Now, serious doubts arise on Satyam's employee count
According to a research agency, actual number of employees will be about 20% less than the company's projection of over 53,000. Employees of Satyam
By ET Bureau |
BANGALORE/MUMBAI/HYDERABAD: The human side of the Satyam crisis continues to deepen. A day after the grand confession of B Ramalinga Raju, founder of Satyam Computer, the workforce still finds the ground beneath its feet slippery and shaky.
At a press conference on Thursday, the newly-formed Satyam rescue team said the company���s liquidity position was not encouraging. The company has paid salaries for the month of December and is assessing the situation for future salary outgo to employees.
Also, there are serious doubts on the actual number of employees that work in Satyam. In the Indian software services industry where incomes of a company have a rather direct correlation with the number of employees and the number of hours they work, the fudged numbers of Satyam just do not add up to the 53,000-plus headcount that it reported earlier.
According to a research agency, actual number of employees will be about 20% less than the company���s projection of over 53,000.
But AS Murthy, a member of the crisis team, tried to convince reporters on Thursday that the company actually had over 50,000 staff and that the headcount, like the accounts, were not fictional. The company had 53,000 staff at the end of September and he estimated that there were some 2,000 less employees now.
Internally, the new team is trying to hold the flock together and maintains that there has been no mass exodus. In some of its campuses, Satyam is holding a signature campaign to garner support and reach out.
���It is estimated that at least 13,000 resumes of Satyam employees are out on different job portals. While people with experience in ERP package, remote infrastructure management will be able to find jobs outside, 10,000-12,000 employees with 1-2 years of experience could find it tough,��� says HR expert Ajit Isaac.
Those in support functions such as administration, HR, communication and facilities too will find the going tough. Also, people with over 10 years of experience or part of senior management, entrenched in the Satyam culture, may find it difficult to find exit options, says another recruiter.
It is expected that the Satyam debacle will lead to several contract transitions to rivals who will then start hiring. Besides, several new outsourcing contracts are expected by end-January leading to additions by IT firms.
At a press conference on Thursday, the newly-formed Satyam rescue team said the company���s liquidity position was not encouraging. The company has paid salaries for the month of December and is assessing the situation for future salary outgo to employees.
Also, there are serious doubts on the actual number of employees that work in Satyam. In the Indian software services industry where incomes of a company have a rather direct correlation with the number of employees and the number of hours they work, the fudged numbers of Satyam just do not add up to the 53,000-plus headcount that it reported earlier.
According to a research agency, actual number of employees will be about 20% less than the company���s projection of over 53,000.
But AS Murthy, a member of the crisis team, tried to convince reporters on Thursday that the company actually had over 50,000 staff and that the headcount, like the accounts, were not fictional. The company had 53,000 staff at the end of September and he estimated that there were some 2,000 less employees now.
Internally, the new team is trying to hold the flock together and maintains that there has been no mass exodus. In some of its campuses, Satyam is holding a signature campaign to garner support and reach out.
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But, an angry and worried workforce is busy looking at avenues elsewhere. Outside Satyam, the action is in job portals and recruitment offices where the phones have not stopped ringing. Rival firms are looking at cherry-picking staff, who are more than ready to exit Satyam. Professionals in the ERP and core consulting space could be pursued by other IT firms. ���It is estimated that at least 13,000 resumes of Satyam employees are out on different job portals. While people with experience in ERP package, remote infrastructure management will be able to find jobs outside, 10,000-12,000 employees with 1-2 years of experience could find it tough,��� says HR expert Ajit Isaac.
Those in support functions such as administration, HR, communication and facilities too will find the going tough. Also, people with over 10 years of experience or part of senior management, entrenched in the Satyam culture, may find it difficult to find exit options, says another recruiter.
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One of the job portals said, it has received about 12,000 applications from Satyam employees in the last few days. There are similar reports from several recruitment firms. Indications are that employees may be democratising their resumes and approaching all of them. It is expected that the Satyam debacle will lead to several contract transitions to rivals who will then start hiring. Besides, several new outsourcing contracts are expected by end-January leading to additions by IT firms.
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MNCs like IBM and Accenture will be in a position to hire junior and mid-career Satyam employees at modest salaries. The pay package at Satyam is typically lower than the scales at MNCs and, with the global slowdown coupled with the recent crisis, their bargaining power has hit a new plateau.Download
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