Job Space

FORD TO HIRE 700 PEOPLE IN INDIA THIS YEAR

Having recruited around 90 business school graduates and 45 engineering graduate trainees so far, Ford plans to increase its headcount by 700 people at the end of this year. 

The company plans to recruit people for its two units: Ford India and Ford Global Business Services. Despite a slowing passenger car market, recent employee agitation at its Chennai plant and intense competition, Ford India seems to be unperturbed by attrition 

"Retaining the workforce is not an issue. Our attrition rate at 6% is less than 50% of the market rate," says Dhananjay Nair, General Manager, and Human Resources at Ford India. 

Ford India has invested close to Rs 4,000 crore for its vehicle and operations plant in Sanand, Gujarat and have plans of hiring 5000 direct employees for the project over time, which would increase its existing workforce of 10,000 by 50%. The plant is expected to be operational by the first quarter of 2014. 

HP TO LAY OFF 27,000 EMPLOYEES TO BOOST PROFITS

Hewlett Packard will lay off about 27,000 employees over the next two years as part of restructuring to boost declining profits and revenues. "As part of the restructuring,  HP  expects approximately 27,000 employees to exit the company, or 8 per cent of its workforce as of October 31, 2011, by the end of fiscal year 2014," the company said in a statement. 

HP, which has more than 300,000 employees across the world, has been struggling with demand of PCs and printers. 

The workforce reduction would generate an annual savings in the  of range of $3-3.5 billion by the end of the 2014 fiscal year. 

The job cut will include an early retirement program me and "workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives."

EDUCATION SECTOR A MAJOR EMPLOYMENT DRIVER IN INDIA: EXPERTS

Experts have named 'education sector' as the major employment driver in the country during the Indian Job Outlook Survey 2012 conducted by TJ insite, research and knowledge arm of TimesJobs.com. "Jobs in education sector will continue to grow for next two decades", stated Dhruv Desai, Senior VP Human Resource & Leadership Academy, Angel Broking during a discussion with TJinsite, research and knowledge arm of TimesJobs.com on future of jobs in education sector. 

Elaborating the current hiring scenario of the sector, Desai informed that the tremendous growth in education sector can be easily and efficiently measured by number of vacancies published in any job supplement or portal in comparison to other sectors. 

In month-over-month analysis of RecruiteX, TimesJobs.com recruitment index, it has appeared that the supply of candidates is considerably growing in the sector as job-seekers are eyeing employment opportunities in this supposedly 'recession proof' segment. In fact, the demand of educationists is just not limited to the customary education industry.

 However, prominent sectors such as Healthcare/Pharmaceutical and IT/ITeS are also contributing to the demand landscape of education segment. 

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M&A/ Tie Ups/Corporate Announcements

GENPACT INKS BUSINESS PROCESS MANAGEMENT DEAL WITH DR REDDY'S

BPO giant Genpact said it has signed an agreement with Dr Reddy's Laboratories to provide comprehensive finance and accounting (F&A) services to the pharmaceutical major.

As part of the deal, Genpact will take over Dr Reddy's shared services operations in Hyderabad, which supports the company's operations in India, the US and the UK.

Genpact will implement its best practices to make Dr Reddy's F&A processes more effective for accounts payable, accounts receivable, record-to-report and employee-related services.

"This engagement will ensure that our F&A support processes become more effective while we continue to focus on growing our pharmaceutical business across therapeutic segments and geographies," Dr Reddy's CFO Umang Vohra said.

This engagement between Dr Reddy's and Genpact was facilitated and managed by RvaluE Consulting.

"This partnership will bring to Genpact expertise in the generics pharmaceutical business and further growth of our client base in India," Genpact Senior Vice-President Harpreet Duggal said.

L&T INFOTECH, BMC SOFTWARE PARTNER FOR GLOBAL IT INFRASTRUCTURE SERVICES

IT firm L&T Infotech today said it has entered into a global partnership with BMC Softwarefor providing IT infrastructure management services. 

BMC Software, headquartered in Houston, US, is a USD 2.2 billion firm offering Business Service Management (BSM) solutions. 

Through this partnership, L&T Infotech and BMC aim to offer infrastructure management solutions like datacenter automation, IT service management andcloud computing management to global clients, the companies said in a statement. 

Big Magic to be available on Reliance Digital TV *Reliance Broadcast Network today said its Hindi entertainment channel Big Magic will be available to Reliance Digital TV subscribers, replacing Imagine TV on the DTH platform. 

