Things are looking rosy at Mahindra Satyam. The IT services firm is fast converting its virtual pool of employees into real billable force, and has also brought back performance rewards and appraisals.
“The demand surge is indeed there. That is the reason we have planned to take 200 people every month from the current virtual pool of 4,400 employees in the next quarter and similar number in Q1 of FY11 as well,” a source in Mahindra Satyam said on the condition of anonymity.
The company has already taken about 1,800 people from the pool in the ongoing third quarter.
In June, the company announced a “virtual pool” programme under which employees who had not been working on any outsourcing project for three months were sent home for up to six months on a reduced salary structure to cut costs.
The company has also brought back variable pay, rewards and performance appraisals, and introduced associate stock option plans for senior- and mid-level employees. However, the actual increase in utilisation of people at Mahindra Satyam could not be ascertained.
“There is no clear number on actual growth in utilisation. But definitely there is increase in incremental billing by as much as 65%,” the source said.
In a December 2 note to clients, J P Morgan Asia Pacific Equity Research analyst Manoj Singla wrote, “Business at Satyam is seeing incremental stability as per recent management comments with new contracts being closed, no significant attrition of customers and pricing stable.”
“Mahindra Satyam has added about 36 clients since July and currently has about 420 customers,” Atul Kunwar, president, global operations, Mahindra Satyam said recently. The demand increase is more prominent in areas such as manufacturing and digital convergence, and healthcare and life sciences.
Mahindra Satyam currently has about 35,000 employees, and the firm looks to complete the restatement of its accounts before the deadline of June 30, 2010. Mahindra Satyam shares closed at Rs 101.3 on the BSE on Tuesday, up 3.53% over the previous close.
Source: http://www.dnaindia.com/money/report_mahindra-satyam-to-induct-200-every-month-from-virtual-pool_1321622
