About Me

My photo
A travel n gadget freak and @ the same time I try and make some Sense in the #Sensex

Tuesday, March 17, 2009

How Infosys is cutting costs

Source Rediff.com

Grappling with falling sales and a dropping bottom line, companies have had no alternate but to put cost-cutting measures in place.

Here are some of the measures that one of India's most valued, and most respected companies, Infosys Technologies, has implemented.


Save $10 - It is asking all its employees to go in for a one-time cost savings of $10 each. This initiative is expected to help the company, which has over 100,000 people on its rolls, log in a cost saving of $1 million (around Rs 5 crore).

An internal mail from the company's CEO and MD S (Kris) Gopalakrishnan to the employees said, 'If each one of us is able to identify a savings of even $10 -- not just per day or per month -- but $10 as a one-time effort from each one of us, that would translate to a saving of close to $1,000,000. I urge each one of you as a key stakeholder of the company's success.


Log in on time - It recently announced an initiative as per which if an employee reaches office before 8 am throughout a month, he will get a cash award of about Rs 500.


The move is aimed at increased utilisation of its transport services and to beat the traffic, which will result in higher productivity for the company. The company operates several buses to transport its employees. This is to make sure that the buses are full. 

Discretionary spend slowdown - Discretionary expenses have been drastically reduced across the company. The Infosys senior management and board members have already offered to cut down their discretionary spends.


Travel economy - Infosys has asked its staff to travel on an economy-class ticket if the flying time is less than four hours.

Chief mentor Narayan Murthy recently flew to Sri Lanka, and he flew economy.


Variable pay cut - It is looking at slashing the variable pay component of its employees' salaries.


Time for a sabbatical? - Employees have been issued letters stating they could opt for a one-year sabbatical to engage themselves in philanthropic activities. They would continue to draw 50 per cent of their salary during the period.


Smaller pay hike - Employees may get pay hikes below 10 per cent this year


Ideas, anyone? - Infosys has set up a portal where employees can submit ideas that could range from ensuring all computers and lights are switched off at the end of the day to bigger business ideas which could be incubated.

So far the company has apparently received over 1000 such ideas which it is in the process of evaluating.




 

0 Comments:

Post a Comment