L CAPITAL WALKS OUT OF LILLIPUT KID SWEAR DEAL OVER VALUATION

Private equity fund L Capital Asia has withdrawn its offer to buy beleaguered kidswear maker Lilliput due to differences over valuation and deal details.

"The deal is off. There were differences over valuation," Sanjeev Narula, founder of Lilliput Kidswear, said.

L Capital, the private equity division of luxury group LVMH, wanted to settle for a substantially lower valuation than what was initially agreed by choosing to buy only the retail assets of Lilliput, and not the entire company complete with its export and manufacturing divisions.

WARBURG LEADS $32 MILLION INVESTMENT IN QUICKR.COM

 US private equity firm Warburg Pincusalong with existing investors have pumped $32 million in fresh funds into online classifieds firm Quickr    

Quickr, which aims to use the cash to expand across online and mobile platforms, said existing investors that participated in this round include online retail giant eBay Inc, private equity Matrix Partners Indiaand global venture capital firm Norwest Venture Partners. 

EVERSTONE CAPITAL BUYS MAJORITY STAKE IN R&R SALONS

Private equity firm Everston e Capitalhas acquired a significant stake in R&R Salons, a Bangalore-based company that operates the YLG salon chain.

The fund will initially invest Rs 60 crore and will subsequently increase it up to Rs 109 crore ($20 million), according to a person directly involved in the transaction. The investment will come from Everstone Capital Partners ; a $580-million fund that the PE firm is currently investing from said the same person.

YLG, co-founded by Rahul Bhalchandra, former head of Pantaloon Retail's wellness division, runs 19 salons in Bangalore and one in Pune. The company has been on the look-out for a large capital infusion to build a national footprint. Jaspal Singh Sabharwal, Partner-Private Equity at Everstone Capital, confirmed the transaction but declined to share specifics.

HCL TECHNOLOGIES INKS PACT WITH UBM CANON FOR CONTENT MANAGEMENT SOLUTIONS

Software services major HCL Technologies has signed an agreement with UBM Canon to deliver production and content management solutions to the media and communications group. 

The financial details of the deal were not disclosed. As part of the partnership, HCL Technologies will provide its production and content management service platform 'POMS' to enable establishment of a more dynamic system for creating, producing and delivering content across UBM Canon's product portfolio, HCL Technologies said in a statement. 

This will help UBM in rapid and optimized content delivery over web, digital products, mobile and print environments, it added. 

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BFSI News Update

MAY 28, 2012: MAHINDRA & MAHINDRA IN TALKS TO ENTER GENERAL INSURANCE BUSINESS

 Mahindra & Mahindra, the country's biggest farm equipment maker, is in talks with US-based Travelers Group to enter the fast-growing Rs. 40,000-crore general insurance business.

People close to the development said that talks have begun between executives of the two groups for a joint venture to sell general insurance products in India.

Mahindra's presence in the automobile industry will provide enormous opportunities to sell motor insurance.

MAY 25, 2012: SBI CARDS TO FOCUS GROWTH IN TIER 2 AND 3 CENTRES

The third largest credit card issuer SBI Cards said it will be focusing on tier 2 and 3 centers for growth in the near future and clients in these segments will grow to occupy 20 per cent of the total over the next three years.

"The growth in tier 2 and 3 centers will outpace growth in tier 1 cities...even though it occupies a very small share right now, we are targeting it to increase to 20 per cent of total number of cards in three years," said Chief Executive Kadambi  Narahari 

He said the card company, a joint venture between State Bank of India and GE of the US, already has a presence in 50 cities and will be leveraging on SBI's network to grow.

MAY 24, 2012: LIC MAY BUY OUT ERSTWHILE UNIT TRUST OF INDIA'S STAKES IN ITC, AXIS BANK AND LARSEN & TOUBRO

 Life Insurance Corp (LIC) has offered to buy out the erstwhile Unit Trust of India's stakes in ITC, Axis Bank and Larsen & Toubro (L&T), valued at Rs 37,000 crore, in a move that will ease the government's fiscal burden, but fuel debate on the insurer's risk and governance policies. 

The proposal to buy these stakes, which are in possession of the government, was made recently to finance ministry officials, who are looking for ways to bridge the yawning fiscal gap, two persons familiar with the proposal said. 

The buyout, if it happens, could be staggered over months or even over two years, they said. They declined to add whether it was a voluntary decision by LIC. 

The state-run insurer's proposal could help the government side-step hostile public investors, who turned their backs on a share sale by Oil and Natural Gas Corp, forcing LIC to bail out the Rs 12,400-crore issue. 

