IIFL has recommended a reduce rating on Wipro with a target price of Rs 215 in its April 08, 2009 research report.
“Indian IT services firms are going on a cost-cutting overdrive. Our channel checks indicate that, at Wipro, employees on the ‘chronic’ bench face significant pay cuts. For those who haven’t been billed for 60 to 90 days, pay cuts could be as high as 50-80%. While bottom performers would be provided ‘outplacement’ services, management is keen to retain talented employees who have been displaced because of the challenging environment and are unable to find opportunities in the near term. Among other things, such employees can either go on loss-of pay leaves at 20% of their pay or work for only two days a week at 50% of their current pay.”Reduce” target price of Rs 215,” says IIFL’s research report.
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