Tata Consultancy Services (TCS) India’s largest IT company seems to be the latest to undertake such changes as it makes it’s way through changing business environments in India and abroad. Predictably, mysterious lists of employees been shown the door have emerged, causing anxiety among the company’s work-force in Chennai, Bangalore, Lucknow, Kolkata and a few other sites. In a statement, TCS has said the employees are regularly briefed about the evolving situation, but that has not prevented groups claiming to represent TCS employees from approaching local governments, giving what is an internal matter of a company a political touch.
The News Minute (TNM) spoke to industry veteran and former Infosys executive Mohandas Pai on some of these issues. Excerpts: There seems to be a malaise in the India IT industry. There’s talk of hiring and firing. Is this normal or is the industry shifting to a new business model?
This is a function of growth rates. The model is built on a pyramid at a particular angle. The ratio of developers to analyst to managers determines their efficiency and profitability. People get promoted very fast often at the cost of capability and maturity because of the fear of attrition. With growth rates down, in the teens, obviously the model needs to change. Many in the middle in the 10-15 year experience band would be redundant and very high cost. So what you see is an adjustment to lower growth and a rearrangement of the cost structure. Also much of the so called high value work needing more experienced people has been down valued because of better process and automation. Today a senior developer often does the work of a junior consultant.
By Thenewsminute Team