MAY 23, 2012: BLACKSTONE IN TALKS WITH UNITECH FOR RS 3,000CR DEAL FOR SEZS, IT PARK

US private equity firm Blackstone is in talks with real estate developer Unitech to buy its two special economic zones in Gurgaon and Noida and an IT park in Kolkata in a deal worth over Rs 3,000 crore.

A senior executive at Unitech confirmed the development and said that Blackstone is carrying out due diligence on the properties, which are part of AIM-listed Unitech Corporate Parks.

The two SEZs under consideration have about 3.5 million sq ft of built-up space, of which about 60% is leased. The information technology park in Kolkata is spread over 1.90 million sq ft.

Unitech, India's third-largest real estate company by market value, effectively holds 45% in UCP, as it owns 40% of the assets under UCP and owns 10% of the holding company as well. UCP has six assets spread across Noida, Greater Noida, Gurgaon and Kolkata.

MAY 22 2012: IBM TO HELP AXIS BANK PROVIDE EFFICIENT CUSTOMER CARE SERVICE

 Technology giant IBM said it has been engaged by Axis Bank in a large project to provide more efficient customer care services to its customers. 

The financial details of the deal were not disclosed. IBM will consolidate and manage the contact centre operations from the bank's existing 58 regional asset centers to a single mortgage contact centre, IBM said in a statement. 

The contact centre will cater to inbound voice and email communications from bank customers, it added. 

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IT/ITES News Update

MAY 28,2012 :IT COS MAY NOT PROFIT FROM RUPEE’S FALL

 Falling rupee normally attracts investors to stocks of IT outsourcing companies. But this time around, the great fall of the Indian rupee has not excited investors to buy IT stocks.

This is mainly because of two reasons: One, the dollar-denominated revenue outlook of most IT companies for fiscal 2013 is unimpressive and, two, although most of the dollar earnings of these companies are hedged, such hedges are capped and they do not cover the full depreciation of the rupee. 

Most IT companies reported significant growth during fiscals 2010 and 2011 and a relatively flat growth during fiscal 2012, but the outlook for FY13 is extremely bleak. 

The US and Europe, the two largest markets for Indian software exporters, remain uncertain and volatile, and large global clients are deferring their discretionary spends on IT. 

MAY 25, 2012: LARGE IT COMPANIES LIKE INFOSYS MAY STRUGGLE TO GROW AT 20% UNLESS IT BUDGETS RAMP UP: KOTAK SECURITIES

Large IT Indian providers such as Infosys, Tata Consultancy Services and Wipro may struggle to grow at 20% unless IT budgets ramp up.

Some of the reasons for this include an already existing high penetration into large US banking and telecom clients in traditional services, less generous doses of large deals, and slower than expected acceleration in Europe revenues, brokerage firm Kotak Securities said in a report.

MAY 24, 2012: ADITYA BIRLA NUVO REVIVES PLANS FOR STAKE SALE IN BPO ARM

Aditya Birla Group flagship , Aditya Birla Nuvo Limited, has revived plans to sell a stake in its BPO arm, Aditya Birla Minacs, after it received an expression of interest for the business from buyout fund Advent International, a person with knowledge of the matter said on condition of anonymity.

Adity Birla Nuvo owns an 88% stake in the BPO arm and may divest its entire stake if it receives an attractive valuation. The company is seeking $400 million for its stake in Aditya Birla Minacs.

Aditya Birla Minacs has annual revenues of around Rs. 2000 crore and EBITDA of roughly Rs. 200 crore. A bulk of it business comes from offering voice-based outsourcing services to clients in Canada and North America.

Aditya Birla Nuvo was reported to be in talks to sell a stake in its BPO business two years ago but did not follow through with the plan due to poor valuations.

MAY 23, 2012: AHEAD OF PRESIDENTIAL POLLS, WNS OPENS CENTRE IN US

NYSE-listed Indian business process outsourcing firm NS Global Services on Tuesday announced the opening of its first US delivery centre in South Carolina, where it will employ about 300 staff.

WNS joins other India-based IT/BPO firms such as EXL, HCL Technologies, Infosys and Ge    npact in raising their employee presence in the US, where in the run up to the November presidential elections, political rhetoric over outsourcing is rising. 

Last week, US President Barack Obama's campaign team held Republican rival Mitt Romney as being guilty of allowing jobs to be outsourced to call centres in Mexico and India. South Carolina faces a high unemployment rate of 8.8%, marginally higher than the national average of 8.1%. 

