Human Power - Viral Thaker HRD blog Headline Animator

Thursday, February 21, 2008

Indian employees receive highest pay hike in 2007: Survey

In a highest hike across 14 Asia-Pacific countries, Indian employees received an average salary increase of 15.1 percent in 2007, says global human resources services company Hewitt Associates, though the firm said salary hikes would gradually decrease and stabilize in the range of nine to ten percent by 2012.

The 12th annual 'Asia-Pacific Salary Increase Survey' conducted by Hewitt Associates involved over 550 companies across sectors.

According to Hewitt Associates, 2008 would see a similar increase of around 15.2 percent, marking the fifth consecutive year of double-digit growth of salaries in India.

In the last survey conducted for Jan-Oct 2007, India was placed second at 14.8 percent, next only to Sri Lanka.

In the management levels, junior managers are expected to receive a salary hike of 15.5 percent this year, recording the highest salary increase for eight consecutive years.

In the sector-wise classification, real estate is likely to witness the highest salary rise at around 25 percent in 2008 in India, even ahead of the retail and telecommunication sector, the survey said. In 2007, this sector had seen a salary rise of 25.2 percent.

Meanwhile, making a further dip from 14.1 percent in 2007, the Information Technology-enabled Services sector would record the lowest pay hike of 14 percent in 2008, the survey said.

“Salary increases in the technology and outsourcing sectors have stabilized since 2004. They have been stabilizing between 13 and 14 percent, which is not a variation of concern. This is primarily because the salary levels in these two industries are already fairly competitive”, quoted a Hewitt Associates spokesperson.

The survey noted external equity of compensation and role stagnation as main reasons for attrition.

 

Viral Thaker
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Wednesday, February 20, 2008

Onsite employees feel the punch of recession in U.S.

After the shelving of workforce in India, it is the onsite employees of IT majors who next face the effects of the imminent recession in the U.S. Indian IT services companies operating in the American markets are likely to cut the onsite allowances of employees deployed at clients' offices abroad by 25 to 30 percent from April 1, 2008.

Leading Indian IT service providers like TCS, Infosys and Wipro have launched independent studies to arrive at the revised "per diem" (daily rate of payment) for onsite employees in an effort to cut costs. The move follows IT majors like IBM, TCS and Yahoo weeding out staff for "poor performance", reported Business Standard.


The payment of salary to onsite employees varies from company to company. Some companies, for instance, deposit the basic salary into the employees' account in India and pay a per diem rate towards their daily expenses.

Infosys pays a per diem of $45 currently to its onsite employees but there are talks of a proposal to reduce it to $35 per day though officially unconfirmed. However, a few employees of Infosys admitted to having been informed that there could be a reduction in per diem for onsite employees in the US.


"Earlier, most of us could make a saving from the per diem allowance. If it is reduced to $35 per day, we will not be in a position to do so and onsite postings will not be attractive anymore," an Infosys BPO employee said. Infosys is also looking at other markets for growth in an effort to reduce its dependence on the U.S.

Wipro, on the other hand, is hiring more local talent at client locations to reduce deployment of staff from India for onsite assignments.


Recently Wipro Chairman Azim Premji had said that if they hire people locally, it will displace the people Wipro send from here on H1B visas. So net-net, it will not mean an extra cost to the company.

TCS pays 1,900 Euro per month to each onsite employee in Europe. It seems that the per diem rate for the U.S. is being revised. But the per diem for onsite employees in Europe will not change.

European IT services companies operating in India too are planning to reduce the per diem rate. Logica CMG ? which has deployed a large number of Indian employees on site for clients in the Netherlands, Belgium and the UK ? plans to cut the per diem rate by 30 percent.

Takeover by Indian firms increased jobs in UK: British lawyer

Acquisition of British companies by Indian corporate majors has benefited the former and has led to creation of more jobs, a top British lawyer said here on Monday.

Teja Picton Howell, partner of the London-based commercial law firm Picton Howell LLP, said contrary to the general belief of job cuts, there was an increase in jobs when an Indian company took over a British firm.


He is part of the trade delegation to Chennai organised by the UK Trade and Investment and London Chamber of Commerce and Industry. The business team is here to promote London as an ideal investment destination for Indian companies.

"A UK entity becomes more competitive after the takeover by an Indian company," he said.

Speaking at a gathering of industrialists and service sector officials, Mike Connor, deputy high commissioner, Chennai, said London offered better advantages than any other European cities for the business community.

"London's main strength is its services sector," he said. Michael Gourlay, director of Asia Pacific, Europe and Africa, Think London, said the city of London was rich with creative talent and the major driving force of the country's economy.

Citing a study he added that Indian and American companies based in London generated better return on investment (ROI) than those located in other European cities.

"London-based companies grow and diversify their operations faster," he said. He further invited Indian firms to invest in London and benefit from the 4 billion pound ($7.8 billion) opportunity available at the London Olympic Games to be held in 2012.

