BPO firm 24/7 Customer is looking to recruit over 1,250 people for its global operations in the next two quarters of this financial year. Bharathwaj V, the company’s chief marketing officer, told Financial Chronicle that the firm is increasing its headcount on the back of project ramp-ups by four to five clients and increased new business.
Of the 1,250 people to be hired, the company will hire up to 500 in India (in October-December quarter), 500 in Guatemala and 250-500 in the Philippines. Bharathwaj said that the new recruitments are mostly for operations, innovations lab and other functions at 24/7 Customer.
The firm has already hired 1,400 people so far in 2009, taking total headcount to 8,000 people. It also means that the firm has or is in the process of recruiting a total of 2,650 people, about one-fourth of total staff in just 15 months.
The Sequoia Capital-funded BPO major is stepping on the gas in terms of hiring following a brief lull after it transferred over 1,600 staff to former client Aviva in 2007.
In the last couple of months, BPO firms, especially in Bangalore have started to hire. Examples include Wipro BPO, Hinduja Global Solutions and Tesco.
Monday, September 14, 2009
Layoffs in USA, Recession
'Year of staycation, not vacation': Survey
Americans are taking their paid time off from work but are cutting back on big vacation spending as they are not ready for unplanned absences that impact their paycheck, a survey has found.
According to a research by a financial services company, the Hartford Financial Services Group, more than half of workers in the US plan to use all of their paid time-off but are cutting back on vacation spending.
Out of 1,019 employees, 56 per cent plan to use all of their time off from work, while 67 per cent want to postpone their vacation.
"Employees said they value the paid time-off that they receive from their employers, but they continue to be worried about their income and expenses. And as a result, they plan to cut back on vacation spending. This could be the year of the so-called staycation," The Hartford's Group Benefits Division absence management director Marjorie Savage said.
The report found that majority of the workers are mostly concerned about personal finance followed by the economy (43 per cent) and only 27 per cent of employees fear losing their job.
Fear of losing one's job registered across all generations and genders. In addition, one in three workers (36 per cent) said they are worried about layoffs.
According to a research by a financial services company, the Hartford Financial Services Group, more than half of workers in the US plan to use all of their paid time-off but are cutting back on vacation spending.
Out of 1,019 employees, 56 per cent plan to use all of their time off from work, while 67 per cent want to postpone their vacation.
"Employees said they value the paid time-off that they receive from their employers, but they continue to be worried about their income and expenses. And as a result, they plan to cut back on vacation spending. This could be the year of the so-called staycation," The Hartford's Group Benefits Division absence management director Marjorie Savage said.
The report found that majority of the workers are mostly concerned about personal finance followed by the economy (43 per cent) and only 27 per cent of employees fear losing their job.
Fear of losing one's job registered across all generations and genders. In addition, one in three workers (36 per cent) said they are worried about layoffs.
Friday, September 11, 2009
Wipro
Wipro gives promotions to ‘a few thousands’
Wipro Technologies has gone ahead and given promotions to selected personnel this year. The company had earlier said that it will not give any promotions and salary hikes in financial year 2010 considering the present market environment.
Employees at the Bangalore-based IT major said that the communication about promotions was made in August to people identified as best performers and those who met the criteria. While it is not known how many have been given the higher positions, employees said it should number in a few thousands.
When contacted by FC, Saurabh Govil, senior vice-president — human resources, Wipro Technologies said, “We continue to reward and recognise best talent. We have a rigorous promotion criteria and employees who meet this criteria get progressed. This happens across all levels in the organization and those promoted get standard promotion-linked increases. We continue to invest in leadership talent and recognise them even if on a selective basis. However, there is no increase being contemplated on a broad-based basis.”
Wipro is the first major Indian company to give promotions in financial year 2010, even if partially. Firms such as Accenture and Cognizant have also been giving selective promotions, even sometimes calling them as bonus incentives, in the last two months.
In FY09, Infosys had introduced promotion for its employees twice a year. The new appraisal cycle is set to start in September at Infosys and it is not known if they will consider the initiative again thisyear.
Employees at the Bangalore-based IT major said that the communication about promotions was made in August to people identified as best performers and those who met the criteria. While it is not known how many have been given the higher positions, employees said it should number in a few thousands.
When contacted by FC, Saurabh Govil, senior vice-president — human resources, Wipro Technologies said, “We continue to reward and recognise best talent. We have a rigorous promotion criteria and employees who meet this criteria get progressed. This happens across all levels in the organization and those promoted get standard promotion-linked increases. We continue to invest in leadership talent and recognise them even if on a selective basis. However, there is no increase being contemplated on a broad-based basis.”
Wipro is the first major Indian company to give promotions in financial year 2010, even if partially. Firms such as Accenture and Cognizant have also been giving selective promotions, even sometimes calling them as bonus incentives, in the last two months.
In FY09, Infosys had introduced promotion for its employees twice a year. The new appraisal cycle is set to start in September at Infosys and it is not known if they will consider the initiative again thisyear.
