MphasiS has signed a definitive deal to acquire 100 per cent stake in Fortify Infrastructure Services (FIS), a provider of offshore based Remote IT Operations and Management (ROM) Services, for $15.5 million in an all cash transaction.
With this acquisition, MphasiS – which is an IT solutions, services and BPO provider in application development, system integration, product implementation, consulting services – believes that it will be able to provide outcome based services that go beyond technical SLAs.
Ganesh Ayyar, CEO of MphasiS, said, “This acquisition will catapult us ahead as a provider of offshore-based ROM services. Mid market customers are looking for partners to solve the challenges of operating and managing their IT. We see this as our sweet spot to provide cost effective and outcome based ROM services.”
In a press release, MphasiS said that this acquisition will give it access to marquee customers, an experienced management team, a talent pool of highly specialised professionals and a proven platform to provide ROM services.
Rajkumar Velagapudi, CEO of Fortify Infrastructure Services, said, “Our proven industry track record in providing outcome-based ROM services, coupled with MphasiS’ rich expertise and leading offshore capability will provide mid market customers a flexible, high-value operations management platform that is focused on achieving their business objectives.”
FIS has presence in India and the US with 250 employees.
Monday, April 12, 2010
Tuesday, March 30, 2010
IT market
CSC under scanner for 'exploiting' Indian IT professionals in Denmark
The Indian subsidiary of the world’s fourth-largest IT services provider, the $16.7-billion Computer Science Corporation (CSC), is under scanner for allegedly exploiting Indian IT professionals sent onsite to Denmark.
Source: EconomicTimes
The accusation comes from a local IT workers’ union, which claims CSC is paying Indian IT professionals in Denmark salaries lower than the minimum stipulated by law.
PROSA — a Danish trade union for IT professionals — raised the issue last month when an Indian IT professional on deputation in Denmark, protested about not being paid the salary promised by CSC. The issue is creating headlines in the Nordic country, which has about 65,000 IT professionals.
According to papers filed by PROSA with Danish investigating authorities, CSC pays Indian IT professionals between 5,000 and 8,000 Danish Kroner (DKK) a month — roughly equal to what the Indian IT workers would get, working in Noida or Hyderabad. (One DKK is equal to Rs 8).
But Danish law states that foreigners must earn at least 31,250 DKK monthly to enter the country through the so-called salary amount rule, which is part of the Aliens Act. “Danish law requires companies to pay foreign IT workers in Denmark a minimum wage of 31,250 DKK, which is roughly equal to Rs 2.5 lakh per month, to enter the country. We believe more such IT companies are involved in exploiting Indian IT workers onsite,” said Hanne Lykke Jespersen, union secretary, PROSA. “The Danish government has already launched an investigation into this matter,” she added.
To give a comparison between the cost of living in Denmark and India, a McDonald’s Big Mac (called Maharaja Mac here) costs $1.5 (Rs 69) in New Delhi. The same Big Mac costs about $5.7 (Rs 250) in Copenhagen. In another comparison, per capita income in Denmark is about $3,000 per month. In contrast, Indian IT workers are often paid even lower, at about $1454 per month (equating with 8,000 DKK per month), going by PROSA’s claims.
Source: EconomicTimes
Source: EconomicTimes
The accusation comes from a local IT workers’ union, which claims CSC is paying Indian IT professionals in Denmark salaries lower than the minimum stipulated by law.
PROSA — a Danish trade union for IT professionals — raised the issue last month when an Indian IT professional on deputation in Denmark, protested about not being paid the salary promised by CSC. The issue is creating headlines in the Nordic country, which has about 65,000 IT professionals.
According to papers filed by PROSA with Danish investigating authorities, CSC pays Indian IT professionals between 5,000 and 8,000 Danish Kroner (DKK) a month — roughly equal to what the Indian IT workers would get, working in Noida or Hyderabad. (One DKK is equal to Rs 8).
But Danish law states that foreigners must earn at least 31,250 DKK monthly to enter the country through the so-called salary amount rule, which is part of the Aliens Act. “Danish law requires companies to pay foreign IT workers in Denmark a minimum wage of 31,250 DKK, which is roughly equal to Rs 2.5 lakh per month, to enter the country. We believe more such IT companies are involved in exploiting Indian IT workers onsite,” said Hanne Lykke Jespersen, union secretary, PROSA. “The Danish government has already launched an investigation into this matter,” she added.
To give a comparison between the cost of living in Denmark and India, a McDonald’s Big Mac (called Maharaja Mac here) costs $1.5 (Rs 69) in New Delhi. The same Big Mac costs about $5.7 (Rs 250) in Copenhagen. In another comparison, per capita income in Denmark is about $3,000 per month. In contrast, Indian IT workers are often paid even lower, at about $1454 per month (equating with 8,000 DKK per month), going by PROSA’s claims.
Source: EconomicTimes
new openings, TCS
TCS to hire 30,000 in next fiscal
IT major, Tata Consultancy Services (TCS), today said that its growth momentum in the last quarter of this fiscal would be better than the previous quarter and that the entire IT industry would see an improvement in the deal pipeline.
"The growth is definitely there and we should stick to what we have said earlier...The growth momentum in the last two quarters will continue this quarter also but we have to see whether it will be better than those during the boom days," TCS Chief Financial Officer and Executive Director, S Mahalingam, told reporters on the sidelines of a CII-IFRS summit here.
On increments to its employees, Mahalingam said that the company would be announcing the same around April but he would not be able to divulge the quantum now.
The TCS official, however, said that it would definitely be as per industry standards and keeping in view the prevailing economic scenario.
Mahalingam said that the company has planned to hire 30,000 personnel in the next fiscal.
"The growth is definitely there and we should stick to what we have said earlier...The growth momentum in the last two quarters will continue this quarter also but we have to see whether it will be better than those during the boom days," TCS Chief Financial Officer and Executive Director, S Mahalingam, told reporters on the sidelines of a CII-IFRS summit here.
On increments to its employees, Mahalingam said that the company would be announcing the same around April but he would not be able to divulge the quantum now.
The TCS official, however, said that it would definitely be as per industry standards and keeping in view the prevailing economic scenario.
Mahalingam said that the company has planned to hire 30,000 personnel in the next fiscal.
Infosys, IT market
Infosys to give ‘unheard of’ increments
Infosys Technologies has been seeing a churn of employees in the past three quarters. The churn began after new HR initiatives, including a career-determining programme called iRace, were started.
Several thousand dissatisfied employees have quit since October. Though no official count is available, employees put the number of exits since October at over 10,000. This has forced the company to make some changes in its HR policies. One of the changes is believed to be good salary increments this time.
Some of the other changes are: Delinking the average working hours every quarter from iRace and appraisal, and scrapping the requirement of completing two compulsory internal certification programmes.
A Hyderabad-based employee quoted the HR head, Nandita Gurjar, as saying that salary raises unheard of in the company would be given this April. Gurjar was not willing to tell Financial Chronicle the size of raises; but employees expecting hikes in the range of 5 per cent to 13 per cent.
The problem HR plan – iRace (short for Infosys role and career enhancement) – introduced last June, defines roles, competencies and proficiency requirements, while linking career movements to performance and business focus. FC had then employee apprehensions about the programme.
In the past two months, Infosys employees have been rushing to the internet, and the blogosphere, in particular, as well as the company intranet with lambasting iRace. Cartoons, videos on Youtube and fake interviews have also been posted.
This led Gurjar to post her comments on the internal blog. She said, “Of late I have noticed a disturbing trend wherein employees leaving the organisation write mails about it in disparaging terms, and existing employees take joy and pleasure in circulating these mails among themselves and even outside.”
“I feel deeply hurt when I hear of such incidences. It makes me wonder, would we behave in this way if someone spoke similarly about our friends, family or country...? At what point do we move from being a bystander enjoying the fun to be an owner who takes offence at this kind of behavior?’’
According to employees, of the over 10,000 that have quit since October, 4,000 left in February. About 1,000 e-separations were filed on the intranet on a single day: December 31. Gurjar though says that only 1,200 people quit in January, 1,104 in February; and a slightly higher number of departures were expected this month.
An employee based in Bangalore said, “iRace is the reason for the exodus. After the implementation of the programme and other policies like 9.15 hours of compulsory attendance, people now dread to work in the once dream company.”
Asked about the iRace effect, Gurjar told FC that employees had confused it with promotions and linked it to the slowdown.
“The career architecture has nothing to do with promotions and is more to do with skill mapping. Employees have to remember that promotions and hikes are a result of growth and they will grow only if the company grows. Earlier, when Infosys was growing at 40 per cent plus, raises and positions were attuned to that kind of growth. The cycles now will be more relevant to today’s growth rates,” she said.
She added that the company had now started communicating the initiative and employees were beginning to understand the positives. The employee angst notwithstanding, HR consultants feel rationalisation will continue. It could benefit both company and employees in the long run.
P Thiruvengadam of Deloitte India said, “Rationalisation of the career structure is a common phenomenon in most mature organisations. While companies are young and growing rapidly, they reward employees that way too but after they reach 20-30 years and saturate, they are more conservative.”
According to Kris Lakshmikanth of The Head Hunters India, different IT companies deal with the problem of inefficiency and excess fat in different ways. Infosys had chosen this method, which was facing trouble maybe because of the timing of its launch, he added.
Source: mydigitalfc.com
Several thousand dissatisfied employees have quit since October. Though no official count is available, employees put the number of exits since October at over 10,000. This has forced the company to make some changes in its HR policies. One of the changes is believed to be good salary increments this time.
Some of the other changes are: Delinking the average working hours every quarter from iRace and appraisal, and scrapping the requirement of completing two compulsory internal certification programmes.
A Hyderabad-based employee quoted the HR head, Nandita Gurjar, as saying that salary raises unheard of in the company would be given this April. Gurjar was not willing to tell Financial Chronicle the size of raises; but employees expecting hikes in the range of 5 per cent to 13 per cent.
The problem HR plan – iRace (short for Infosys role and career enhancement) – introduced last June, defines roles, competencies and proficiency requirements, while linking career movements to performance and business focus. FC had then employee apprehensions about the programme.
In the past two months, Infosys employees have been rushing to the internet, and the blogosphere, in particular, as well as the company intranet with lambasting iRace. Cartoons, videos on Youtube and fake interviews have also been posted.
This led Gurjar to post her comments on the internal blog. She said, “Of late I have noticed a disturbing trend wherein employees leaving the organisation write mails about it in disparaging terms, and existing employees take joy and pleasure in circulating these mails among themselves and even outside.”
“I feel deeply hurt when I hear of such incidences. It makes me wonder, would we behave in this way if someone spoke similarly about our friends, family or country...? At what point do we move from being a bystander enjoying the fun to be an owner who takes offence at this kind of behavior?’’
According to employees, of the over 10,000 that have quit since October, 4,000 left in February. About 1,000 e-separations were filed on the intranet on a single day: December 31. Gurjar though says that only 1,200 people quit in January, 1,104 in February; and a slightly higher number of departures were expected this month.
An employee based in Bangalore said, “iRace is the reason for the exodus. After the implementation of the programme and other policies like 9.15 hours of compulsory attendance, people now dread to work in the once dream company.”
Asked about the iRace effect, Gurjar told FC that employees had confused it with promotions and linked it to the slowdown.
“The career architecture has nothing to do with promotions and is more to do with skill mapping. Employees have to remember that promotions and hikes are a result of growth and they will grow only if the company grows. Earlier, when Infosys was growing at 40 per cent plus, raises and positions were attuned to that kind of growth. The cycles now will be more relevant to today’s growth rates,” she said.
She added that the company had now started communicating the initiative and employees were beginning to understand the positives. The employee angst notwithstanding, HR consultants feel rationalisation will continue. It could benefit both company and employees in the long run.
P Thiruvengadam of Deloitte India said, “Rationalisation of the career structure is a common phenomenon in most mature organisations. While companies are young and growing rapidly, they reward employees that way too but after they reach 20-30 years and saturate, they are more conservative.”
According to Kris Lakshmikanth of The Head Hunters India, different IT companies deal with the problem of inefficiency and excess fat in different ways. Infosys had chosen this method, which was facing trouble maybe because of the timing of its launch, he added.
Source: mydigitalfc.com
IT market
Intel invests in 3 Indian IT cos
Computer chip maker Intel's investment arm, Intel Capital has invested $23 million (Rs.115 crore) in three technology firms to foster innovation in India, the company said.
The three firms are July Systems, KLG Systel and MCX.
Intel Capital, however, did not disclose the investment in each of the firms, claiming confidentiality.
The company issued a statement here that funding would be drawn from the Intel Capital India Technology Fund floated in 2005.
"The investments will stimulate local technology innovation and reinforces our commitment towards fostering Indian innovation," Intel Capital president Arvind Sodhani said.
The three firms are July Systems, KLG Systel and MCX.
Intel Capital, however, did not disclose the investment in each of the firms, claiming confidentiality.
The company issued a statement here that funding would be drawn from the Intel Capital India Technology Fund floated in 2005.
"The investments will stimulate local technology innovation and reinforces our commitment towards fostering Indian innovation," Intel Capital president Arvind Sodhani said.
IT market, Wipro
Wipro merges two offshore offices with itself
The the third largest IT exporter Wipro today said "Indian branch offices" of the two overseas subsidiaries-- Wipro Networks Singapore and Cyprus-based WM NetServ-- stood merged with the company.
The two branch offices of the subsidiaries merged with the company following filing of e-form along with certified copies of orders of the Karnataka High Court with the respective offices of the Registrar of Companies, Wipro informed the Bombay Stock Exchange.
The Indian branch offices of the two overseas subsidiary companies of Wipro filed the form on March 26, 2010 for making amalgamation effective from April 1, 2010, it said.
Wipro Networks provides communication solutions that include consulting, voice, data and converged solutions and managed services.
WMNetServ is a managed network telecommunications services provider. In July 2006, Wipro and Motorola formed it as a joint venture to deliver world-class capabilities in managed services to public and private network customers.
The joint venture was formed to deliver outsourced telecom services to help customers focus on their core business and gain access to capabilities not available internally.
The two branch offices of the subsidiaries merged with the company following filing of e-form along with certified copies of orders of the Karnataka High Court with the respective offices of the Registrar of Companies, Wipro informed the Bombay Stock Exchange.
The Indian branch offices of the two overseas subsidiary companies of Wipro filed the form on March 26, 2010 for making amalgamation effective from April 1, 2010, it said.
