The fate of some employees at the leading software companies is a bit uncertain. Many of them are living in constant fear of receiving pink slips. The companies are identifying employees who have put in two or more years of service at the company.

The employees are being advised to look up for suitable jobs commensurate to their skills elsewhere after the annual performance assessments.

The rising rupee against the dollar has already hit the profit margins of several companies. As a result, the annul increments that were in the range of 15 percent have now come down to 5 to 7 percent at some companies.

The TCS has 'sacked' 500 employees (or asked them to leave voluntarily) on grounds of under performance. Other companies are expected to follow suit. Industry experts fear that as many as 20,000 software engineers are set to lose their jobs this year as a result.