Wipro's Rishad Premji calls moonlighting by employees 'cheating'
1 min read . Updated: 21 Aug 2022, 01:07 PM IST
Premium- Azim Premji's statement has come as Wipro has decided to hold back the variable pay of its mid and senior-level executives for the June quarter due to pressure on operating margins.
Wipro chairman Rishad Premji has called moonlighting practice in the tech industry 'cheating'. The former Nasscom chairperson expressed his views on Twitter regarding the growing trend of moonlighting- a concept of a second job, typically secretly, in addition to regular employment.
Premji tweeted, "There is a lot of chatter about people moonlighting in the tech industry. This is cheating - plain and simple".
Premji's statement has come as Wipro has decided to hold back the variable pay of its mid and senior-level executives for the June quarter due to pressure on operating margins.
Recently, sources told PTI news agency that managers to the C-suite Level of the company will not get any portion of variable pay. Whereas, employee grades between freshers to team leaders will get 70% of the total variable pay.
Inefficiency in talent supply, pressure on margins, and inefficiency in investment in technology are some of the reasons the company has not released variable pay, sources told the agency.
"The company in the email has attributed lower margins in the first quarter due to inefficiency in its talent supply chain, project margins and investment in talent, technology, and solution during the quarter," according to the PTI news agency's sources.
In the first quarter of the current fiscal year, Wipro reported about a 21% year-on-year fall in its consolidated net profit to ₹2,563.6 crore.
The net profit was down 20.6% on a year-on-year basis.
Wipro's operating margin in the IT services segment decreased by 200 basis points to 15% quarter-on-quarter.
However, the IT giant registered a marginally lower attrition rate of 23.3% in the April-June 2022 quarter (on a trailing twelve-month basis) from 23.8% recorded in the previous quarter.
