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June 29, 2012

IBM to give raises to India employees, but while holding back in U.S.

Here's a kind of interesting follow-up to the IBM news that Big Blue will not give raises to most its Global Technology Services (and possibly other units) employees.

A memo did go out about the lack of raises, though an IBM media person answered a question about it by saying raises would still be given to people with "High Demand Skills."
The Times of India (a very good newspaper that I often read) says that IBM will give its workers in India raises. That adds up to this equation - India = high demand skills.
Here's some from an article by Shilpa Phadnis & Sujit John:
IBM is likely to give a salary increment to its employees in India next month.

Ibm-india_mediumEarly on Thursday, international media reported about a mail that IBM had sent to employees, saying those in the Global Technology Services (GTS) division would not receive a salary increment this year. However, the mail also said people "who have high-demand skills" would receive an increment .

Sources within IBM India indicated that "high-demand skills" refers, among others, to employees in India . The sources said that the performance assessment exercise had been completed and increments were expected across the organization in India next month. IBM follows a July-June cycle. "For the best performers, the increment may be in double digits ," one source said.

IBM does not break up its headcount by geography, but it is estimated that the company employs over 1.3 lakh people (130,000) in India. The company has been an aggressive hirer in India for several years. With several Indian IT companies …  announcing salary increments  earlier this year, it may be difficult for IBM not to follow suit.


At least IBM doesn't have to change initials "India Business Machines"

So "living in India" is considered a "high-demand skill" now? Good to know. I'll put it on my resume.

That's sad if true. Anyways do not go by that source(Time of India) of yours. Even we Indians don't take that newspaper seriously. It may be true but I'll wait for other newspapers (FirstPost or The Hindu etc) to confirm.

I'm sure the IBM managers are instructed that if people want a raise, they can go to Hitachi or Mayo.

No, not really. IBM would like nothing more than to slash the US payroll and fire everyone on the old pension plan.
They're not even trying to hide it anymore. They're begging for people to retire. I can't believe more companies aren't coming to Rochester and raiding their talent.

It does seem that IBM does everything possible to encourage people to quit. Then you have places like google and other tech places giving employees 100% coverage on health insurance and benefits for pets. Something is seriously wrong with IBM and it's a huge disappointment.

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