India Inc To Step Up VRS In Coming Quarters: Experts

NEW DELHI: Faced with rapid fluctuations in business cycle and looking to optimise costs, Indian companies are likely to press further with the Voluntary Retirement Schemes in the coming quarters, say experts.

The implementation of VRS has been most noticed among the electronics, drugs and pharmaceuticals, pesticides and chemicals as well steel and textiles industry, according to research by MANCER Consulting.

The VRS has been mostly offered to cut costs in wake of economic slowdown, the experts said.

Over the last few months, Ashok Leyland, Nokia, Tata Motors are among the firms that have offered VRS to its employees.

"Companies in sectors that are vulnerable to business fluctuations are investing in VRS as a part of their restructuring strategy and as an alternative to pay cuts and mass layoffs, to reduce the operating expenses in their businesses," Randstad India CEO Moorthy K Uppaluri said.

"We observe that, compared to a decade ago, VRS have gained momentum today due to frequent business cycle fluctuations and subsequent operational measures to optimise costs," Uppaluri said, adding that the trend would continue to pick up "till the business growth stabilises over the next few quarters,".
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