With Rupee appreciating a whole 13 percent against Dollar in recent time IT companies margins have got squeezed and realizations in dollar are reaching all time low. Hense the companies have to come up with alternate strategies to reduce the burden. Add to all this the talks of impending US recession and you get a situation which is well difficult to handle for Indian IT comapanies like TCS which are mostly dependent on Exports for their Earnings.
The steps the compainies are taking is to tweak with Employee Productivity and wages. Compared to last couple of year increase in wages of about 15% across the board, this year only 7-8% increase in the wages are expected. Also companies will be hiring less and taking the productivity increase route to maintain the same levels of service.
Best of Luck Indian IT companies.