Wipro Networks provides communication solutions that include consulting, voice, data and converged solutions and managed services.
WMNetServ is a managed network telecommunications services provider. In July 2006, Wipro and Motorola formed it as a joint venture to deliver world-class capabilities in managed services to public and private network customers.
The joint venture was formed to deliver outsourced telecom services to help customers focus on their core business and gain access to capabilities not available internally.
IT market, Wipro
Wipro expands its operations in Australia, opens development centre
In a bid to expand operations, India's leading software company Wipro today opened its new Australian Development Centre here.
Victorian premier John Brumby officially opened the centre and said it added to the state's impressive track record in attracting investment.
"We are working hard to attract investment from around the world and create thousands of Victorian jobs," Brumby said adding "Victoria is a great place to invest, with a growing economy, a highly skilled workforce, one of the most attractive lifestyles in the world, a competitive tax system and a supportive government."
Brumby said the opening has followed a number of Information and Communication Technologies companies choosing to expand their Victorian operations this year, including Kovair, Attra, Infosys, and BIT - creating 210 Victorian jobs.
Wipro's Australian Development Centre will provide consulting, software development, testing and business process services to domestic and global companies in Australia.
In a year, Wipro has grown its number of Australian employees from 450 to 700 with more than half of these based in Victoria.
Rajat Mathur, head of Sales and Operations for Wipro Asia Pacific, said the company was extremely pleased to be increasing its investment in Australia by establishing this new centre in Melbourne.
"Wipro's Melbourne operations will play an integral role in the company's expansion into Australia. We enjoy a good deal of business success in Australia, as Australian industry demonstrates a continued appetite for our global service delivery model," Mathur said.
"We chose Melbourne for its business environment, ready talent pool and excellent infrastructure - this combination of support and talent is what we look for in a strategic business location" he added.
The opening follows visits to the company's Indian offices by Brumby in September last year and ICT Minister John Lenders in February this year.
Lenders said the announcement was further evidence of the Victorian Government working closely with the world's best ICT companies to create highly skilled jobs in the sector.
"We are providing strong leadership to create skilled jobs in Victoria and to keep our state at the forefront of new technology," Lenders said.
Victoria is home to a very strong ICT industry sector and with over 84,000 employees, accounted for more than a third of Australia's ICT services, products and revenue, Brumby said.
Victorian premier John Brumby officially opened the centre and said it added to the state's impressive track record in attracting investment.
"We are working hard to attract investment from around the world and create thousands of Victorian jobs," Brumby said adding "Victoria is a great place to invest, with a growing economy, a highly skilled workforce, one of the most attractive lifestyles in the world, a competitive tax system and a supportive government."
Brumby said the opening has followed a number of Information and Communication Technologies companies choosing to expand their Victorian operations this year, including Kovair, Attra, Infosys, and BIT - creating 210 Victorian jobs.
Wipro's Australian Development Centre will provide consulting, software development, testing and business process services to domestic and global companies in Australia.
In a year, Wipro has grown its number of Australian employees from 450 to 700 with more than half of these based in Victoria.
Rajat Mathur, head of Sales and Operations for Wipro Asia Pacific, said the company was extremely pleased to be increasing its investment in Australia by establishing this new centre in Melbourne.
"Wipro's Melbourne operations will play an integral role in the company's expansion into Australia. We enjoy a good deal of business success in Australia, as Australian industry demonstrates a continued appetite for our global service delivery model," Mathur said.
"We chose Melbourne for its business environment, ready talent pool and excellent infrastructure - this combination of support and talent is what we look for in a strategic business location" he added.
The opening follows visits to the company's Indian offices by Brumby in September last year and ICT Minister John Lenders in February this year.
Lenders said the announcement was further evidence of the Victorian Government working closely with the world's best ICT companies to create highly skilled jobs in the sector.
"We are providing strong leadership to create skilled jobs in Victoria and to keep our state at the forefront of new technology," Lenders said.
Victoria is home to a very strong ICT industry sector and with over 84,000 employees, accounted for more than a third of Australia's ICT services, products and revenue, Brumby said.
Sunday, March 28, 2010
IT market, new openings
Convergys to recruit over 1,000 employees
Convergys, global human resource and billing services provider, on Wednesday, said that it would hire more than 1,000 employees in Gurgaon (Haryana) in the next three months.
The company said 30 per cent of the hiring would include fresh graduates while the rest would be experienced talent.
“It has been a positive year for us and we have started a premium candidate programme under which we will be hiring employees aged between 20-25 years. The hiring has started from Wednesday and would be over in the next three months,” director (recruitment) Convergys’ Customer Management Operations in India, Ashutosh Sinha told Financial Chronicle on phone.
He said these jobs are the result of new businesses from telecommunications and financial services clients, especially from the US and UK, who will provide a range of voice-based support to the clients’ customers there. Apart from hiring, Sinha said the company would also raise wages for the existing employees including team leaders and managers in the company in the next two-to-three weeks.
“We have decided some bonuses and wage hikes for our existing employees of customer care associates and management staff. Our intent is that as it is a good year for Convergys, so there should be some fruitful results for them too,” he added.
The company at present employs around 11,000 people across India in its eight centres. On asked, what kind of investment the company would pump in for this, Sinha said, “It will be pretty much in par with the international standard. We have done some market analysis on that and will forward with it.”
Convergys, headquartered in Cincinnati, Ohio has around 70,000 employees in 82 customer contact centres and other facilities in the US, Canada, Latin America, Europe, West Asia and Asia and our global.
The company said 30 per cent of the hiring would include fresh graduates while the rest would be experienced talent.
“It has been a positive year for us and we have started a premium candidate programme under which we will be hiring employees aged between 20-25 years. The hiring has started from Wednesday and would be over in the next three months,” director (recruitment) Convergys’ Customer Management Operations in India, Ashutosh Sinha told Financial Chronicle on phone.
He said these jobs are the result of new businesses from telecommunications and financial services clients, especially from the US and UK, who will provide a range of voice-based support to the clients’ customers there. Apart from hiring, Sinha said the company would also raise wages for the existing employees including team leaders and managers in the company in the next two-to-three weeks.
“We have decided some bonuses and wage hikes for our existing employees of customer care associates and management staff. Our intent is that as it is a good year for Convergys, so there should be some fruitful results for them too,” he added.
The company at present employs around 11,000 people across India in its eight centres. On asked, what kind of investment the company would pump in for this, Sinha said, “It will be pretty much in par with the international standard. We have done some market analysis on that and will forward with it.”
Convergys, headquartered in Cincinnati, Ohio has around 70,000 employees in 82 customer contact centres and other facilities in the US, Canada, Latin America, Europe, West Asia and Asia and our global.
Friday, March 26, 2010
IT market
India Inc may give up to 12% salary hike in 2010-11: Ernst and Young
India Inc may give salary hikes in the range of 9-12 per cent in the coming financial year to retain talent amid revival in the job market, according to consultancy Ernst and Young said.
Most companies are expecting higher attrition levels over the next few months on jobs coming back into the economy resulting in salary hikes being used as a tool to retain talent.
"At an overall level, extraordinary jump in increments do not seem probable and the average salary increase is likely to be in the range of 9-12 per cent," Ernst & Young partner and national head (People & Organisation) N S Rajan told PTI.
However, Rajan cautioned that along with the pay hikes, companies are likely to follow a cautious approach of keeping tight monitoring and controlling of any additional salary costs.
In spite of excitement around economic recovery, average pay hikes across sectors would be slightly conservative.
"While on one hand pharma and FMCG companies will lead the space with increments in the range of 10-13 per cent, the IT and technology companies will give reasonable increments close to eight per cent," Rajan added.
Moreover, the telecom sector is expected to give above average salary hikes in the range of 12-15 per cent.
Most companies are expecting higher attrition levels over the next few months on jobs coming back into the economy resulting in salary hikes being used as a tool to retain talent.
"At an overall level, extraordinary jump in increments do not seem probable and the average salary increase is likely to be in the range of 9-12 per cent," Ernst & Young partner and national head (People & Organisation) N S Rajan told PTI.
However, Rajan cautioned that along with the pay hikes, companies are likely to follow a cautious approach of keeping tight monitoring and controlling of any additional salary costs.
In spite of excitement around economic recovery, average pay hikes across sectors would be slightly conservative.
"While on one hand pharma and FMCG companies will lead the space with increments in the range of 10-13 per cent, the IT and technology companies will give reasonable increments close to eight per cent," Rajan added.
Moreover, the telecom sector is expected to give above average salary hikes in the range of 12-15 per cent.
Infosys
Is Infosys losing employee-friendly status?
Source: Infotech.indiatimes.com
For over a decade, Infosys has been seen by many as the epitome of employee friendliness. That reputation has now taken a big knock.
Several measures taken over the past few months -- partly an attempt to correct what the company saw as excesses of previous years -- has had many employees seething with anger.
That's reflected in hundreds of comments made in response to articles about Infosys on the internet in recent weeks, and in conversations TOI had with employees. Even the official internal blog is said to have been used to convey the discontent.
The biggest grouse relates to an HR initiative called iRace - Infosys Role and Career Enhancement - that was rolled out last year. The initiative was designed by consulting firm Mercer with the idea of mapping positions with experience and skill levels.
Previously, positions and promotions were often given arbitrarily, based on an employee's bargaining strength, which often was substantial considering jobs were aplenty. Many were given managerial responsibilities within three to four years, often leading to clients complaining about their lack of technology skills.
While iRace's objective appeared laudable, it suffered in its implementation, the worst of which was to make it applicable with retrospective effect. Many employees were demoted on the ground that they did not meet iRace's experience standards. So, senior project managers went down to project managers, project managers to technical leads, some even went down two levels.
Designations are so important for everybody. And if the management found somebody good enough for a certain position earlier, how can they now say that he is not? What makes it worse is that, all those affected were at lower levels. Nobody in the senior delivery manager and higher positions were affected," said an employee.
Nandita Gurjar, global head for HR in Infosys, said about 5% of Infy's employees would have been impacted by designation corrections and demotions. Infy has a little more than 1 lakh employees, so that would mean about 5,000 being impacted.
She also added that salaries had been protected and that 95% of the company's employees had taken the iRace "career architecture" well. But some employees insist that's not the case.
For over a decade, Infosys has been seen by many as the epitome of employee friendliness. That reputation has now taken a big knock.
Several measures taken over the past few months -- partly an attempt to correct what the company saw as excesses of previous years -- has had many employees seething with anger.
That's reflected in hundreds of comments made in response to articles about Infosys on the internet in recent weeks, and in conversations TOI had with employees. Even the official internal blog is said to have been used to convey the discontent.
The biggest grouse relates to an HR initiative called iRace - Infosys Role and Career Enhancement - that was rolled out last year. The initiative was designed by consulting firm Mercer with the idea of mapping positions with experience and skill levels.
Previously, positions and promotions were often given arbitrarily, based on an employee's bargaining strength, which often was substantial considering jobs were aplenty. Many were given managerial responsibilities within three to four years, often leading to clients complaining about their lack of technology skills.
While iRace's objective appeared laudable, it suffered in its implementation, the worst of which was to make it applicable with retrospective effect. Many employees were demoted on the ground that they did not meet iRace's experience standards. So, senior project managers went down to project managers, project managers to technical leads, some even went down two levels.
Designations are so important for everybody. And if the management found somebody good enough for a certain position earlier, how can they now say that he is not? What makes it worse is that, all those affected were at lower levels. Nobody in the senior delivery manager and higher positions were affected," said an employee.
Nandita Gurjar, global head for HR in Infosys, said about 5% of Infy's employees would have been impacted by designation corrections and demotions. Infy has a little more than 1 lakh employees, so that would mean about 5,000 being impacted.
She also added that salaries had been protected and that 95% of the company's employees had taken the iRace "career architecture" well. But some employees insist that's not the case.
Infosys, IT market
Infosys reviewing employee rating system
India's second-largest IT company, Infosys Technologies, is reportedly reviewing its employee rating system, iRace --Infosys Role and Career Enhancement.
According to a news report in D&A, the company has set up a working group to review the employee appraisal system. The initiative designed by consulting firm Mercer with the idea of mapping positions with experience and skill levels is said to have met with widespread resentment.
Previously, positions and promotions were often given arbitrarily, based on an employee's bargaining strength, which often was substantial considering jobs were aplenty. Many were given managerial responsibilities within three to four years, often leading to clients complaining about their lack of technology skills.
While iRace's objective appeared laudable, it suffered in its implementation, the worst of which was to make it applicable with retrospective effect. Many employees were demoted on the ground that they did not meet iRace's experience standards. So, senior project managers went down to project managers, project managers to technical leads, some even went down two levels.
Designations are so important for everybody. And if the management found somebody good enough for a certain position earlier, how can they now say that he is not? What makes it worse is that, all those affected were at lower levels. Nobody in the senior delivery manager and higher positions were affected," said an employee.
In fact, according to a recent report from brokerage firm CLSA, over 4,000 employees may have resigned from Infosys in February.
Though the large attrition figure is said to be due to the improvement in the economy, some industry observers and Infosys employees also said that another reason for the high attrition could be due to iRACE.
Incidentally, so far Nandita Gurjar, senior vice president and global HR head of Infosys, has strongly maintained that iRACE is not the driver behind exits and that the complaints are coming from a “minority”. Also, that promotions cannot happen at the same pace as the pre-crisis times, unless growth returns to the heady levels.
According to a news report in D&A, the company has set up a working group to review the employee appraisal system. The initiative designed by consulting firm Mercer with the idea of mapping positions with experience and skill levels is said to have met with widespread resentment.
Previously, positions and promotions were often given arbitrarily, based on an employee's bargaining strength, which often was substantial considering jobs were aplenty. Many were given managerial responsibilities within three to four years, often leading to clients complaining about their lack of technology skills.
While iRace's objective appeared laudable, it suffered in its implementation, the worst of which was to make it applicable with retrospective effect. Many employees were demoted on the ground that they did not meet iRace's experience standards. So, senior project managers went down to project managers, project managers to technical leads, some even went down two levels.
Designations are so important for everybody. And if the management found somebody good enough for a certain position earlier, how can they now say that he is not? What makes it worse is that, all those affected were at lower levels. Nobody in the senior delivery manager and higher positions were affected," said an employee.
In fact, according to a recent report from brokerage firm CLSA, over 4,000 employees may have resigned from Infosys in February.
