Due to recession in the US, Indian IT services companies having big market in North American are trying to cut the onsite allowances of employees deployed at clients’ offices abroad by 25 to 30 per cent for the next quarter. Now top Indian IT service providers like TCS, Infosys and Wipro have launched independent studies to arrive at the revised daily rate of payment for onsite employees in a bid to cut costs. This move follows IT majors like IBM, TCS and Yahoo laying off their employees for their poor performance in the company.
Normally IT companies deposit the basic salary into the employees’ account in India and pay in foregin currency for their daily expenses. For example, Infosys pays $45 per day currently to its onsite employees. Now Infosys is planning this to reduce it to $35 per day. I think after all these changes, onsite opportunities will not be attractive anymore. Wipro has now started hiring more local talent at client locations to reduce deployment of staff from India for onsite assignments. Foreign IT services companies operating in India too are planning to reduce their onsite rate. For instance, Logica CMG is going to cut the per day compensation by 30 per cent at onsite locations of Netherlands, Belgium and the UK.
Actually onsite employees in Europe or Japan earn more (in terms of the rupee value of the daily allowance), as compared to that of US so Indian software companies are trying to to reduce their dependence on the US market by exploring the market of Japan, European nations, Australia etc. This is good move for Indian economy, as it will definitely reduce our dependency on US market. So dear software engineer, if you are waiting for onsite call, then believe me it will not be as lucrative as of your past onsite assignments.