TCS Cost Cutting: blocks Outgoing local calls from office extensions: Finance Trading Times

TCS Cost Cutting: blocks Outgoing local calls from office extensions

Another pinch for the IT engineers of Indian IT industry. There are rumors (and news) that IT major Tata Consultancy Services or TCS has blocked all outgoing calls (local calls included) from office extensions of the employees.
TCS Cost Cutting
TCS is considered to be a company in the Indian IT industry which has a spendthrift nature and goes for a severe level of cost cutting. This is another step by TCS which makes it the lead in such initiatives. Though there have been other companies (both MNC and local offshore units) which already have this kind of policy which does not allow outgoing calls from office extensions, but the move by TCS is the considerable given the big size of the company.

What is more surprising is that the telecom companies are reducing the calling rate day by day. A local outgoing call hardly costs 50 paisa per minute. Blocking local calls with such low cost may not be taken in good sense by the employees. However, from the company’s perspective, it may mean a lot of savings. Even if a typical employee makes on an average 2 calls per day for 2 minutes, then 2 Rs. per day for 22 working days in a month mean 44 Rs. saving per employee per month. This will translate to huge savings as TCS is having a big employee base.

Then there is always the case of misuse of facility by the employees. An office extension is provided for business reasons. IT engineers work on overseas projects, so they should hardly have any need to make local calls for business reasons. They end up using the company phone for personal use.

All in all, this move reflects the trend of how companies are going to the root level to cut every possible penny if they can. In January it was the news of TCS salary cuts, in Februray TCS fired employees citing non-performance and there was also news about onsite allowance cuts.
This latest development has added to the cost cutting efforts. It is learnt that this move has been implemented in Pune office, and will be replicated to other locations as well. Table of Contents
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6 Comments: Post your Comments

Manu said...(on 17 July 2008 at 23:56 )  

This has already been implemented in lots of offices. There are plenty of folks who made ISD calls to friends and relatives. Overall it is a good move by TCS to block calls as this eats up into profits which ultimately leads to salary cuts. So for the greatest good of the greatest number...this should have been done long ago!!

Anonymous said...(on 31 August 2008 at 22:48 )  

WOw... heights !!! I was with TCS before and was happy to leave that company. Tatas are for society not for employees. They forget that their employees are part of Society. The super dooper Unprofessional company which never respects employee's personal life and individuality. POLITICs at its heights here... Every matter is taken personally... ITs higher management needs to be given a professional training and should teach them what is MNC before calling themselves as MNC company.. They have a vison to become TOP 10 by 2010 for which they are saving these Paisas.... You know you need to start from single drops to fill a bucket... Enjoy... TCSers. I petty those who ae not looking for opportunities outside. They feel secured of getting salary cut and outgoings calls being barred... So called JOB SECURITY of Tata Consultancy Services....

Anonymous said...(on 9 October 2008 at 09:55 )  

Please put some Comment on Cost Cutting what we are facing Today in TCS..???

How much we affect from cost cutting ???

a) From JULY'08 onwards, We have to pay transport charge for cab also apart from TCS bus, even though the CAB charges goes from the PROJECT won.
b) Reduce Salary Hike.
c) Pending in Promotion.
d) Removing Computer Loans, Bike Loans. and so many from ESS.
e) No more pen.
f) Can't take more than one notepad at a time.
g) Always trying to put off the AC.
h) No more local calls from the TCS phone : no used of keeping the phone in every cubical, only one or 2 is enough for a ODC.

Anonymous said...(on 14 October 2008 at 13:49 )  

How does TCS have enough money to buy other companies but not give promotions to its employees ?

Recently our HR VP posted this message on ultimatix
"Considering the recent upheavals in the US Financial market that has had global impact on the financial sector, we feel it would be prudent to wait for clarity in the business environment before we take a decision on promotions. As a result, the promotions will not be effected in second quarter this year"
Today (8 Oct) TCS has purchased an arm of Citibank for $505 million.
How does TCS MGMT justify on having money to buy other companies but not give promotions to its own employees or does it imply that MGMT is just not bothered about its associates and their careers and aspirations ?

Anonymous said...(on 5 November 2008 at 08:26 )  

well said..as always TCS sucks big time..i pity those poor souls who stick with TCS...tcs is for losers..

an ex-tcs er

Anonymous said...(on 18 November 2008 at 03:45 )  

I agree with anonymous. TCS is one stingy guy when its comes to giving hikes and i level of cost-cutting, it can stoop to such low levels.
1) They took out toilet paper in my office.
2) No water refills on sat and sundays.
3) To raise a cab drop off request after 10:00PM we need the center heads approval (he escapes by 4:00PM)
4) They started giving blue colored plastic chairs as a stand by for seats!

Jesus ... if TCS ever starts a help me fund, i l gladly donate to th poor ol buggers.

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