Friday, January 30, 2009

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TCS likely to shift 20 percent of U.S staff to India

Tackling the ongoing recession, India's largest IT exporter Tata Consultancy Services (TCS) is looking to shift 20 percent of its onsite workers in U.S., to India, realizing that offshoring is a better option in times of downturn. The company, which has been witnessing a dip in the clients' onsite requirements due to financial crunch, has realized that keeping a large workforce in U.S. would not be a good move, reported The Economic Times.

A person familiar with development said that a communication was sent last week to various middle and senior-level management personnel, informing them about the proposal to shift people back to India.

Denying that 20 percent of the staff in the U.S. was being moved back to India, a TCS spokesperson opined, "In the current environment, moving work to offshore locations is the focus for the company and its customers as this helps optimize costs and increase operational efficiencies for both TCS and its customers." He mentioned that less than five percent of the company's total U.S. staff has moved back to India up to December 31, 2008. TCS is currently employing close to 14,000 people in U.S.

As a result of the worsening recession in the U.S., most of the TCS' clients have completely stopped the enhancement work and hence require lesser number of people for delivering solutions onsite. They are also asking TCS to offshore their work.

A TCS employee working on a large banking project in the U.S. said fellow employees had been asked to return from the U.S. as the clients had made certain project management positions redundant. While the number of such people is spread across the hierarchy, most of the people asked to shift are employees with around four years of work experience.

According to the TCS spokesperson, the company has a business model based on delivering services from offshore locations using the Global Network Delivery Model to global customers. "We are constantly working towards increasing the amount of work done from offshore locations in India and elsewhere. Our effort to increase the amount of work done from locations in India has resulted in an offshore shift of 270 basis points in revenues in the last two quarters," spokesperson added.


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