Hexaware puts 350 employees on 'virtual bench'

To control costs and increase the utilisation rate, Hexaware Technologies, a mid-cap IT & BPO services and consulting firm, has announced the formation of a “virtual bench” of 350 employees. The step comes on the heels of a similar announcement by Mastek, a Mumbai-based IT firm.

Hexaware will also cut salaries in the range of 2-10 per cent, effective from April, for employees above a certain level. The company, however, said that 40 per cent of its employees would be unaffected.

The employees on the “virtual bench” will get a compensation equivalent to 50 per cent of their basic salary. These employees would continue to receive retirals (provident fund and gratuity) and hospitalisation insurance and life cover and their service continuity would be protected, said the company. These employees would be given time off to improve their skills and get re-trained, it added. Hexaware will also offer re-skilling and training opportunities for these employees.

“We will strengthen our competencies and continue to work towards building a stronger revenue stream given the current market environment. We are also maintaining a significant focus on improving operational efficiencies, enhancing productivity, increasing utilisation and implementing multiple cost rationalisation initiatives,” said PR Chandrasekar, CEO and vice-chairman, Hexaware Technologies.

After declaring its second-quarter results for calendar year 2008, the company had said that it would not hire for the next two quarters (July-September and October-December). For the year-ended December 31, 2008, the company saw a reduction of 1,446 employees.