Friday, March 17, 2006

Medieval policies of Indian Bodyshopping companies

Barring money and fear, I feel there is no motivation for a consultant to work for a software bodyshopping company. One finds a lot of companies in India who lack the ability to bag independent projects getting into bodyshopping. This trend is definitely disturbing as this tends to bring down the quality of work of consultants who lack the motivation of doing actual good work. My advice to companies hiring consultants from bodyshopping companies is: ‘one cannot win a war by hiring mercenaries’.

Most top Indian software companies continue with this sad practice of bodyshopping, which though earns them a fair amount of revenue, is however detrimental to the growth of the company in the long run. Most of these bodyshopping companies typically apply the old trick of carrot and stick policy. On one hand the consultant would be promised the moon, and on the other hand they would force the consultant to sign on all sorts of illegal 'legal' documents, so as to ensure that the consultant does not leave the organization. A couple of weeks back a friend of mine working for a shady bodyshopping company wished to leave the organization. From the moment he put in his papers, his life became a living hell. The company threatened him of legal action and refused to relieve him. Only when this poor chap paid the employer an astronomical sum (his last 6 months salary) did the company release him. This sad situation is nothing very unique to small companies. Many medium and big scale Indian software companies adopt this policy. Sadly most software consultants do not have the time or the money to fight legal battles with organizations.

The problem stems from the fact that in India almost all companies insist on the relieving letter of previous employer as a necessary document, without which the person will not be eligible for employment. If this document is not made mandatory then consultants will not be at the mercy of such cheating organizations. However as most of the recruiting organizations themselves indulge in bodyshopping, one cannot expect any dramatic changes in recruitment policies. I feel NASSCOM and Govt. of India should come down heavily on organizations who ask employees to sign bonds (usually these bonds are like, if a consultant leaves the organization before a said period of 18 months, sometime 3 years then he/she has to pay a very high bond amount in order to get relieved from the organization). Also sometimes these organizations would ask the consultant to attend a training and post that would force the consultant to sign such bonds, in which case if a consultant leaves the organization, he/she has to shell out a huge sum as training expenses in order to get relieved. And the worst kinds of bonds that consultants’ sign, are those when they go out of India on a work permit to some other country. The bodyshopping companies ask consultants going to work in other countries, to sign bonds which restrict them from seeking employment elsewhere, and per chance if they plan to leave then they need to pay astronomical sums to get relieved from the organization.

Hopefully Indian organizations will arise from their medieval mindsets and become more employee-friendly and gather their own self respect and the respect of future and existing employees.

21 comments:

Anonymous said...

TCS IS ONE SUCH ORGANIZATION ... THEY STILL WANT EVERY PEOPLE (INCLUDING THOSE WHO HAVE SPENT A DECADE WITH THEM) TO SIGN AN OVERSEAS BOND OF SAME NATURE WRITTEN HERE

Krishanu Bose said...

As far as my understanding goes there is no sanctity of such a bond in the court of law. This is supposed to act only as a deterrent and not to be acted upon by the organization in case someone leaves the organization and refuses to pay the bond amount.

Anonymous said...

We are brought up in a Society where from the childhood we are taught not to believe anyone. This Bond concept stems from that. Moreover when someone steps into US from India his/her goal is to make it into a success here. Nobody wants to jeopardize that American dream and majority of us will take anything from anyone to make that happen. Most of these repulsive practices are quite common in India and the Employers try to replicate them here in US as well and most of Us take it without a whimper. Nobody wants to take the risk of antagonizing the Boss and therein lies the problem. It is a Catch 22 situation, I guess.

Krishanu Bose said...

I think things in India are changing quite fast. As the average Indian salary of software professionals increases, the lure of fast money in US will reduce, which in turn will curb this bad practice of bonds by thier employers, as fewer people would be interested to work in the US.

Anonymous said...

I too facing same issue.

I Joined Polaris in India (it was for on-site employment), and during joining no one asked me to sign on any legal documents. Neither in offer nor in appointment letter mentioned about any bond. After joining when I was ready to fly overseas(Singapore) they asked me to sign a agreement on Rs.20/-stamp paper for 18 months period and If I break the same, I have to pay Rs.2L+12%Interest. There is no agreement from the employer if they want to terminate me.

Although I served the Company for 17 and half months and it was just 14 days left I resigned company with notice period of more then 30days (as per appointment).

To date almost 2 month is over from my Last working day, the thousand phone calls and eMails that I have sent to them for amicably settlement, have not yielded in anything, meaning, they simply refuse to give me the final settlement amount (around 6000$)and the relieving letter.

Ashok

Krishanu Bose said...

I think you should approach the court and send a legal notice to your previous employer for the relieving letter and pending dues. I feel you did a mistake by signing on the bond. You should have refused the first time itself. Anyways, you should not delay things any further, instead take legal help. Most employers are bit scared when it comes to legal issues as this will spoil their image regarding their HR policies. Also, keep a copy of all such email transactions which you sent requesting for reliving from the organisation and reminder emails for the relieving letter.

Anonymous said...

The sad reality is that organizations are forced to adopt such measures due to the poor ethics to todays IT professionals. Most are ready to prostitute their services for an extra buck. Hopping a job a year has become a common practise to chase higher and higher salaries.

Its pathetic and todays IT employees ignore the investments their organizations make in them only to persue their own vested interests for a few bucks more.