Cost cutting, IT market, Recession
Billing rate cuts may not lower delivery costs: Forrester
In a blow to mid- and small-size IT services vendors, technology research firm Forrester has said while these providers may offer lower billing rates than large offshore providers such as Tata Consultancy Services or Infosys Technologies, it does not necessarily translate into lower costs for the customer.
“The lowest hourly billing rates don’t always result in the lowest cost of delivery,” Forrester has said in its latest report.
Lower costs and greater flexibility are the most important reasons for many organisations to choose smaller providers over the tier-I providers, and Forrester’s report may have significant ramifications on future buying patterns. “But this does not mean tier-II providers should be avoided completely,” Sudin Apte, senior analyst, Forrester, and the report’s lead author, told ET.
Of the 300 or so tier-II firms, 10-15% provide value addition through specialisation around a line of service or technology, specialisation around an industry and business process, or a unique client experience, he said. The report mentions providers such as AppLabs (testing services), Microland (infrastructure services) and others such as Syntel and Kale Consultants among the mid-sized specialists. Sourcing teams in companies need to evaluate mid-sized specialists, depending on the needs and objectives of the relationship in terms of the value and duration, according to the report.
Apart from lower billing rates, the other reason for companies to opt for tier-II vendors is because they are flexible and easy to work with. Quoting the example of an European insurance firm that was adding two tier vendors, the report said this firm found its tier-I supplier not agile enough and demanding compensation for variation.
However, Forrester said the line-dividing flexibility and chaotic strategy was very fine. “Small providers often end up accepting work outside their comfort zone to defend the current revenue in an account. Then they start building capability, resources, and often effectively pilot the first project at client cost,” said Mr Apte.
The most common grouse against tier-I players was that they were becoming more like Accenture and IBM, and were no longer interested in small deals. They were pushy about volume ramp-up and no longer had the personal touch. Mr Apte said, tier-I players need to articulate their investments in building IP (intellectual property), innovation and manpower better to clients. “Clients are still looking at them as Indian companies with customer centricity, as being easy to deal with and as being transparent,” he said.
“The lowest hourly billing rates don’t always result in the lowest cost of delivery,” Forrester has said in its latest report.
Lower costs and greater flexibility are the most important reasons for many organisations to choose smaller providers over the tier-I providers, and Forrester’s report may have significant ramifications on future buying patterns. “But this does not mean tier-II providers should be avoided completely,” Sudin Apte, senior analyst, Forrester, and the report’s lead author, told ET.
Of the 300 or so tier-II firms, 10-15% provide value addition through specialisation around a line of service or technology, specialisation around an industry and business process, or a unique client experience, he said. The report mentions providers such as AppLabs (testing services), Microland (infrastructure services) and others such as Syntel and Kale Consultants among the mid-sized specialists. Sourcing teams in companies need to evaluate mid-sized specialists, depending on the needs and objectives of the relationship in terms of the value and duration, according to the report.
Apart from lower billing rates, the other reason for companies to opt for tier-II vendors is because they are flexible and easy to work with. Quoting the example of an European insurance firm that was adding two tier vendors, the report said this firm found its tier-I supplier not agile enough and demanding compensation for variation.
However, Forrester said the line-dividing flexibility and chaotic strategy was very fine. “Small providers often end up accepting work outside their comfort zone to defend the current revenue in an account. Then they start building capability, resources, and often effectively pilot the first project at client cost,” said Mr Apte.
The most common grouse against tier-I players was that they were becoming more like Accenture and IBM, and were no longer interested in small deals. They were pushy about volume ramp-up and no longer had the personal touch. Mr Apte said, tier-I players need to articulate their investments in building IP (intellectual property), innovation and manpower better to clients. “Clients are still looking at them as Indian companies with customer centricity, as being easy to deal with and as being transparent,” he said.
Infosys, IT market
Infosys targets $1 billon revenue in 3-4 yrs from India
With its key export market US yet to show any signs of revival, Infosys today said it would bid for all big government projects in the country and would target a billion dollar (Rs 5,000 crore) revenue from India in the next 3-4 years.
"We are now going after the large government projects, deals which are over Rs 200 crore. We are targetting a billion dollar revenue from the services business in India in 3-4 years time-frame," Binod H R, senior VP and head of India Business Unit, Infosys, said.
The Nasdaq-listed IT exporter's rival TCS had also earlier said that it was expecting one billion dollar revenue from India over the next 3-4 years.
"We are going after both government and private projects in the IT services business. But it is going to be 90 per cent ...government (projects), while 10 per cent from the private sector."
Most of the growth would right now come from the government sector as private sector has already made a lot of investment in IT. Probably, they would go a little slow on the investment at this moment due to recession, Binod said.
He said revenue from India is very low at the moment. The company has bid for the IT pilot projects of the Railways.
