Guys and Gals be careful when u opt for this company.
Posted by: Lakshith - 01 Jun, 2010

35: I don’t know why India yet to follow china in certain aspects like making people employable. In china government started encouraging university graduates to work on rural projects and they are making every effort to make economic disparity null.35lakh applications poured in for SBI clerks show rate of unemployment in India and our great policy makers are in a hurry to bring higher education accessible to every one but at the same time they forget to make them employable.
 Krishna  replied to: Ravi 
 post - 22 Sep, 2009

36: Dudes,except the hard facts! Those who are getting paid better deserve it. They have proved it in their past lives by may be good colleges or may be by qualifying certifications or may be extraordinary projects or even by luck (which offcourse is making right decision at the right time). No company hiring a fresher is fool enough to pay high if they don't deserve it. so if you feel you deserve better than proove it rather than cribbing! there are two types of people those who cribb in every situation and those who turn out every situation in their favour. i would say if you are not happy with the way organizations work then have the guts to kick their asses and open your own. coz this is the way how things work and you have to decide which side you want to be. World is always divided among those who take risks and those who don't take risks. those who take are the ones you all are saying as organizations . and those who prefer safe play are ones who are cribbing in this chain. My words may sound harsh but as i said in the begining "except the hard facts"
 ankur  replied to: Ravi 
 post - 22 Sep, 2009

37:What you are saying is that in 10 years time, we can pull down USA to our standards!
 Ved from Victoria Institutions replied to: GMA 
 post - 22 Sep, 2009

38:After some time, Indian jobs will get outsourced to cheaper nations that are out there. Basically national improvement does not lie in destroying the economy of other nice nations, but in improving it internally. If the guy who gets Rs. 10 here is poor, so also is the guy who gets $10 over there. But then, if he also starts getting Rs.10, then it is a tragedy. That is what is happening in English nations.
Another thing is that no Indian richman wants to see his employee getting anything more than a pittance. The obvious difference is seen in the looks, demeanour, as well as physical size, apart from the dressing quality.
 Ved from Victoria Institutions replied to: GMA 
 post - 22 Sep, 2009

39:or/gas
 GMA replied to: GMA 
 post - 21 Sep, 2009

40: You would not have any private company to work then. All are same. Any private company can pink slip an employee.

If everyone is self-employed, then no one will be employed.
 Pragmatic replied to: asitabh 
 post - 21 Sep, 2009

41: I don't know why people wait till they get pink slip don't join these companies even if they are paying good salary, because u don't know when security guard ask u to hand over ID card at the gate companies like IBMx, SAPIENTx should be blacklisted in india
 asitabh  replied to: Ravi 
 post - 21 Sep, 2009

42: It is business and company looks for only their share prices and net margin. Regardless of market condition, they always makes money.If it is recession, salary is cutting down, lay off happens, benefits are narrowed. But the company margin is maintained as it is.

It is always good to make ourself self-employed or to look forward for enterprinership.
 Ravi replied to:  AAdsds 
 post - 21 Sep, 2009

43: The list of blacklist is already full. (No Vacancy) Remember Work is God n Health is Wealth - Gods must be crazy.
Asitabh The Entrepreneur replied to: Ravi
 Asitabh The Entrepreneur  replied to: Ravi 
 post - 18 Dec, 2009

44:It is called Golmaal in Hindi and Fraud in English. It is just like God created the Hen or the egg before?
 Gods must be crazy  replied to: Pragmatic 
 post - 18 Dec, 2009

45: Freelancing Jai Ho! Remember Work is God n Health is
Wealth
 Gods must be crazy replied to: asitabh 
 post - 18 Dec, 2009

46: The list of blacklist is already full. (No Vacancy) Remember Work is God n Health is Wealth - Gods must be crazy.
 Asitabh The Entrepreneur replied to: asitabh 
 post - 18 Dec, 2009
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