Trump effect: Tech Mahindra suspends appraisal cycle for senior employees

New Delhi: The Indian IT industry facing headwinds of uncertainty triggered by H1B visa issues and rising costs appears to have started showing visible signs. 

Tech Mahindra, Pune- headquartered tech company of Manhindra Group has suspended the annual appraisal cycle of employees with more than six years of experience. The suspension, however, is pending management review.

The Economic Times, quoting Tech Mahindra employees reported that the company's COO L. Ravichandran made the announcement on Friday during a webinar.

The employees who are unlikely to see any wage revision with all other employees who will get a salary hike effective July, may have to wait for at least two quarters before expecting any hike.

“We thought the wage increases would be very bad but we did not expect this. At least there are no large scale layoffs so far. That was also a worry,” a TechM employee who was on the webinar told ET.

“This decision is not related to our performance in the third quarter. This was an item of discussion and once there is a management review, the employees will be informed,” a TechM spokesperson told ET.

The forthcoming H1B visa reforms in the US industry are likely to up the visa cost of Indian IT firms.One way of cutting costs can be to trim the flab of salaries-cost of experienced employees and focus on fresh talent.