Also in this letter:
■ Wipro distributes FY22 increments
■ TCS tells employees to return to the office 3 days a week
■ Ola reconsiders its decision to lay off 200 engineers
Need to understand the changing mentality of young people: Rajeev Chandrasekhar on undeclared work
Companies trying to block employees from working at their own startups or consulting other companies “is a doomed exercise,” said Minister of State for Electronics and IT Rajeev Chandrasekharreferring to the controversial issue of undeclared work.
What is the problem? While agreeing that employees who had contractual obligations must abide by the contract and not break the law, also said that most tech company employees become “tech entrepreneurs” themselves. “They (employees) want to monetize and grow and demonstrate and achieve multiple things with their skills. I strongly recommend the industry to ‘don’t try to take that away’ because it’s an idea whose time has come. is like suppressing the power of thinking,” Chandrasekhar said.
In inverted commas : “Moonlighting represents two very important things. One is the entrepreneurship virus that has bitten all techies. The second is the talent gap or the demand for talent. For a company to deny a young engineer to go into a startup or try to control them from that…they don’t understand the model change,” Chandrasekhar told ET.
Rishad Premji on moonlighting: Earlier this week, Wipro laid off 300 employees after discovering that they were working for its competitors, the company’s executive chairman, Rishad Premji, said on Wednesday. “It’s very simple. It’s an act of breach of integrity. We have terminated the services of these people,” Premji said on the sidelines of the All India Management Association’s 49th convention.
Controversy over undeclared work: Moonlighting – the practice of holding down more than one job at a time – has drawn mixed reactions from IT companies in recent weeks.
Wipro rolls out annual increases for FY22, covers 96% of employees
Wipro will grant annual raises or merit pay increases (MSI) for the financial year ending in 2022 covering 96% of its employees.
The Bengaluru-based company will award annual raises to eligible employees starting in September and employees will receive raise letters from managers in the coming days, according to an internal letter sent on Thursday.
The announcement: “Despite last quarter’s financial pressures, we delivered significantly broader coverage and a market-aligned salary increase,” reads the internal letter sent by HR director Saurabh Govil. “You will receive your MSI letter from your manager within the next few days. Salary increases this round cover approximately 96% of all Wiproites based on performance and meeting eligibility criteria,” he added.
What else? Development comes later Wipro had decided to retain variable compensation to its middle and senior management for the quarter ended June due to pressure on operating margins.
Back to the office three days a week, TCS tells its staff
Tata Consulting Services (TCS) asked 85% of its employees to return to work at least three times a week while senior executives have been asked to do so five times a week, according to people familiar with the matter.
Sources tell us that managers will prepare a list informing associates of their working days. The Tata Group company sent out an internal development email earlier this month.
Textually: “We are proceeding in a phased manner to bring our associates back into the office. This is consistent with our vision for transitioning to the 25/25 model,” the company told ET, in response to specific questions. The SDC did not released an effective date of implementation of the new guidelines and also did not provide additional details to our questions.
Model 25/25: TCS announced a new 25/25 model in 2021, to be implemented by 2025, under which only a quarter of the company’s half-million employees would be required to work from desk to desk. time and would only spend a quarter of their time in the Office.
However, the company wants all employees to return to the office before phasing into the new model.
The WFH is not the only option: IT companies have been facing issues of high attrition, moonlighting, and talent shortages since implementing the WFH option after the onset of the Covid-19 pandemic. According to TCS, remote work cannot be the only mode of work.
ETtech has covered this issue in moonlight in depth over the past few weeks. Recently, we were the first to report that Wipro had laid off 300 employees who moonlighted for their competitors. The IT industry, including startups, is divided over this hot trend. While Wipro’s Rishad Premji has spoken out against the idea, other industry veterans like it CP Gurnani not impressed. Among startups, Swiggy became the first to roll out a company-wide policy encouraging moonlighting.
TWEET OF THE DAY
Ola will not lay off 200 engineers as planned
carpooling company Ola decided not to lay off the 200 engineers the company previously planned to let go, according to informed sources. we reported September 19 about these 200 licensed engineers in its carpooling and fintech businesses in a new round of layoffs.
Employees were told about the change to the plan at a town hall meeting led by some of the company’s top technology leaders.
Change of plan: The layoffs would have constituted 10% of the company’s engineering workforce. The Bengaluru-based company said at the time that it would increase its engineering workforce to more than 5,000 over the next 18 months by doubling cell manufacturing, a four-wheel project and other related efforts. electric vehicles and mobility.
Successive dismissals: There have been a series of layoffs at Ola over the past two months, as well as high-profile exits as the Bengaluru-based company aggressively pushes forward in its electric vehicle business.
We have had first reported on July 6 that Ola was handing out pink slips and the postponement of assessments as the mobility platform restricts some of its activities amid tight funding globally. This was followed by reports that Ola was in the process of lay off nearly 1,000 employees. While the number of entrenchments was estimated at around 400-500, sources said the final figure could be around 1,000.
In addition to the massive layoffs, the mobility company has seen some of its top brass leave – Yashwant Kumar, senior director and charging network business leader at Ola Electric, put on papers in July, and Arun Sirdeshmukh, the managing director of Ola Cars, resigned in May.
Ambitious projects: Despite reports of cuts and exits, the closure of several other businesses like the used car market, food and grocery delivery, and an overall tech funding crunch, Ola is betting big on its electric vehicle plans. .
Thursday he announced his plans for an international foray beginning with Nepal then move on to Latin America, ASEAN and the European Union. Last week, Ola Electric said it would be open “experience centers” across the country amid falling sales of its flagship Ola S1 Pro electric scooter.
Summary of ETech offers
Big numbers keep calling it a pass in the Indian startup funding scenario. After weeks of lukewarm funding rounds regarding numbers and values, this week also appears to have deals below $100 million. Macroeconomic considerations, slowing economies and tighter liquidity in economies are likely the reason.
The number of funding rounds of $100 million and above fell from 29 in the first quarter of the calendar year to 18 in the second quarter and just three in the third quarter (as of August 24).
While major private equity and venture capital funds are still placing their bets cautiously in a volatile macro environment, the dry spell could continue for some time. Insurtech platform Zopper and solutions company Gifting Join Ventures led the funding charts this week.
Today’s ETtech Top 5 newsletter was curated by Gaurab Dasgupta in New Delhi and Aishwarya Dabhade in Mumbai. Graphics and illustrations by Rahul Awasthi.