Though the large attrition figure is said to be due to the improvement in the economy, some industry observers and Infosys employees also said that another reason for the high attrition could be due to iRACE.
Incidentally, so far Nandita Gurjar, senior vice president and global HR head of Infosys, has strongly maintained that iRACE is not the driver behind exits and that the complaints are coming from a “minority”. Also, that promotions cannot happen at the same pace as the pre-crisis times, unless growth returns to the heady levels.
IT market, new openings
Convergys to hire over 1,000
Global human resource and billing service provider Convergys Corporation today said it will hire more than 1,000 employees in the country over the next three months.
The company would hire over 1,000 people for its Gurgaon office in the country, the New York Stock Exchange-listed firm said in a statement.
"Convergys provides an outstanding quality of service to our clients, which is why they continue to entrust us with more business. We will hire the top quartile of candidates to ensure that we deliver superior service levels consistently," Convergys' Customer Management (India Ops) Director of Recruitment Ashutosh Sinha said.
The new jobs are for supporting its increased business from telecommunications and financial services clients and the employees taken on board would provide a wide range of voice-based support to the clients' customers, it said.
Convergys has about 70,000 employees in 82 customer contact centres and other facilities in the US, Canada, Latin America, Europe, the Middle East and Asia.
In addition to comprehensive training, Convergys offers employees a positive work environment, competitive wages and benefits including tuition reimbursement, the statement added.
The company would hire over 1,000 people for its Gurgaon office in the country, the New York Stock Exchange-listed firm said in a statement.
"Convergys provides an outstanding quality of service to our clients, which is why they continue to entrust us with more business. We will hire the top quartile of candidates to ensure that we deliver superior service levels consistently," Convergys' Customer Management (India Ops) Director of Recruitment Ashutosh Sinha said.
The new jobs are for supporting its increased business from telecommunications and financial services clients and the employees taken on board would provide a wide range of voice-based support to the clients' customers, it said.
Convergys has about 70,000 employees in 82 customer contact centres and other facilities in the US, Canada, Latin America, Europe, the Middle East and Asia.
In addition to comprehensive training, Convergys offers employees a positive work environment, competitive wages and benefits including tuition reimbursement, the statement added.
Monday, March 22, 2010
new openings
Cisco to hire 500 at Bangalore unit
After setting up its Globalisation East centre a couple of years ago, networking major Cisco now plans to make Bangalore one of its three hubs for technical services business. The business unit, presently being reorganised at a global level, will grow its Bangalore strength by 500 engineers in next 24-30 months.
Joe Pinto, senior vice-president - technical services, Cisco Systems told FC that the rapidly growing division is being transitioned to have three concentrated centres including in Bangalore and Raleigh (North Carolina, US) and other smaller units. “Bangalore will be a key centre with several senior engineers. Apart from doing some support for US clients, the team will take care of emerging markets and rest of Asia,” he said.
Presently, the technical services team has 3,500 people globally. In the short term, the unit is expected to add 500 people.
In its Globalisation East centre, Cisco has mirrored all corporate and operational functions at the US HQ. It also is looking to develop solutions and products especially aimed at emerging markets. Pinto sees the Bangalore team gaining from the available talent pool in India and easier access to solutions being developed at the Globalisation centre.
Joe Pinto, senior vice-president - technical services, Cisco Systems told FC that the rapidly growing division is being transitioned to have three concentrated centres including in Bangalore and Raleigh (North Carolina, US) and other smaller units. “Bangalore will be a key centre with several senior engineers. Apart from doing some support for US clients, the team will take care of emerging markets and rest of Asia,” he said.
Presently, the technical services team has 3,500 people globally. In the short term, the unit is expected to add 500 people.
In its Globalisation East centre, Cisco has mirrored all corporate and operational functions at the US HQ. It also is looking to develop solutions and products especially aimed at emerging markets. Pinto sees the Bangalore team gaining from the available talent pool in India and easier access to solutions being developed at the Globalisation centre.
IT market, Layoffs in India
Siemens to axe 4,200 jobs from IT business
Diversified German conglomerate Siemens AG has said it will reduce headcount by 4,200 people from its IT business worldwide by 2011 as part of reorientation.
In a statement, the company said it would eliminate 4,200 jobs at Siemens IT Solutions and Services (SIS) worldwide by the autumn of 2011. The company currently employs about 35,000 people in its IT business globally.
Siemens Group has a good presence in India, where it provides direct employment to over 17,000 people.
Of the total number of 4,200, around 2,000 jobs would be axed in Germany, the company said without providing details for the rest of the job cuts.
"As part of the reorientation, plans call for eliminating some 4,200 of about 35,000 jobs worldwide by 2011. Roughly 2,000 of the jobs affected are in Germany," Siemens said.
Besides, Siemens is also planning to hive off its IT unit into a separate business entity.
While making job cuts, Siemens said it would "exhaust all possibilities for voluntary measures and to implement the cutbacks in as socially compatible a way as possible.
"Measures will include, for example, the termination of employment contracts by mutual consent or the non-renewal of temporary contracts. The required consultations with employee representatives will be initiated immediately," it added.
Moreover, Siemens said it would invest over 500 million euros into the SIS by 2012.
Siemens Group currently employs more than 4,00,000 people across the globe in its wide range of operations spanning from energy sector to healthcare and financial sector.
In a statement, the company said it would eliminate 4,200 jobs at Siemens IT Solutions and Services (SIS) worldwide by the autumn of 2011. The company currently employs about 35,000 people in its IT business globally.
Siemens Group has a good presence in India, where it provides direct employment to over 17,000 people.
Of the total number of 4,200, around 2,000 jobs would be axed in Germany, the company said without providing details for the rest of the job cuts.
"As part of the reorientation, plans call for eliminating some 4,200 of about 35,000 jobs worldwide by 2011. Roughly 2,000 of the jobs affected are in Germany," Siemens said.
Besides, Siemens is also planning to hive off its IT unit into a separate business entity.
While making job cuts, Siemens said it would "exhaust all possibilities for voluntary measures and to implement the cutbacks in as socially compatible a way as possible.
"Measures will include, for example, the termination of employment contracts by mutual consent or the non-renewal of temporary contracts. The required consultations with employee representatives will be initiated immediately," it added.
Moreover, Siemens said it would invest over 500 million euros into the SIS by 2012.
Siemens Group currently employs more than 4,00,000 people across the globe in its wide range of operations spanning from energy sector to healthcare and financial sector.
Wednesday, March 17, 2010
IT market, new openings
Cisco India's hiring plan on track, says John Chambers
Network-equipment maker Cisco Systems on Friday said it remains committed to the Indian market and its plans to increase headcount to 10,000 is on track.
“With all the appropriate caveats, the global econnomy is turning. We are deeply committed (to India). We are completing construction on two additional areas, which can house as many as 3,000 more,” Cisco CEO John Chambers said at a private function here.
The headcount India is projected to rise to 10,000 from about 6,000 currently, he added. However, Chambers did not divulge the timeframe.
“With all the appropriate caveats, the global econnomy is turning. We are deeply committed (to India). We are completing construction on two additional areas, which can house as many as 3,000 more,” Cisco CEO John Chambers said at a private function here.
The headcount India is projected to rise to 10,000 from about 6,000 currently, he added. However, Chambers did not divulge the timeframe.
TCS
TCS' 600 mn pound deal under fire in UK
The proposed multi-year contract between TCS and the UK government for administering its employment savings trust has evoked adverse comments from some British websites, one of which even suggested the deal could be reviewed if there is a change of guard in the government after the May elections.
The British's Personal Accounts Delivery Authority (PADA) earlier this month had said it would sign a contract with Tata Consultancy Services to administer the National Employment Savings Trust (NEST).
The Personal Accounts Delivery Authority is a non-departmental public body in Britain.
According to the website www.moneymarketing.co.uk, the Conservatives have attacked the decision to sign the contract for NEST administration before the general elections.
The website quoted Conservative's shadow pensions minister Nigel Waterson as saying, "He is amazed that contract would be signed so quickly and stressed that this would not inhibit a Tory review of the scheme if they get into power.”
"We wish to make it clear that our review of NEST, should we win the elections, will not be constrained in any way by any contract signed by this government in its dying days," Waterson was quoted as saying in the report.
Source: EconomicTimes
The British's Personal Accounts Delivery Authority (PADA) earlier this month had said it would sign a contract with Tata Consultancy Services to administer the National Employment Savings Trust (NEST).
The Personal Accounts Delivery Authority is a non-departmental public body in Britain.
According to the website www.moneymarketing.co.uk, the Conservatives have attacked the decision to sign the contract for NEST administration before the general elections.
The website quoted Conservative's shadow pensions minister Nigel Waterson as saying, "He is amazed that contract would be signed so quickly and stressed that this would not inhibit a Tory review of the scheme if they get into power.”
"We wish to make it clear that our review of NEST, should we win the elections, will not be constrained in any way by any contract signed by this government in its dying days," Waterson was quoted as saying in the report.
Source: EconomicTimes
IT market, new openings
MphasiS set to offer increments
Software services company MphasiS will roll out a salary increment for its 35,000-employees from May 1 this year, CEO Ganesh Ayyar told mediapersons at Pune. The company recently started a 2,000-seater global command and control centre in Pune for its remote infrastructure monitoring business vertical. The centre currently houses 600 technical staff supporting 450 clients worldwide.
While most companies had cut salaries in the slowdown time, MphasiS had retained them, linking the variable portion to the company’s performance as bonus. Mr Ayyar said: “Though this did give more money to the employees, most are still comfortable with the traditional increments, which is why we have decided to effect the hike,” adding that it had no relation to the revival of the economy.
While most companies had cut salaries in the slowdown time, MphasiS had retained them, linking the variable portion to the company’s performance as bonus. Mr Ayyar said: “Though this did give more money to the employees, most are still comfortable with the traditional increments, which is why we have decided to effect the hike,” adding that it had no relation to the revival of the economy.
TCS
High UK exposure may pose risk for TCS
With the UK government's contracts worth over $1 billion in the pipeline, Tata Consultancy Services (TCS) is exposed to substantial risks of project delays and anti-offshoring sentiments, according to local experts and rivals. Such projects also bring along single-digit margins and could impact profitability, unless there is significant work delivered from offshore.
Last week, the UK Personal Accounts Delivery said it decided to award a deal estimated at थ्600 million to TCS to administer the National Employee Savings Trust (NEST) scheme, a pensions scheme, for a 10-year-period in two phases. The decision has attracted sharp criticism from the Conservative party, which is opposing the decision taken close to the general elections.
Read full story on EconomicTimes
Last week, the UK Personal Accounts Delivery said it decided to award a deal estimated at थ्600 million to TCS to administer the National Employee Savings Trust (NEST) scheme, a pensions scheme, for a 10-year-period in two phases. The decision has attracted sharp criticism from the Conservative party, which is opposing the decision taken close to the general elections.
Read full story on EconomicTimes
IT market, new openings
ITC Infotech looks to hire over 1,800 people by March 2011
IT services and solutions firm ITC Infotech is looking to hire over 1,800 employees by March next year in its various offices across the country.
"We are looking to ramp up our headcount by more than 50 per cent to 5,000 employees by March next year," ITC Infotech HR head Anand Talwar told PTI.
The Bangalore-based company's current employee strength is 3,200 across its offices in various cities, including Bangalore, Kolkata and Hyderabad.
"We are looking to ramp up our headcount by more than 50 per cent to 5,000 employees by March next year," ITC Infotech HR head Anand Talwar told PTI.
The Bangalore-based company's current employee strength is 3,200 across its offices in various cities, including Bangalore, Kolkata and Hyderabad.
CTS, IT market
Cognizant announces bonuses, number touches 200 pc for top performers
Cognizant has announced bonuses for its employees globally for the calendar year 2009, seeking to reward employees after it posted strong growth in a difficult year.
The Nasdaq-listed company,which competes with TCS, Infosys and Wipro, confirmed the bonus payout but did not give out figures. However, people close to the situation told ET Now that the top performers got as much as 200% bonus, a number which is unprecedented in recent years, when IT companies felt the brunt of the recession in their major markets. They also added that a vast majority of employees got bonuses between 150-200%.
Cognizant’s performance-linked incentives are tied to the variable part of the compensation, which is about 10-15 percent at junior levels and goes to as high as 40 percent of the total compensation at senior levels.
The Nasdaq-listed company,which competes with TCS, Infosys and Wipro, confirmed the bonus payout but did not give out figures. However, people close to the situation told ET Now that the top performers got as much as 200% bonus, a number which is unprecedented in recent years, when IT companies felt the brunt of the recession in their major markets. They also added that a vast majority of employees got bonuses between 150-200%.
Cognizant’s performance-linked incentives are tied to the variable part of the compensation, which is about 10-15 percent at junior levels and goes to as high as 40 percent of the total compensation at senior levels.
IT market
Facebook beats Google once again!
Facebook has reportedly surpassed Google to become the most visited Web site in the US for the entire last week for the first time, according to the research firm Hitwise.
This is for the first time that Facebook beat Google for an entire week at a stretch. Before this, the social network took the top spot on a few US National holidays like Christmas Eve, Christmas Day, New Year's Day and the weekend of March 6th and 7th this year, which was the long Presidents Day weekend.
According to Hitwise, Facebook's visits increased 185 percent past week compared to the same week in 2009, while visits to Google increased 9 percent during the same time frame.
Analytics company comScore reported that Facebook search queries in the US grew by 10 percent in February to 436 million, up by 85 million over December's 351 million searches.
Facebook currently has more than 400 million active users. Together Facebook and Google accounted for 14% of all US Internet visits last week.
This is for the first time that Facebook beat Google for an entire week at a stretch. Before this, the social network took the top spot on a few US National holidays like Christmas Eve, Christmas Day, New Year's Day and the weekend of March 6th and 7th this year, which was the long Presidents Day weekend.
According to Hitwise, Facebook's visits increased 185 percent past week compared to the same week in 2009, while visits to Google increased 9 percent during the same time frame.
Analytics company comScore reported that Facebook search queries in the US grew by 10 percent in February to 436 million, up by 85 million over December's 351 million searches.
Facebook currently has more than 400 million active users. Together Facebook and Google accounted for 14% of all US Internet visits last week.
IT market
Facebook to set up centre in Hyderabad
Social networking site Facebook today announced that it will set up its office in Hyderabad to support the growing number of users, advertisers and developers in India and globally.
