Wipro asks employees to work 2 days a week

1: What WIPRO is currently doing is one example of a Turnaround Strategy. Restoring money losing businesses to profitability rather then divest them. Instresting enough, they are basically getting the whole institution in the black by curing problems of the IT portfolio responsible for pulling down overall performance. Hence the reasons for poor-performance are a short term and divesting money losers does not make a long-term strategic sense.

If you read R. Srinivasan's article on Strategy for Corporate Turnaround, India's IT Industry can be nursed back to life by a good turnaround strategy. I strongly agree with Srinivasan that companies have been known to transform themselves into strong, profitable enterprises after an adaptable and appropriate turnaround strategy.

It is a known fact that the current situation is caused by the financial distress of the global financial meltdown and this was attirbuted mainly to poor management at conglomerates and even at governments. But the funny part of it all was no one was infact discerning these trends or doing anything about it even though they were the single most visible signs that businesses were on the decline. Recent bailouts by overseas governments will not solve any of the problems. Governments will only shift burden of their failures.

As said by Srinivasan, quite often, the problems with managing turnarounds are the difficulty of timing and implementing the necessary changes and the inability to convince the management that something drastic needs to be done to remedy the situation.

I am sure that WIPRO already has a contingency plan that will take into account uncommitted liquid cash resources and strapping resouces for their future growth. This is noticeable in their budgeting process and the overall long-term corporate plan. Right now it's paramount WIPRO take at least some measure of the precautionary steps. Bigger government is coming. and in the long run, it's going to make things worse.

Whilst the impact of the credit crunch on the IT business is real and may vary in its severity, depending on business exposure, some businesses might be tempted to tighten belt and cut unnecessary investment, downsize their workforce, avoid R&D expenditure if at all it exist, cut on training. Such measures could be detrimental to the future growth of the business, when in actual fact the reverse should be pursued. The slow down in business activities should be viewed as an opportunity to rethink and devise growth strategy and earn the right for growth by building a professional enterprise, strengthening weak areas, making sound investment in new tools and processes, building a strong strategy, acquiring new talents or training existing workforce for multi-tasking.

The author of this comment has extensive management experience in the Middle East. His main interests are in executive leadership, business management and Technology. The views expressed in this article are the author's personal views and should be treated as such.

Posted by: R. Gomez - 27 Apr, 2009

2: The idea looks good, but I am not sure how its going to work out well in coming future. I appreciate the step taken by Wipro. If a company is paying you a certain amount just because it has hired you but you are not contributing to the company by any means and still getting paid is great for any employee specially in this times. But I am scared if this technique will may make people feel that without working they are getting paid, then why to look for projects. They may take there job for granted. I know most of IT pro are quite serious about there career but few are there who may take advantage of this scenario. I think Wipro may enforce some time dead line to its employee to search for a project, may be a year\'s time. Need to see what come for Wipro employees in coming future!

Posted by: Deepankar Sengupta - 27 Apr, 2009

3: It is good for the Indian IT industry that one of it's corporate gaint is showing the ethical path of employee friendly decision in times of crisis. But for such decisions there could be a climate of tension if employees are shown the door as if they are irrelavant. Isolated retaliatory actions had taken place in the recent past. If there was a strong vote bank, pressure groups would have cried louder about the number of job loss suicides which might equal farmer suicides if correctly counted.
Wipro's decisions will enhance the reputation of the Company and employee trust. This in itself is a big investment for the future.

Posted by: CN Suresh - 27 Apr, 2009

4:all the company who is doing cut down in men power should learn a lession. all these are intelligent steps taken by wipro. company is earning the faith on his employee. those guys who wants to study and wants break for other purpose they can have accordingly with a smart income. Even company will also save a lot with this. job cut could be a cause of lots of suicide and mental problem. when people had good money flow that time they took lots of properties on loan and now they have all the EMI's along with them. this is also creating harassment. So in total great thinking....
hats off to those who has done it or going to do the same. salary cut is bearable but job cut every time dangerous (Oh my god)

great management..........

