IT firms slash onsite allowances by 20 percent

The move comes along side IT companies' efforts to cut down the number of on-site

 

IT companies, including Infosys and Wipro, are set to cut down the number of on-site employees in the US. In addition, the allowances given to employees are also on the decline.

 

Diminishing on-site work is further reflected in the fewer number of H1-B visa applications filed by Indian IT firms this year. The US immigration services had received around 42,000 applications against the quota of 65,000 earlier this month. Last year, 163,000 applications were received.

 

Infosys and Wipro pay around $50 per day for its on-site employees. Employees working in these firms said the companies are in the process of slashing that allowance down to $40 a day. There may be a further drop of 20 percent from this lower level, the employees said.

 

However, a TCS spokesman sad that there would be no change in allowances. The company, though, has gone on record saying it will bring back some of its staff working on-site. Wipro also said its engagement with clients had dropped significantly over the last quarter. "We have now started hiring more local talent at client locations to reduce deployment of staff from India," Wipro's Vaswani said.

 

Source: Financial Chronicle