TCS plans to move non-performers to subsidiaries
By siliconindia   |   Thursday, 02 April 2009, 20:58 IST   |    10 Comments
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Kolkata: Indian IT major Tata Consultancy Services (TCS) is moving some of its employees to its subsidiary companies, as part of clearing its rolls of non-performers. CMC, AP Online (India) and MP Online are expected to be among the subsidiaries that will absorb the staff of the $5.7 billion software major, said a company executive on condition of anonymity. TCS, which has put some 1,300 people (1 percent of its 1.3 lakh workforce) on the 'watch-list', will provide outplacement and counseling services to those who will not be absorbed by its subsidiaries, reported The Economic Times. The TCS management has asked all its units to raise the performance bar and optimize resources as most of its big-ticket clients are reeling under the global recession. "The process will result in some involuntary attrition. But the company is helping these employees with outplacement and finding alternate positions in subsidiaries if available or a fair exit," said an internal mail sent by TCS management to all its units. Details like how many people will be absorbed by subsidiaries or which all companies will be hiring them could not be confirmed. TCS had recently decided to freeze variable pay and increase working hours from April 1, 2009.

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