Infosys, which employs 1.50 lakh people, may hand over pink slips to those who ‘did not add value’ despite ‘high salaries’ as it looks to cut costs and increase operational efficiency.
Infosys Executive Chairman N. R. Narayana Murthy, who returned last June from retirement to head the company and put it back on high growth trajectory, said employees hired at huge salaries, but not performing, could be asked to leave.
“One of my tasks is to ensure that the identified people who are receiving very high salaries but are not contributing as much as we want, are either given opportunities where they can add value to the company or they could seek opportunities elsewhere,” he told analysts on Wednesday.
Speaking at the Bank of America Merrill Lynch India Investor Conference, the Infosys co-founder said he was working on bringing a “certain level of cost optimisation” in the company. “Our costs have ballooned very rapidly in the last 2-3 years. For example, on-site compensation was 36 per cent of the overall revenue in 2010-11, and it went up to 46.3 per cent in 2012-13... A part of it was because we hired people at high salaries outside India and these people did not add value to the company,” he said. Mr. Murthy assured analysts that the company was undertaking various initiatives to increase employee productivity, and would continue to focus on reducing on-site costs by shifting more work offshore. — PTI