"WNS's decision to launch its first US delivery centre in our state signifies a big win for the State of South Carolina," said Nikki Haley, the Governor of South Carolina. WNS currently earns about 30% of its $474-million (Rs 2,607 crore) annual sales from North America, and about 68% from Europe.

MAY 22, 2012: “INDIAN IT SPEND TO GROW BY 16% TO RS 1.9 TRILLION IN 2012”-GARTNER

Indian enterprises will spend an estimated Rs 1.91trillion ($35 billion) on information technology and related services in 2012, up 16.4% from a year ago, according to latest data from market research and advisory firm Gartner. 

Last year, Indian firms spent Rs1.64trillion ($30billion) Gartner data showed. A weakening rupee is expected to act as a tailwind driving the actual spends from last year. On Tuesday, the local currency was trading at 55.35 against the dollar. 

An increasing number of Indian companies becoming more globalized is driving the need to spend more on technology to support such growth, according to Gartner. 

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Job Space

ECONOMISTS MORE UPBEAT ABOUT US JOB GROWTH: SURVEY

A new survey shows US economists are growing slightly more optimistic about recovery in the job and housing markets but expect other pillars of the economy to remain weak.

The National Association for Business Economists says in a report that its forecasters expect modest growth for the remainder of the year, with the pace picking up in 2013.

Still, the 54 economists NABE surveyed expect consumer spending, business investment and gross domestic product to remain below historic norms.

The quarterly survey compiles expectations for indicators such as hiring, home construction and spending from economists at industry groups, government agencies, banks and consultancies.

The panel now expects average monthly job growth for 2012 of 188,000, up from its forecast in February for 170,000 new jobs per month in 2012. The improved outlook would lead the unemployment rate to fall to 8 per cent by the end of the year, the economists said. The rate is now 8.1 per cent. By the end of 2013, the unemployment rate is expected to ease further to 7.5 per cent. 

IBM ON A DRIVE TO HIRE MORE WOMEN IN INDIA

Big Blue, led by power woman, Ginni Rometty, is on a drive to hire more women in leadership positions and across all positions in its India operations.

The multinational software giant has launched several programs targeted at employing more women, including those who want to get back to a career after a break, women only walk-in interviews and a program to enable female alumni to continue to contribute to projects in IBM.

One such campaign e-mailed to employees in several business units in IBM's India operations this month is titled, 'We are more than an IT company, We are an opportunity Company!!!' and asks staff to specifically refer women graduates and post-graduates for careers in its global business services.

These referrals, promoting more diversity in the firm, earn employees a higher referral bonus or fee compared to normal referral programs.

Another e-mail to employees is about a special walk-in program for women IT professionals. "At IBM India, diversity is a key ingredient that unlocks the potential for excellence," the mail says.

The 'Bring her Back' campaign launched last year to re-employ women to want to get back to a career is segmented into several sub-groups targeted at young mothers, those who have taken a study break or sabbatical, and those who have taken a few years off to take care of family.

IIM CALCUTTA'S PGPEX 5TH BATCH BAGS AVERAGE SALARY OF RS 20.4 LAKH

The fifth batch of IIM Calcutta's one-year residential program for executives, PGPEX has completed its placements with a top and average salary of Rs 28 lakh and Rs 20.4 lakh respectively. 

Tech Mahindra was the biggest recruiter with 10 offers and the highest salary was offered by Take Solutions. 

The batch comprised 44 students, out of which 3 were on sabbatical and 4 did not avail of placement facility. So 37 students participated in the placement process and bagged 49 offers. 

The IT/consulting sector led the charge with 18 offers, followed by consulting with 11 offers. There were 7 offers each in product management and sales/marketing roles, 5 in business development and 1 in general management. 

Some of the participating companies included Bain Consulting, Microsoft, Google, Infosys, Amazon, iNautix, Carestream, Accenture, HCL Technologies ,Take Solutions, Tech Mahindra, Dr. Reddy's Lab and Wipro BPO. 

First time recruiters included Sears IT, Medtronic, Keane Consulting, CGN Consulting, Fi-Tek, Microsoft, Accenture BPO and Wipro BPO.

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Banking News Update

FRIDAY MAY 18TH 2012: CITY UNION BANK TARGETS 20-30% GROWTH

Privately-owned City Union Bank hopes to log a growth of 20-30 per cent this fiscal despite the economic outlook not being encouraging.

"We hope to maintain a growth rate between 20-30 per cent this year. At the beginning of last fiscal we thought the economic condition would improve during the first two quarters of the current fiscal (2012-13). But going by the current trend we think the economy would hit the growth path during the beginning of the next financial year," N.  Kamakodi, the bank's managing director, told reporters.