T.T. Ashok, managing director of Taylor Rubber Pvt Ltd, expressed concern that many Indians would return home as result of UK's new immigration rules.
Article by VIRAL THAKER @ URL http://viral-hpower.blogspot.com/
Data Collection & Source Forbes; Economic Times; CNBC

Bhave assumes office

Chandrasekhar Bhaskar Bhave took over the reins as the new chief of markets regulator Securities and Exchange Board of India (SEBI) on Monday evening from outgoing chairman Meleveetil Damodaran.

The former chairman of National Securities Depository Ltd (NSDL), India's central repository of dematerialised stocks, Bhave hails from Nagpur in Maharashtra.

He is no stranger to SEBI. In 1992, Bhave joined the newly formed SEBI as executive director.

During his stint with SEBI, he was instrumental in conceptualising the National Stock Exchange (NSE) and banning the "badla" system, an Indian version of futures trading.

Considered a no-nonsense officer, Bhave is an electrical engineer by training and belongs to the 1975 batch of the Indian Administrative Service.

Kicking off his bureaucratic stint as district collector at Nanded in south central Maharashtra, Bhave went on to serve as an undersecretary in the central ministry of finance and deputy secretary in the ministry of petroleum before serving as additional industries commissioner of Maharashtra.


In 1996, Bhave quit the administrative service and joined NSDL as chairman and managing director. He is credited with the introduction of the dematerialised stocks system in the Indian market. NSDL is central repository for such stocks. A familiar face in financial circles, Bhave locked horns with Damodaran over the initial public offer (IPO) of Oil and Natural Gas Corp (ONGC). It took the Securities Appellate Tribunal to sort out the legal tangle.

Wednesday, February 6, 2008

Google enters Yahoo fray in bid to thwart Microsoft deal

Google and Yahoo were expected to continue unofficial contacts after Microsoft's bid for Yahoo sparked a furious round of jockeying among the biggest players on the internet.

Microsoft tabled an unsolicited 44.6-billion-dollar bid for Yahoo on Friday, in what could be the largest-ever technology takeover. The offer of 31 dollars per share for Yahoo represented a 62-per-cent premium on the internet company's Thursday closing price.

Yahoo acknowledged receiving the unsolicited bid but Chief Executive Officer Jerry Yang said that the company was still exploring other options and that no decisions had been made, according to the San Jose Mercury News.

Over the weekend Google CEO Eric Schmidt called Yang to offer Google's help in thwarting the Microsoft bid. Though antitrust regulations mean that internet search leader Google is unlikely to take over its top rival, Google could help in other ways.

For instance it could strike a multi-billion dollar deal to sell advertising on Yahoo's search pages, or it could come in as a supporting partner in another buyout deal for the company.

Signaling its resolve to scupper a merger between its two biggest rivals, Google also issued a statement arguing that a combination of the two companies would be bad for net users.

Noting that Yahoo and Microsoft together provided instant messaging and email services to more than half of all internet users in the US, Google accused Microsoft of seeking to extend its computer software monopoly deeper into the internet realm and undermine competition on the web.

My Proposed Hypothesis: Microsoft's hostile bid for Yahoo raises troubling questions. Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? Could the acquisition of Yahoo allow Microsoft...to extend unfair practices from browsers and operating systems to the internet?

Microsoft responded to Google's arguments by saying that a merger with Yahoo was necessary to counter Google's dominance on the internet.

Microsoft executives cited industry data showing Google has a 75 percent share of worldwide web search revenue. Collectively, Yahoo and Microsoft attract around 20 percent of Web searches, internet measurement firms show.

According to Microsoft Spokesperson, today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow.

Microsoft is committed to openness, innovation and the protection of privacy on the internet. It claims to believe that the combination of Microsoft and Yahoo will advance these goals.

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Monday, February 4, 2008

Sierra Atlantic opens new campus in Hyderabad

Sierra Atlantic, one of the world's largest IT solutions providers, on Saturday opened its new campus here.

A leader in off shoring enterprise applications and outsourced product development, the company has invested $14 million in the state-of-the art campus, equipped with modern facilities coupled with the latest technology and ergonomics.

The first phase of the campus has a total built-up area of 200,000 square feet and will house 1,500 employees. The second phase, covering a built-up area of 350,000 square feet is planned to accommodate additional 3,500 employees, the company said in a statement.

The campus reflects Sierra Atlantic's commitment to consistent growth, with its employees and partners, it added.

Upon completion, the campus will have world-class facilities including modular workspaces with break out areas, an expansive cafeteria, a modern gymnasium, tennis and basketball courts, a cricket pitch, and internal landscaped atriums.

"The campus along with our proven ability to recruit and cultivate India's brightest engineering talent further enhances Sierra Atlantic's capability to deliver world-class IT services to our global customers, said a Sierra Atlantic representative.”The new facility will enhance our ability to scale operations as per customer demand and meet our promise of 100 percent customer satisfaction," he said.

 

Sierra Atlantic is offering services in the new Oracle economy, outsourced product development, and Microsoft competencies, with global delivery from both India and China.

Headquartered in Fremont, California, the company has operations in 16 countries across North America, Europe, and Asia Pacific.