Facebook has seen exponential growth in recent months and has more than eight million active users in India, it said in a statement.
The rising popularity of Facebook has also come as a threat to various other social networking sites like Orkut, MySpace and Flickr.
It has more than 400 million active users worldwide.
The centre will house online advertising and developer support teams and provide round-the-clock, multi-lingual support to its users and advertisers globally, it further said.
The new centre in Hyderabad will supplement operations out of California, Dublin, Ireland and a recently announced location in Austin, Texas.
It has already started its hiring procedure for the Hyderabad centre.
"We expect our new office in Hyderabad to tap into the region's strong pool of talented people who understand operations and technology, and help us more effectively serve the needs of our users, advertisers, and developers around the world," Facebook Director (Global Online Operations) Don Faul said.
Facebook has seen exponential growth in recent months and has more than eight million active users in India, it said in a statement.
The rising popularity of Facebook has also come as a threat to various other social networking sites like Orkut, MySpace and Flickr.
It has more than 400 million active users worldwide.
The centre will house online advertising and developer support teams and provide round-the-clock, multi-lingual support to its users and advertisers globally, it further said.
The new centre in Hyderabad will supplement operations out of California, Dublin, Ireland and a recently announced location in Austin, Texas.
It has already started its hiring procedure for the Hyderabad centre.
"We expect our new office in Hyderabad to tap into the region's strong pool of talented people who understand operations and technology, and help us more effectively serve the needs of our users, advertisers, and developers around the world," Facebook Director (Global Online Operations) Don Faul said.
IT market
What China loses with Google
Source: IndiaTimes
China without Google a prospect that looks increasingly likely could mean no more maps on mobile phones. A free music service that has helped to fight piracy might be in jeopardy.
China's fledgling Web outfits would face less pressure to improve, eroding their ability to one day compete abroad. The extent of a possible Google Inc pullout from China in its dispute with the communist government over censorship and hacking is unclear.
But on top of a local search site that Google says it may close, services that might be affected range from advertising support for Chinese companies to online entertainment.
"If Google leaves, it's a lose-lose scenario, instead of Google loses and others gain," said Edward Yu, president of Analysys International, a Beijing research firm. Chinese news reports say Google is on the verge of shutting its China site, Google.cn, and has stopped censoring results.
A Google spokesman, Scott Rubin, denied censorship had stopped and would not confirm whether Google.cn might close. "We have not changed our operations in China," Rubin said by phone from Google's headquarters in Mountain View, California.
CEO Eric Schmidt said last week something would happen soon, and Rubin said he had no further details. Google says it is in talks with Beijing following its January 12 announcement that it no longer wants to comply with Beijing's extensive Web controls.
But China's industry minister insisted that the company must obey Chinese law, which appears to leave few options other than closing Google.cn, which has about 35 per cent of China's search market. Such a step could have repercussions for major Chinese companies as well as local Web surfers.
It would deliver a windfall to local rival Baidu Inc, China's major search engine, with 60 per cent of the market. But other companies rely on Google for search, maps and other services and might be forced to find alternatives.
China Mobile Ltd, the world's biggest phone company by subscribers, with 527 million accounts, uses Google for mobile search and maps. Baidu offers mobile search but China Mobile passed up a partnership with it earlier after they failed to agree on terms, according to industry analysts.
Millions of mobile customers might lose access to Google's Chinese-language map service. A key issue is whether Beijing, angry and embarrassed by Google's public defiance, would allow the company to continue running other operations, including advertising and a fledgling mobile phone businesses in China if Google.cn closes. China promotes Internet use for business and education but bars access to sites run by human rights and political activists and some news outlets.
Officials who defend China's controls by pointing to countries that bar content such as child pornography are stung that Google has drawn attention to how much more pervasive Chinese limits are. Chinese Web surfers are blocked from seeing Facebook, YouTube, Twitter and major blog-hosting services abroad and a Google pullout would leave them increasingly isolated.
Google hopes to keep operating its Beijing research and development center, advertising sales offices and mobile phone business, according to a person familiar with the company's thinking. But the person said the company won't do that if it believes its decision to stop censoring search results will jeopardize employees in China.
Industry analysts estimate Google has a workforce of 700 in China. The government says Chinese mobile phone carriers will be allowed to use Google's Android operating system but there has been no word on whether efforts to sell its own phones in China might be affected.
Google postponed the launch of two phones with a major Chinese carrier due to the dispute. Uncertainty also surrounds Google's China music portal, a free, advertising-supported service launched last year in partnership with four global music companies and 14 independent labels.
Industry analysts say it has helped to undercut China's rampant music piracy by offering an alternative to unlicensed copying. The music service is run by Top100.cn, a company part-owned by Google, but can be accessed only through Google.cn.
Employees at Top100.cn referred questions to executives who did not immediately answer phone calls. "Without that, are we back to, 'Piracy wins'?" said Duncan Clark, managing director of BDA China Ltd, a technology market research firm.
"Piracy thrives because of censorship." The biggest impact of a Google departure could lie behind the scenes, where Chinese companies, many of them small entrepreneurs, rely on its AdWords advertising service, Gmail email and documents services.
Those might be disrupted if Beijing turns up Internet filters to block access to Google's sites abroad. Its US site has a Chinese-language search engine but is already inaccessible due to government filters.
In an uncomfortable irony for Beijing, Google might suffer little commercial loss from a pullout while China's own companies are hurt. The bulk of Google's estimated $300 million in 2009 revenues in China came from export-oriented companies that would need to keep advertising on its sites abroad even if Google.cn closes, according to Yu. "We believe the majority of revenue would still be kept on, with keyword purchases listed on Google.com instead of Google.cn," he said.
The loss of competitive pressure from Google also might slow Chinese development in search and other Internet services, Yu said. "This is definitely a bad thing for Chinese companies that want to go abroad in the future," he said.
The industry minister, Li Yizhong, said on Friday that China's Internet industry would develop without Google. But even some Chinese industry leaders who normally toe the government line in public are warning that controls on Internet companies and media are handicapping their growth.
Beijing has steadily tightened controls over Internet content and foreign investment in the industry. Video sharing sites must have state-owned media outlets as partners.
People in the industry say it is getting harder to register privately financed sites. "Without full and fair market competition, there will be no quality, no excellence, no employment opportunities, no stability and no real rise of China," said the chairman of major Chinese portal Sohu Inc., Charles Zhang, in a speech in February, according to a report on Sohu's Web site. "How do we do this practically?" Zhang said.
"The problem is complicated, but the fundamental point is to limit the power of the government."
Source: IndiaTimes
China without Google a prospect that looks increasingly likely could mean no more maps on mobile phones. A free music service that has helped to fight piracy might be in jeopardy.
China's fledgling Web outfits would face less pressure to improve, eroding their ability to one day compete abroad. The extent of a possible Google Inc pullout from China in its dispute with the communist government over censorship and hacking is unclear.
But on top of a local search site that Google says it may close, services that might be affected range from advertising support for Chinese companies to online entertainment.
"If Google leaves, it's a lose-lose scenario, instead of Google loses and others gain," said Edward Yu, president of Analysys International, a Beijing research firm. Chinese news reports say Google is on the verge of shutting its China site, Google.cn, and has stopped censoring results.
A Google spokesman, Scott Rubin, denied censorship had stopped and would not confirm whether Google.cn might close. "We have not changed our operations in China," Rubin said by phone from Google's headquarters in Mountain View, California.
CEO Eric Schmidt said last week something would happen soon, and Rubin said he had no further details. Google says it is in talks with Beijing following its January 12 announcement that it no longer wants to comply with Beijing's extensive Web controls.
But China's industry minister insisted that the company must obey Chinese law, which appears to leave few options other than closing Google.cn, which has about 35 per cent of China's search market. Such a step could have repercussions for major Chinese companies as well as local Web surfers.
It would deliver a windfall to local rival Baidu Inc, China's major search engine, with 60 per cent of the market. But other companies rely on Google for search, maps and other services and might be forced to find alternatives.
China Mobile Ltd, the world's biggest phone company by subscribers, with 527 million accounts, uses Google for mobile search and maps. Baidu offers mobile search but China Mobile passed up a partnership with it earlier after they failed to agree on terms, according to industry analysts.
Millions of mobile customers might lose access to Google's Chinese-language map service. A key issue is whether Beijing, angry and embarrassed by Google's public defiance, would allow the company to continue running other operations, including advertising and a fledgling mobile phone businesses in China if Google.cn closes. China promotes Internet use for business and education but bars access to sites run by human rights and political activists and some news outlets.
Officials who defend China's controls by pointing to countries that bar content such as child pornography are stung that Google has drawn attention to how much more pervasive Chinese limits are. Chinese Web surfers are blocked from seeing Facebook, YouTube, Twitter and major blog-hosting services abroad and a Google pullout would leave them increasingly isolated.
Google hopes to keep operating its Beijing research and development center, advertising sales offices and mobile phone business, according to a person familiar with the company's thinking. But the person said the company won't do that if it believes its decision to stop censoring search results will jeopardize employees in China.
Industry analysts estimate Google has a workforce of 700 in China. The government says Chinese mobile phone carriers will be allowed to use Google's Android operating system but there has been no word on whether efforts to sell its own phones in China might be affected.
Google postponed the launch of two phones with a major Chinese carrier due to the dispute. Uncertainty also surrounds Google's China music portal, a free, advertising-supported service launched last year in partnership with four global music companies and 14 independent labels.
Industry analysts say it has helped to undercut China's rampant music piracy by offering an alternative to unlicensed copying. The music service is run by Top100.cn, a company part-owned by Google, but can be accessed only through Google.cn.
Employees at Top100.cn referred questions to executives who did not immediately answer phone calls. "Without that, are we back to, 'Piracy wins'?" said Duncan Clark, managing director of BDA China Ltd, a technology market research firm.
"Piracy thrives because of censorship." The biggest impact of a Google departure could lie behind the scenes, where Chinese companies, many of them small entrepreneurs, rely on its AdWords advertising service, Gmail email and documents services.
Those might be disrupted if Beijing turns up Internet filters to block access to Google's sites abroad. Its US site has a Chinese-language search engine but is already inaccessible due to government filters.
In an uncomfortable irony for Beijing, Google might suffer little commercial loss from a pullout while China's own companies are hurt. The bulk of Google's estimated $300 million in 2009 revenues in China came from export-oriented companies that would need to keep advertising on its sites abroad even if Google.cn closes, according to Yu. "We believe the majority of revenue would still be kept on, with keyword purchases listed on Google.com instead of Google.cn," he said.
The loss of competitive pressure from Google also might slow Chinese development in search and other Internet services, Yu said. "This is definitely a bad thing for Chinese companies that want to go abroad in the future," he said.
The industry minister, Li Yizhong, said on Friday that China's Internet industry would develop without Google. But even some Chinese industry leaders who normally toe the government line in public are warning that controls on Internet companies and media are handicapping their growth.
Beijing has steadily tightened controls over Internet content and foreign investment in the industry. Video sharing sites must have state-owned media outlets as partners.
People in the industry say it is getting harder to register privately financed sites. "Without full and fair market competition, there will be no quality, no excellence, no employment opportunities, no stability and no real rise of China," said the chairman of major Chinese portal Sohu Inc., Charles Zhang, in a speech in February, according to a report on Sohu's Web site. "How do we do this practically?" Zhang said.
"The problem is complicated, but the fundamental point is to limit the power of the government."
Source: IndiaTimes
BPO
Genpact bags 5-year deal from Bengal Aerotropolis Projects
BPO major Genpact Tuesday inked a five-year deal with Bengal Aerotropolis Projects (BAP) for managing its IT operations for an undisclosed amount.
BAP is engaged in development of aerotropolis projects in the country.
As part of the deal, Genpact will provide BAP with a hosted-IT application and infrastructure services model, which will help the company in saving large capital investments in IT, Genpact said in a statement.
However, the size of the deal was not disclosed. The partnership would enable BAP to move to a cloud-based IT model and help shift from a capital-heavy owned model to an operational expense model, it said.
BAP is engaged in development of aerotropolis projects in the country.
As part of the deal, Genpact will provide BAP with a hosted-IT application and infrastructure services model, which will help the company in saving large capital investments in IT, Genpact said in a statement.
However, the size of the deal was not disclosed. The partnership would enable BAP to move to a cloud-based IT model and help shift from a capital-heavy owned model to an operational expense model, it said.
BPO
Patni sets up hub for BPO ops in Texas
Global IT and BPO services provider Patni Computer Systems said it has set up a new North American hub for BPO operations in El Paso, Texas. The establishment of the El Paso site follows Patni’s recent move to open a nearshore centre in Queretaro, Mexico, to serve North American and Latin American markets and augment the company’s global delivery capabilities, a company release said here.
Establishing the service hub expands Patni’s business process outsourcing (BPO) and knowledge process outsourcing (KPO) delivery capability to service North American customers from domestic locations in a cost-effective manner and employ highly-skilled local talent, the release said.
Establishing the service hub expands Patni’s business process outsourcing (BPO) and knowledge process outsourcing (KPO) delivery capability to service North American customers from domestic locations in a cost-effective manner and employ highly-skilled local talent, the release said.
New Deals, TCS
TCS signs 5-year deal with Malaysia Airlines
The country's largest software exporter Tata Consultancy Services (TCS) today inked a five-year deal with Malaysia Airlines (MA) for an undisclosed amount.
The five-year contract for end-to-end IT infrastructure services will transform the airline's IT operations to deliver seamless internal customer experience, TCS said in a statement.
However, the size of the deal was not disclosed. "One of the key initiatives include fine tuning our IT outsourcing strategy to deliver the required business results at lower cost. At the same time, we will continue to work with our key vendors to maximise service delivery and to proactively address other business requirements," MA Chief Information Officer Faridah Abdul Rahman said.
The five-year contract for end-to-end IT infrastructure services will transform the airline's IT operations to deliver seamless internal customer experience, TCS said in a statement.
However, the size of the deal was not disclosed. "One of the key initiatives include fine tuning our IT outsourcing strategy to deliver the required business results at lower cost. At the same time, we will continue to work with our key vendors to maximise service delivery and to proactively address other business requirements," MA Chief Information Officer Faridah Abdul Rahman said.
Infosys
Infosys may have seen 4,000 staff exits in February: CLSA
Brokerage firm CLSA said over 4,000 employees may have resigned from Infosys in February alone, largely driven by an uptick in business environment that has created a huge demand for talent, after a lull. The normal attrition numbers in India’s second-largest software exporter is around 1,200 employees a month.
