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Hexaware to cut pay by 2-10%

Source : REUTERS
Last Updated: Tue, Mar 17, 2009 06:17 hrs

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Mumbai: Hexaware Technologies Ltd on Wednesday said it will bench 350 employees, paying them 50 per cent of their basic salary, and will cut pay by 2-10 per cent for employees above certain levels to help control costs.

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The staff who will be moved to the virtual bench are those that are not currently on any project, Hexaware said in a stock exchange release.

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It added that the benched staff will continue to remain on the payrolls and will be given time off to improve their skills.

About 40 per cent of all Hexaware's employees will be unaffected by the pay cut, which becomes effective in April.

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The measures will not affect employees at the entry level or those with less than or up to three years of offshore experience, the software and back-office services provider said.

The company will continue to work towards strengthening its revenue stream, said Chief Executive Officer and Vice Chairman PR Chandrasekar said.

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"Given the current market environment, we are also maintaining a significant focus on improving operational efficiencies, enhancing productivity, increasing utilization and implementing multiple cost rationalization initiatives," he added.

A recession in the United States, which contributes about three-fifths of Hexaware's revenue, and the ongoing global economic downturn has roiled Indian tech firms, forcing them to take several steps to rationalise costs.

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Last month, Mastek Ltd benched about 425 of its employees, giving them the option of either leaving immediately with compensation or staying for not more than one year, on a monthly allowance.

At 12:03 p.m., Hexaware shares were trading 0.4 per cent higher at 25 rupees in a Mumbai market trading down 0.2 per cent.

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