Tuesday, September 1, 2009

, ,

Indian IT firms queue up for criminal-tracking network project

27 firms will bid for the Rs 2,000-crore deal
Around 27 Indian IT firms, including majors like Tata Consultancy Services (TCS), Infosys Technologies and Wipro Ltd, are understood to have submitted their expressions of interest (EoIs) to develop a technology platform for the Centre’s Crime and Criminal Tracking Networks and Systems (CCTNS) project.

In June this year, the Rs 2,000-crore CCTNS project received approval from the Cabinet Committee on Economic Affairs, following which the National Crime Records Bureau (NCRB), which will implement the project, floated the EoIs.

The IT company that wins the bid will get to develop the core technology platform and software that will work as a standard for all Indian states to implement the project at the state level.

Other than creating a platform for sharing crime and criminal information (in the form of a web-based criminal record database) across the country, the CCTNS is expected to streamline investigation and prosecution processes; strengthen the intelligence-gathering machinery and improve the public delivery system. This will also facilitate the collection, storage, retrieval, analysis, transfer and sharing of data and information among police stations, district and state headquarters and the controlling agencies at the central level.

The CCTNS is a mission mode project (MMP) under the national e-Governance plan. The core application software (CAS) will have to be developed so that it will operate regardless of low- or unreliable-bandwidth scenarios.

“The selected parties can pursue multiple opportunities at the state level. The prime aim of the project is to create an architecture using an application programming interface (API), so that the systems to be launched by each state would speak to each other,” explained the Indian head of a software firm that has submitted an EoI for the project.

Before the CCTNS project was proposed, various state governments including those of Gujarat, Andhra Pradesh and Karnataka were either creating a web-enabled interface of the crime and criminal records or in the process of doing that.

In early 2008, for instance, the Gujarat government had signed an agreement with TCS to develop a technology platform that was aimed at enabling every police officer to have access to police records and background information at any given point of time.

India’s third-largest IT services provider, Wipro, which has developed an integrated police information system, is pursuing opportunities in Karnataka.

“Wipro sees a huge role for information technology to combat high crime rates more effectively. Our technology will bring in a lot of efficiency and agility in the functioning between various units of the police department through real-time information sharing,” said Ranbir Singh, general manager, government and defence, Wipro Infotech.

The government, however, has now made it clear that the states that have already deployed the technology to integrate the police records with the CCTNS and have to comply to the standards set by the National Crime Records Bureau (NCRB) at the central level.
Courtesy: Business-Standard
,

Job losses in US slowed in Aug: Survey

Employers in the US probably cut jobs in August at a slower pace and manufacturing grew for the first time in more than a year, adding to evidence the worst recession since the 1930s is ending, economists said before reports this week.

Payrolls fell by 230,000 workers, the smallest decline in a year, according to the median of 65 estimates in a Bloomberg News survey ahead of a September 4 Labor Department report. Figures from a private group of purchasing managers on September 1 may show the first expansion at factories since January 2008.

“We are heading out of the tunnel,” said Jonathan Basile, an economist at Credit Suisse in New York. “It doesn’t mean we’ll have a very rapid recovery because consumers still face many headwinds.”

The worst employment slump in the post-World War II era, a record loss of wealth and mounting foreclosures are among the obstacles American households have to overcome before any recovery can gain speed. Government programmes, including “cash for clunkers” and credits to first-time homebuyers, may help the economy expand in the second half of the year.

The jobless rate in August is likely to climb to 9.5% from 9.4% the prior month, according to economists surveyed by Bloomberg. Unemployment will reach 10% by early 2010, a Bloomberg poll this month showed.

Payroll losses peaked at 741,000 in January, the most since 1949. The US has lost 6.7 million jobs since the recession began in December 2007. Some companies continue to eliminate jobs to cut costs and boost profits amid weak sales.

Whirlpool, the world’s largest appliance maker, said last week it will close a manufacturing plant in Evansville, Indiana, resulting in the loss of 1,100 jobs, or about 1.6% of the company’s workforce.

A record reduction in inventories over the first half of the year sets the stage for production to rebound, economists said. Companies including General Motors and Chrysler Group, both out of bankruptcy, may benefit from higher sales and a boost to output from the government’s “cash-for-clunkers” effort.

