Effects of the Financial Crisis on the IT industry

The credit crunch which has now turned in to a full blown recession in the United States is going to have a serious consequences on the Indian IT industry. You can already see some of the changes through the industry

1. Staggered joining dates for freshers. Freshers who normally join IT companies in the July - September period after graduation have had their joining dates pushed back to Feb and March, which might get pushed further back.

2. Reduction of the variable components in Salaries. Most companies have a variable component in the Employee salaries that is dependent on Company performance and on individual targets for higher level employees. With a reduction in growth of companies, few would be able to achieve growth targets hence Employees are going to take away a small pay check over the next two-three quarters.

3. Reduction in bench strength. With very few new projects in the offering, Companies have started to reduce the bench strength.

4. Reduction in Employee Perks like vacation air tickets being provided for onsite employees have been canceled now.

What effects have you seen in your company ??