In what could be an indicator to the tough times ahead for IT companies, Tata Consultancy Services plans to cut employees' salaries.
In an internal note sent to employees, TCS said that the company had not met its the third quarter internal economic value-added (EVA) target and as such it plans to make up for the losses with a cut in the variable pay given to employees.
The slowdown in the United States, the subprime crisis and the rising rupee are gradually taking a toll on the performance of Indian IT companies and employees are bearing the brunt of it.
Is this a sign of more trouble to follow for the IT sector? Are the days of high salaries and bonuses over? Is the TCS move good if it were to be a short-term strategy? Do you think more companies will cut staff wages? Tell us your views!