TCS, India’s largest software company, is planning to move about a fifth of its employees working onsite at various locations in the US to India, as general slowdown and reduced client requirements have declined the need for a large workforce in the US. According to a person familiar with the development, 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, following a sharp fall in client requirements.
However, a TCS spokesperson, when contacted, strongly denied that 20% of the staff in the US was being moved back to India. “In the current environment, moving work to offshore locations (to India) is the focus for the company and its customers, as this helps optimise costs and increase operational efficiencies for both TCS and its customers,” he said, adding that less than 5% of TCS’ total US staff strength have come back to India in December 31, 2008.
The Tata Group company employs close to 14,000 employees in the US, who service many blue chip clients in the banking and financial services, auto and other manufacturing sectors.
Typically, most of the client requirements, include a combination of what is called ready-to-serve (RTS) work and enhancement work or value-addition. Since the slowdown in the US, most clients have completely stopped the enhancement work and hence require lesser number of people for delivering solutions onsite.
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