Bonuses, promotions back in IT sector

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After strong Q3 results, it is time for bonuses and promotions in the IT industry. Cognizant Technology Solutions said that it will pay bonuses to its employees for 2009. The IT major is also accelerating the next promotion cycle.  Meanwhile, TCS, which had come out with better than expected financial numbers on Friday is also going to pay higher than expected bonus. It will pay 150 per cent of the bonus component that is dictated by the company’s performance.

An email that was circulated to the employees on Monday quoted Mr Shankar Srinivasan, chief people officer, Cognizant and Mr Gordon Coburn, chief financial officer, Cognizant as saying, “We are accelerating the next promotion cycle to early 2010. For employees who are currently designated below manager, we will announce promotions in late April, which will be effective from May 1. We will conduct an additional promotion round for this group in late 2010. For managers and above, the company will announce promotions in June, which will be effective from July 1. We expect to promote a larger number of people than last year.”

The IT major has also announced that the 2009 bonus payouts, which it committed in 2009, would be distributed to employees in March 2010. “In recognition of our 2009 performance, we will conduct an accelerated company-wide pay revision cycle to be effective at the same time as the promotion cycles in May and July,” the company said. “We will conduct market analyses to determine the scale of the revisions, taking into account overall market conditions, our revenue plans, and our clients spending patterns,” it added.

Meanwhile, Tata Consultancy Services (TCS) will pay its employees 150 per cent of the performance bonus for the third quarter. TCS has a two part bonus structure — one depends upon the employees performance while the other is dictated by the company’s performance. It will be paying 150 per cent of the component dictated by company performance, sources said. TCS had paid out a similar bonus for the second quarter as well.

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