Human Power - Viral Thaker HRD blog Headline Animator

Monday, September 22, 2008

Logica introduces new facility at Chennai to expand operations

Chennai: UK-based Logica strengthens its foothold in India, by establishing a new facility in the country at Chennai. After rooting itself in Bangalore which houses its first facility in the country, the IT and management consultancy establishes the new facility to accelerate its global delivery model.

The new Chennai center will support the company's future offshore growth providing services in the areas of Business Process Outsourcing, Remote Infrastructure Management, and Application Services. It is spread across 120,000 sq ft with the capacity for 1,500 employees. The company has earmarked an investment of around eight million pounds to accelerate blended delivery and grow its offshore and nearshore centres. It plans to have 8,000 employees in these centers by the end of 2009.

The company expects to expand the facility, to which Abhay Gupte, CEO, Logica India, commented, "Our plan to double the headcount in our offshore and nearshore facilities by the year 2009 reiterates our commitment and dedication to strengthening our operations in India. We aim to partner with the city to ensure we are a good corporate citizen here in Chennai." Andy Green, Global Chief Executive, Logica, also adds on to it saying, "As the centre grows we will build specific competency areas based on client requirements. The investment climate, facilities and talent available in Chennai are excellent."

Currently the Logica facility in Bangalore houses about 3000 employees and provides the full spectrum of system integration and outsourcing services, including System Design, Applications and Product Development, Applications Management, Infrastructure Management and Business Process Outsourcing. India also plays a pivotal role in leading a comprehensive program to design and implement a group-wide innovation strategy.

U.S. based Logica has 39,000 people across 36 countries. It is listed on both the London Stock Exchange and Euronext (Amsterdam)

Thursday, September 18, 2008

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Thanks,
Viral Thaker

Friday, September 12, 2008

Never Stop Recruiting - ABC of Recruiting.

A couple of weeks ago I had penned an article comparing recruiting to dating. I recently had an experience of a different nature. I was on a plane returning from an engagement and a man named Balaji sat down next to me. He spent the next 90 minutes trying to save my soul.

This was a waste of time.

Not that my soul isn’t worth saving. But it was a waste because I am very firm in my religious beliefs and am not about to change them because of a 90-minute conversation with someone.

It was not an unpleasant conversation. He seemed like a delightful man and we laughed at times as we talked. He was not going to change my mind, but I did respect his commitment. His dedication. He did not let go. Our flight took off at 5:45 in the morning and he was in full swing. He started the conversation before he had his seat belt buckled and he kept it up even as people were deplaning.

He was recruiting.

I was impressed with his zeal. Then again, he is recruiting for a very important cause. It occurred to me that he probably started up these conversations whenever he traveled. He was always looking for recruits, and to put this in recruiting parlance, he is frequently looking for “passive candidates.” He never rests in his search, as there are always openings in his organization. Was he effective? Not with me, but I wonder how many people he has successfully recruited. Lots, I would guess, from the extent of his travels. He has been all around the country and all around the world. He finds people wherever they are. That’s his mission, and that’s what his organization needs.

What’s your mission? Professionally speaking, what are you trying to accomplish? There’s a lot we can learn from Balaji. Are you constantly recruiting? Do you strike up conversations with people on planes, in malls, or at events? Are you always trying to meet new people? In the movie “Glengarry Glen Ross” the sales manager says selling is as simple as ABC: Always Be Closing. There are lots of similarities between selling real estate and recruiting, but that’s for another article.

Perhaps we need to create acronyms to remind us how to be successful recruiters. Maybe, if you’ve been finding yourself lax in the networking department, your ABC is “Always be connecting.” If your pipeline is drying up and you’re feeling frustrated, JKL - Just Keep Looking! Or NOP - Never Overlook Possibilities. But don’t compromise your standards. Remember PQR - Persistent Quality Recruiting. But be sure to MNO - Make Numerous Overtures if you’re going to EFGH - Effectively Find Good Hires. OK, I mean, okay, maybe I’m getting carried away, but we do need to remember that candidates don’t always present themselves neatly at our office door. We find them when and where we least expect them.

When I was a consulting human resource generalist for a small startup organization, I used to say that HR people never take off the HR hat. Whether you are at a meeting, on the phone, or at the holiday party, you are always on duty. Same goes for a recruiter. You never know when or where you are going to find that next great candidate. Balaji had no idea about my religious background, my views, or the depth of my belief. That didn’t stop him, and he never lost his good humor as we talked. He did get a little more earnest as we began our final approach because he realized that he had precious little time left to complete his mission.

We can follow his lead. It’s easy to get turned off by a candidate. If we stop recruiting at the first “not interested” from our candidates, we’re going to have a lot of short phone calls. Balaji didn’t give up. He made sure to get my business card early in the conversation, so I’ll be very surprised if I don’t hear from him. (Note: before I completed this article I had received e-mails from him.) He sincerely cares about what he’s doing. He’s good at what he does because he has a passion for recruiting. Do you? Do you find yourself getting burned out? Too many candidates, too many openings, or too many rejections?