“There is quite a bit of industry chatter that 4,000-4,200 employees have resigned at Infosys in February. This is not officially confirmed by the management, but multiple sources are claiming the same number, including industry blogs,” CLSA said in a note to its clients. However, Infosys group HR head Nandita Gurjar said it was not true.
“There is quite a bit of industry chatter that 4,000-4,200 employees have resigned at Infosys in February. This is not officially confirmed by the management, but multiple sources are claiming the same number, including industry blogs,” CLSA said in a note to its clients. However, Infosys group HR head Nandita Gurjar said it was not true.
Monday, March 1, 2010
Wipro
Wipro starts probe into $4 million fraud
Embezzlement by employees is seen to be a common phenomenon among Indian companies. And some say even the $4 million that a Wipro employee is said to have embezzled is a relatively ordinary figure.
Wipro is now instituting a high-level internal probe, and is said to have even mandated Ernst & Young to verify the audited accounts. Experts say the reason for such frauds typically is lax controls.
Kashi Memani, former chairman and managing partner of Ernst and Young India, said such frauds happen when a company does not conduct regular internal audits, do not have in place a tight set of internal controls and most importantly, when they decentralize the power of checks and balances to people down in the hierarchy.
"It is very important for companies to change the set of people who have access to accounts on a regular basis. But, one must be careful not to change people either too soon or wait for too long. Many a time people who have for long earned the company's trust of handling accounts, tend to misuse this trust," Memani said.
Several of these factors appear relevant in Wipro's case. The embezzler, one Anoop Kumar Agarwal, who committed suicide last December in Bangalore, is said to have joined the company in 2006 and later promoted as an assistant manager in the finance department. Agarwal, reports say, used stolen passwords to transfer money into his personal account.
Source: EconomicTimes
Wipro is now instituting a high-level internal probe, and is said to have even mandated Ernst & Young to verify the audited accounts. Experts say the reason for such frauds typically is lax controls.
Kashi Memani, former chairman and managing partner of Ernst and Young India, said such frauds happen when a company does not conduct regular internal audits, do not have in place a tight set of internal controls and most importantly, when they decentralize the power of checks and balances to people down in the hierarchy.
"It is very important for companies to change the set of people who have access to accounts on a regular basis. But, one must be careful not to change people either too soon or wait for too long. Many a time people who have for long earned the company's trust of handling accounts, tend to misuse this trust," Memani said.
Several of these factors appear relevant in Wipro's case. The embezzler, one Anoop Kumar Agarwal, who committed suicide last December in Bangalore, is said to have joined the company in 2006 and later promoted as an assistant manager in the finance department. Agarwal, reports say, used stolen passwords to transfer money into his personal account.
Source: EconomicTimes
H1-B
15 disqualified H-1B employers
Courtesy: IndiaTimes Infotech
2009 was one of the most controversial years for H-1B visas. For the first time ever, nearly 20,000 H-1B visas went a begging even seven weeks after the US Citizenship and Immigration Services (USCIS) started accepting applications for the financial year 2010.
With H-1B visas facing blame for the spiralling job losses in the US, the year saw numerous Bills being introduced for restricting the use of H-1B visas through legislation. This made US Department of Labor (DOL) and other US Immigration agencies tougher in approving H-1B visa applications.
Among all the brouhaha, many companies were also disqualified from applying for H-1B visas. A company faces debarment over what is seen as an H-1B abuse under US laws. The penalty of debarment means that a company is disqualified from obtaining approvals of employment-based, permanent and temporary petitions. This disqualification includes all H-1B, L-1, O-1, and P non-immigrant petitions, as well as all I-140 immigrant petitions, as part of the permanent residence process.
Here's over to the top 15 companies disqualified (starting November 30 2009).
4MY2C, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: Santa Fe Springs, CA
AGA John, Inc
Debarment period: 6/1/2008 to 5/31/2010
Employer location: 8687 Melrose Ave. Suite B-130 West Hollywood, CA 90069
Amtech Electrocircuits
Debarment period: 3/1/2008 to 2/28/2010
Employer location: 701 Minnesota Drive Troy, MI 48083
API Accounting & Computer Consulting
Debarment period: 4/1/2008 to 3/31/2010
Employer location: 17870 Castleton St. Suite 116 City of Industry, CA 91748
Assured Horizons, LLC
Debarment period: 8/1/2008 to 7/31/2010
Employer location: 18607 Brookhurst Street, Suite 359 Fountain Valley, CA 92708
Bradley Consulting Services, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: 3357 Pitcher Plant Circle Pensacola, FL 32506
Calpension, Inc
Debarment period: 6/1/2009 to 5/31/2010
Employer location: 23232 Peralta Dr. Suite 218 Laguna Hills, CA 92653
Cambridge Resource Group, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: Sri Reddy 18 Lyman Street Suite 207 Westborough, MA 01581
Complete Systems Solutions, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: 560 Sutter Street #400 San Francisco, CA 94102
Julian and Associates
Debarment period: 8/1/2008 to 7/31/2010
Employer location: 4641 North Ashland Avenue Chicago, IL 60640
LNBJ Construction Company, Inc
Debarment period: 3/1/2008 to 2/28/2010
Employer location: 2642 Briarwood Drive Marietta, GA 30067
Magnolia Pool Supply, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: 9571 Magnolia Ave. Riverside, CA 92503
Morex Enterprises Inc
Debarment period: 3/1/2008 to 2/28/2010
Employer location: 1442 E. Washington Blvd. Los Angeles, CA 90021
Netultimate.Com, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: 8116 Arlington Blvd. Apt. 121 Falls Church, VA 22042
New Hope Solutions, Inc
Debarment period: 1/1/2009 to 12/31/2010
Employer location: 2731 Sawbury Blvd. Columbus, Ohio 43235
Source: IndiaTimes
2009 was one of the most controversial years for H-1B visas. For the first time ever, nearly 20,000 H-1B visas went a begging even seven weeks after the US Citizenship and Immigration Services (USCIS) started accepting applications for the financial year 2010.
With H-1B visas facing blame for the spiralling job losses in the US, the year saw numerous Bills being introduced for restricting the use of H-1B visas through legislation. This made US Department of Labor (DOL) and other US Immigration agencies tougher in approving H-1B visa applications.
Among all the brouhaha, many companies were also disqualified from applying for H-1B visas. A company faces debarment over what is seen as an H-1B abuse under US laws. The penalty of debarment means that a company is disqualified from obtaining approvals of employment-based, permanent and temporary petitions. This disqualification includes all H-1B, L-1, O-1, and P non-immigrant petitions, as well as all I-140 immigrant petitions, as part of the permanent residence process.
Here's over to the top 15 companies disqualified (starting November 30 2009).
4MY2C, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: Santa Fe Springs, CA
AGA John, Inc
Debarment period: 6/1/2008 to 5/31/2010
Employer location: 8687 Melrose Ave. Suite B-130 West Hollywood, CA 90069
Amtech Electrocircuits
Debarment period: 3/1/2008 to 2/28/2010
Employer location: 701 Minnesota Drive Troy, MI 48083
API Accounting & Computer Consulting
Debarment period: 4/1/2008 to 3/31/2010
Employer location: 17870 Castleton St. Suite 116 City of Industry, CA 91748
Assured Horizons, LLC
Debarment period: 8/1/2008 to 7/31/2010
Employer location: 18607 Brookhurst Street, Suite 359 Fountain Valley, CA 92708
Bradley Consulting Services, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: 3357 Pitcher Plant Circle Pensacola, FL 32506
Calpension, Inc
Debarment period: 6/1/2009 to 5/31/2010
Employer location: 23232 Peralta Dr. Suite 218 Laguna Hills, CA 92653
Cambridge Resource Group, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: Sri Reddy 18 Lyman Street Suite 207 Westborough, MA 01581
Complete Systems Solutions, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: 560 Sutter Street #400 San Francisco, CA 94102
Julian and Associates
Debarment period: 8/1/2008 to 7/31/2010
Employer location: 4641 North Ashland Avenue Chicago, IL 60640
LNBJ Construction Company, Inc
Debarment period: 3/1/2008 to 2/28/2010
Employer location: 2642 Briarwood Drive Marietta, GA 30067
Magnolia Pool Supply, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: 9571 Magnolia Ave. Riverside, CA 92503
Morex Enterprises Inc
Debarment period: 3/1/2008 to 2/28/2010
Employer location: 1442 E. Washington Blvd. Los Angeles, CA 90021
Netultimate.Com, Inc
Debarment period: 6/1/2009 to 5/31/2011
Employer location: 8116 Arlington Blvd. Apt. 121 Falls Church, VA 22042
New Hope Solutions, Inc
Debarment period: 1/1/2009 to 12/31/2010
Employer location: 2731 Sawbury Blvd. Columbus, Ohio 43235
Source: IndiaTimes
Wednesday, February 24, 2010
Infosys, Outsourcing, TCS, Wipro
Mega Deals: $1 billion outsourcing contracts may come to India
Large outsourcing contracts worth up to $1 billion look set for a comeback this year, as companies from segments like retail, banking, telecom and utilities, apart from government bodies, seek to cope with renewed demand for their services and also lower their operational expenses.
Outsourcing experts and industry officials told ET last week that auto customers too are looking to award large contracts for managing their business and IT systems this year. British Petroleum’s IT contract worth $1.5 billion awarded to Indian vendors TCS, Infosys and Wipro early this year was one such mega deal.
Continue reading on EconomicTimes
Outsourcing experts and industry officials told ET last week that auto customers too are looking to award large contracts for managing their business and IT systems this year. British Petroleum’s IT contract worth $1.5 billion awarded to Indian vendors TCS, Infosys and Wipro early this year was one such mega deal.
Continue reading on EconomicTimes
new openings
Nucleus Software Exports to recruit 150
Noida-based global banking and finance solutions provider, Nucleus Software Exports, on Monday said the company, after the recession, is expecting better growth from exports and will also increase its headcount during the next six months.
“We have opportunities for businesses from new markets like Southeast Asia, West Asia. Business from countries in Europe and the US is also picking up now. We are already in talks with two new customers in UAE and Philippines for providing them solutions in banking and non-banking financial companies (NBFCs). We will hire around 150 people in the next six months,” Niraj Vedwa, chief operating officer, Nucleus Software Exports, told FC.
Continue reading on FinancialChronicle
“We have opportunities for businesses from new markets like Southeast Asia, West Asia. Business from countries in Europe and the US is also picking up now. We are already in talks with two new customers in UAE and Philippines for providing them solutions in banking and non-banking financial companies (NBFCs). We will hire around 150 people in the next six months,” Niraj Vedwa, chief operating officer, Nucleus Software Exports, told FC.
Continue reading on FinancialChronicle
Thursday, February 11, 2010
new openings, TCS, Wipro
TCS, Wipro to hire 37,500 employees
With improving business sentiment and revival in IT spends, hiring seems to be back in full swing at software firm TCS and Wipro. Tata Consultancy Services, the country's largest software exporter by revenue plans to hire 30,000 employees in the financial year 2010-2011. Wipro plans to add 7,500 people in the next two quarters.
Wipro handed out salary increments to all its employees. With effect from February 1, employees got a pay hike in the 8% to 12% range with some even getting a 15% increase.
Infosys had given a single-digit increment in October. It had announced an across-the-board raise and promotions with effect from October 1, 2009.
TCS CEO and MD N Chandrasekaran said, "China is a tough market for IT firms and the company was seeing business opportunity in Europe." The company is currently seeing an 8-10% growth in revenue from domestic operations and is eyeing a double-digit growth in the next two years.
Chandrasekaran said the company had signed a few large deals as well as a number of smaller ones.
"The financial services sector will drive growth. We expect good growth from retail, pharma and utilities," he said.
The company, however, expects a lesser growth from verticals such as telecom and manufacturing.
Chandrasekaran said the company will hike salaries of its employees in the coming fiscal, but did not give details. TCS, has not hiked wages in the current fiscal, but employees have received 150 per cent VA payouts in two consecutive quarters -- Q2 and Q3 of FY'10.
"We are on a path to hire 1,000 people. We have already hired 300," he said, replying to a query on hiring plans for the current fiscal. In Q3 of FY-10, TCS had made 7,692 net additions, compared with a net addition of 320 in the previous quarter.
Asked about the extent to which India would be affected by the US move to slash tax-breaks to outsourcers, Chandrasekaran said the matter is not an immediate concern.
US president Barack Obama last month had said his administration would "slash the tax-breaks for companies that ship our jobs overseas" and instead "give those tax-breaks to companies that create jobs in the country," which sent shivers down the industry's spine.
This is because the US accounts for almost 60 per cent of the IT exports from the country are to that market.
"The regulatory changes with regard to employment and outsourcing in any part of the world is something that we have to watch every day. You need to see how to align to that, but because of this, if you ask me if there is an immediate concern, then the answer is no," Chandrasekaran said.
Wipro handed out salary increments to all its employees. With effect from February 1, employees got a pay hike in the 8% to 12% range with some even getting a 15% increase.
Infosys had given a single-digit increment in October. It had announced an across-the-board raise and promotions with effect from October 1, 2009.
TCS CEO and MD N Chandrasekaran said, "China is a tough market for IT firms and the company was seeing business opportunity in Europe." The company is currently seeing an 8-10% growth in revenue from domestic operations and is eyeing a double-digit growth in the next two years.
Chandrasekaran said the company had signed a few large deals as well as a number of smaller ones.
"The financial services sector will drive growth. We expect good growth from retail, pharma and utilities," he said.
The company, however, expects a lesser growth from verticals such as telecom and manufacturing.
Chandrasekaran said the company will hike salaries of its employees in the coming fiscal, but did not give details. TCS, has not hiked wages in the current fiscal, but employees have received 150 per cent VA payouts in two consecutive quarters -- Q2 and Q3 of FY'10.
"We are on a path to hire 1,000 people. We have already hired 300," he said, replying to a query on hiring plans for the current fiscal. In Q3 of FY-10, TCS had made 7,692 net additions, compared with a net addition of 320 in the previous quarter.
Asked about the extent to which India would be affected by the US move to slash tax-breaks to outsourcers, Chandrasekaran said the matter is not an immediate concern.
US president Barack Obama last month had said his administration would "slash the tax-breaks for companies that ship our jobs overseas" and instead "give those tax-breaks to companies that create jobs in the country," which sent shivers down the industry's spine.
