Capgemini’s statement on this news:
“During these unprecedented times, Capgemini’s highest priority continues to be to ensure the safety and wellbeing of our employees. Our Variable Pay for year 2019 was payed-out to all eligible employees last month as normal. We are going ahead with increments and promotions for all junior professionals effective from April 1, 2020. This constitutes more than 70% of our team members in this cycle. For the rest, planned increments and promotions have been deferred by one quarter and will then go ahead. We have tweaked the leave accumulation only up to Q2 end, and only as an interim measure. Our overall leave policy for the rest of the year remains unchanged and employees can continue to accrue leave as per the policy.”
Amidst the 24 day nationwide lockdown, many companies, especially the IT sector companies are having to pay largely in terms of performance and downfall in their business profits.
We covered a whole separate article speaking and depicting the bleak picture of the whole IT industry around the world, majorly India, in these times of distress.
Capgemini Tweaks its Leave Policy for Employees
While some companies like Flipkart and BigBasket and others are working tirelessly not just to improve their services amidst the lockdown but also to keep their employees fully satisfied.
Amidst the reports that that many businesses, including tech-led firms were rolling out pay cuts and job losses, Flipkart came forward and promised its employees that it shan’t salaries, rather honour the job offers extended even among such times of disrupted businesses in the country.
However, other companies like the French IT services and consulting firm Capgemini, on the other hand has now tweaked its leave policy in India temporarily.
It had already previously deferred increments and promotions of senior-level employees by one quarter and now this.
While the company did not specify the reason behind such steps, the Forum for IT Employees (FITE), a self-proclaimed union for IT employees, has alleged that the company has taken such steps in order to compensate for business loss owing to the nationwide lockdown.
Update: Capgemini has confirmed that they are honoring all job offers made till date. This is indeed excellent news for all job seekers, who had selected Capgemini as their future employer. Please find their statement on the top..
What Does Capgemini Have to Say?
Capgemini has said the company had tweaked leave accumulation only up to Q2 (FY21) end, and only as an interim measure.
Their overall leave policy for the rest of the year remains unchanged and employees can continue to accrue leave according to the policy.
It also said it was going ahead with increments and promotions for all junior professionals effective from April 1, 2020.
This will cover over 70% of the firm’s employee base. For the remaining employees, increments and promotions had been deferred by one quarter.
Indian IT Industry Facing Decline
With India being a major contributor to worldwide IT services, a decline of close to 4% in global IT spends is bound to have an impact on India as well.
Not taking India’s own IT sector into account, at the estimated rate of decline, India stands to lose over $5 billion in IT services exports itself.
While the actual impact of COVID-19 on India market will be evident by middle of 2020, we expect a slowdown in terms of discretionary IT spending, contract renewals and new deals getting signed as enterprises recalibrate by cost structure in coming months.
With alarming projections showing what it may cost the world in the long run, it remains to be seen how global IT majors such as TCS, Cognizant, Infosys, Wipro and other stakeholders in the industry innovate and readjust to new economic parameters in order to weather the storm.