The incentive programme, which offered buyers discounts of as much as $4,500 to trade in older cars and trucks for new, more fuel-efficient vehicles, produced almost 700,000 automobile sales before ending on Aug. 24, the Transportation Department said last week.

Ford Motor, the second-largest US automaker, posted its first monthly US sales gain in July since 2007. “We had a solid July sales month and we are headed toward an even stronger August,” Ford marketing chief Ken Czubay said last week in a statement.

Genpact, Intelenet in line for Unitech Wireless' BPO job

Unitech Wireless, where Telenor is the majority partner, is close to finalising business process outsourcing (BPO) contracts with two vendors — Genpact and Intelenet Global Services. Unitech Wireless is looking to launch mobile services across the country.

Sources familiar with the development said the company is expected to shortly sign contracts for the North with Genpact and with Intelenet for the South. Unitech is also in dialogue with the Essar group-promoted Aegis BPO for the East, according to two people with knowledge of the deal.

Unlike IT contracts, which are given out in bulk, BPO contracts start off on a smaller scale and increase as telecom operators bring in more subscribers. Unitech has already awarded the IT outsourcing contract to Wipro earlier this year in a deal that is reported to be around Rs 2,500 crore.

Unitech’s BPO contract is likely to start off with a commitment for about 400 seats for the North and an equal number for the South, while it is expected to be around 100 seats for the East, said one of the two people quoted earlier. “Unitech, like many other operators, will have BPO contracts with different vendors for different circles,” added the person.

Aegis and Intelenet declined to comment on the matter, while an e-mail sent to Genpact met with a similar response.

Importantly, both Aegis and Intelenet already cater to the BPO requirements of domestic telecom service providers. While Aegis has contracts with Bharti Airtel, Vodafone-Essar, Idea Cellular and Sistema Shyam Teleservices, Intelenet, through its domestic subsidiary Sparsh BPO Services, works for Vodafone-Essar, Idea and Aircel. To date, Genpact, however, has catered only to overseas customers.

Telecom has overtaken financial services as the top-revenue contributor to BPO firms in the domestic market. According to a recent study released by Ernst & Young, outsourcing revenues from the telecom sector in India are set to grow at a compounded annual growth rate (CAGR) of 31% to nearly $2 billion in 2012.

BPO for telecom is also a huge job creator, employing over 1.22 lakh people last year — a number that Ernst & Young has forecast will more than double to almost 3 lakh in 2012.
,

IT companies free of labour laws for 2 years

With IT firms buffeted by today’s turbulent times, the government has reached out a helping hand. Reciprocating their needs, it has exempted IT/ITES and software establishments from the provisions of Industrial Employment (Standing Orders) Act 1946 (Central Act 20 of 1946).

These laws are strict on classifying workers, their working hours and shifts, the wages payable, besides other archaic rules on leave and attendance.

Head of HR in Infosys Technologies said, “We have antiquated labour regulations, which do not fit the requirement of the knowledge-based industry. This reform is necessary. We do not want inspector raj here, what we want is more such reforms across industries.’’

Infosys finding difficult to acquire companies

Software major Infosys, which has a robust cash chest for sure and made no secret of its intention to buy out companies with strategic fit, is finding it difficult to acquire right firms at right price.

The country's second largest software exporter had cash and cash equivalents of Rs 12,030 crore, including investment in liquid mutual funds and certificate of deposits, as of June end this year.

"....we are looking at acquisitions. But acquisitions will happen only when you find the right company, it has to be at the right price, they want to be acquired and that's difficult", the Bangalore-headquartered company's CEO and Managing Director S Gopalakrishnan said.

"We don't want to do an acquisition for acquisition sake".

The NASDAQ-listed firm is eyeing regions other than the US and Europe to expand overseas.

"We are expanding into the Middle East, South and Latin America. We already have a siginificant presence now in Japan, China and Australia. We are looking at geographies outside the US and Europe", Gopalakrishnan said.

Asked if the transition phase following the exit of Nandan M Nilekani, who quit as Chairman to head the Unique Identification Authority of India (UIDAI), has been completed, Gopalakrishnan said: "Yes, it's immediately done".

Nilekani's responsibilities have now been distributed among the top management of the company. There is no proposal to appoint an executive chairman in his place "at this point".

Gopalakrishnan did not agree with perception of some analysts who have argued that the global recession has bottomed out.

