
TCS is making some serious investmenst in building its brand visibility, most of us have probably seen the "Experience Certainity" campaingn, but another aspect seems to be the executives becoming more available. Some time back we covered an interview with their CFO, this time its Surya Kant, Vice President and Head, TCS America.
Indian IT salaries have been rising at a rapid pace of 15% per year. If this were to continue, the competitive cost advantage that companies like TCS and Infosys offer will slowly diminish. With GDP growth in India reaching 9.2% in 2006-2007, inflation at 5.66% and a shortage of skilled labor, it would be hard to step away from salary increases? How are you handling this risk?
The competition for talent is certainly intensifying, not only as TCS grows, but as other multinational companies open large R&D and service facilities in India. However, we believe this high wage inflation won't last for too long before it levels out; it should settle down in two or three years.
We expect the impact of wage increase to be very similar to the impact that it had last year because we expect the Indian salary to go up by 12-15%, and as far as overseas is concerned it, is going to be between 3% and 5%. This is the same as it was last year. So the impact is going to be more or less the same and we have worked out this kind of a detailed plan to meet that impact.
Employee attrition is another major problem faced by most Indian IT companies. What steps is TCS taking to reduce attrition and improve employee retention?
TCS has the lowest attrition rate out of all IT services companies headquartered in India (11.3%, well below the industry average). It is important to continually invest in the long term growth of our people, with frequent training to upgrade their skills, by rotating assignments, and providing opportunities for travel and foreign assignments. Well planned job rotations give our employees the opportunity to work on varied technologies, varied customer and industry domains and geographic locations.
In terms of recruiting we have a highly evolved recruitment process across the globe. For instance, the number of colleges we go to in India alone each year just crossed 300. We've been successful in ensuring we get invited to campuses early in the game (achieved 93% day 1 slots). We also engage students through summer projects, training and have strong ties with the faculty.
As you look towards the future, what will be the key drivers of growth at TCS?
Service lines like global consulting, BPO, Infrastructure management, and assurance services fetched 18% of revenues in FY '07 up from 10 per cent in the previous financial year. For instance, TCS' Global Consulting Practice achieved a robust 50% year-on-year growth in Q3 2007. All of these growth engines will continue to gain momentum in the coming quarters. At the same time the IT services including package implementation are also expected to grow well.
Source: 1
Tags: tcs - india - it+services - offshore
Mr Wong
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Under the L-1 Visa, if any of these persons have worked under the capacity of Body shopping, working at a client site or even working on a client fix cost, or hourly time & materials project project for an end client of Tata, this maybe a massive violation of the Spirit and Intent of the law. With the 2008 elections coming in US, TCS cannot hide from their past and present.....here is some detail on the L-1.
L-1A Visa
An L-1A is an alien coming temporarily to performs ervices in a managerial or executive capacity for the same corporation or firm, or for the branch, subsidiary or affiliate of the employer who employed him or her abroad for one continuous year within the three-year period (six months within the previous three years if the employer is eligible and has filed for a blanket L-1 approval and meets the requirements for expedited processing), immediately preceding the filing of the petition, in an executive,managerial or specialized knowledge capacity.
L-1B Visa
An L-1B nonimmigrant is an alien who has been employed overseas by a firm with an affiliated entity in the U.S., who comes to the U.S. to perform services for the international entity that involve specialized knowledge. L-1B temporary workers can no longer work primarily at a worksite other than that of their petitioning employer if either: (a) the work is controlled and supervised by a different employer or (b) the offsite arrangement is essentially one to provide a non-petitioning party with local labor for hire, rather than a service related to the specialized knowledge of the petitioning employer.
USCIS interprets the “control and supervision” provisions of the new law to require an L-1B petitioning employer to retain ultimate authority over the worker. The determination as to whether an alien is or will be employed primarily at a worksite other than that of the petitioner will depend on the specific facts presented. In addition, the bar will not apply if the satisfactory performance of such off-site employment duties requires that the L-1B temporary worker must have specialized or advanced knowledge of the petitioning employer’s product, service, or other interests, as defined under current USCIS regulations. General skills or duties that relate to ordinary business or work activities would not meet the test of whether specialized knowledge is required for the work.
The “outsourcing” provisions described above apply to all L-1B petitions filed with USCIS after June 6, 2005, and include extensions and amendments involving individuals currently in L-1 status.
The Act also requires that all L-1 temporary workers must have worked for a period of no less than one year outside the United States for an employer with a qualifying relationship to the petitioning employer. Previously, participants in the “blanket L-1” program could participate after as little as six months of qualifying employment. This change applies to petitions for initial L-1 classification filed with USCIS after June 6, 2005; extensions of status under the blanket program are not affected by this new provision.
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