This is because the US accounts for almost 60 per cent of the IT exports from the country are to that market.
"The regulatory changes with regard to employment and outsourcing in any part of the world is something that we have to watch every day. You need to see how to align to that, but because of this, if you ask me if there is an immediate concern, then the answer is no," Chandrasekaran said.
Wednesday, February 10, 2010
Wipro
Wipro hikes salary, good news for IT
The smiles are back in Silicon Plateau. Wipro has just handed out salary increments to all its employees. With effect from February 1, employees will get a pay hike in the 8% to 12% range with some even getting a 15% increase.
Such a hike comes after a long dark tunnel — of 12 to 18 months — when employees went through a difficult period of layoffs, uncertainty, additional work loads, and salary freeze. A Wipro employee said she received the increment letter which indicated a 12% increase in salary. Several other employees also said they had received increment mails.
Wipro's head of HR Pratik Kumar, however, declined to talk about details. "Hikes are in the pipeline. We mentioned it during our third quarter financial results. We'll make a further announcement regarding the hike and percentage etc. only in February," he said.
A couple of mid-tier Wipro executives said the hike is a morale booster. "I was seriously exploring a job change. Now that I'm getting a hike close to 15%, I guess I should stay back," a senior project manager said.
Infosys had given a single-digit increment in October. It had announced an across-the-board raise and promotions with effect from October 1, 2009. Domestic salaries went up by 8% while onsite pay rose by 2%. "During the October-December quarter, our variable pay has been 100%, against 92% in the previous quarter. We'll be thinking of a further salary hike only in April 2010," said its HR head T V Mohandas Pai.
Such a hike comes after a long dark tunnel — of 12 to 18 months — when employees went through a difficult period of layoffs, uncertainty, additional work loads, and salary freeze. A Wipro employee said she received the increment letter which indicated a 12% increase in salary. Several other employees also said they had received increment mails.
Wipro's head of HR Pratik Kumar, however, declined to talk about details. "Hikes are in the pipeline. We mentioned it during our third quarter financial results. We'll make a further announcement regarding the hike and percentage etc. only in February," he said.
A couple of mid-tier Wipro executives said the hike is a morale booster. "I was seriously exploring a job change. Now that I'm getting a hike close to 15%, I guess I should stay back," a senior project manager said.
Infosys had given a single-digit increment in October. It had announced an across-the-board raise and promotions with effect from October 1, 2009. Domestic salaries went up by 8% while onsite pay rose by 2%. "During the October-December quarter, our variable pay has been 100%, against 92% in the previous quarter. We'll be thinking of a further salary hike only in April 2010," said its HR head T V Mohandas Pai.
Friday, January 29, 2010
Layoffs in USA, Oracle
Oracle to cut 1000 jobs at Sun
Oracle Corp CEO Larry Ellison cheered the closing of his company's $7.4 billion acquisition of Sun Microsystems on Wednesday, vowing that Sun will immediately add to Oracle's profits.
He said layoffs won't be as severe as some industry analysts were predicting. Analysts had expected Sun to suffer huge job cuts once Oracle closed the acquisition. But Ellison said Oracle wants to bulk up Sun's staff to improve its sales -- a problem Sun has had trouble cracking since the dot-com meltdown a decade ago.
Oracle is hiring 2,000 people over the next few months for the Sun businesses, while layoffs from the acquisition will be about half that number, Ellison said.
"We're hiring, not firing. We're not cutting Sun to profitability," Ellison said at a conference with industry analysts at Oracle's headquarters here. "We think Sun's a growing business."
Ellison also confirmed that he's interested in buying the Golden State Warriors basketball team, a prospect that had been rumored.
"I'm trying," he said, in response to a question. "Unfortunately you can't have a hostile takeover of a basketball team." The line that got laughs because Oracle is a highly acquisitive company and won a bruising hostile takeover fight for rival PeopleSoft, a $10.3 billion deal Oracle closed in 2005.
Ellison had previously expressed interest in buying an NBA franchise and could take the Warriors if current top man Chris Cohan eventually decides to sell.
Oracle said Wednesday that it completed the Sun acquisition, one week after the European Union offered its long-awaited approval of the deal. European regulators determined the combined company would not harm competition in the database software markets, where Oracle dominates but a Sun division is a growing rival.
Sun was a dot-com highflyer that advanced the technology used to link computers, making them more useful as a network.
The deal with Oracle was announced last April. The US Department Justice cleared it four months later. With Sun, Oracle gets ownership of the Java programming language, which runs on more than a billion devices, and the Solaris operating system. Oracle also gets sophisticated server technology that it can bundle with its software. Sun is the world's No. 4 server maker.
One reason job losses may be limited is the fact Sun has already cut deeply because of its sagging finances. In October, Sun revealed plans to cut up to 3,000 jobs as the antitrust scrutiny dragged on. Sun has already cut about 7,600 workers in three previous rounds of layoffs.
Sun had 27,596 employees at the end of September. Previous Oracle acquisitions have been followed by deep job cuts.
Oracle fired some 5,000 workers after completing the PeopleSoft deal. Many of the layoffs came from PeopleSoft's 11,000-plus work force. The next year, Oracle cut about 2,000 jobs after absorbing Siebel Systems Inc, a company it bought for $5.85 billion and had 4,700 workers.
He said layoffs won't be as severe as some industry analysts were predicting. Analysts had expected Sun to suffer huge job cuts once Oracle closed the acquisition. But Ellison said Oracle wants to bulk up Sun's staff to improve its sales -- a problem Sun has had trouble cracking since the dot-com meltdown a decade ago.
Oracle is hiring 2,000 people over the next few months for the Sun businesses, while layoffs from the acquisition will be about half that number, Ellison said.
"We're hiring, not firing. We're not cutting Sun to profitability," Ellison said at a conference with industry analysts at Oracle's headquarters here. "We think Sun's a growing business."
Ellison also confirmed that he's interested in buying the Golden State Warriors basketball team, a prospect that had been rumored.
"I'm trying," he said, in response to a question. "Unfortunately you can't have a hostile takeover of a basketball team." The line that got laughs because Oracle is a highly acquisitive company and won a bruising hostile takeover fight for rival PeopleSoft, a $10.3 billion deal Oracle closed in 2005.
Ellison had previously expressed interest in buying an NBA franchise and could take the Warriors if current top man Chris Cohan eventually decides to sell.
Oracle said Wednesday that it completed the Sun acquisition, one week after the European Union offered its long-awaited approval of the deal. European regulators determined the combined company would not harm competition in the database software markets, where Oracle dominates but a Sun division is a growing rival.
Sun was a dot-com highflyer that advanced the technology used to link computers, making them more useful as a network.
The deal with Oracle was announced last April. The US Department Justice cleared it four months later. With Sun, Oracle gets ownership of the Java programming language, which runs on more than a billion devices, and the Solaris operating system. Oracle also gets sophisticated server technology that it can bundle with its software. Sun is the world's No. 4 server maker.
One reason job losses may be limited is the fact Sun has already cut deeply because of its sagging finances. In October, Sun revealed plans to cut up to 3,000 jobs as the antitrust scrutiny dragged on. Sun has already cut about 7,600 workers in three previous rounds of layoffs.
Sun had 27,596 employees at the end of September. Previous Oracle acquisitions have been followed by deep job cuts.
Oracle fired some 5,000 workers after completing the PeopleSoft deal. Many of the layoffs came from PeopleSoft's 11,000-plus work force. The next year, Oracle cut about 2,000 jobs after absorbing Siebel Systems Inc, a company it bought for $5.85 billion and had 4,700 workers.
IT market, Outsourcing, Recession
No threat to IT Inc from Obama: Gartner
IT analyst firm Gartner dismissed any threat to the over $60-billion Indian IT exports industry following US President Barak Obama's plan to stop giving tax breaks to those US companies shipping jobs abroad.
"There is no need for panic...Even if tax breaks are taken away, the US firms have to outsource because that makes business sense for them," Gartner senior research analyst Diptarup Chakroborty said.
"If the tax breaks are taken away, it is not going to impact the Indian IT industry adversely. With the global economy looking up, a lot of emerging markets are opening up. The contribution from those markets is going to offset the impact of tax breaks if any," he said.
As the overall market would be growing the problems of tax breaks will be overlooked by the firms. The software firms association Nasscom also has sought to downplay Obama's plan to slash tax breaks for companies shipping jobs abroad, saying the real worry is "protectionism" and not tax breaks.
"I think the concerns that we have is about indirect protectionism. I don't think tax break issue is really the one which is important for us. Obama's comment was not related to outsourcing. It's about US companies operating in regions where they get tax benefits," Nasscom VP Ameet Nivsarker said.
"There is no need for panic...Even if tax breaks are taken away, the US firms have to outsource because that makes business sense for them," Gartner senior research analyst Diptarup Chakroborty said.
"If the tax breaks are taken away, it is not going to impact the Indian IT industry adversely. With the global economy looking up, a lot of emerging markets are opening up. The contribution from those markets is going to offset the impact of tax breaks if any," he said.
As the overall market would be growing the problems of tax breaks will be overlooked by the firms. The software firms association Nasscom also has sought to downplay Obama's plan to slash tax breaks for companies shipping jobs abroad, saying the real worry is "protectionism" and not tax breaks.
"I think the concerns that we have is about indirect protectionism. I don't think tax break issue is really the one which is important for us. Obama's comment was not related to outsourcing. It's about US companies operating in regions where they get tax benefits," Nasscom VP Ameet Nivsarker said.
HCL, IT market, New Deals
HCL Tech bags Rs 231 cr Meggitt deal
Software company HCL Technologies today said it has received a contract worth around Rs 231 crore from UK-based defence equipment maker Meggitt for providing engineering services.
Meggitt signs $50 million (around Rs 231 crore) global engineering transformation services agreement with the company's engineering and R&D services (HCL ERS) division, HCL Technologies said in a filing to the Bombay Stock Exchange.
"HCL integrates the right capabilities and business models to ensure organisations such as Meggitt establish a competitive advantage," HCL ERS Senior VP and Global Head of Sales & Practice Sandeep Kishore said.
HCL was selected based on its understanding of Meggitt's business challenges and proven track record of partnering with large aerospace and manufacturing companies on highly complex engineering development programmes.
"This strategic initiative will help us respond to the current economic environment while successfully positioning us for future growth," Meggitt's Chief Executive Terry Twigger said.
Meggitt PLC is an international group operating in North America, Europe and Asia, known for its specialised extreme environment engineering. Meggitt is a leader in civil and military aerospace equipment, sensing systems, combat support and defence systems training.
Meggitt signs $50 million (around Rs 231 crore) global engineering transformation services agreement with the company's engineering and R&D services (HCL ERS) division, HCL Technologies said in a filing to the Bombay Stock Exchange.
"HCL integrates the right capabilities and business models to ensure organisations such as Meggitt establish a competitive advantage," HCL ERS Senior VP and Global Head of Sales & Practice Sandeep Kishore said.
HCL was selected based on its understanding of Meggitt's business challenges and proven track record of partnering with large aerospace and manufacturing companies on highly complex engineering development programmes.
"This strategic initiative will help us respond to the current economic environment while successfully positioning us for future growth," Meggitt's Chief Executive Terry Twigger said.
Meggitt PLC is an international group operating in North America, Europe and Asia, known for its specialised extreme environment engineering. Meggitt is a leader in civil and military aerospace equipment, sensing systems, combat support and defence systems training.
IT market
Microsoft profit up 60% to 6.7bn
Microsoft Corp. said Thursday that earnings in the most recent quarter jumped 60 per cent, helped by a rebound in personal computer sales.
The PC industry bounced back during the 2009 holiday shopping season after one of its roughest years to date. Microsoft's earnings are closely tied to computer sales because its two most profitable divisions make the Windows operating system and Office business software.
Microsoft said its net income for the fiscal second quarter that ended Dec. 31 rose to $6.7 billion, or 74 cents per share, compared with $4.2 billion, or 47 cents per share, in the year-ago period. Revenue increased 14 percent to $19 billion.
The latest version of Windows, called Windows 7, was released during the quarter. Revenue from the Windows business jumped 70 percent.
Shares of Microsoft rose 25 cents, or 0.9 percent, to $29.41 in extended trading after the release of results. Earlier, shares closed down 51 cents, or 1.7 percent, at $29.16.
The PC industry bounced back during the 2009 holiday shopping season after one of its roughest years to date. Microsoft's earnings are closely tied to computer sales because its two most profitable divisions make the Windows operating system and Office business software.
Microsoft said its net income for the fiscal second quarter that ended Dec. 31 rose to $6.7 billion, or 74 cents per share, compared with $4.2 billion, or 47 cents per share, in the year-ago period. Revenue increased 14 percent to $19 billion.
The latest version of Windows, called Windows 7, was released during the quarter. Revenue from the Windows business jumped 70 percent.
Shares of Microsoft rose 25 cents, or 0.9 percent, to $29.41 in extended trading after the release of results. Earlier, shares closed down 51 cents, or 1.7 percent, at $29.16.
IT market, New Deals, Wipro
Wipro in outsourcing deal with BAT
No. 3 Indian software-services firm Wipro Ltd said on Wednesday it signed a multi-year outsourcing deal with British American Tobacco Plc, the world's second-biggest cigarette maker.
Wipro will help British American Tobacco's application support services for global business operations, the company said in a statement. Financial details were not disclosed.
Wipro will help British American Tobacco's application support services for global business operations, the company said in a statement. Financial details were not disclosed.
IT market, Oracle
Oracle closes $7.4 bn Sun deal
Software major Oracle Corp has completed the takeover of hardware company Sun Microsystems Inc for $7.4 billion.
The deal, which was announced nine months ago, would transform the IT industry, Oracle said in a statement yesterday.
The two companies, which have a significant presence in India, together employs more than 26,000 people in the country. Oracle has more than 25,000 employees in India while Sun Microsystem has 1,200 people.
The Sun Solaris operating system is the leading platform for the Oracle database, Oracle's largest business. With the acquisition of Sun, Oracle can optimise Oracle database for some of the unique, high-end features of Solaris.
"With the addition of servers, storage, SPARC processors, the Solaris operating system, Java, and the MySQL database to Oracle's portfolio of database, middleware, and business applications, we plan to engineer and deliver open and integrated systems--from applications to disk--where all the pieces fit and work together out of the box," Oracle said.