Infosys's India business is fairly new that was started at 2007-end and is a separate business unit. Earlier, he had said that the firm had taken a conscious decision not to participate in the local market.
"We are now going after the large government projects, deals which are over Rs 200 crore. We are targetting a billion dollar revenue from the services business in India in 3-4 years time-frame," Binod H R, senior VP and head of India Business Unit, Infosys, said.
The Nasdaq-listed IT exporter's rival TCS had also earlier said that it was expecting one billion dollar revenue from India over the next 3-4 years.
"We are going after both government and private projects in the IT services business. But it is going to be 90 per cent ...government (projects), while 10 per cent from the private sector."
Most of the growth would right now come from the government sector as private sector has already made a lot of investment in IT. Probably, they would go a little slow on the investment at this moment due to recession, Binod said.
He said revenue from India is very low at the moment. The company has bid for the IT pilot projects of the Railways.
Infosys's India business is fairly new that was started at 2007-end and is a separate business unit. Earlier, he had said that the firm had taken a conscious decision not to participate in the local market.
IT market, new openings, Wipro
Wipro to take Australian headcount to 1,000
Wipro Ltd, a relatively late entrant in the lucrative information technology outsourcing market in Australia, is planning to hire more locals.
The company is trying to penetrate deeply into the market there. Wipro, India’s third largest IT outsourcing provider, has about 90 Australians on its rolls now. It intends to increase the number of local employees to 250 by the end of the current financial year.
“Australia is a large market for us in the Asia Pacific region. We are quite bullish and investing heavily in that market. As a part of that strategy, we would like to enhance the capacity of our two development centres located the country and have about 250 Australian people by the end of this year, thus increasing the percentage of local people working there from the current 20 per cent to about 35 per cent of our workforce in Australia,” said Rajat Mathur, senior VP and Chief Sales & Operations officer for Asia Pacific, Wipro Technologies.
Wipro currently has about 450 people in Australia, including 300 people at the two development centres in Melbourne and Adelaide. Besides, there are close to 350 employees at its various offshore locations in India, working for the company’s Australian clients. With the increase in business opportunities there, the company expects the number of employees working for Australian customers to go up to about 1,000 people by the end of this financial year.
As part of its localisation strategy, Wipro has tied up with the local software industry body, Australian Computer Society. This will help the company to hire graduates from the top eight local universities, Mathur added.
The IT services market in Australia and New Zealand is about $14 billion and is growing. This has prompted all Indian IT outsourcing providers to increase their focus on the ANZ market. Infosys, with a subsidiary in Australia, with its acquisition of Expert Information Services, employs close to 400 people there.
Wipro entered the Australian market seven to eight years earlier. It derives close to 15 per cent of its global revenues from the Asia Pacific region (which includes Japan and India). Though the company does not give country-wise breakdown of revenue, it said those from Australia and New Zealand had shown a compounded annual growth rate of 100 per cent during the past five years, ‘making it the highest growth market in the region’.
As part of its strategy, Wipro has been focusing on specific sectors — banking and insurance, energy and utilities, telecom, retail and government in Australia.
The company is trying to penetrate deeply into the market there. Wipro, India’s third largest IT outsourcing provider, has about 90 Australians on its rolls now. It intends to increase the number of local employees to 250 by the end of the current financial year.
“Australia is a large market for us in the Asia Pacific region. We are quite bullish and investing heavily in that market. As a part of that strategy, we would like to enhance the capacity of our two development centres located the country and have about 250 Australian people by the end of this year, thus increasing the percentage of local people working there from the current 20 per cent to about 35 per cent of our workforce in Australia,” said Rajat Mathur, senior VP and Chief Sales & Operations officer for Asia Pacific, Wipro Technologies.
Wipro currently has about 450 people in Australia, including 300 people at the two development centres in Melbourne and Adelaide. Besides, there are close to 350 employees at its various offshore locations in India, working for the company’s Australian clients. With the increase in business opportunities there, the company expects the number of employees working for Australian customers to go up to about 1,000 people by the end of this financial year.
As part of its localisation strategy, Wipro has tied up with the local software industry body, Australian Computer Society. This will help the company to hire graduates from the top eight local universities, Mathur added.
The IT services market in Australia and New Zealand is about $14 billion and is growing. This has prompted all Indian IT outsourcing providers to increase their focus on the ANZ market. Infosys, with a subsidiary in Australia, with its acquisition of Expert Information Services, employs close to 400 people there.
Wipro entered the Australian market seven to eight years earlier. It derives close to 15 per cent of its global revenues from the Asia Pacific region (which includes Japan and India). Though the company does not give country-wise breakdown of revenue, it said those from Australia and New Zealand had shown a compounded annual growth rate of 100 per cent during the past five years, ‘making it the highest growth market in the region’.
As part of its strategy, Wipro has been focusing on specific sectors — banking and insurance, energy and utilities, telecom, retail and government in Australia.
Subscribe to:
Posts (Atom)