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Wipro expands role of consultants for hiring
20 Mar, 2008, 0503 hrs IST..................BANGALORE: Hiring has become an ever-growing challenge for the Indian IT industry with companies evolving their own strategies of meeting the growing demand for quality talent. Wipro Technologies, the country’s third-largest IT services exporter, is expanding the scope of its partners for recruiting software professionals.

Partners or manpower consultants are an important constituent for IT companies in sourcing the required talent. Wipro, which till now only sourced IT professionals from the partners, is now expecting them to play a larger and specialised role. Wipro general manager for strategic resourcing Satish S Krishnan said the company is broadbasing the role of its partners. This could see them becoming more aligned with their business requirements.

Hitherto, these partners were providing the IT professionals to a broad spectrum and were not aligned to any particular business vertical of Wipro Technologies. Mr Krishnan said it would be looking at those partners who will specialise in providing IT professionals for a particular business vertical. This would help them in getting more quality people.
This kind of relationship has seen the company pruning the number of partners to around 50-55 from more than 100. As a pilot project, Wipro has identified 4-5 partners who will be aligned with a particular business vertical and their responsibility will also include training. Mr Krishnan said it would state its requirements to its partners and provide the curriculum for training. Wipro feels this would be a win-win strategy as its partners are assured of a steady business and it gets quality professionals.

Mr Krishnan said this would be a more stable business model as the partners would be focused in sourcing the required talent and the time to hire gets shortened. For large software companies, there are three-four avenues when they go about sourcing the manpower. These range from their own inhouse training, partners, advertisements and referral scholar.







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TCS, Infosys, Wipro add over 57000 workers in 2007
20 Jan, 2008, 1332 hrs IST,

NEW DELHI: India's three biggest IT firms, TCS, Infosys and Wipro, together added 57,554 people to their payrolls in 2007, but rising staff costs coupled with impact of rupee rally and turmoil in the US economy have affected their average employee productivity.

The three companies have reported a surge of 20-25 per cent in their collective third quarter profit and revenue in the current fiscal, but when compared in terms of turnover per employee, only Wipro could improve its performance from the year-ago level.

The average turnover per employee for the three companies dropped marginally to Rs 5.75 lakh in the October-December 2008 quarter, from Rs 5.79 lakh in the year-ago period.

Wipro's average turnover per employee rose to Rs 6.80 lakh in the third quarter of this fiscal, from Rs 6.13 lakh in the year-ago quarter. However, TCS and Infosys recorded a dip in their average per employee turnover to Rs 5.58 lakh and Rs 4.99 lakh, from Rs 5.85 lakh and Rs 5.35 lakh respectively.

The average per employee net profit of the three companies also declined to Rs 1.23 lakh in the latest quarter from Rs 1.30 lakh in year-ago period.

The combined net profit of the three companies rose 19.1 per cent to Rs 3,411.67 crore in Q3 of this fiscal from Rs 2,864.50 crore a year ago.

Their total revenue rose 25.4 per cent from Rs 12,679.73 crore to Rs 15,904.18 crore during the quarter under review.

At the same time, the total employee strength of the three firms stood at 2,76,662 people at the end of December 2007, against 2,19,108 on December 2006.

Maruti most preferred imported car in Sri Lanka

New Delhi, March 21: Country's largest car maker Maruti Suzuki India has emerged as the most preferred 'imported car manufacturer' in neighbouring Sri Lanka.

The company said that according to recent import statistics released by the Sri Lankan government, it has been declared the most preferred "imported car manufacturer".

This is the fifth year in succession that MSI has bagged the position, it said in a statement.

The company has so far exported over 3,600 units to Sri Lanka, it added. Cumulatively, Maruti has exported over 26,000 units since it started operations in Sri Lanka in 1989-90 with a first batch of 10 vehicles.

The car maker's most popular model Maruti-800 alone accounts for over 16,000 units in Sri Lanka, besides alto and swift being the other popular models. It exports all the models to Sri Lanka, but SX4.

According to the import study by the Sri Lankan government, MSI said there had been a shift in consumer's choice from second-hand imported vehicles to new cars.

Sale of new car in the island nation spurred after its government incentivised new vehicle purchases over used or refurbished, which a senior Maruti official termed as "a positive development".

Investment firms tap Fed for billions

Washington, March 21: Big Wall Street investment companies are taking advantage of the Federal Reserve's unprecedented offer to secure emergency loans, the central bank reported Thursday.

The lending is part of a major effort by the Fed to help a financial system in danger of freezing.

Those large firms averaged USD 13.4 billion in daily borrowing over the past week from the new lending facility. The report does not identify the borrowers.

The Fed, in a bold move Sunday, agreed for the first time to let big investment houses get emergency loans directly from the central bank. This mechanism, similar to one available for commercial banks for years, got under way Monday and will continue for at least six months. It was the broadest use of the Fed's lending authority since the 1930s.

Goldman Sachs, Lehman Brothers and Morgan Stanley said Wednesday they had begun to test the new lending mechanism.

On Wednesday alone, lending reached USD 28.8 billion, according to the Fed report.

The Fed created a way for financially strapped investment firms to have regular access to a source of short-term cash. This lending facility is seen as similar to the Fed's "discount window" for banks. Commercial banks and investment companies pay 2.5 percent in interest for overnight loans from the Fed.

Investment houses can put up a range of collateral, including investment-grade mortgage backed securities.

