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Indian IT firm Infosys Technologies ranked top IT infrastructure; sacks 2,100 employees

By Amarendra Bhushan for CEOWORLD Magazine Updated:April 12, 2009

Software major Infosys Technologies Limited, with over 103,000 employees in over 50 offices worldwide, has sacked nearly 2,100 employees. “Some of these employees have been asked to go while some have left on their own, Usually poor-performing employees were given longer time to improve themselves but this time there was no such consideration. The sackings were part of an annual routine, where about 5% of employees were asked to leave.” , chief financial officer of Bangalore-headquartered of Infosys, said.

The company had put its employees on a performance improvement course prior to trimming its workforce and those who showed no improvement were asked to leave, while some others quit.

Infosys Technologies Limited leads in global IT infrastructure outsourcing based on highest client feedback scores and a “standout story” on innovation, as per the Forrester report `The Forrester Wave: Global IT Infrastructure Outsourcing, Q1 2009‘. “outstanding reference client scores – and a standout story on innovation for clients – gave Infosys a significant boost in the current offering rating. Infosys has made infrastructure services a strategic focus and the firm is clearly getting into good position to act on technology trends such as automation, standardisation, consolidation, and virtualisation.”

Infosys currently has an employee base of 1,05,000 which includes 45,000 trainees who were not part of this appraisal exercise. During quarter ending December 31, the company had a total headcount of 1,03,078.

Till last year only 1%-3% employees used to be identified as under performers but this year managers have been forced to identify at least 5% as under performers even if one couldn’t be blamed of any non-conformance to the set expectations.

Infosys has made offers to around 20,000 engineering graduates for the current year. The company has been vocal about honouring all the offers it made to freshers. Infosys’ earnings for 2008-09 will be out on April 15.

Some of the employees had been “outplaced,” Gopalakrishnan said. This means employees had been helped to get jobs in other firms by placement agencies hired by Infosys.

Outplacement is a new jargon used by enterprises, which means off-loading excess/unwanted staff to another employer. However, outplacing is not a viable option in the current scenario where few jobs are available in the market.

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