Monday, June 17, 2013

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IBM’s Layoffs Exceed 1,600 People

According to employee group Alliance@IBM, an affiliate of the Communications Workers of America union, layoffs at IBM have more than exceeded the initial estimates of 1,600 positions. These include at least 222 people from areas like marketing and 165 in semiconductor research and development.

IBM – one of the world’s largest computer services providers – has initiated a global restructuring plan, laying-off nearly 2,800 employees in North America alone. And more cuts are expected in nations like India as the company intents on spending $1 billion globally to trim its workforce.

According to the official national IBM employee’s union, the total number of lay-offs in the US as of June 15, 2013 was 2,792. But some grimly project the number of workers cut could hit upwards of 8,000 – roughly two percent of the company’s workforce. Others speculate the number to be closer to 5,000.
Read more at http://www.inquisitr.com/761676/ibms-layoffs-exceed-1600-people/#psDrpTAoKK5YTIRI.99
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Rupee fall to cushion wage hike impact

Infosys announced an average increase of 8% for employees in India, while those in other geographies will get an average 3% hike.

Two of the largest Indian information technology (IT) services companies, Infosys and Wipro, have announced annual wage increases this year, the quantum of which are more in line with the industry average. While Infosys said it would give an average rise of eight per cent to its employees in India, Wipro has announced an increment of six-eight per cent.

Infosys usually gives rises to its employees with effect from April every year. In FY13, the company deferred the decision citing tough global economic environment. However, it later revisited the decision and announced a wage hike in October. This year (FY14), though the company management had indicated to restructure the employee compensation with an aim of increasing the fixed component in the salary, it was non-committal on giving a rise.

Apart from India, employees located in other geographies, who were not given wage hike in February this year, will be covered in this cycle, Infosys said in a statement today. They would be given an increase of about three per cent in average. The increments will be effective July 1. However, for its global sales force, the changes will come into effect from May 1.
Source: Business-Standard
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IBM lays off undisclosed number of workers

IBM has laid off an undisclosed number of workers this week as the company intensifies its focus on some of some of the technology industry's hottest markets.

The cutbacks are part of a reorganization that IBM Corp. executives disclosed in April during a conference call discussing the Armonk, New York, company's first-quarter earnings. IBM said it would spend $1 billion reshuffling the types of jobs it needs in its workforce this year, with most of the changes coming before the end of June. The company indicated most of the layoffs would occur outside the US. Read More at Huff post.
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Salaries for fresh engineers in IT companies may fall in coming years

For years, fresh engineering graduates have had it good because demand from the IT industry was robust. That's changing. Salaries for fresh IT engineers will be under major pressure in the coming years.

"Fresher salaries of Rs 2.75 lakh to Rs 3.25 lakh will remain unchanged or be lowered over the next few years," wrote Kawaljeet Saluja and Rohit Chordia of brokerage firm Kotak Institutional Securities in a recent report.

The trend is changing because the number of students graduating in engineering has shot up in the past few years, and the demand has slowed. Estimates by IT industry body Nasscom show the number of engineers graduating each year has more than doubled to 8.13 lakh from 2007-08 to 2011-12. Read More

Sunday, June 16, 2013

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Infosys announces wage hike, Wipro follows suit

NR Narayana Murthy has made his first significant move upon returning to Infosys by effecting an unexpected round of wage increases for the company's 1.5 lakh employees. By doing so, analysts said, the Infosys chairman is trying to kill several birds with one stone, displaying tactical finesse that has earned him a reputation as one of India's canniest entrepreneurs.

On Thursday, less than a fortnight after Murthy came back to helm the company, Infosys announced an average increment of 8% for India employees, effective from July 1. For employees outside India, the company said the increments will be 3%, albeit with some riders. The biggest push was reserved for its global sales force which will get a raise of 8% effective May.

Wipro, which announced increments in July last year, also sent a note about an hour after the news from Infosys. It said it is giving an average increment of 6-8% for offshore employees and 2-3% for onsite employees, effective from June 2013. For high-performers, the raise will be in double digits. A Wipro spokeswoman said the emailed note was in response to media queries.

"There have been serious issues with employee motivation levels at Infosys. Wipro rolling out wage hikes on the same day shows that it wants to ensure the company doesn't lose employees to Infosys," said Pradeep Mukerji, president and managing partner at outsourcing advisory firm Avasant. Infosys's populist move — a certain vote-winner among staff — could raise morale, enhance Murthy's stock of goodwill and send out a message to all stakeholders and rivals that the Infosys co-founder is back and means business. "By announcing wage hikes, Infosys wants to calm down anxiety among its employees and stabilize things within the organization. It is a smart move; however, we do not expect more bold moves from Murthy," said Manish Bahl, country manager at Forrester Research. "He will be focused on getting things aligned, talking to clients and creating expertise on the product innovation side." Read more

Rebuilding a 'desirable' Infosys will take 36 months

Recalled to ride out the bad times for Infosys, its Chairman N R Narayana Murthy today said the task of rebuilding a "desirable" Infosys would take at least 36 months and there would be some tough decisions resulting in "pain." "The challenge is daunting and the task is tough," said Murthy in a candid address to shareholders at the 32nd Annual General Meeting here, two weeks after he was recalled and made Executive Chairman of Infosys which has reported poor earnings disappointing investors. He said "the task of rebuilding a desirable Infosys will take at least 36 months, even with a high quality team and full dedication of every Infoscion. In the process, there will be some tough decisions resulting in pain as we move forward." Read more..