'IT, retail sectors emerging as two largest employers'

Information technology and retail sector have the potential to be two major job creators in the country in the next five years, according to Dr Ganesh Natarajan, the Chairman of Nasscom. IT sector has a potential of creating five million jobs while retail sector may create about 2.5 million jobs in the next five years.

"If one brings in the 4X factor, that is every job in the main sector creates four more in-related services business, these sectors have immense potential over the next five years," Dr Natarajan said.

Speaking at the ReTechCon, the annual Retail Technology Conclave here, he said that the IT sector now employs about 2 million people directly and another 8 million indirectly. "These projections may be difficult to believe. If one goes back 20 years, it would have been difficult to envision then that we would achieve $100 million in exports. But today, IT sector is a $63 billion industry in India. The current trends indicate that we will continue to grow at about 25 to 30 percent a year," he said.

Likewise, the retail sector is seen to be emerging as next major employer in the country, and significantly its impact is likely to cover a wider geographical footprint unlike IT sector, wherein about 95 percent of the current jobs are accounted by the top 10 cities.

Markets such as India, China and Vietnam are seen to be driving the next wave of retail growth. Interestingly, unlike in the past, we have interesting case studies of retail industry success for other markets to emulate, he said.

Technology is set to play a significant role as a predominantly unorganised retail seeks way to be part of the organized business. It is estimated that there are over 10 million kirana shops in the country and all of them, in fact, need some sort of automation/IT to stay competitive. The technology industry is innovating to offer them services and bring them on to the organized sector.

IT hiring may drop by 20 percent in FY-2009

It could dent the job prospect of the most sought after segment where the modern youth are keen on building their careers. If the recruitment projections made by leading Indian IT companies any thing to go by, there is a 10 to 20 percent drop in the number of people likely to be hired by the industry in the current fiscal year (FY) compared to the previous year, reported The Economic Times.

The $64 billion Indian software and services industry added around 200,000 people in 2007-08 financial year, as per industry estimates.

This is happening as Indian IT companies are not only grappling with the uncertainty of U.S. recession, but also the urgent need to improve their revenue per employee to remain profitable in the face of challenges like talent crunch, rising salaries and appreciation of rupee against dollar.

India's largest IT software and services employer Tata Consultancy Services, which recruited 35,672 people in 2007-08, may see an addition of only 30,000 in the current financial year.

Similarly, Satyam Computer Services Ltd is planning to hire 12,000-15 ,000 people in FY 2009, down from 16,000 the company hired last year.

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As U.S. demand softens, Indian firms eye Japan

Indian tech service vendors have set their minds to increase their foucus on Japan, which is the world's second largest economy. The Tata Consultancy Services, Wipro, Satyam Computer Services and HCL Technologies move are in response to the softening of demand for their services from buyers in a slowing U.S. economy, reported Livemint.

Traditionally, Japanese corporations have outsourced tech and support units to local vendors. There has been "a lack of competitive element which has not pushed them to think differently," said Sanjeev Nikore, Corporate Vice-President and Global Head of Sales and Marketing, HCL Technologies.

According to estimates by India's largest tech services firm Tata Consultancy Services by 2010, spending in Japan will touch $95 billion growing at an annual rate of 3.2 percent from 2005. Currently, work worth around $32 billion is outsourced, a number expected to grow by a quarter to $40 billion by 2010.

The top five tech service vendors in Japan are Fujitsu, NEC, Hitachi, a local unit of International Business (IBM), and NTT Data Corp. IBM Japan, set up in 1937, is the only?Machines non-Japanese firm with a strong presence.

TCS, which set up its subsidiary in Japan in 2002, today has some 1,800 workers servicing Japanese businesses, including more than 300 based in that country. An offshore delivery centre in Kolkata drives all Japan specific initiatives for the firm. TCS? revenues from Japan amount to around $100 million.

 

Viral Thaker
___________________________________________________________________________________
TeamLease Services Pvt. Ltd. #81, Vukan Towers,  Thirumalai Pillai Road, T.Nagar, Chennai - 600017.
Tel No: +91 44 4390 1111. Direct No: +91 44 4390 1139. Fax: +91 44 42067665.
Web: www.teamlease.com          Visit our Blog: http://teamlease.blogspot.com/             Putting India to Work”

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E-publishing in India may hit $1.46 Bn by 2010

Chennai: Despite facing the challenges of rupee appreciation, talent crunch and emergence of newer media, Indian e-publishing industry is estimated to grow annually by 35 percent and offer a $1.46 billion outsourcing opportunity by 2010.

During the world's first conference on publishing BPO services organized by the Confederation of Indian Industry (CII) hosted at Chennai, Integra Software Services founder-MD-CEO Sriram Subramanya noted, "With several global publishers offshoring their publishing BPO services to India, there is an accelerated trend of acquisitions, which is likely to intensify as more players look to acquire new capabilities, clients, market presence, offshore capacity and onshore capability."