THURSDAY MAY 15TH 2012: ICICI VENTURE MAY PICK STAKE IN MAJA HEALTH CARE, THE OWNER OF VI-JOHN BRAND

 Private equity firm ICICI Venture is in talks to pick up a stake in New Delhi-based Maja   Health Care, which makes Vi-John brand of shaving cream and other personal care products.

Maja Healthcare, which clocked 175 crore in sales for 2011-12, plans to aggressively expand its product portfolio and distribution to almost triple its turnover to 500 crore by 2015, its CEO Vimal Pande said.

WEDNESDAY MAY 16 TH 2012: AIRTEL, AXIS TIE-UP FOR MOBILE BANKING SERVICES

Country's largest private mobile operator Bharti Airtel and Axis Bank today announced a partnership to provide banking services through Airtel Money platform, a move that will help further the goal of reaching un-banked areas.

"Following the recent pan-India launch of airtel money, we are today excited to collaborate with Axis Bank to further strengthen our mCommerce proposition for customers," Bharti Airtel CEO - India and South Asia - Sanjay Kapoor said.

To begin with, savings and remittance solutions will be provided in Delhi and Mumbai on the sending side, and Bihar and East UP on the receiving side.

Thereafter, these services may be extended to other remittance corridors in the country, the company said.

TUESDAY MAY 15TH 2012: MOODY’S DOWNGRADES ICICI BANK, HDFC BANK & AXIS BANK; LITTLE EFFECT SEEN ON THE BANKS

Moody's Investors Service downgraded the ratings of top three private sector lenders - ICICI Bank, HDFC Bank and Axis Bank – and Life Insurance Corp, reflecting the alignment of their fortunes with the government's deteriorating finances.

The downgrades will bring the ratings of these financial institutions on a par with the State, whose credit outlook is deteriorating with fiscal deficit forecast at 5.1% of GDP in 2012-13.

MONDAY MAY 14TH 2012: CENTRUM GROUP REACHES OUT TO MORE SOUTHERN CITIES TO PROVIDE FIN SERVICES

Financial services and Forex provider Centrum Group is expanding its network in most cities in South India intending to provide various travel and Forex related products through its 100 plus branches and implant offices in major IT companies.

Centrum Direct is approved by the Reserve Bank and is an authorized dealer catering to Forex needs of high net worth individuals, retail investors and corporate through its branches spread across India. 

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Mergers/Acquisition/Tie Up Updates

RIL, HFCL TIE UP FOR 4G LAUNCH

Reliance Industries Ltd (RIL) plans to roll out its 4G network in partnership with Himachal Futuristic Communications Ltd (HFCL), the group from which it acquired pan-India airwaves for high-speed internet and data services in May 2010.

According to people familiar with the development, Reliance-owned Infotel Broadband will focus on key aspects of the network and monitor the rollout, but will leave ground-level execution and management to HFCL, which has prior experience of similar deployment. 

WOODLAND IN TALKS FOR FIRST OVERSEAS ACQUISITION; LIKELY TO INDUCT STRATEGIC PARTNER

Aero Group, makers of Woodland brand of footwear and apparel, is in talks for its first overseas acquisition and may induct a strategic partner for its international operations, a top executive said.

The company is in talks with three different makers of mainly specialised functional footwear, apparel and accessories in South East Asia and Australia, Aero Group MD  Harkirat  Singh said. The acquisitions will not only give Woodland a foothold in the specialized footwear category overseas but also give it a first-mover advantage in this space in India, Aero group officials said.

"We are raising funds internally for our first acquisition," Singh said, adding that the company may consider raising funds from private equity funds or opt for strategic partners in the near future to fund its overseas expansion plans.

GENPACT TO ACQUIRE ATYATI TECHNOLOGIES

 BPO major Genpact said it will acquire Atyati Technologies, a technology platform provider for the rural banking sector in India, for an undisclosed amount.

The acquisition of Atyati Technologies provides Genpact with a technology platform in the rural banking space with last mile functionality, Genpact said in a statement.

The deal is expected to close in 3-4 weeks, subject to satisfaction of certain customary conditions. Terms of the deal were not disclosed.

Founded in 2006 and backed by India-based VC firm Ventur East, Atyati is based in Bangalore and at present is partnering with six large public sector banks and one private sector bank.

Its platform serves 2.5 million end-customers in 6,500 rural villages, with expected expansion to 9.8 million end customers in more than 16,000 villages by 2013.

Atyati's 60 employees will become Genpact employees and will work with Genpact's India-to-India and Global IT Services business, the statement said. 

