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TCS plans to move non-performers to subsidiaries

By SiliconIndia | Thursday, 02 April 2009, 01:28 Hrs | 10 Comments

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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Reader's comments(10)

1: Government jobs are best. At least you do not have to worry about being laid off. Of course, the salary cannot compare but now we are realizing the importance of job security.

Now the choice we will have going forward is stable job that pays low or risky job that pays high. But it is a conscious choice we have to make. Just like investments. Higher rewards mean higher risk (like stock markets).

Posted by:Sriram Rajaram - 02 Apr, 2009

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govt jobs really sucks. same job same office and worked for 30 to 40 years. no way... better work less but earn high jump every 3yrs u will really like the challenge

Vivek Replied to: Sriram Rajaram - 04 Apr, 2009

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3: Desi companies like TCS Wipro and HCL are just suckers! They will suck the lifeblood of its employees. Of course the US companies are not much better either but at least give some freedom. All employees all over the world is getting royally screwed up and nobody has the guts to do anything against it. Is there any joy left in going to work everyday? Common workers are under the gun since 2001.What a sorry state of affairs. And yet we take passively whatever comes our way!

Posted by:Subhash Bose - 02 Apr, 2009

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Dear Mr.Subhash Bose

You really sound like our legendary hero and your name sake.
What can you do in this recession? Except sulk and accuse. As it is the IT industry was always overquoted and oversubscribed many times over--the bubble had to burst and it has. The core industries are ticking along, telecom sector is average to OK. but everybody is feeling the hit.The persons who are having a job is having the shivers, as the jitters of pinkslips is looming large on their faces , people will not switch jobs unless the counteroffer is too attractive-therefore the HR Managers are smiling wryly and hoping .... one lesson has been embedded into the Management lession--How to retain Employees--Answer Recession--Nobody can really afford to take a recess during these most difficult times

sandeep Replied to: Subhash Bose - 03 Apr, 2009

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At least they are offering an alternative employment option for the employees who are under performers. Well, in these recession times you cannot ask for anymore. They are at least giving them a chance. What else can somebody expect being an under performer. I think we should appreciate the initiative on TCS's part.

Vivek Replied to: Subhash Bose - 02 Apr, 2009

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Subhash,

Lof of folks go to work so that they could feed their family. They would be willing to take anything as long as they see the salaried being deposited on 1st of the month
Tough times mate just hang in there.

Junior Replied to: Subhash Bose - 02 Apr, 2009

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7: Cool decision..atleast they are not firing them.. the excuse that normally every company gives to get rid of the expensive workforce.

Posted by:rohan - 02 Apr, 2009

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What is cool in it Rohan? Do you think these people are non performers. All of them are people who are on bench.Employees are being treated with no respect. It's a layoff....its a cost cutting measure. You will only understand if you are the victim

Ravi Replied to: rohan - 02 Apr, 2009

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yes what ravi said is absolutely right.. these companies recruit people when there is huge requirement and when it is deserted then they sack employee with some or other issues

Abhik Replied to: Ravi - 02 Apr, 2009

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10:

so the motto of the story is stop spending time in cafeteria and reading blogs..be honest to your job put your best effort in completing the assigned projects.. competition is everywhere..if compnaies are not making money, how will they pay you your salary. it's a lifecycle and goes on.so be wise and keep doing your best...if they make profit., u will get bonus. if loss, then cost cutting...simple.

Sam Panchamukhi Replied to: Abhik - 03 Apr, 2009

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