Subramanya said the industry is facing challenges in terms of global recession, the appreciating rupee and the emergence of new media. "The publishers' expectations are increasing in terms of speed to market, consistent quality, end-to-end services, reduced pricing, multiple and complex deliverables and need to deal with fewer suppliers," he said.

SPS Technologies CEO Sharad Wasani said publishing has to encompass a gamut of services. Companies in this space have to learn to listen to the customer and put together a package that will offer additional value-add services, for full-service management has come to stay.

"The KPO industry is predicted to be anywhere between $12 billion and $15.5 billion by 2010, at an annual growth rate of 40 to 50 percent. The global opportunity for publishing outsourcing is estimated at $8.1 billion, and, if offshored, it is estimated to be valued at $4.86 billion," Aptara International chief technologist and senior vice-president Guruvinder Batra said.

Anna University retired professor Lalitha Jayaraman, in her address, said there is a perception among employees that the publishing BPO industry does not offer enough growth opportunities. Fear of stagnation, stressful work schedule and having to work night shifts, are among the primary concerns.

by VIRAL THAKER @ URL http://viral-hpower.blogspot.com/
Data Collection & Source Harvard, CNBC

 

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The Young and the Clueless - Promotion Dilemma!

The Idea in Brief

Hell-bent on sabotaging your company? Then promote your brightest young professionals into your most demanding roles--especially when they threaten to leave unless you fast-track them. Nonsense, you say? Hardly.

Promoting talented young managers too quickly prevents them from developing key emotional competencies--such as negotiating with peers, regulating negative emotions during crises, and building support for change--skills that come only with time and experience.

Worse, many "young and clueless" managers lack patience, openness, and empathy--qualities more vital than raw intellect at top leadership levels, where business issues grow more complex and stakes are notoriously high.

Aggressive and insensitive, fast-tracked managers may pooh-pooh relationships with peers and subordinates--not realizing they need those connections to conquer problems. Issues become crises, defeating managers. Your company, customers, and employees all pay the price.

The solution? Delay promotions so managers can mature emotionally. This isn't easy. You must balance confrontation and support, patience and urgency--and risk losing your finest. But premature promoting carries far greater risks.

The Idea in Practice

1. Deepen 360-degree feedback. Provide broad and deep feedback to help managers see themselves as others do--a must for building self-awareness. Give them verbatim written responses to open-ended questions from a wide variety of peers and subordinates, not just you. Managers may discount your views as biased or uninformed. Allow time for reflection and follow-up conversations.

Though his business acumen was unmatched in his company, a brilliant 42-year-old VP neglected peer relationships, earning a reputation as detached. Corporate wondered if he could inspire staff to support important new strategies. After an in-depth 360-degree review, he began strengthening interpersonal connections.

2. Interrupt the ascent. To help managers learn to move others' hearts and minds, give them special assignments outside their typical career path. They'll have to master negotiation and influence skills, rather than relying on rank for authority.

A quick-tempered regional sales director wasn't ready for promotion to VP. His boss persuaded him to lead a year-long team investigating cross-selling opportunities. He learned to use persuasion to win other division managers' support, building solid relationships. Now a VP, he's perceived as a well-connected manager who can negotiate on his team's behalf.

3. Act on your commitment. If you've warned managers that promotion depends on emotional competencies, follow through. These competencies are not optional.

A conflict-averse senior VP managed his own group well but avoided collaborative situations, where the potential for conflict increased. Exploring external alliances, the firm considered collaboration vital. The CEO demoted him, temporarily pulling him from the succession plan. Assigned to a cross-functional team project, he learned to handle disputes and build consensus. He's back on track.

 

4. Institutionalize personal development. Make it clear that success at your company hinges on emotional competence.

One CEO articulated corporate values emphasizing continual learning, including asking for help. He created incentives encouraging such behaviors and built emotional-skills requirements into the firm's succession planning. Known for learning and growing, the firm attracts and retains talented young executives.

5. Cultivate informal networks. Encourage managers to forge mentoring relationships outside the usual hierarchy. They'll encounter diverse leadership styles and viewpoints, gain opportunities for reflection--and mature emotionally.

by VIRAL THAKER @ URL http://viral-hpower.blogspot.com/
Data Collection & Source Harvard, CNBC

 

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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
___________________________________________________________________________________
TeamLease Services Pvt. Ltd. #81, Vukan Towers,  Thirumalai Pillai Road, T.Nagar, Chennai - 600017.
Tel No: +91 44 4390 1111. Direct No: +91 44 4390 1139. Fax: +91 44 42067665.
Web: www.teamlease.com          Visit our Blog: http://teamlease.blogspot.com/             Putting India to Work”

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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.