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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.

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Satyam to fire 4500 employees

 

Satyam computers is in the process of pink slipping 4500 of its employees, this ranges from Mangement level to entry level software developers who doesnt have a good feedback from their immediate supervisors.

 

Many of the experienced employees, who got the letter this week were shocked in the way they were shabbily thrown out of the company. Satyam has been facing pressures ever since it had a very negative quarter results last few quarters. Few years back it was the star of the IT stocks and now the poor man’s gold.

 

The company will serve termination notices to more employees in the coming weeks. Many employees who have earned the grudge of higher management are very anxious about their future in the company.