Real estate market will feel the heat...
MUMBAI: As he winds up a chat session with friends at the local pub
on the weekend, 24-year-old software professional Vijay Shankar
emerges poorer by Rs 2,000 just this week. Youngsters like him have
seen their careers and pay packets skyrocket in recent years and have
amply fed the consumer-driven economic boom.
This year, however, they may just be going slow. Concerns over fall in
demand in the world's largest technology market, the US, have forced
Indian outsourcing companies to save every cent possible, even if it
means cutting variable pay to employees and hiring less robustly than
before. Therefore, the consumer class represented by the two million
outsourcing workers in the country say they are whittling down their
expectations and spending plans accordingly.
Vijay Shankar (name changed) has seen his employer, TCS, reducing the
variable component of his salary for a quarter, and smaller companies
following suit. This has left him feeling his Rs 2,000 entertainment
purse is perhaps too lavish. "I do not expect to continue spending
such high amounts for long. The company just cut our variable pay by
1.5% and I expect that the salary structures are in for a change in
the coming six to eight months. Even new job offers are not offering
as much salary increases as there were two to three years ago," he
says.
FROM ET
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