 Davender replied to: CN Suresh 
 post - 27 Apr, 2009

5: Please ignore the previous mail which i have forward to u
Good decision has taken by Wipro. We all knew, how the present economic conditions are?. Its very pathetic condition. Even software companies are not getting any projects from overseas. With out getting the projects how company will pay the salaries to their employees. Instead of firing the employees, “pay some salary and protect their life’s” is very important. U thinks if company is yours, how u will pay the salaries to Ur employees. With out generating revenue its very difficult to pay the salaries to employees. Cost is always cost. If we pay the salaries with out getting the revenue definitely we need to shutdown our organisations.When the times are tough we need to wait patiently for good days & Opportunities. I always feel something is better than nothing. When the company gained profits we all are part of that profit, like wise, when the company is not doing well we need to take part and share the cost of the company. “Live let live” that is the most important quotation in our life we need to follow that one. Not only India, all other countries are facing the same recession problem. Because of our rules and regulation are good (financial institutions RBI) other wise we were also facing the same sub prime problems in India. God grace our financial institution have not faced that type of problems. I hope our economy will grow by this year end, not only India all other countries economies will revive we need not worry about that. We will get good days. U all will get good salaries. Don’t keep it in mind. U always put ur 100% efforts for productivity. When the things are good everything would be good. When the things are not good we need to put our efforts to over come the problems. Please don’t demotivate other employees and you self too. Please motivate all the employees and try to get good results and good profits to Ur company ultimately u all will Grew….
Any mistakes in this prospect pls forgive me.

Thanks
ur rams

Posted by: raja - 24 Apr, 2009

6:what a thinking ..nd upto ur name raja ..but unfortumately all indian are not raja like u ...,means how much dependent most of IT worker are on payment ..nd people like u are welcoming d idea of transforming IT worker to IT contract worker. And where were ur ideas nd d company implementing ur ideas wen emplyoee put their xtra hour for project work, ever company pay even a single rupees more.

 Not Raja  replied to: raja 
 post - 27 Apr, 2009

7: Good decision has taken by Wipro. We all know how the present economic conditions. Its very pathetic condition. Even software companies are not getting any projects from overseas. With out getting the projects how company will pay the salaries to their employees. Instead of firing the employees pay some salary and protecting their life’s is very important. U think if company is yours how u will pay the salaries to ur employees. With out generating revenue its very difficult to pay the salaries to employees. Cost is always cost. If we pay the salaries with out getting the revenue definitely we need to shutdown our organisations.When the times are though we need to wait patiently for good days. I always feel something is better than nothing. When the company gained profits we all shared that profit like wise when the company is not doing well we need to share the cost of the company. live let live that is the most important quotation in our life we need to follow that one. Not only India all other countries are facing the same recession problem. Because of our rules and regulation are good (financial institutions RBI) other wise we were also facing the same sub prime problems in India. God grace our financial institution have not faced that type of problems. I hope our economy will grow by this year end not only India all other countries economies will revive we need not worry about that. We will get good days. U all gets good salaries. Don’t keep it in mind. U always put ur 100% efforts for productivity. When the things are good everything is good. When the things are not good we need to put our efforts to over come the problems. Please don’t demotivate other employees. Please motivate all the employees and try to get good results and good profits to ur company ultimately u all will develop any mistakes in this pls forgive me.

thanks
ur rams

Posted by: raja - 24 Apr, 2009

8: Well good strategy to maintain the costs without literally driving their workforce in a helpless situation.. a good move.

Posted by: raman - 24 Apr, 2009

9:I have gone through the pains of not enrolled on a Job. Your credit ratings take such a toll that you feel like just going for anything instead of sitting idle. Even 25% salary for an average techie will much more than a clerk. Also, a techie on bench can at least spend quality time with friends and family in this situation who otherwise is slogging year around when on project.

 SensibleTalks replied to: raman 
 post - 24 Apr, 2009

10: Good decision by Wipro ! I Wish Wipro gets projects soon and before Infy.

 Harry replied to:  SensibleTalks 
 post - 27 Apr, 2009

11: A very talented person just because Wipro has not been able to allocate him to a project will leave and find an another job(trust me there are plenty out still in the market).
If my wife earns then I would like to take that 25% money(around 3 lakhs) i would do some course and prepare but will not bother to get into a Project for a year. Then with some good trainign I can get a better pay outside.
This is a short term strategy but will not work as far as I am concerned.

 Mathew  replied to: Harry 
 post - 29 Apr, 2009

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Posted by: tryecrot - 27 Aug, 2011