Some pointers on the situation:

  • No salary hikes for the next couple of years
  • Companies are revisiting their variable pay components, where 50% of it would be linked to the organizations’ performance as opposed to individual’s performances
  • The word ‘subsidy’ is considered bad in their lexicon now
  • Subsidy in transportation has got to go; one cannot look at 8 hour work-days and should be prepared for longer hours
  • Subsidy in food goes out as well
  • Consider yourself lucky if you are still on the job and pray to god that you will continue in your job for the next couple of years
  • All low performing employees and the fresh recruits, you better watch out for alternate careers
  • Mandate has been send to many TLs, PLs and above in the organization that they need to reduce the workforce by at least 15% q-o-q. Essentially by the end of the first year, you will have close to about 40% to 50% of the employees out of your organization
  • This is a completely market driven and market dependent industry segment; margins will come under huge pressures because of the discounting and leveraging that these companies would have done keeping in mind their future earnings
  • There is an ecosystem of dependency on this industry and each of it will come under heavy pressure due to this fall-off. Existing suppliers and vendors to these firms will have to take a cut in their business as well as margins.  Realty sector will be under huge pressure as the occupancy level will decrease. Financial insititutions will have to play the role of adopting a win-win solution. 
  • Employee dependent ecosystem will be real-estate, automobiles, financial services, and lifestyle services
  • This can well be a blessing in disguise that this country was looking forward to, for far too many talents are burried in these organizations doing dead-end and run-of-the-mill jobs. This is time for them to reflect and positively contribute to innovation and new business models than providing arbitrage services to the not-so-intelligent customers in the developed economies.
  • Outsourcing really has been the boon and bane of India, for it deprived the intelligent ones from contributing to the society in a more meaningful way
  • The sheen is getting lost on this segment; they are not able to run the gravy train continuously as the market realities are governing their growth and projections

Guess I covered quite  a few and if I can think of anything else, will contribute in subsequent posts.