The European Union's antitrust watchdog has approved the Sun-Oracle transaction last week saying the deal would not would restrict competition in the database's market. The approval from the EU came after months of investigation.
In April last year, Oracle has agreed to buy Sun Microsystems for $7.4 billion or $9.50 a share in cash.
The deal, which was announced nine months ago, would transform the IT industry, Oracle said in a statement yesterday.
The two companies, which have a significant presence in India, together employs more than 26,000 people in the country. Oracle has more than 25,000 employees in India while Sun Microsystem has 1,200 people.
The Sun Solaris operating system is the leading platform for the Oracle database, Oracle's largest business. With the acquisition of Sun, Oracle can optimise Oracle database for some of the unique, high-end features of Solaris.
"With the addition of servers, storage, SPARC processors, the Solaris operating system, Java, and the MySQL database to Oracle's portfolio of database, middleware, and business applications, we plan to engineer and deliver open and integrated systems--from applications to disk--where all the pieces fit and work together out of the box," Oracle said.
The European Union's antitrust watchdog has approved the Sun-Oracle transaction last week saying the deal would not would restrict competition in the database's market. The approval from the EU came after months of investigation.
In April last year, Oracle has agreed to buy Sun Microsystems for $7.4 billion or $9.50 a share in cash.
Monday, January 25, 2010
Wipro
Wipro to give salary hike
India's third largest software exporter Wipro said it would hike salaries across the board this quarter, but did not indicate quantum.
According to Pratik Kumar, corporate vice president, human resources, the salary hike will be given out in February. He added, “The hike will be according to the industry standards.”
Wipro beat estimates with a 19 percent rise in December quarter profit and projected growth as a global economic recovery boosts demand for outsourcing services and eases pressure on fees.
New York-listed Wipro expects its IT services revenue to rise 3.6-5.4 percent in January-March from the preceding quarter to $1.16-$1.18 billion, after it posted a 4.9 percent sequential rise in the latest quarter.
The company also announced that it will hire people from campuses. Some 7,500 people hired previously are expected to join in Q4 and early next quarter.
Last week Tata Consultancy Services also announced that it expects to increase wages in the 2011 financial year.
TCS global head of HR Ajoy Mukherjee said the company has decided to give salary increments during financial year ending March 2011, although the exact quantum of hike is yet to be decided.
“There definitely will be a wage hike but the quantum is not finalised. We are considering three options,” Mukherjee said. While giving the hikes, the company will maintain the salary structure it moved to in FY10, which consists of a quarterly variable component and an annual variable component.
However, the company so far has no plans to increase the salaries of junior recruits.
According to Pratik Kumar, corporate vice president, human resources, the salary hike will be given out in February. He added, “The hike will be according to the industry standards.”
Wipro beat estimates with a 19 percent rise in December quarter profit and projected growth as a global economic recovery boosts demand for outsourcing services and eases pressure on fees.
New York-listed Wipro expects its IT services revenue to rise 3.6-5.4 percent in January-March from the preceding quarter to $1.16-$1.18 billion, after it posted a 4.9 percent sequential rise in the latest quarter.
The company also announced that it will hire people from campuses. Some 7,500 people hired previously are expected to join in Q4 and early next quarter.
Last week Tata Consultancy Services also announced that it expects to increase wages in the 2011 financial year.
TCS global head of HR Ajoy Mukherjee said the company has decided to give salary increments during financial year ending March 2011, although the exact quantum of hike is yet to be decided.
“There definitely will be a wage hike but the quantum is not finalised. We are considering three options,” Mukherjee said. While giving the hikes, the company will maintain the salary structure it moved to in FY10, which consists of a quarterly variable component and an annual variable component.
However, the company so far has no plans to increase the salaries of junior recruits.
IT market
IT cos: Pinkslips in '09, attrition in '10
India's top three outsourcing companies are ramping up hiring and increasing pay as global corporations, mainly from the US, send more work offshore to cut costs as they emerge from the downturn.
Tata Consultancy Services, Infosys, and Wipro expanded their global workforces by an average of 5.1 per cent last quarter, together adding 16,701 employees, company documents show -- an early sign that the Great Recession may ultimately benefit India as cost-conscious companies outsource more work, just as they did after the dot-com bust.
Also, after about a year of hiring slowdowns, all three companies are sweetening compensation as the fight to hold on to talented employees in India heats up.
Infosys offered its Indian employees an average 8 per cent pay hike in October, their first raise since April 2008, and executives said last week they are considering another raise to combat rising attrition.
“The market is heating up and we want to retain talent,'' human resources director of Infosys Mohandas Pai told reporters.
Infosys last week raised its gross hiring target for the second time this fiscal year, to 24,000 people. Wipro executives said they plan to offer staffers a raise in February.
Tata Consultancy Services has paid out 150 per cent of performance-linked pay -- which normally amounts to 20 to 45 per cent of compensation -- for the last two quarters, and executives say they will raise salaries next quarter, after a year-long wage freeze.
As demand for workers revives, employers have begun to worry about rising staff turnover. Employees who sat tight during the downturn have started to shop around for better jobs and better salaries.
Attrition at Wipro jumped to 13.4 percent last quarter, up from an average of 8.9 percent over the prior three quarters. Attrition at Infosys rose to 11.6 percent last quarter from 10.9 percent the prior quarter. Attrition at TCS has been stable, at around 11.5 percent, though executives say they expect that number to rise.
Indian firms say they are increasing global hiring, including in the US, as they pursue higher-end work like consulting. But US employees remain a fraction of total staff.
TCS, for example, recently finished hiring 250 Americans for its Cincinnati campus, but US employees still account for less than 0.5 per cent of the company's global workforce.
The employment revival in India's outsourcing sector, which counts on the US for about 60 per cent of global sales, comes as unemployment in the US stagnates around 10 per cent -- near a 26-year high.
Inflation-adjusted wages in the US last year fell 1.6 per cent, the biggest decline since 1990.
“When there is a downturn the compulsion to control costs increases,'' said Dipen Shah, an analyst at Mumbai's Kotak Securities. “The demand for offshoring will increase. That will play to the advantage of Indian IT companies.''
He argues that the cost savings from offshoring has helped US companies survive -- and that's good for the American worker.
“You might say jobs in the US are getting displaced by jobs in India, but because of the value provided by Indian companies and lower costs, there are firms who are able to keep their heads above water and continue to employ their existing employees,'' he said.
TCS, Infosys and Wipro, which can do everything from call center management and claims processing to software development and consulting, all reported stronger than expected results for the December quarter.
Revenues and volumes grew, signaling that the cost-cutting imperative of this last, lean year may be over for India's $60 billion software services industry.
Tata Consultancy Services, Infosys, and Wipro expanded their global workforces by an average of 5.1 per cent last quarter, together adding 16,701 employees, company documents show -- an early sign that the Great Recession may ultimately benefit India as cost-conscious companies outsource more work, just as they did after the dot-com bust.
Also, after about a year of hiring slowdowns, all three companies are sweetening compensation as the fight to hold on to talented employees in India heats up.
Infosys offered its Indian employees an average 8 per cent pay hike in October, their first raise since April 2008, and executives said last week they are considering another raise to combat rising attrition.
“The market is heating up and we want to retain talent,'' human resources director of Infosys Mohandas Pai told reporters.
Infosys last week raised its gross hiring target for the second time this fiscal year, to 24,000 people. Wipro executives said they plan to offer staffers a raise in February.
Tata Consultancy Services has paid out 150 per cent of performance-linked pay -- which normally amounts to 20 to 45 per cent of compensation -- for the last two quarters, and executives say they will raise salaries next quarter, after a year-long wage freeze.
As demand for workers revives, employers have begun to worry about rising staff turnover. Employees who sat tight during the downturn have started to shop around for better jobs and better salaries.
Attrition at Wipro jumped to 13.4 percent last quarter, up from an average of 8.9 percent over the prior three quarters. Attrition at Infosys rose to 11.6 percent last quarter from 10.9 percent the prior quarter. Attrition at TCS has been stable, at around 11.5 percent, though executives say they expect that number to rise.
Indian firms say they are increasing global hiring, including in the US, as they pursue higher-end work like consulting. But US employees remain a fraction of total staff.
TCS, for example, recently finished hiring 250 Americans for its Cincinnati campus, but US employees still account for less than 0.5 per cent of the company's global workforce.
The employment revival in India's outsourcing sector, which counts on the US for about 60 per cent of global sales, comes as unemployment in the US stagnates around 10 per cent -- near a 26-year high.
Inflation-adjusted wages in the US last year fell 1.6 per cent, the biggest decline since 1990.
“When there is a downturn the compulsion to control costs increases,'' said Dipen Shah, an analyst at Mumbai's Kotak Securities. “The demand for offshoring will increase. That will play to the advantage of Indian IT companies.''
He argues that the cost savings from offshoring has helped US companies survive -- and that's good for the American worker.
“You might say jobs in the US are getting displaced by jobs in India, but because of the value provided by Indian companies and lower costs, there are firms who are able to keep their heads above water and continue to employ their existing employees,'' he said.
TCS, Infosys and Wipro, which can do everything from call center management and claims processing to software development and consulting, all reported stronger than expected results for the December quarter.
Revenues and volumes grew, signaling that the cost-cutting imperative of this last, lean year may be over for India's $60 billion software services industry.
IT market, Layoffs in USA
Xerox to cut 2,500 jobs
Xerox Corp said that it plans to cut some 2,500 jobs, or five percent of its workforce, in a cost-cutting move aimed at saving some $200 million a year.
Xerox, which had 53,600 employees at the end of December, has already slashed 3,500 jobs starting in late 2008.
The latest job cuts were announced by Xerox chief executive Ursula Burns during a presentation of the photocopier company's fourth-quarter results.
Burns said some of the job losses would come in Europe but did not give a figure. She said the restructuring would cost $280 million this year with $30 million related to Xerox's $6.4-billion acquisition of Affiliated Computer Services, the world's largest diversified business outsourcing firm.
Burns said she expected the ACS acquisition to close next month. "Once completed, Xerox will be the world leader in business process and document management," she said.
The Norwalk, Connecticut-based Xerox said net profit rose to $180 million in the fourth quarter from $1 million in the corresponding quarter a year ago.
Revenue declined by three percent to $4.22 billion, better than the $3.92 billion expected by Wall Street analysts.
"We delivered a strong close to a difficult year, with solid operational results that reflect our disciplined approach to generating cash and reducing costs," Burns said in a statement.
"During the fourth quarter, we saw signs of improvement in several areas including developing markets, and we remain quite confident in our strong global competitive position," she said
"However, we believe revenue will continue to be under pressure until there is a more sustainable economic recovery," Burns said.
"To help offset this challenge, we remain focused on cost and expense management and sizing our business to better match current revenue levels."
Xerox, which had 53,600 employees at the end of December, has already slashed 3,500 jobs starting in late 2008.
The latest job cuts were announced by Xerox chief executive Ursula Burns during a presentation of the photocopier company's fourth-quarter results.
Burns said some of the job losses would come in Europe but did not give a figure. She said the restructuring would cost $280 million this year with $30 million related to Xerox's $6.4-billion acquisition of Affiliated Computer Services, the world's largest diversified business outsourcing firm.
Burns said she expected the ACS acquisition to close next month. "Once completed, Xerox will be the world leader in business process and document management," she said.
The Norwalk, Connecticut-based Xerox said net profit rose to $180 million in the fourth quarter from $1 million in the corresponding quarter a year ago.
Revenue declined by three percent to $4.22 billion, better than the $3.92 billion expected by Wall Street analysts.
"We delivered a strong close to a difficult year, with solid operational results that reflect our disciplined approach to generating cash and reducing costs," Burns said in a statement.
"During the fourth quarter, we saw signs of improvement in several areas including developing markets, and we remain quite confident in our strong global competitive position," she said
"However, we believe revenue will continue to be under pressure until there is a more sustainable economic recovery," Burns said.
"To help offset this challenge, we remain focused on cost and expense management and sizing our business to better match current revenue levels."
Satyam
Satyam to offer pay hikes, bonus
Mahindra Satyam is expected to offer pay hikes and bonus from January. The Hyderabad-based IT services provider, which is in the process of reinstating its accounts, had concluded its annual appraisals in December.
Staff in the S and T bands got pay hikes whereas employees of other higher levels like BI and I were offered associate stock option plans and promotions, according to an official who did not wish to be identified.
The increments ranged between 5% and 20% based on performance for the S band of employees where as T band employees were given 6-7% across-the-board hike.
The S band employees belong to the junior level while the T band people has over two years’ experience.
This apart, the company is said to have offered bonus of 20% of salary to staff across all levels of around 20%. The bonus will be paid at the end of this month.
“We strongly feel that hikes should help bridge some of the concerns and expectations and we have launched quite a few non-monetary and career development initiatives to enrich skills and competencies of our associates. The reinstatement of performance related variable pay along with the salary corrections across levels, has given the necessary confidence to our associates,” said Mukund Menon, head of business HR relations worldwide, Mahindra Satyam.
Employees whom ET spoke to across the bands said it’s getting challenging for the company since there were many exits which was affecting existing business.
However, the company, on its part, is engaged in hiring fresh graduates and also calling back employees from the virtual pool, as attrition seems to be a concern.
Staff in the S and T bands got pay hikes whereas employees of other higher levels like BI and I were offered associate stock option plans and promotions, according to an official who did not wish to be identified.
The increments ranged between 5% and 20% based on performance for the S band of employees where as T band employees were given 6-7% across-the-board hike.
The S band employees belong to the junior level while the T band people has over two years’ experience.
This apart, the company is said to have offered bonus of 20% of salary to staff across all levels of around 20%. The bonus will be paid at the end of this month.
“We strongly feel that hikes should help bridge some of the concerns and expectations and we have launched quite a few non-monetary and career development initiatives to enrich skills and competencies of our associates. The reinstatement of performance related variable pay along with the salary corrections across levels, has given the necessary confidence to our associates,” said Mukund Menon, head of business HR relations worldwide, Mahindra Satyam.
Employees whom ET spoke to across the bands said it’s getting challenging for the company since there were many exits which was affecting existing business.
However, the company, on its part, is engaged in hiring fresh graduates and also calling back employees from the virtual pool, as attrition seems to be a concern.
IT market, Wipro
Wipro to cut jobs in Finland
Wipro Ltd, India's No. 3 software exporter, said that it is planning to restructure some part of its Finland operations and the move could impact a maximum of 85 people.
