Besieged IT services firm Satyam Computer Services may have found a novel way of dealing with the problem of excess staff at its campuses. The company is transferring some of its employees to Tech Mahindra in order to fill up vacancies in the latter.
Tech Mahindra has recently acquired a 31 percent stake in Hyderabad-based Satyam, which it plans to augment to 51 percent through a public offer.
The process of sending Satyamites to work for Tech Mahindra has been termed ?cross-sharing?. About 400 Satyam employees have been redeployed in Tech Mahindra offices so far, as part of the exercise. A further 1,000 such transfers are on the cards in the coming days, a person close to the development said.
?There are requirements in Tech Mahindra, which can be taken care of through cross-sharing of employees. Hence, the two companies have decided to go ahead with this,? the person said. Only those employees who are not in billable roles at present would be considered for cross sharing, the person adds.
Satyam has been under pressure to reduce flab as its new owner Tech Mahindra prepares to take control of the company. Not too long ago, Satyam was struggling to survive after a Rs 7,000 crore-scam committed by its founder B Ramalinga Raju came to light in January this year.
Tech Mahindra, last week, had come up with a plan to put Satyam?s surplus staff on a sabbatical to mitigate the problem of high personnel overheads. At present, half of the company?s expenses are contributed to employee costs. Over one-fourth of Satyam?s staff is a part of the virtual pool, wherein the employees would get only 40 percent of their monthly pay till six months.
?Cross-sharing is a painless way to deal with the problem of surplus employees. It may not solve the entire problem, but it would surely give the company some breathing space,? the person said.
Source: The Financial Chronicle
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