TATA Consultancy Services (TCS)is gearing up to face tough times. Last week TCS reported that two of its Top 10 Clients (in US) delayed their plans to expand, or to be precise havent gone ahead with previously planned Development work.This will definitely affect TCS’s Q4 numbers and in turn TCS might cut costs by delaying promotions of the Entry level developers.
The reduced salary structure may be norm for another quarter as well.
There is already rumors in Blogs and among TCS employees that the usual 4 year wait of promotions of ITA’s might become longer by one year (Five years).This could be very bad news for people expecting this ITA promotion this year.This promotion delay occurred once during previous IT recession and even now many of the affected feel bad about late promotions.
There is already worry among employees after the earlier salary reduction.But the TCS employees working in overseas deputations were not affected by the salary cuts.
TCS also has changed its focus towards developing and upcoming markets like Russia and Latin American countries, this week TCS news Release said that they are targetting 2$ by 2010-12 in these regions.TCS is also planning to start operations in Russia and Egypt.They have 50-60 million dollars, in reserves for spending on expansion in these key markets.