Wednesday, April 29, 2009

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Birlasoft set to reduce staff salaries by 5%

Staff in the know although formal announcement yet to be made
Weighed down by the global recession, IT services company Birlasoft, part of the CK Birla Group, is looking at 5 per cent salary cut for their employees across the board. The top management of the IT company, in a meeting on Tuesday, has decided to go ahead with the decision on the salary cut.

The management is yet to make a formal announcement about the decision. However, the employees of the company have been apprised verbally.
A senior executive in the company told Financial Chronicle that the management is working on two strategies to reduce the expenditure cost.

“The company is looking at 5 per cent salary cut across all centers. The board is also looking at a cut on the variable. No formal e-mail has come to us, but the management has apprised us that a cut is likely,” the executive said.

Ravi Kathuria, senior vice-president, global marketing, Birlasoft, said that the downturn has pressure on margins of the company. “It is not unusual at this point of time, since companies are reeling under cost pressure. We are witnessing the pressure on our margins. We have not announced any pay cut as of now, but we are not ruling this option out,” Kathuria said.

He said that the number of benched staff in the company had reduced and they are seeking improved productivity.

Headquartered in Noida, Birlasoft employs more than 4,000 people across the US, UK, Germany, the Netherlands, Czech Republic, Malaysia, Australia, Singapore and India. The company offers services both on-shore and off-shore services.

Affected by the credit crunch in US, the company has cut down the employee strength from 4,500 people to 4,100. The company has also stalled its hiring plans. Birlasoft is part of the global $1.4 billion CK Birla Group. Their services include application development, support and maintenance, enterprise application implementation, inte-gration, infrastructure management and quality assurance and testing.


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