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Infosys exhorts employees to go on 1-yr sabbatical, work for NGOs
Bibhu Ranjan Mishra & Leslie D`Monte / Bangalore/new Delhi November 15, 2008, 0:17 IST

India’s second-largest information technlogy services provider, Infosys Technologies, has issued letters to its employees 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. Infosys crossed the 100,000-employee mark in India in the quarter ended September 30, 2008.

 
 
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The company said that while the move may have coincided with the global financial turmoil and slowing growth rates of IT firms, it should be perceived as a pure voluntary act by employees who are prompted by altruistic motives and inspired by the example of its chairman and chief mentor, NR Narayana Murthy.

The employees, an internal memo said, need to be on the company rolls for at least two consecutive years before they are eligible for the offer and a panel comprising senior members of the Infosys leadership team will decide each case. “This policy will promote volunteerism among employees and we believe that the value and benefits arising from it will have an impact on community, the employees and ultimately, the company,” it said.

Sources said that the policy came into force only a few days back and the company is working out the finer points like whether the employees will be given any salary or emolument during the sabbatical. However, it is understood that the company is planning to pay some amount of the salary, while the rest the employees can earn from the NGO they are working for.

An Infosys spokesperson confirmed the development: “We introduced this policy almost two months back, which allows the employees to go on up to one year of sabbatical to engage in philanthropic activities. All the employees have been communicated the policy internally.” When asked how much the employees will be paid during that time, the spokesperson said they will be given 50 per cent of the salary, while the other half will be given by the respective NGOs they work with.

“It’s a part of Narayana Murthy’s desire to give back to the society, which is driven by the fact that many employees quit their jobs to pursue philanthropic activities. This would give such employees an option to pursue their hobby while still continuing with the jobs, even if they will be paid a small amount by the company. The employees can go out with a cut in their salaries, even though the final details are being worked out by the company,” a source close to the development told Business Standard.

Infosys has a good deal of exposure to the sectors which have been worst hit by the current global economic meltdown such as banking and financial services, telecom and retail. In the last quarter, the company had announced that some of its clients in their sectors are coming back to re-negotiate. In a recent report, brokerage house CLSA had forecast that Infosys might miss its dollar revenue guidance for the third quarter, and may even post a sequential fall in the quarter.

The CLSA report also acknowledged that the flow of IT deals from the BFSI segment has “worsened substantially” and that long-term deals are being offered on “very tough terms”, thus putting pricing under serious threat as customers play one vendor against the other.

