HYDERABAD, INDIA: Satyam Computer Services, which surprised the market watchers with a profit in the October-December quarter and a booming share value, announced on Thursday that the board has approved the proposal for implementing the virtual pool programme to send nearly10,000 surplus employees on a sabbatical.

The one-time program, effective June 2009, is aimed at addressing staff costs while retaining talent within the company, said a company statement.

This program, named ‘Virtual Pool’ is applicable to those based in India and allows associates to take time-off from work on a reduced pay structure - for up to six months - while they continue to retain their employment with the company.

The company statement said that approximately 7,000 to 10,000 associates will be part of this program, during the period that it is in operation. The program has been designed to cover associates who have not been in billable roles for three months or more and includes support resources.

As per the programme, those who are in the virtual pool will receive their ‘basic’ pay, in addition to provident fund and medical insurance.

The employment status continues undisturbed and based on business requirements, associates may be recalled and reinstated on full pay and benefits, said Satyam.

“The Virtual Pool program is an innovative way of retaining the excellent human assets of Satyam despite the difficult global economic situation,” said Kiran Karnik, chairman of Satyam’s Board.

“The recessionary climate that has seriously affected the IT industry, in addition to the unprecedented set of events that Satyam faced recently, has added to its pressures,” he observed.

He observed that the virtual pool program is a unique way of retaining associates and developing them further through training, while ensuring the financial viability of the company.

Satyam CEO AS Murty said the virtual pool program is a necessity under the current circumstances and will provide the company with the required leeway to make investments and recover lost ground.

“The leadership team is totally committed to doing everything it can to recall associates from the Virtual Pool in an accelerated manner. I am certain we will all emerge much stronger from this transient phase,” he added.

Meanwhile, Satyam informed the BSE on Friday that the Board of Directors of the company had allotted 75,090 equity shares under stock options plans of the company.

Consequent to the above allotment, the paid up share capital of the Company has gone up from 97,67,22,347 equity shares of Rs. 2 each aggregating Rs. 195,34,44,694.00 to 97,67,97,437 equity shares of Rs. 2 each aggregating Rs. 195,35,94,874.00, the statement said.