"TCS Sends 500 Employees to home"

Mumbai-based Tata Consultancy Services, India's largest IT services provider, today said around 500 (around 0.5% of its total employee strength) of its staff had resigned due to poor performance.The move follows the cut that the company recently effected on a portion of the variable pay linked to the employees performance, reducing the salary by about 1.5% for the January-March 2008 quarter."Our company has a biannual appraisal system - one between June and July, and the other in January-February -- where we rate employees on a scale of 1-5 (5 being the highest). Those employees who score a low figure of 2, for instance, are asked to either repeat their training programme or are sent for counselling - depending on whether they are freshers or middle management executives. Those who cannot meet the performance requirements of our company are asked to look for another job," a TCS spokesperson told this paper.Analysts, however, attribute the move to IT firms getting tough on the employee productivity front due to the effects of a rising rupee against the dollar.Last year too, around 500 people met a similar fate since they could not meet the performance rating numbers, the spokesperson added.In the third quarter ended December 31, 2007, TCS added 4,037 net staff taking its total headcount to 108,229, up from 83,500 a year ago.


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BANGALORE: Tata Consultancy Services Ltd, India's largest software services exporter, said on Tuesday about 500 of its staff had resigned after their performance was rated poorly. "Those who cannot meet the performance requirements of our company are asked to look for another job commensurate with their abilities," a spokesman for Mumbai-headquartered Tata Consultancy told Reuters. "This (financial) year so far about 500 people have resigned voluntarily." The company's financial year runs from April to March. "It's not an exceptional thing, it happens every year and it's a part of our annual performance exercise. Last year also similar number of people left the company," the spokesman said. In the December quarter, Tata Consultancy, part of the Tata Group that has interests in cars, commodities and services, added 4,037 net staff taking its total headcount to 108,229, up from 83,500 a year ago. India's export-driven software services companies have been winning large outsourcing contracts from western clients, but recession fears in the United States, a strong rupee, soaring wages and a skills shortage are major worries. At 0513 GMT, shares in Tata Consultancy was down 1.6 percent at 960 rupees in a Mumbai market that was up 0.3 percent.


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BANGALORE: Tata Consultancy Services Ltd, India's largest software services exporter, said on Tuesday about 500 of its staff had resigned after their performance was rated poorly.
"Those who cannot meet the performance requirements of our company are asked to look for another job commensurate with their abilities," a spokesman for Mumbai-headquartered Tata Consultancy told Reuters. "This (financial) year so far about 500 people have resigned voluntarily." The company's financial year runs from April to March. "It's not an exceptional thing, it happens every year and it's a part of our annual performance exercise. Last year also similar number of people left the company," the spokesman said. In the December quarter, Tata Consultancy, part of the Tata Group that has interests in cars, commodities and services, added 4,037 net staff taking its total headcount to 108,229, up from 83,500 a year ago. India's export-driven software services companies have been winning large outsourcing contracts from western clients, but recession fears in the United States, a strong rupee, soaring wages and a skills shortage are major worries. At 0513 GMT, shares in Tata Consultancy was down 1.6 percent at 960 rupees in a Mumbai market that was up 0.3 percent.



TCS: 500 resign on poor performance
Bangalore, Feb 5: Tata Consultancy Services Ltd, India's largest software services exporter, said on Tuesday that about 500 of its staff had resigned after their performance was rated poorly.
"Those who cannot meet the performance requirements of our company are asked to look for another job commensurate with their abilities," a spokesman for Mumbai-headquartered Tata Consultancy told Reuters. "This (financial) year so far about 500 people have resigned voluntarily."
The company's financial year runs from April to March. "It's not an exceptional thing, it happens every year and it's part of our annual performance exercise. Last year also similar number of people left the company," the spokesman said. In the December quarter, Tata Consultancy, part of the Tata Group that has interests in cars, commodities and services, added 4,037 net staff taking its total headcount to 108,229, up from 83,500 a year ago.

On appraisal, 500 TCS employees 'voluntarily resign'
Press Trust Of India


“Employees with experience of two years and above across the company who were unable to meet the performance requirements of our company are asked to look for other jobs commensurate with their abilities,” spokesperson Pradipta Bagchi said.
However, he asserted that no employee has been sacked or fired. As a policy the only time when TCS dismisses people is for disciplinary reasons, he added. “This is not an exceptional thing, it happens every year and its part of our annual performance exercise. In TCS, everyone has to go through an appraisal cycle where they are rated between 1-5 depending on their performance. If in one appraisal cycle anyone is rated below 2, we put them on PIP (performance improvement plan). Even last year, nearly 500 employees had to leave the company on performance grounds. TCS has added 7,522 employees in the third quarter ended December 31, taking the number of its employees to 1,08,229. The move comes close on the heels of global IT major IBM reportedly showing the door to a large number of its entry-level trainee programmers across major offices in the country on the grounds of performance.
Although IBM confirmed the move, they declined to specify how many trainees have been dismissed. However, sources suggest that the number could be in hundreds. Asked about the sudden job cuts, the IBM spokesperson said it is a continuous process and is meant to validate the quality of employees. “IBM is driven by a high-performance culture, a place where employees are able to contribute at the upper limits of their potential and continually build market-valued skills and capabilities in both formal training and experiential learning. We are pioneering new ways for our people to certify their skill levels.”

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The country's largest IT company Tata Consultancy Services has asked 500 employees to resign. The company had earlier cut down on its incentives to employees. Just two days back another IT major IBM had asked 700 of its employees to resign. The first one to go is S Padmanabhan, Executive Vice President and Head, Global Human Resource Development, TCS, who has chosen to move on to another group company Tata Power to head operations.So what is the message for TCS employees who were already upset with the recent 1.5 per cent cut in their variable pay?Company maintains: "It is a part of the annual performance driven exercise. With less than 500 employees resigning every year this is less than 1 per cent of the total employee strength."Industry insiders are saying that the tremors of a US slowdown is costing the companies dear. A strengthening rupee is also seen to be one of the reasons.According to an estimate, the cost of employees cost over 50 per cent of total cost for IT companies. The 12 per cent appreciation of rupee in the past one year has hits margins of most of the IT companies and now wages weigh on balance sheet