Posted on

TCS might fire employees in bench for more than 2-3 months

TCS,Mumbai.

Desperation seems to be getting better of TCS Management. Faced with falling stocks, deserting clients and loss of business in US Financial market, TCS is gearing up for some tough measures in the next few months. TCS has already stopped its promotions for this cycle.

Next target for the management seems to be unallocated employees.

Due to loss of projects many of its employees are sitting idle “unallocated” which is popularly known as getting benched. These employees get salary from the company’s profits and they attribute to zerobilling income. Now there are many employees in bench for more than 2-3 months, these will be the initial target for getting the pink slip.

Many reasons can attribute to being in bench. If the reasons are either incompetence, or employees choice of projects, they sure can expect to go home permanently. Many employees have used these tactics over the years to make MATC (which handles allocations) hand them either onsite oppurtunities or their preferred projects. This trick might not work in the current situation.

Many senior resources with more than 6-7 years of experience are more at risk(if unallocated for long time), as most of them want better roles and usually demand more.The pay packages for them are also higher.

Now the company is in process of preparing a list of associates are benched for a long time and trying to come up with a strategy. You might hear some news very soon from TCS House in Mumbai.

TCS – TATA Consultancy Services

Posted on

Dont panic this is the best time to invest in ICICI

Indian markets and the Dalal street have once again proved its a sheep market rather than anything. Our investors react in a kneejerk fashion to any news or rumour. Though ICICI has exposures to US funds the percentage of exposure to these global funds very minimal and considering the market share ICICI commands in India, It is hard to imagine anything more happening to this company.

RBI reviewed its investment portfolio on bankruptcy of Lehman and found no major risk in ICICI.

For a medium term investment ICICI is best bet as it is at its lowest rate in last few years.

I dont hold any shares of ICICI but Im seriously looking to buy some.

Posted on

TATA Consultancy Services (TCS) in bad shape in US Market

 

Tata Consultancy Services (TCS) , India’s No 1 IT exporter is in deep trouble in the US market. Almost 80% of its clients have reduced or stopped business due to economic recession in US.

 

Some of its top clients like USAA,AC Nielson,Citibank,Boeing have drastically reduced the business and even stopped moving ahead with new projects. The impact was huge on the employees who are working onsite with the clients. Almost 60-80% of them from each project has been asked to go back to India.

 

AIG one of TCS’s biggest insurance clients is almost certain to go into oblivion over the next two years due to US Fed take over (loan). This will again impact TCS margins in near future. But Infosys could even be the worst affected in case of AIG.

 

Chrysler one of TCS’s big ticket business in recent years is already a company in loss and due to mismanagement TCS sent back 80% of its onsite employees past few months. Most of these employees came for the projects only few months back.

 

But one good news for TCS and other Indian IT companies has been raise in dollar compared to Indian rupee in the past few months. Dollar has appreciated more than 15% against Rupee in last 6 months.