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Saturday, February 2, 2008

Customer Service: Key to Successful Recruiting

3 tips for providing responsive service

Fast and personal customer service is what I insist is core to being an effective 21st century recruiter. Every candidate should receive a personal response customized to their questions and needs. Candidates should be sold positions on the basis of the goodness of their fit in the position and to the degree they exhibit the skills and competencies needed.

Yet, many recruiters are challenged to provide this level of service. Here are a few quotes from recruiters: "I have received almost 500 resumes. Over 90% of these people are not qualified or not what my Client / company is looking for." Another said, "I have been overwhelmed with candidates. Some fit our needs, but most don't even take the time to read the job description...I wish I could reply to every candidate, but if I did, I would not be doing my job!"

Candidates, on the other side of the fence, say, "Now, as a candidate going through a very bad dry spell in finding recruiting work, I rarely experience this common courtesy among recruiters who post jobs that don't exist and fail to follow simple due diligence." And this: "I'm a downsized corporate executive who has been repeatedly appalled by the way companies and recruiters are treating candidates."

We all, I believe, want to provide candidates with great service, and we all know that those who have been ignored, dismissed as not qualified, and otherwise treated with discourtesy will not forget and may never recommend our firm to friends or apply again, even when they may be excellent choices.

Every act of discourtesy will eventually be incorporated into the overall reputation that our firms have about people and how they are treated. As they say in the customer satisfaction business, for every customer that tells you they are satisfied, there are at least 3 dissatisfied customers who have said nothing. The same applies for candidates.

So, what does the overworked, overwhelmed recruiter do? How can you provide responsive service in the face of huge numbers of resumes? Here are three tips:

Don't Post Job Descriptions, But If You Do, Make Them Precise and Specific

I have taken an excerpt from a job description I found on a website that is representative of many I see every day. The question I ask is who, with even a modicum of technical ability and a dash of experience, will not feel qualified for this job? There are no specifics, no details, and no firm requirements. I almost feel that I could apply for this and justify why if asked.

You're looking for more than just a job in Information Technology. You want a career that challenges your IT experience while giving you the freedom and support to succeed. Look no further than [company name]. Our Professional Services offerings span the entire application life cycle, giving our customers a complete solution and our employees the opportunity to excel on all platforms.

With our technical focus and emphasis on delivery, we strive to hire experienced Information Technology professionals with broad skill sets and the desire and versatility to learn new businesses and skills. We are selective in hiring and serious about retaining those we do hire.

We are looking for candidates with the following attributes:

  • Oracle Financials experience
  • Oracle 11i application development experience
  • Strong PL/SQL

I am sure that this has generated many hundreds of unqualified resumes. Unfortunately, most job descriptions are written this way deliberately so that they will generate a large number of responses. When we lacked technology and reach, this was a marginally acceptable approach. But today, it creates big problems. Most candidates are very concerned with applying for an appropriate job, but how can they really tell from the way descriptions are written? Are the specific requirements spelled out? Are you using technology to screen for these?

We need to focus on a building a new mindset. We do not need mass marketing for most positions, we do not need to generate hundreds of responses to make sure we've "covered the field," and we can't ignore hundreds of applicants because of our own inadequacies. Many of us have attitudes that would be similar to those of a store clerk who, when overwhelmed with customers, simply walks off and leaves them.

We Need to Use Technology, and Use it Better

The new recruiting tools and systems have built-in tools for communicating, screening, and maintaining relationships with candidates. These candidate relationship management tools are not magical, but they ease the burden and automate a portion of the task. However, the sad fact is that after these systems are purchased, only a fraction of recruiters utilize their powerful communication and screening features. Most recruiters are still focused on the zero value-added backend "administrivia" and don't see as clear a connection between the candidate experience and the type of response they get from recruiters.

Salesforce.com and all the larger Applicant Tracking Systems can automate the responses candidates get to various actions they take on the website. They can periodically send e-mails and newsletters, and they can be better programmed to send intelligent responses to candidates' questions.

The bottom line is that all recruiters need to do a better job letting candidates know where they stand in the recruiting process by sending regular updates and letting them know as soon as possible that they are no longer being considered. Even automatic bounce-back responses can be more intelligently written and distributed.

Relationships and Referrals Are Keys to Your Success

I am more and more convinced that posting job descriptions is an archaic process. While I have no doubt that the practice will live on for a long time, it is not the best, cheapest, or faster way to find good people.

Using technology to develop relationships and to communicate regularly with a selected and screened pool of candidates is the key to your real success. By developing and using tools that allow candidates and hiring managers to co-create requirements and refine requirements as needed, more good people will find jobs that fit them better. Posting jobs on job boards and pushing descriptions that seem to have been written by a PR firm out to wary candidates is no longer effective.

Recruiters have to use social networks, referrals, Internet search, and face-to-face conversation to build trust and establish a relationship with candidates that can be leveraged whenever needed. Unfortunately, face-to-face relationship building is slow, expensive, and clumsy. Social networks allow you do this with much greater ease and gracefulness at a lower cost in time and money.

Base your recruiting on the customer service mindset, go for quality (not volume), and do that by building relationships and asking for referrals. If you are generating hundreds of responses to a job posting, you are doing something terribly wrong.

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