Mahindra Satyam is sending a confident sign to the market by restoring benefits for staff.
Satyam said in May this year that times were tough and it had to cut staff costs.
But the company is now bringing back employee benefits, including cash bonuses.
The double whammy of the global economic slowdown and the problems caused by a $1bn accounting fraud at the company left Satyam short of cash and in a tenuous position.
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Thousands of staff at Mahindra Satyam, like at other Indian suppliers, are paid on a project basis. When there are no projects they "sit on the bench", waiting for work for only a small retainer. This is where Satyam was planning to make savings.
The company said in May that these workers were free to leave the company if they found other jobs.
But the company said this week that it would start to pay workers for project work.
According to a report on the Times of India website, Mahindra Satyam said, "Variable pay is now being re-instated within six months (effective October 2009)." It also said other welfare programmes would be re-introduced.
According to the report, cash bonuses are also being re-introduced.
Mahindra Satyam chief people officer Hari T told the Times of India, "As we journey through this path towards total revival and growth, this is an expression of our gratitude to our associates."