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IT/ITES News Update

FRIDAY MAY 18^TH 2012: RUPEE VOLATILITY A CONCERN FOR IT-BPO INDUSTRY: NASSCOM

Industry body Nasscom seems concerned with the currency volatility saying it hinders the planning process for the USD 100-billion IT-BPO industry.

"More than depreciation, the volatility of currency movement is a concern that needs to be tackled since it hinders the planning process for the Indian IT-BPO industry," Nasscom said.

A 10 per cent-plus movement of currency in a few weeks is definitely concerning for the companies, it added.

THURSDAY MAY 17^TH 2012: WORLD BPO FORUM LAUNCHES INITIATIVE TO TRAIN PEOPLE IN TIER-II AND TIER-III CITIES

The World BPO Forum, in association with BPO Association of India plans to train people in Tier-II and Tier-III cities over the next few years.

The organization has tied up with BPOs like Bharti.co and  iQ or to help train people in smaller towns and cities in India. The forum is also in talks with several other industry players to provide skills training in cities like Shimla, Cochin, Patna, Ranchi, Gandhinagar, Trivandram, Jaipur, Pune, Lucknow and Agra, to name a few.

As part of this initiative, Bharti.co, a Sahibabad-based BPO will set up a training academy in Sahibabad to train individuals with skills relevant for the industry. "We are talking to about 20-25 more companies to join us in the initiative," said WBPO Forum co-founder BL Jain.

The Forum has also partnered with the University of Rajasthan to provide skills training not only in BPO, but also in other areas such as accounting, to 2,500 students of the University. 

"We shall provide job assistance to them and help them get employable at the upcoming Mahindra World City in Rajasthan," he added.

WBPO Forum and BPO Association of India will hold conferences in 26 cities across the country to promote its skills training mission for Tier-II and Tier-III cities

WEDNESDAY MAY 16^TH 2012: INDIA IT INFRASTRUCTURE MARKET TO BE $2.05 BN THIS YEAR: GARTNER

The Indian IT infrastructure market comprising of servers, storage and networking equipment is estimated to reach $2.05 billion in 2012, a 10.3% increase over 2011, according to technology researcher Gartner. By 2016, it is forecast to reach $3.01 billion.

Servers, which constitute the largest segment of the Indian IT infrastructure market, are likely to reach $754.5 million in 2012 and grow to $967.2 million in 2016.

TUESDAY MAY 15^TH 2012: SOCIAL MEDIA GROWTH FALLING IN INDIA: GARTNER REPORT

India may be embracing latest technologies like mobility and cloud, but factors like privacy concerns and cultural fabric could restrain social media growth in the country as compared to other nations, a report by research firm Gartner said 

The report suggests that four significant forces that will shape businesses during the next five years are IT, mobile, cloud and social media. 

These pivotal technologies include the explosive use of media tablets, mobile applications, context-aware computing, Internet, analytics and in-memory computing (IMC), it added. 

"India is poised to become one of the world's biggest consumer economies in the coming five years. By 2014, it is expected to have more than one billion mobile subscribers and will also see significant roll-out of new IT infrastructure in both public and private sectors," Gartner Research VP Rakesh Kumar said. 

MONDAY MAY 14^TH 2012: GOVERNMENT TO LAUNCH RTI CALL CENTRE SOON

Encouraged by usage of the provisions of Right to Information Act, the Government has decided to set up a state-of-the-art call centre and an interactive website to facilitate easy exchange of information related to the transparency law to citizens.

The project was envisaged after taking insights from a government study which highlighted inconvenience faced by citizens in exercising their rights to information. 
According to an official of the Department of Personnel and Training (DoPT), the RTI Call Centreand Portal Project is aimed at improving access for illiterate and rural citizens with the help of information and communication technology. 

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INDIA’S TOP BPO PLAYERS

The National Association of Software and Services Companies (Nasscom) released the names of the biggest employers in the Indian IT-BPO services sector.

GENPACT

Genpact has a headcount of over 26,000.

Genpact was born in 1997 as the India-based business process operations for GE Capital. In 2005, with equity investments from General Atlantic and Oak Hill Capital Partners, it became an independent company and was rebranded Genpact. It is India's No. 1 BPO firm.

Genpact manages business for companies around the world with a network of more than 30 operations centres in nine countries. Genpact offers services in finance and accounting, collections and customer service, insurance, supply chain and procurement, analytics, enterprise application and IT infrastructure.

TCS

TCS is the largest IT employer in India with more than 126,000 employees.