No wonder that todays IT companies in India are forced to resort to such tactics to force retention.

Krishanu Bose said...

I don't agree to the fact that you need to sign bonds to retain people. Its a very unfortunate and regressive method of retaining employees.
The HR implementors should look at the needs of employees before framing them. I personally belive a lot in Fredrick Herzberg's motivational theory. If the organisation is able to provide the emplyees with adequate motivators like achievement, recognition, work itself, responsibility, advancement, personal growth, etc then i feel then the attrition rate of the organisation would definitely see a downward trend. The problem is that most IT/ITES organisations do spend enough on HR, and even less in doing research on policies peculiar to this industry. Hopefully things will change with time and organisatins would spend morte on developing better polices to retain employees.

Anonymous said...

I agree with this blog. But does anyone know how much legal those bonds are ? I worked for TCS for 3 years and I was screwed left right and center and finally one day I left in US itself. I have received a letter from a Law firm which I declined.

I received another letter from the HR from India. I declined.

What actions can they take ?

Does anybody know about that? Should I contact a lawyer in India.

They are asking for 15000 $ (almost the money which they have given as salary back).

Anonymous said...

Evene in Kochi, Kerala, some companies are doing the same. Even after completing the bond period if we give notice for one month, they start to harass employee by giving unfinished task, late night assignments etc. etc. and will warn hime you have to finish all these before leave....Most sad part is nobody is here to help these peoples...(including me.) !!!

Anonymous said...

15,000 $ for breaking the bond..thats ridiculous...Is the bond valid in india ?...What kind of trouble they could cause?...

Anonymous said...

There are frequent cases when employers (software cos.) do not hold to agreements.

NASSCOM should also take care of such cases and MUST have even black listed cos. There are big cos. in this category.

Anonymous said...

Indian software cos. are live examples of poor ethics. I think the attrition problem is generated by casual and short term vision of cos./ HRMS people

Funny agreements (all formats by cos.only) and cos. themselves not holding.

And what to say about unilateral revision of terms after joining, like notice period changed, etc.!!

Anonymous said...

I am currently in US with Syntel after signing a bond for two years or 12500 USD. I have been here only 10 months and I am planning to leave my company. Can anyone please let me know what possible action the company can take against me. I wuld really appreciate your help. Please someone help me.

Anonymous said...

Hi,
i im a B.E.Computer Engg. From Mumbai.
i was working for an PVT.LTD. software company.After joining a company they tell me to sign a bond of 3 months notification.But at the time of interview they did not tell me aboute this.I had leaved my first company so i did'nt had an option so i signed the bond.But now because of work pressure i left the company
withoute any notice .3 months over they send me mail that i have to pay Rs 1.5Lacs within 10 days else they will take legal action.i don't know what should i do?
my salary was 10,000Rs permonth.
Can anyone please help me?

Krishanu Bose said...

Usually its tough for the company to take any legal action. Maximum they will send you a legal notice for making the bond payment. However, if you have proof of harassnent, overwork, etc, you can always fight back. So, keep all such documents with you, which will help you in fighting the legal case in case you need to. I would suggest you can take the advice of a legal advisor who will be able to guide you on this matter.

Anonymous said...

Hi,
Whoever put this comment, "September 08, 2007 12:08 PM, Anonymous said... "


Please do not panic looking at the legal notice. All you need to do is try and take as much documents as possible to prove harassment/ overwork/ any form of stress that was put upon you during your work tenure. And also the legal notice that you have recieved, should be responded to. You need to consult your lawyer who will do the needful in this matter. No company who cares for its reputation will take you to court, but if they do, then you must have your documentation ready. Also, note that Indian courts are labor-friendly to begin with. And dont get worried because of the legal case. This is something which will come up favorably in your side.
Best of luck

Anonymous said...

Friends,

Most H1B workers are unaware of their rights and are thus exploited. Under DOL guideleines, not paying on bench and charging for H1B fee is illegal.I am providing you list of all DOL cases in the link below

http://www.oalj.dol.gov/PUBLIC/INA/REFERENCES/CASELISTS/LCA_DECISIONS.HTM

It will be great if you can promote this DOL link so that poor workers have better understanding of their rights and can feel encouraged to file complaint with DOL if needed.

Thanks

Krishanu Bose said...

Thanks for the link giving list of all DOL cases. I can only hope that people are more aware of their rights.

Anonymous said...

FORGET THE IT COMPANIES, EVEN LEADING HOSPITALS IN INDIA BOND STAFFS FOR UPTO 3 YEARS AND NOT EVEN A MATERNITY LEAVE IS GIVEN UNTIL THIS 3 YEARS ARE OVER.IF THE BOND IS BROKEN LUMP SUM AMOUNT IS TO BE GIVEN AND ALSO ALL THE CERTIFICATES OF THE EMPLOYEE IS KEPT IN THEIR CUSTODY TILL THE ENTIRE DEAL IS SORTED OUT.THE NAME OF SCH HOSPITALS WILL BE REVELEAD IN THE DAYS TO COME

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Krishanu's Oracle Applications Blog - Oracle Apps consulting services scenario in India. Also, an inside view of Oracle Apps outsource services in India. Also the blog features new developments in Oracle Apps and my learning's in this field. The views expressed are my own only and not of my employer Wipro Technologies. The views and opinions expressed by visitors to this blog are theirs and do not necessarily reflect mine.