The company's IT unit, which employs 300 people in Finland, will start a consultation process with the staff representatives as part of the restructuring of its telecom research and development operations there.
"After carefully considering all possible options, the company has decided to enter into a negotiation process with the employees given the challenging industry situation in telecom R&D," it said in a statement.
The company's IT unit, which employs 300 people in Finland, will start a consultation process with the staff representatives as part of the restructuring of its telecom research and development operations there.
"After carefully considering all possible options, the company has decided to enter into a negotiation process with the employees given the challenging industry situation in telecom R&D," it said in a statement.
Monday, January 4, 2010
Infosys, new openings
Infy’s Orissa project to create 5,000 jobs
IT major Infosys would soon set up its second project in Orissa at an investment of Rs 300 crore, official sources said. Infosys's plan for the state was announced by its director (human resource) TV Mohandas Pai after meeting the chief minister Naveen Patnaik here last evening.
While as many as 3,000 IT professionals were now busy working at the first Infosys project in the state, he said about 5,000 workers would get placement in its second project.
The second project would come up at IT valley on the side of the National Highway No-5 between the state capital and Khurda town.
Work on the second project would start soon, Pai said. The state government had agreed to provide required water and power to the second project.
The IT major was presently exporting software products worth Rs 850 crore per annum from its existing project in the state, he said.
Pai and Patnaik also discussed on mid-day-meal (MDM) project of Akshya Patra, presently being given to 61,000 students in Puri and Nayagarh district. The number of beneficiaries of the MDM programme was targetted to touch 2.5 lakh in next two years, they said.
While as many as 3,000 IT professionals were now busy working at the first Infosys project in the state, he said about 5,000 workers would get placement in its second project.
The second project would come up at IT valley on the side of the National Highway No-5 between the state capital and Khurda town.
Work on the second project would start soon, Pai said. The state government had agreed to provide required water and power to the second project.
The IT major was presently exporting software products worth Rs 850 crore per annum from its existing project in the state, he said.
Pai and Patnaik also discussed on mid-day-meal (MDM) project of Akshya Patra, presently being given to 61,000 students in Puri and Nayagarh district. The number of beneficiaries of the MDM programme was targetted to touch 2.5 lakh in next two years, they said.
IBM, New Deals
IBM wins 10-year IT deal with Gujarat bank
IT major IBM India has signed a 10-year information technology (IT) services agreement with Sardar Bhiladwala Pardi People's Cooperative Bank in Gujarat, the company said Monday.
'The operational expenditure in the pay-as-you-use model will enable the leading cooperative bank to save up to 50 percent in its capex (capital expenditure) on IT infrastructure,' IBM said in a statement.
As part of the deal, IBM India will provide the 80-year-old bank managed continuity services comprising server management, network and security management and back-up and database management.
'The operational expenditure in the pay-as-you-use model will enable the leading cooperative bank to save up to 50 percent in its capex (capital expenditure) on IT infrastructure,' IBM said in a statement.
As part of the deal, IBM India will provide the 80-year-old bank managed continuity services comprising server management, network and security management and back-up and database management.
HCL, New Deals
HCL Info bags Rs 110 crore order from Gujarat government
HCL Infosystems today said it has bagged an order worth Rs 110 crore from the Gujarat government to supply and implement biometric attendance and computer aided learning systems in over 7,000 schools across the state.
Under the scope of the contract, HCL will supply personal computers (PCs) with biometric finger print scanner and UPS to over 7,000 schools in the state, HCL Infosystem said in a statement.
HCL Infosystems, which makes, telecommunication and security equipment would also implement the biometric-based attendance system, offer facility management and run teacher training programmes, it added.
Out of the total schools to be covered, over 1,000 schools are under the Tribal Department and 6,000 under the Education Department.
Under the scope of the contract, HCL will supply personal computers (PCs) with biometric finger print scanner and UPS to over 7,000 schools in the state, HCL Infosystem said in a statement.
HCL Infosystems, which makes, telecommunication and security equipment would also implement the biometric-based attendance system, offer facility management and run teacher training programmes, it added.
Out of the total schools to be covered, over 1,000 schools are under the Tribal Department and 6,000 under the Education Department.
cognizant, CTS, H1-B, IT market
Information technology: The wonder decade
What started as an industry riding the demand from global customers seeking to make their IT and business systems Y2K compliant is today almost a $60-billion industry, contributing nearly 4% to India’s GDP.
Source: EconomicTimes
-1999 - The biggest inflection point was the role Indian companies played in combating the so-called millennium bug. TCS, Wipro and others become trusted partners for companies worldwide seeking to achieve Y2K compliance
-Infosys achieves $100 million in revenues, lists on Nasdaq. India’s outsourcing industry grows to $4 billion 2000-2001 - Indian IT industry moves from Y2K to complex e-business projects
-Dewang Mehta, who helped Indian IT industry grow in its early years, dies. Kiran Karnik takes over as Nasscom head
-US increases H1B visa limit to 1,95,000, the highest ever
-Wipro lists on NYSE
-2002-2003 - NR Narayana Murthy steps down from Infosys and Nandan Nilekani takes over
-Post the dotcom bust, companies such as DSQ Software, Pentafour and Silverline perish
-2004-2005 - TCS lists on BSE
-Large customers start offshoring ERP-based projects. Infosys becomes a $1-billion company, Wipro too crosses $1 billion in revenues
-GE sells 60% in GECIS — the back office pioneer — to private equity firms. The Indian BPO industry starts growing rapidly
-IBM, Accenture and HP start developing their Indian offshore presence to make them their largest operations outside the US
-2006-2007 - Indian IT becomes a $31-billion industry
-Protectionism in top export markets forces Indian IT companies to start hiring locals
-2008-2009 - Infosys’ revenues cross $4 billion. Nilekani joins the government as chairman of the Unique Identity Authority of India
-HCL acquires UK’s Axon for £441.1 million, the biggest ever acquisition for Indian IT
-Satyam founder Ramalinga Raju admits to over $1-billion fraud. Tech Mahindra acquires Satyam
-TCS’ annual revenues cross $6 billion. N Chandrasekaran takes over from S Ramadorai as chief executive
Source: EconomicTimes
-1999 - The biggest inflection point was the role Indian companies played in combating the so-called millennium bug. TCS, Wipro and others become trusted partners for companies worldwide seeking to achieve Y2K compliance
-Infosys achieves $100 million in revenues, lists on Nasdaq. India’s outsourcing industry grows to $4 billion 2000-2001 - Indian IT industry moves from Y2K to complex e-business projects
-Dewang Mehta, who helped Indian IT industry grow in its early years, dies. Kiran Karnik takes over as Nasscom head
-US increases H1B visa limit to 1,95,000, the highest ever
-Wipro lists on NYSE
-2002-2003 - NR Narayana Murthy steps down from Infosys and Nandan Nilekani takes over
-Post the dotcom bust, companies such as DSQ Software, Pentafour and Silverline perish
-2004-2005 - TCS lists on BSE
-Large customers start offshoring ERP-based projects. Infosys becomes a $1-billion company, Wipro too crosses $1 billion in revenues
-GE sells 60% in GECIS — the back office pioneer — to private equity firms. The Indian BPO industry starts growing rapidly
-IBM, Accenture and HP start developing their Indian offshore presence to make them their largest operations outside the US
-2006-2007 - Indian IT becomes a $31-billion industry
-Protectionism in top export markets forces Indian IT companies to start hiring locals
-2008-2009 - Infosys’ revenues cross $4 billion. Nilekani joins the government as chairman of the Unique Identity Authority of India
-HCL acquires UK’s Axon for £441.1 million, the biggest ever acquisition for Indian IT
-Satyam founder Ramalinga Raju admits to over $1-billion fraud. Tech Mahindra acquires Satyam
-TCS’ annual revenues cross $6 billion. N Chandrasekaran takes over from S Ramadorai as chief executive
Infosys, TCS, Wipro
TCS, Infosys, Wipro give local flavour to foreign operations
India's large software service providers are going increasingly local with hiring in overseas markets, part of a drive to position themselves as truly global players and polish their image in advanced economies reeling from job losses.
Beginning with employing foreign nationals for junior and mid-level positions, companies such as Tata Consultancy (TCS), Infosys and Wipro – together these three account for about a third of India’s IT exports – now have a number of foreigners in their top echelons.
“There’s a transition in mindset to grow out of the Indian mold and aspire to be like an Oracle , IBM, Accenture, SAP. Also, as Indian companies have gained scale they can tap the best foreign talent; earlier they had to settle for just about anyone,’’ says K Sudarshan, managing partner at executive search firm EMA Partners International.
In the past year, many of the top positions at Wipro Technologies have been filled by foreigners. American Martha Bejar left Microsoft to join India’s third largest software exporter as president, global sales and operations. Ralf Reich, a former Unisys executive in charge of strategic outsourcing in continental Europe, was appointed head of German operations. And Wipro’s centres in France and Japan are also headed by non-Indians.
Infosys’ German, French and Australian operations are managed by locals. Jackie Korhonen, ex-vice-president of managed business process services for IBM Australia and New Zealand, is now head of Infosys Australia.
“They want to be true multinationals. Besides, if you want to really penetrate a local market, bagging business from not only big companies but also small and medium, you better have a local face,’’ says Diptarup Chakraborti, principal research analyst, Gartner.
At TCS, India’s largest technology services company, foreign nationals comprise nearly 12% of the senior management. Among the key executives are John Lenzen, global head of marketing, Gabriel Rozman, global head of emerging markets and Carol Wilson, global business unit head, Hi-Tech solutions unit.
Amit Singh, head of the IT practice at Avendus Capital, says that Indian companies, used to expanding at 30%, are now seeing growth decline. “They want new avenues to maintain growth and hence the geographic expansion and local faces to drive it.’’
Indian software providers have also been expanding into new geographies in the past year. Infosys opened an office in Brazil in mid-December and in recent months Wipro started operations and ramped up investments in strategic development centres and near-shore centres like Atlanta (US), Bucharest (Romania), Wroclaw (Poland), Curitiba (Brazil), Chengdu (China) and Cebu (Philippines).
Continue reading on: EconomicTimes
Beginning with employing foreign nationals for junior and mid-level positions, companies such as Tata Consultancy (TCS), Infosys and Wipro – together these three account for about a third of India’s IT exports – now have a number of foreigners in their top echelons.
“There’s a transition in mindset to grow out of the Indian mold and aspire to be like an Oracle , IBM, Accenture, SAP. Also, as Indian companies have gained scale they can tap the best foreign talent; earlier they had to settle for just about anyone,’’ says K Sudarshan, managing partner at executive search firm EMA Partners International.
In the past year, many of the top positions at Wipro Technologies have been filled by foreigners. American Martha Bejar left Microsoft to join India’s third largest software exporter as president, global sales and operations. Ralf Reich, a former Unisys executive in charge of strategic outsourcing in continental Europe, was appointed head of German operations. And Wipro’s centres in France and Japan are also headed by non-Indians.
Infosys’ German, French and Australian operations are managed by locals. Jackie Korhonen, ex-vice-president of managed business process services for IBM Australia and New Zealand, is now head of Infosys Australia.
“They want to be true multinationals. Besides, if you want to really penetrate a local market, bagging business from not only big companies but also small and medium, you better have a local face,’’ says Diptarup Chakraborti, principal research analyst, Gartner.
At TCS, India’s largest technology services company, foreign nationals comprise nearly 12% of the senior management. Among the key executives are John Lenzen, global head of marketing, Gabriel Rozman, global head of emerging markets and Carol Wilson, global business unit head, Hi-Tech solutions unit.
Amit Singh, head of the IT practice at Avendus Capital, says that Indian companies, used to expanding at 30%, are now seeing growth decline. “They want new avenues to maintain growth and hence the geographic expansion and local faces to drive it.’’
Indian software providers have also been expanding into new geographies in the past year. Infosys opened an office in Brazil in mid-December and in recent months Wipro started operations and ramped up investments in strategic development centres and near-shore centres like Atlanta (US), Bucharest (Romania), Wroclaw (Poland), Curitiba (Brazil), Chengdu (China) and Cebu (Philippines).
Continue reading on: EconomicTimes
IT market
5 kinds of colleagues, who may be laid off soon
There are people in workplaces who cause problems that may result in them being laid off from work. According to HR expert Henry Fernandes, every office has problem employees. "Whether you are an employer or a co-worker, you have to deal with things diplomatically and on time if you do not want work to suffer," he says.
People who have attitude problem may become victims of layoffs. Such employees can make workplaces a very sad place. If other employees are demoralized, productivity will suffer. "It could be an employee's attitude towards work, excessive criticism of fellow colleagues or talking rudely," says Fernandes.
Those not coming to work on time may also face the wrath. This means work gets started late and deadlines are not met. "It sets a bad example and reflects on your working style and discipline in the office," says Fernandes.
Another reason can be if the employee doesn't keep his desks tidy. "Basically, the employee who does this is being careless," says Fernandes.
There are habits that disrupt work and affect productivity in workplace. A colleague who talks too much or discusses personal problems on the phone so loudly can result in you losing concentration on work.
Some people ask too many personal questions or keep looking at your computer screen to see what you are doing. "Even if you are sending a personal mail, they don't stop," says Fernandes.
The only way to deal with these kinds of employees is to have a serious talk with them. If you are the employer, you can be straightforward and question their behavior. If their behavior continues to affect others' productivity, it's time to show them the way out.
Source: SiliconIndia
People who have attitude problem may become victims of layoffs. Such employees can make workplaces a very sad place. If other employees are demoralized, productivity will suffer. "It could be an employee's attitude towards work, excessive criticism of fellow colleagues or talking rudely," says Fernandes.
Those not coming to work on time may also face the wrath. This means work gets started late and deadlines are not met. "It sets a bad example and reflects on your working style and discipline in the office," says Fernandes.
Another reason can be if the employee doesn't keep his desks tidy. "Basically, the employee who does this is being careless," says Fernandes.
There are habits that disrupt work and affect productivity in workplace. A colleague who talks too much or discusses personal problems on the phone so loudly can result in you losing concentration on work.
Some people ask too many personal questions or keep looking at your computer screen to see what you are doing. "Even if you are sending a personal mail, they don't stop," says Fernandes.
The only way to deal with these kinds of employees is to have a serious talk with them. If you are the employer, you can be straightforward and question their behavior. If their behavior continues to affect others' productivity, it's time to show them the way out.
Source: SiliconIndia
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