Satyam buyout: Job & pay cuts bother staff

HYDERABAD: The search for a new buyer for Satyam Computer Services by the government-nominated board has evoked mixed reactions from the employees of the firm. Though the prospect of a new owner for the fraudstruck firm came as manna from heaven for the employees - numberring over 46,600 - they are wary about the change in policies that may follow once the sale goes through.

While a cross-section of Satyam’s associates preferred an Indian company to acquire the beleaguered firm, others held a concerted view that a multinational corporation (MNC) would be able to restore confidence faster among clients and investors.

“There are close to 8,000 employees on bench at any given point in the organisation. If a domestic player takes over Satyam, the chances of retaining these employees are higher. An MNC may not wish to absorb all of them, especially when the IT industry is going through a lean phase,” said an employee on conditions of anonymity.

On the flip-side, other associates, who ETspoke to, reckon that international firms of repute, which have been on the look-out for a stake in Satyam, could help Satyam wriggle of the crisis it is battling.

“Satyam has a large number of overseas clients. So, if an international PE or IT firm buys Satyam, it would help restore confidence among investors and also add on new clients,” said another concerned Satyamite.

But with staff motivation in workplaces across the global IT sector hitting the rock bottom, job security is a major concern over salary cuts and lay-offs , and there are no two views among Satyamites on this score.

“We have crossed our fingers now. A new buyer may come with a set of policies , which may not be associate friendly , keeping in mind the current global downturn. We are dreading further job and salary cuts,” said an employee. For the perplexed employees, the issue was not about who the buyer would be; it was about their job security.

“If the associates decide to move out, they should be prepared to settle for a smaller pay packages, may be up to 20-30% lower, as fewer new jobs are expected to be there in the current market scenario,” said headhunters.

But the news of a new owner comes as a ray of hope for the scores of employees, who have been awaiting a positive move after their founder B Ramalinga Raju confessed to perpetrating a Rs 7,000-crore fraud. They foresee the company moving in the right direction. While there will be many changes including the name, employees have to be prepared for the same. “Within six months of taking over, things should be better,” said another employee riding high on optimism.