In order to control cost and to increase the utilisation rate Hexaware Technologies, a mid-cap IT & BPO services and consulting firm, announced the formation of a virtual bench of 350 employees. The step comes close on the heels of a similar announcement made by Mumbai-based IT firm Mastek.
Hexaware will also cut salaries in the range of 2-10 per cent -- effective from April 2009 -- for employees above certain levels across the organisation. The company, however, said that 40 per cent of the employees will be unaffected.
The employees, which are currently non-billable will be on ‘virtual bench’ and get a compensation equivalent to 50 per cent of their basic salary. These employees will continue to receive retirals (provident fund and gratuity) and hospitalisation insurance and life cover from the company and their service continuity will be protected as well, said the company in a statement.
These employees will be given time off to improve their skills and get re-trained in skills which are in demand. Hexaware will also organise re-skilling and training opportunities for these employees.
“We will strengthen our competencies and continue to work towards building a stronger revenue stream, given the current market environment, we are also maintaining a significant focus on improving operational efficiencies, enhancing productivity, increasing utilization and implementing multiple cost rationalisation initiatives,” said P R Chandrasekar, CEO and vice chairman, Hexaware Technologies.
Post its second quarter results for calendar year 2008, the company had said that it will not hire for the next two quarters (July-September and October-December quarters). For the year ended December 31, 2008, the company saw a reduction of 1,446 employees. For the full year 2008, the company had 5,622 employees from 7,068 at the end of 2007.
