TCS to freeze salaries, recruitment
26 February 2009
Tata Consultancy Services (TCS) will freeze salaries, extend working hours and stop fresh recruitment as part of the measures to cut costs and tackle global economic downturn, S Ramadorai, chairman and managing director of the IT major said.
''There would be no hike in salaries in the forthcoming year", said Ramadorai, adding, ''job cuts are possible if the situation worsens."
He said TCS has frozen "lateral intake" and is reviewing variable pay component on employee salaries.
The variable pay component of TCS employees currently constitute 22 to 35 per cent of their gross salary, depending on employee rank. This works out to eight per cent of the total revenue of TCS.
TCS, which has total employees of around 1.3 lakh, is also looking into all aspects of cost reduction, including capex and infrastructure, Ramadorai said.
TCS, meanwhile, said Singapore Airlines has extended its contract with the company by three years. Under the agreement, TCS will provide integrated IT services to support processes and applications across the airline.
TCS said the selection was done through a formal bidding process after the airline's previous contract with TCS had ended recently. TCS has been working with Singapore Airlines for the past 12 years.
TCS will manage most of the airline's passenger reservations and flight operations. It will also help Singapore Airlines rationalise costs and reduce risks.