I remember one time when a friend of mine was returning home from a college-recruiting trip. He did not usually take part in the college visits, as he was primarily an executive recruiter. His focus was management positions. But this trip included a couple of business schools from which his organization hoped to recruit people to be part of the management-trainee program as well as recruiting at other schools. So Krishnan went along for the whole trip. Now he was on his way back. He was tired, he was cranky (he always said that he didn’t care particularly for campus recruiting because it reminded him of how old he was) and he just wanted to put on his headphones, recline his seat, and close his eyes ’till he landed.

Well, you know what happened. The seat next to Krishnan was empty until just before the door closed. Krishnan was anticipating having a little extra elbowroom and then this guy came down the aisle carrying just a briefcase and a trench coat. He looked stressed out. Krishnan assumed it was due to his almost missing the flight. The man stashed his coat and case overhead and flopped into the seat next to Krishnan. Krishnan could sense that he wanted, or perhaps needed, to talk. Fighting every urge to close his eyes and pretend that he was listening to music, Krishnan removed his headphones and asked, “Rough day?” That was all it took.

His name was Raj and he was out of work. He’d been looking for about six months. He’d had a few leads but nothing had panned out and now he was returning home after a trip that he had hoped would result in an offer, but it didn’t look good. He had made this trip at his own expense to follow up on a lead and a phone interview. He thought that by making the effort and covering the expense of the flight, he might impress the company with his interest in the position and commitment to this opportunity. Raj wasn’t keen on relocating. He would rather stay in the Northeast, but he hadn’t been having any luck so he took a chance on casting his net a little further even if it meant uprooting his family.

But the interviews had gone terribly. The person he’d spoken with on the phone was too busy to spend more than a few minutes with him, he had to start from scratch with every person he met (hadn’t they prepared at all?) and several had no idea why they had been called in to meet with him. It was a frustrating day all around, and right now he didn’t have a particularly high opinion of the company he’d visited. He even said at one point, “I was going to pull my daughter out of the school she loves and away from all her friends for a company like this? Seems like this day was a total waste of time and, unfortunately, money too.”

In the fairy tale version of this story, Raj was perfect for a hard-to-fill position that Krishnan was working on. No, that didn’t happen, but they did exchange cards and Krishnan met with him back in New York. Krishnan didn’t have an opening, but he was very impressed with Raj’s strategic approach to finding a job, his clear analysis of the organizations with which he had met, and his insightful manner of summing up a complex situation, looking at it from all perspectives. Krishnan referred him to a colleague who was recruiting for someone with Raj’s skills, and he succeeded in securing a position. Krishnan succeeded as well. Raj always had good things to say about Krishnan’s company. The recruiter to whom Krishnan referred Raj has become a more valuable part of Krishnan’s network, referring several good candidates, a few of whom Krishnan has hired.

There’s a lot we can learn from Balaji, and from Krishnan. Never stop recruiting, wherever you are, no matter how tired you are, no matter what time of day it is. You never know where that next great candidate will be, or who will lead you to that person. Would you have caught the signals that Krishnan picked up on? Guy comes on a plane looking stressed, carrying nothing but a trench coat and briefcase, dressed in a suit appropriate for an interview — this might be a guy worth talking with. Maybe it’s just someone who needs to talk, not someone we can hire or refer. It never hurts to hone our networking skills.

To best serve our organizations we need to be constantly on the lookout for talent, and we can never predict where we’re going to find it, or when. Very often candidates will present themselves when we least expect it. By keeping an open mind we increase our likelihood of success. Maybe not immediate success, but somewhere down the line. Gary Player used to say, “The more I practice, the luckier I get.” I tell people, on both sides of the interview table, that the only way to get good at interviewing is to interview. The best way to keep our recruiting antennae honed is to constantly look for signals and indicators, then to test our assumptions. The more we practice the more we’ll succeed.

And don’t close yourself off the next time someone plops down next to you on a plane. It might be your next great hire, or it might be Balaji. Either way, you’ve got something to learn and possibly a lot to gain.

You may not save a soul, but you may help someone and you may even fill a job. And for a recruiter, that’s a pretty good day.

 

 

Regards,

Viral Thaker

Practice Lead – IT

 

 

Ikya Human Capital Solutions Pvt. Ltd.,

#2, 5th Floor, Alsa Towers

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Monday, September 8, 2008

PE firms eye BT's stake in TechM

As British Telecom (BT), who has 31 percent stake in Tech Mahindra (TechM), a solution provider in the telecom space, planning to sell its 21 percent stake, many private equity players are now eyeing to acquire those stakes.