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Observer on 07-JAN-09
In the last few weeks, Infosys has been systematically laying off many American workers. These same workers had helped Infosys grew their businesses rapidly in the last eight years. The laid-off has been done in tranches to avoid negative publicity in the US. The US government should look into the mistreatment of US workers by this off-shoring company. Infosys has lost its soul and no longer look at the interests and welfare of its employees.
Sona on 10-DEC-08
Clever move? During this recession period?
VISHAL on 04-DEC-08
These kind of decisions taken by Infosys clearly shows the dfference in the level of thinking which Infosys has as compared to any other company.Its a great initiative and in the interest of everybody. For those who feel that this is a clever move for layoffs and bla bla bla.I guess have never worked in a great company u wont understand that for a company like Infy its not all about the company but also about what difference the company makes for its employees, society and the nation
Ramesh on 27-NOV-08
I am at present working in an NGO. Infosys has provived an opportunity for its employees to see the real world. The Life they enjoy is not the life of Indians. When they go to villages, they will see the plight of people living there. A whole hearted effort by a real social worker can change bring changes. Thats the change India wants
SP on 26-NOV-08
Good encouragment for Employees to work for a social cause. The explicit support from company in terms of 50% salary would help many go out and give back to the society. TCS also has a similar policy where they allow employees to go for teaching assignments in colleges & schools, work with NGOs. HP, IBM also offer channels for their employees to participate with NGOs. Media should try and showcase such instances of Corporate Sustainability
raj on 26-NOV-08
Amazing Policy ! go and persue Higher studies... Hats off to the CEO of Infosys !
S.B. on 25-NOV-08
Will you all people react the same way had this offer not coincided with the recession and lay offs? I think it is a noble gesture and a deep desire to give back to the society by the Infy management that has prompted it. If you cant live with 50% salary [with the amt you are drawing] think of those people who are drawing much lesser than that as 100% salary. You need to go and experience how majority of your brethern live in our country. Have the guts to try??
nageshji on 24-NOV-08
if 50% salary is calcualted from basic salary, that wud become 20%. They should get 50% from takehome then this approch wud be fine.
swamy on 22-NOV-08
Fishy approach, in india no one will opt to take sabbatical leave, and they cant live just getting 50% of basic sal, (i hope the other allowances are for working people only), Infosys will find some people and force them to take leave. Laying off people in a new approach, will infosys allow people to take sabbatical leave who are working in US paying 50% of USD?
observer on 20-NOV-08
I guess 50% salary implies 50% of basic component of the salary?Can some one check out the policy details?
Anonymous on 20-NOV-08
People crib about anything and like digging holes. This is a brilliant move which nobody could think of before. See the positives, poor souls. (I myself work for Infy for no less than 7 years and anytime ready to go for this.)
DakshaDesai on 19-NOV-08
Superb...! It is a wonderful idea.Hats off to all whose brain child is this idea.
SudarsanEdagotti on 19-NOV-08
It is great move in such a bad economic problems. Great people will follow great ideas.. that is Infosys Leadership team...
sundar on 18-NOV-08
Even I am not an employee of Infosys I have a great respect for them.This is not a lay-off.Infosys basics are strong.Even during y2k problem Infosys is the only company that has not laid-off of its employees.Infosys leads the way and let others follow.
mct on 18-NOV-08
It is purely due to recession, a clever approach of infy management, they thought it is better to give 50% than giving 100% and also by doing so they can maintain their reputation of not doing layoff.
Himasagar on 18-NOV-08
It is very good idea from the management of Infosys, Excellent approach. All the companies should follow this policy.
Mak on 18-NOV-08
Even if some might say it is because of recession.. So what ? Its better than laying off.. I wud say a very well thought of move by Infosys.
Anonymous on 18-NOV-08
This is awesome. I myself work for infosys and I am proud of Infy for this move.
Urvi on 18-NOV-08
Please keep in mind that this is not like firing. It is not enforced by anyone..this will be totally employees choice.
Nikhil on 18-NOV-08
As much as this is philanthropic, this should also be viewed as an integral part of competency building for IT leaders. It has to be viewed as an opportunity where professionals get to rediscover themselves along with an entreprenurial spirit. Indian IT industry needs fresh perspectives if it has to keep the growth momentum for next decade. It is high time that IT professionals get to learn best practices from other industry and apply it back to IT.
Ram on 17-NOV-08
This is an amazing move. For once, hats off. Irrespective of the reasons, this is a wonderful move.
Darshil on 17-NOV-08
Excellent. I think all companies should follow this policy.
Pradeep on 17-NOV-08
People might criticised about the timing of this move by Infosys in this economic slowdown, but I think its a noble thought to help communities.
AHP on 16-NOV-08
this shows that how Infosys is week in there code of conducts, by this type of plans in future smart people will not join.
NA on 16-NOV-08
Wrong...they fired employees indirectly. No one can stay alive with 50% SAL
vj on 15-NOV-08
why now ?all these days when their profits were soaring they didnt think of this,if its a coincidence then this should even continue during the good times and bad times as well
Amit on 15-NOV-08
How the philanthropy has raised its head in time of recession? Very clever indeed for Murthy. Infosys too can do some charity on its part and not ask State Govts. to give it land for free or at a nominal cost.
dhavalshah on 15-NOV-08
a brilliant move.. it clearly shows thought leadership of infosys management and an example which western companies should follow
VN on 15-NOV-08
This is one more way to say that business prospects for Infosys is dull. As long as they have media support, they can do all this drama and still earn mileage out of it.
Dass on 15-NOV-08
I would not say this initiative as a social responsibility of Infosys. It is purely a gimmick by Infosys. If it is a social cause Why did not they start before? I would deduce this to modern layoff. It could think in different ways to find a better way to confront this financial crisis.
SubbaramDanda on 15-NOV-08
This Infosys plan offers an employee 100% spiritual contentment for 50% quantum of solace !!
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