IS this true that IT companies in India are struggling hard to keep their existance. Big names in India like TCS, Infosys, Wipro, IBM,Cognizent, Patni and many more have applied cost cutting majors giving a reason of economy slowdown.

Let us look at results of last year of these companies

2008-09 Q3 profits:-

TCS --1,362.06 crore (Rs 13.62 billion)--Up then last year

Infosys --1,641 crore--Up then last year

Wipro--854 crore (Rs 8.54 billion)--Up then last year

Patni--Rs 438.01 crore --Down then last year

IBM--104 billion USD (overall)--Up then last year

and many more.......

Now lets have look at cost cutting majors

1. Remove paper cups from water machines.Put steel glasses.

2. Remove paper napkins from toilets on weekends.

3. AC will not be working on weekends.IF you have project deadlines, work without AC

4. No use of lifts on 1st and 2nd floor

5. Use public transport for travel.Company will provide transport only in exceptional cases.

6. Use of low cost airlines with lowest class of travel

7. No local phone calls from office.STD and ISD are already restricted. Call uses will go via reception

8. Limit on Stationary purchase

9. No promotions

10. Highly reduced/no bonus

11. Increased work hours officially

12. Removal of subsidy from transport/Canteen stuff etc

13. No Tier-1 city( Delhi,Mumbai..) additional House rent allowance

14. Very limited onsite opportunity

15. Reduction is onsite allowances

16. Pink slips

17. Let experienced go, replace by fresher.

I hope there can be many more to add this list. Is it really necessary for these companies to do all this even if profit is growing. I certainly agree that profit growth is less now but still they are in profit.

Sometimes I think, Are they taking unnecessary benefit on the name of recession??

PS: An interesting blog "Red carpet today, pink slips tomorrow" related to my views has been published here on https://blogs.siliconindia.com/Venkateswararao