"It's very difficult to extrapolate at this point because there are negative cues also", he said pointing out to failure of another set banks in the US last week.

"There are positive news and negative news. So, I think the uncertainty will continue and it's better to be cautious at this point and wait for two quarters of good numbers before we can say that it's all behind us".

He said Infosys' customers are also echoing similar sentiments.

"Customers are also saying the same thing. They are also saying it's too early to say that it (global recession) is behind us and it's over. So, we have to be cautious", he said.

Firms doling out surprise bonuses to retain talent

Riding on improving business confidence and early signs of economic recovery, India Inc is trying various ways and means to keep the momentum high among their employees. Companies are doling out surprise cash payouts, giving extended weekend breaks, organising more frequent celebrations and off-sites, besides planning overseas trips for executives, to boost morale.

Global confectionery maker Perfetti Van Melle doled out a lump sum to its employees in India, over and above the annual increments and bonuses. This was to compensate for increasing prices of consumer goods and services and as a token of appreciation to employees for saving costs.

“This amount was paid to employees in the first quarter of this year, considering they had helped improving cost savings within the company,” said Perfetti HR head Sugato Palit. The company distributed a certain undisclosed amount proportionately among its 1,350 employees in India, depending on monthly salaries and annual cost to company.

“Employees at the same level got equal monetary benefit. We also kept in mind that employees at the mid to entry level should get a higher percentage of the amount,” he added.

Similarly, LG Electronics gave 50% more under its birthday bonus programme, in which employees get a special payout on their birthday, compared to last year. “We strongly believe that had it not been for our human resource, we would not have not registered impeccable growth in 2008, when the global economic scenario was in its worst shape,” said LG director-HR & MS Y V Verma.

The company also organised a trekking expedition for new employees and a stress-buster programme for its senior management. While the trekking exercise was intended for team building and motivation so that the new hires give their best to the company, the stress-buster initiative was organised keeping in mind the recent work pressures in the corporate world.

Beverage and food major PepsiCo India, granted an extended holiday to its employees in India last month to celebrate its best-ever sales. “We wanted everyone to enjoy and spend time with family on an extended weekend, after performing so well,” said PepsiCo India ED-HR Pavan Bhatia.

Pepsi, which organises Town Halls, an open forum where employees discuss and share their work-related issues with the senior management, also organised an off-site in Jaipur for its employees recently. Delhi-based executive search firm Transearch International, too, organised an off-site for its India partners and other employees at Kasauli this month.

Although such off-sites have been part of their system, some companies, such as electrical equipment maker Schneider Electric, ensure that each employee goes for at least one out of the two off-sites organised every year.

“We make sure that all our employees attend off-sites and participate with other members of the company. Sometimes, we encourage clubbing of two off-site budgets for one mega gathering at a better location,” said Schneider Electric India HR director Shalini Sarin. Schneider has also carved a “Reach Out” program for talent engagement where the senior management team meets a selected group of a few junior executives to discuss a live business issue.

“These select executives are encouraged to throw ideas to the top management on how to handle a particular issue or problem. This makes them an emotional stakeholder in the organisation, builds relationships and provides senior management a new outlook at the issues,” Dr Sarin added.

Talent management has become a critical aspect of HR departments in companies. Although the war for talent with salary hikes subsided last year due to the economic slowdown hitting firms’ expansion, HR managers believe is important to keep employee morale high by projecting the firm as a great workplace.

“Ensuring that employees are satisfied, motivated and enthused is a key responsibility of the HR function. This becomes even more crucial when there is uncertainty in the economic environment, market conditions are unpredictable. Employees may need reassurance about their work and welfare,” said Infosys Technologies VP & group head-HR Nandita Gurjar.

Considering that business sentiments are improving, companies also need to stop flight of their top talent when the tide turns and rivals start hiring.

To reward top talent, Patni Computers launched an initiative called the CEO Club Awards this year, wherein 25 selected employees were recognised for their contributions through a paid holiday along with their spouses.

“The people were chosen from Patni offices across the globe and given a paid holiday in Four Seasons hotel in the Caribbean,” said Patni Computer EVP & global HR head Rajesh Padmanabhan.

Other IT majors such as TCS has identified over 1,400 high-potential individuals, who are going through training to create a leadership pipeline in the organisation. Infosys, too, recently launched an Infosys Role and Career Enhancement programme.
Posted on economictimes