US slowdown trickles over to India

Trouble in the US economy has started trickling down to India. This has prompted individuals to think seriously about the future. This particularly applies to those who had a good run in the Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) industries with US-based customers. For them and others, it is time to think about financial security. Here are some tips to sail through the tough times.
The slowdown may worsen prospects of smaller firms with shallow pockets. Unlike large organisations, such enterprises have smaller balance sheets are more susceptible to a slowdown. If you are considering switching to a start-up, think twice before taking any step and take only calculated risks. Large organisations, in most cases, offer financial security. Further, there are some qualitative benefits that you enjoy such as better terms while borrowing from banks and other financial institutions, which may come in handy during tough times. A word of caution: large institutions do fail; albeit less frequently.
As the level of uncertainty goes up in the US, there are some businesses that might get directly affected. On the other hand, there are some businesses that might flourish as outsourcing increases. If you feel, in current scenario, it is risky to work with a firm wherein your work is primarily US-centric, it makes sense to shift to another firm where work is India centric. “Employees who are working on the US non-voice processes may consider other options as jobs in Indian companies are posting healthy growth,” said the HR head of an Indian BPO player. “This is especially true for technical services/operations jobs in telecom and insurance,” he added. However, be prepared for a scenario wherein you may have to accept a pay cut. Always remember that job security is very important.
If you manage to get into a ‘safer’ employment option, make sure you look at the offered salary structure in detail. Don’t be content with the overall package. For instance, most of the large employers are introducing compensation packages which have a component called target variable pay (TVP). TVP is given at the end of every year taking into account an employee’s performance, departmental performance and profits earned by the company. So, the amount mentioned in the offer letter is not precise and, in most cases, falls short of what is indicated. In turbulent times, this gap between the actual pay package and the one you receive at the end of the month may widen and you may end up getting a lower amount than what you are expecting.
Similarly, employee stock options programmes (ESOP) have rewarded many employees, especially those working in financial and IT sectors. However, if the stock market remains weak, ESOPs are to be seen with utmost caution. There are many companies where the employees are saddled with stock options where the current stock price is quite low. If you are the kind who don’t like taking risks, ESOPs can best be avoided. Adapt as the situation demands Identify the trends in the job market quickly. Currently, the ITES sector is facing problems. However, given the economic growth and development, there is a boom in industries like training. Those who are working as trainers in ITES sector on voice processes may consider assignment-based work with ‘training entities’ here in India. It is better to start with occasional assignments before you consider a shift to full time engagement, as it may help to understand the dynamics of the business in a better way.
In times of cost cutting, companies are keen to retain those employees who are good at multiple roles. Investing in yourself by enrolling for skill upgradation workshops or short courses may hold you up in the eyes of your employers as you are seen as a better player as compared to others. However, you must first understand what the employer actually requires. Identify the ‘marketable traits’ in you that may earn you the extra income when you are employed. In case of job loss, such extra activities may come to your rescue.