TCS to review variable pay to employees to cut costs

TCS to review variable pay to employees to cut costs

Indian IT giant TCS has announced that they are going to review the variable pay of their employees in an attempt to cut costs.

The company said that they are not planning to cut employee salaries.

TCS CEO and MD S Ramadorai said in a statement: “We are trying to reduce costs. Currently our largest expenditure — around 54 per cent of our revenues — is manpower cost and employee salaries. We are not contemplating a pay reduction. But we are reviewing the employee variable pay.”

He added that they are also now increasing employee working hours from 40 hours a week to 45 hours a week. This would be effective from April this year.

Ramadorai further said: “We are also focusing on more offshore projects right now to cope effectively with the recession by moving more roles and delivery functions to offshore locations such as India.”