Sources said, "BT is learnt to be keen in retaining 10 percent stake in venture, post transaction, given that it has committed $2 billion in business to TechM."

 

A part sale of 21 percent in the company would value the transaction at over Rs. 1,850 crore at Thursday's closing price of Rs.771.40 on the BSE.

"BT is not looking at a total exist from Tech Mahindra. While Tech Mahindra is no more a strategic investment for BT, it has substantial and long term business interest in the Indian company," sources said to The Economic Times.

Sources also mentioned that the sale will help it at a time when its profitability is on the slide, while also helping it earn a good return on the residual stake when there are limited attractive investment options in the market. By retaining some stake BT would prefer to have board representation.
An industry sources commended that the 20 percent stake on offer makes a strategic investment by any other Indian IT company such as Infosys or Wipro unlikely.

"Even if they get BT's entire stake, the question is whether any of them will be a partner in a JV where the Mahindras have the major stake. In contrast a private equity player could look at it only from a 4-5 year investment horizon," source added.

"Even if they get BT's entire stake, the question is whether any of them will be a partner in a JV where the Mahindras have the major stake. In contrast a private equity player could look at it only from a 4-5 year investment horizon," source added.

The actual transaction is expected to take place in a month. In most joint ventures, the first right of refusal in case of sale is with the other partner. However a company official said, "Our official stance is unchanged. The statement we issued earlier still holds good."

Sanjay Kalra, President, Tech Mahindra said, "As a strategic partner of BT, we have enjoyed a great relationship with BT over many years and will continue delivering on long term contracts and winning new business."

On the other hand, BT says, "India remains a critical market both for BT and our customers, and we expect to continue developing both the operational network and service presence that we have established over years."

Small IT firms outsource marketing

Small and medium IT firms (SMBs) are opting to outsource their key marketing functions like making pitch documents, lead generation and power point presentations. Even reverse outsourcing is taking its course as they are also marketing their products through local agencies in the U.S.

This new trend is becoming popular among the startups who are on the lookout for potential buyers and investors. Apart from the startups, many VCs and PEs are approaching outsourced Chief Marketing Officers for their company portfolios. As reported in Economic Times, Gaurav Gupta of Everest Group, says, "Outsourcing is catching up in telemarketing and analytics, particularly in financial services sector like credit cards, insurance and the like. Even captives of i-banks, for instance, bring to offshore tasks like pitch documents, power points, analytics and marketing support."

 

This has indeed opened a huge business opportunity for the service providers who are targeting small enterprises lacking in bandwidth or the ones who cannot afford a high-cost full time marketing resource. Vinod Harith, chief marketing officer (CMO), Founder, Director of Axis offers to build and run a company's annual marketing calendar. Tracking the same point, Vijay Menon a freelance CMO says, "These enterprises may not be able to derive benefits from hiring a full-time CMO, who may come at a salary level bill of up to Rs.50 lakh per annum."

In the global scenario, demand for outsourcing is seen for companies in the $20 million-$100 million range, and the biggest challenge for these companies would be building a brand. Srini Rajam, CEO, Ittiam Systems, makes a clear distinction between marketing and branding. Marketing becomes the fulcrum of any organization in deciding the road map as well as the genesis of product and services. Some parts of branding activity could be outsourced especially when a product is being taken to the market, he adds.

Wipro to cut 1000 heads for non-performance

Wipro Technologies, an IT solution firm, is screening around 2,400-3000 employees (4-5 percent of the total workforce) on the grounds of non-performance. According to sources, around 1000 employees are being given the pink slips, while about 2000 are allowed to move on.

As per a report in The Economic Times, the company will provide some of the employees with counseling for boosting up their performance. Pratik Kumar, Wipro's Corporate VP (human resources), confirming the move, said, "It's a regular annual exercise. As the appraisal cycle gets over, a multi-layer review happens. Following that, people who have fallen in the lower quadrants of performance are put on watch. Some are asked to pull up and others are asked to move on." It includes all the 60,000 global IT services employees from the senior leadership team down to the person with one-year experience.

On the number of the employees who had been asked to move on, Kumar said the company did not disclose the number. But it was "significantly lower than 2,000" as company sources said about 1,000 employees were being asked to leave.

The employee base in Wipro has also come down from 62,070 to 61,345, as seen in the quarter ended June. But the company refutes it to be related to the slowdown and rather emphasizes it to be industry driven move. Kumar says, "It's not just our view, but the industry's view, that we have to be thoughtful of additions and drive productivity. We took a closer look at our hiring and realized that we did not need to hire more, since there were people on the bench."

However, the companies who have recently adopted the trend of giving off pink slips at anytime, decline it as a move to push through the slowdown era. Tata Consultancy Services (TCS), the country's largest IT services firm, had given pink slips to 500 non-performers. IBM, too, had asked about 700 employees in India to leave, citing non-performance. In July, Patni Computer Systems had shown the door to 400 employees.