TCS BPO is one of the leading players in the outsourcing industry. It offers services in areas such as finance and accounting, banking, HR outsourcing, KPO, insurance, payroll, healthcare, telecom, media, travel and entertainment.

TCS operates from more than 41 countries and has more than 155 offices across the globe. Its head office in India is located in Bangalore. It has branches in Mumbai, Gurgaon, Goa, Hyderabad, Pune, Lucknow and many other places in India.

While Tata Consultancy Services is India's top software company, TCS BPO established a stronghold in the BPO space.

INFOSYS

Infosys Technologies had 1,04,850 employees as on March 31, 2009.

Infosys BPO Ltd, the business process outsourcing subsidiary of Infosys Technologies, was set up in April 2002. Today, it is ranked among the leading BPO companies in India by Nasscom, Dataquest, the International Association of Outsourcing Professionals, Red Herring, FAO Today and NelsonHall.

Infosys BPO focuses on integrated end-to-end outsourcing through lesser costs. Infosys BPO operates in India, the Czech Republic,.

WIPRO

Wipro had 98,521 employees as of June 30, 2009.

Wipro BPO has carved a unique position in the outsourcing industry. In 2002, Wipro took a quantum jump in the BPO services by acquiring the then Spectramind. Wipro BPO Solutions, complements the services offered by Wipro Technologies, making it one of the largest BPO service players.

The company operates out of 10 different locations (India and Eastern Europe) serves clients across the globe. Wipro BPO clientele spans across banking and capital markets, insurance, travel and hospitality, hi-tech manufacturing, telecom and healthcare sectors.

COGNIZANT

With 50 global delivery centers and about over 63,000 associates, Cognizant combines a unique onsite/offshore delivery model infused by a distinct culture of customer satisfaction.

A member of the Nasdaq-100 Index and S&P 500 Index, Cognizant is a Forbes Global 2000 company and a member of the Fortune 1000 and is ranked among the top information technology companies in BusinessWeek's Info Tech 100, Hot Growth and Top 50 Performers listings.

HCL TECH

HCL Tech had 54,026 employees as on March 31, 2009.

HCL BPO, a division of HCL Technologies Limited was established in 2001. With over 13,200 professionals operating out of India and Northern Ireland, HCL BPO runs fourteen delivery centres across India, UK and Malaysia.

HCL BPO offers multilingual support in eight European languages and eight Asia, Pacific and Africa Collections (APAC) languages.

HCL BPO's focuses on sectors like telecom, retail, banking and financial services, insurance, hi-tech & manufacturing, and media, publishing and entertainment.

Shiv Nadar is the founder, chairman and chief strategy officer of HCL Technologies.

HP INDIA

HP India has close to 50,000 employees.

HP is a technology company that operates in more than 170 countries around the world. It explores how technology and services can help people and companies address their problems and challenges, and realise their possibilities, aspirations and dreams.

Stanford University classmates Bill Hewlett and Dave Packard founded HP in 1939. The company's first product, built in a Palo Alto garage, was an audio oscillator-- an electronic test instrument used by sound engineers.

MPHASIS

MphasiS employs over 30,000 people.

MphasiS BPO provides value-added voice and transaction-based contact center and business process outsourcing services to Fortune 500 companies worldwide.

Its strengths include customising onshore, nearshore, and offshore solutions. Its BPO centres in Bangalore, Mangalore, Pune, Mumbai, Noida, Ahmedabad and Puducherry in India offer English language support, and the Tijuana, Mexico facility offers Spanish and bilingual solutions to target the Hispanic market in the US.

INTELENET

Intelenet has about 28,000 employees.

The company's focus is on providing solutions to global organisations seeking to reduce costs while consistently maintaining superior service levels.

Their solutions extend across all strata of BPO, technology and consulting and can be applied to organisations in industries as diverse as banking and finance, insurance, retail, telecom, information technology, travel and hospitality.

Areas of operation: Australia, India, Philippines, Mauritius, USA, Central America.

IBM DAKSH

IBM Daksh has over 27,000 employees.

IBM Daksh was created by four profesionals -- Sanjiv Agarwal, Pawan Vaish, MJ Aravind and Venkat Tedanki -- who saw a great opportunity in the business process outsourcing space. With no business model to follow, it was a big challenge to set up the company.

IBM Daksh is known for a good leadership, a focussed vision and an undying passion. In April 2004, IBM Corporation acquired Daksh e-Services to serve as a global hub to manage business processes for clients from across the world.

A Nasscom statement said that the IT-BPO sector reached $58.8 billion in FY08-09 up from $52 billion in FY07-08, showing resilience defying global economic meltdown.

