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Satyam shows door to 150 staff at Hyderabad center
By siliconindia
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Friday, 12 September 2008, 00:27 IST
Mumbai: Satyam Computer Services is learned to have given pink slips to about 150 experienced employees who were on the bench at the Hyderabad center. And also, more than 1,200 employees will be screened for their performance, reported The Financial Express.
At Satyam, although the number of staff being retrenched is quite small now, sources say that it is just the tip of the iceberg. They reveal that the phenomena of showing the pink slip to employees in the Indian IT services companies is expected to become rampant as large pipeline projects, mostly in the BFSI segment, have been put on hold due to the recession in the U.S. economy.
However, SV Krishnan, Global Head - human resources, Satyam, had to say this, "As part of our appraisal process, we identify around 5 percent of our employees in the 'performance improvement' category and our experience has shown that around half of them exit the system either voluntarily or involuntarily. We have concluded our appraisal process some weeks back, and we believe we are witnessing similar trends like those in the past."
IT companies largely plan on their bench strength and the ratio of laterals to freshers, based on the number of projects in the pipeline.
Viral Thakker, Director, information technology advisory at KPMG says, "IT companies have indicated large scale recruitments for the current year, but with the U.S. elections round the corner, there is going to be a slow growth for the next three months."
Some days before, Wipro had put 3000 of its employees under the company scanner for screening their performance - or nonperformance. This was followed by a decision to send off 1000 employees as they were found to be non-performers. However, for the current fiscal, Satyam plans to hire 12,000-15,000 people, of which 40-45 percent would be freshers.
