Birlasoft asks over 100 staff to quit

NEW DELHI, INDIA: Birlasoft Inc., a provider of software application development and support services, is understood to have asked more than 100 of its employees to seek other avenues.

This move comes close on the heels of IT majors TCS and IBM ousting 1200 employees after the yearly appraisal cycle.

“We have asked only some of the employees whose appraisal had been rated ‘poor’ to seek other avenues. This is a normal appraisal cycle, which is done every year. Close to five per cent of our employees are churned during the appraisals. We don't ask the employees to leave if their performance is proved ‘poor’ for the first time, but however there is no consistent improvement, then they are asked to seek other avenues,” a spokesperson for Birlasoft told CyberMedia News.

Earlier in the week, IT major TCS and IBM had also adopted the same policy by implementing employees-reduction strategy.

IBM India had ousted over 700 of its employees, and the company is not replying directly to media reports on the issue.

TCS had ousted 500 staff following an internal appraisal.

IT analysts, however, point out that the employee reduction could be the hangover of the global meltdown combined with the appreciation of the Indian rupee against the US dollar.

“The matter has only worsened with the rising employee hiring and retention costs, an issue which had attracted many of the IT majors to set up shops in India,” say analysts.

Analyst Gartner also indicated the trend in its Indian CIO study, which was released today.

The report said the employee hiring ratio has gone-up from 2:1 to about 15:1 in the recent past, which is also a direct indication on the availability of skilled manpower in the country.