The export revenues for the Indian IT-BPO industry recorded growth of 16.3 per cent and clocked revenues of $46.3 billion in FY08-09 up from $40.4 billion in FY07-08. The domestic segment grew by 21% to register revenues of Rs 570 billion in FY08-09 from Rs 470 billion in FY07-08.

Other big BPO employers in India are:

11. Tech Mahindra Ltd

12. Aegis Ltd

13. WNS Global Services (P) Ltd

14. Firstsource Solutions Ltd

15. CSC India Pvt Ltd

16. Patni Computer Systems Ltd

17. Larsen & Toubro Infotech Ltd

18. Hinduja Global Solutions Pvt Ltd

19. Oracle Financial Services Software Ltd

20. Convergys India Services

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Business News Update

MAY 14TH 2012: STANDARD CHARTERED PREDICTS DEPRECIATION OF RUPEE VERSUS DOLLAR

Standard Chartered is of the view that the rupee is facing choppy trading in the near-term. It expects another 2-3 per cent weakening of the rupee from the current levels amid global uncertainty.

The bank has also lowered its medium-term rating on the rupee to 'neutral' from 'overweight' as continued policy inertia lowers the possibility of sustained inflows.

The bank has recommended that dollar based investors in Indian assets should maintain high short-term foreign exchange hedge ratios. It is of the opinion that importers should keep high foreign exchange hedge ratios in the rupee for the short-term. The bank expects exporters to remain sidelined until a record high of around 54.30 is tested. 

MAY 11TH 2012: INDUSTRIAL PRODUCTION DIPS BY 3.5% IN MARCH

Industrial production declined by 3.5 per cent in March mainly on account of contraction in manufacturing and mining output.

Growth in the factory output, as measured by the Index of Industrial Production, was higher at 9.4 per cent in March last year.

The industrial production has been dismal at 2.8 per cent in 2011-12 as compared to 8.2 per cent in previous fiscal.

MAY 10TH 2012: RELIANCE BUYS STAKE IN HDFC, ICICI BANK AND AXIS BANK

Awaiting regulatory approvals for its foray into financial services sector, Mukesh Ambani-led Reliance Industries has acquired shares in giants like HDFC, ICICI Bank and Axis Bank as part of long-term 'investments'.

These financial investments, estimated to be worth over Rs 1,200 crore (Rs 12 billion), include purchase of shares of six banks - three each from the public and private sectors -and one housing finance major, HDFC.

The banks whose shares Reliance Industries Ltd (RIL) has acquired also include HDFC Bank, SBI, Punjab National Bank and Canara Bank and these have been classified among 'long-term investments' of the country's biggest private sector company in its annual report for the year 2011-12.

MAY 9TH 2012: HCL GROUP TO FORAY INTO INSURANCE SECTOR

 DLF Pramerica Life, seeking an Indian partner for its operation, is in talks with HCL Group to sell a majority stake. 

Earlier regulations prevented Indian promoters of insurance companies from divesting stake before completing 10 years in the business.

 With the finance ministry deciding to waive that requirement late last year, HCL Group is now set to buy 51 per cent stake in DLF Pramerica Life Insurance Company.

The deal size is expected to be around Rs 500 crore. KPMG has been appointed as the adviser for the transaction.

MAY 8TH 2012 VODAFONE-LIKE DEALS WILL BE TAXED, MAINTAINS PRANAB

Finance Minister Pranab Mukherjee has acknowledged that Vodafone-like deals, in which underlying assets were in India would be taxable if investments came from non-double taxation avoidance agreement, low tax countries.

He asserted India couldn't be treated as a tax haven, like the Cayman Islands, British Virgin Islands or Isle of Man, just for the sake of foreign direct investment.

He asserted Parliament has the right to make amendments to laws, following Supreme Court judgments.

MAY 7TH 2012: RBI HAS LITTLE ROOM TO CUT INTEREST RATES

Despite growth and inflation balance shifting favourably, the Reserve Bank of India foresees inflationary pressures in the medium and long term.

In the present economic environment, there is little room for lowering interest rates, said RBI deputy governor Subir Gokarn.

"The central bank has started the process of reducing interest rates from last month.

"However, if you look at our inflation projections, in relation to what we consider as long-term or medium-term objective, there are inflation pressures.

"That, in a sense, limits the room that we have to reduce rates," Gokarn said on the sidelines of Ficci's national executive council meeting held in Hyderabad 

For the first time in three years, RBI had slashed the short-term lending rate by 0.5 per cent to eight per cent in April 2012.

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