The Fed, in another rare move last Friday, agreed to let JP Morgan Chase secure emergency financing from the central bank to rescue the venerable Wall Street firm Bear Stearns from collapse. Two days later, the Fed back a deal for JP Morgan to take over Bear Stearns.

Thursday's report offered insight on how much credit was extended to Bear Stearns via JP Morgan through the transaction the Fed approved last Friday. Average daily borrowing came to USD 5.5 billion for the week ending Wednesday.

Separately, the Fed said it will make USD 75 billion of Treasury securities available to big investment firms next week. Investment houses can bid on a slice of the securities at a Fed auction next Thursday; a second is set for April 3.

The Fed will allow investment firms to borrow up to USD 200 billion in safe Treasury securities by using some of their more risky investments as collateral.

By allowing this, the Fed is hoping to take pressure off financial companies and make them more inclined to lend to people and businesses.

The housing collapse and credit crunch have led to record-high home foreclosures and forced financial companies to rack up multibillion losses in complex mortgage investments that turned sour.

In the past day and weeks, the Fed has taken extraordinary moves aimed at making sure that problems in credit and financial markets do not sink the economy.

Gold recovers after record fall

New Delhi, March 21: Gold dipped on Friday but held above a 1-month low hit the previous day, while Tokyo`s precious metals futures tumbled amid declines in commodities markets.

The yellow metal fell to USD 914.40/915.20 an ounce from USD 920.30/921.10 ounce late in New York and off Monday`s record high of USD 1,030.80 an ounce.

Gold futures for April delivery on the COMEX division of the New York Mercantile Exchange fell 3.72 percent to USD 915 an ounce off Monday`s record of USD 1,033.90.

On the Indian front, gold staged a strong recovery Friday on revival of buying by stockists at existing lower levels. Standard gold and ornaments met with fresh demand and recovered by Rs 300 each at Rs 12,300 and Rs 12,150 per ten grams respectively. However, sovereign declined by Rs 200 at Rs 10,000 per piece of eight gram.

Earlier on Thursday, Delhi recorded the heaviest loss after the rates came down to Rs 12,000 per 10 gram, a fall of Rs 1,110, followed by Kolkata, where it slipped by Rs 930 at Rs 12,305.

This week, gold prices experienced a free-fall on the bullion market and lost Rs 900 per 10 gram from record peak of Rs 13,560 on panic selling sparked by report that the metal plunged to a month-low level on the global front.

The bullion market will remain closed tomorrow on account of "Holi".

ADAG to launch 20 TV channels

Mumbai, March 21: The Reliance Anil Dhirubhai Ambani Group is set to launch 20 TV channels in the country as part of its plans to expand the reach in the fast-growing broadcast entertainment business, top company officials said.

The group, which has Reliance Entertainment as a subsidiary, is foraying into the broadcast business through two companies Reliance Big TV Entertainment and Reliance Big TV News, the officials added.

'We are at the planning stage. So we are not revealing the details of the media project right now. At the appropriate time - very shortly perhaps - we will make a formal announcement,' a spokesperson for the group said.

'The first of these channels will go on air probably in July-August this year. We have already applied for approval of these channels from the information and broadcasting ministry,' the spokesperson added.

Two separate companies are being floated since the government imposes restrictions on foreign direct investment in the news media sector and the group is proposing two general news and two business news channels in Hindi and English.

The group wants to remain open to the idea of roping in an international player in the entertainment TV segment, officials explained.

Although the other 16 channels have not yet been finalised, the idea is for two TV channels catering to Hindi entertainment and regional movies. Besides, plans also include channels for children and on lifestyle and leisure.

The Rs130-billion Reliance Entertainment Ltd has interests in the production, distribution and exhibition of films, besides foraying into FM radio, Internet and television content.

The Reliance Anil Dhirubhai Ambani Group, through its subsidiaries, also has equity stakes in a number of media and entertainment companies. The group also markets music and movies under the labels of Big Music and Big Flicks.

In 2005, the group had also acquired Adlabs Films, which is among the largest entertainment companies in India with interests in film processing, production, exhibition and digital cinema. Through it, the company has forayed into FM radio under the Big 927 FM banner and has licences for 45 stations.

It already runs 12 stations across the country with more planned in the ensuing months.

Small industries hold key to industrial progress: Ahluwalia

Mumbai, March 22: Deputy chairman of the Planning Commission of India Montek Singh Ahluwalia has said small and medium enterprises (SME) hold the key to the country's industrial progress.

'They are likely to play a pivotal role in immediate future, as they can carve out unit growth model for the country,' Ahluwalia said Friday at the Indian Merchants Chamber (IMC) Ramkrishna Bajaj Award 2007.

In the key note address, the Planning Commission deputy chairman emphasizing the role of SME, said, 'In the drastically changing economic scenario, SMEs are the future. It is erroneous to see the financial volume as a benchmark for assessing success of any company or enterprise.'

Praising the IMC for recognising the mettle of SME, he said: ' It is strange that an award for SME was instituted three years ago. And it is only now for the first time that there is a recipient. The very acknowledgement of this sector shows that the there is a dawning of realisation of the structural changes that have taken place.'

He said that it was time to change one's corporate perspective, emphasising, 'not to get swayed by financial highs'.

'SMEs have emerged as a vibrant tier of the economy as it has already taken over as the key contributor to the GDP of the country. Precisely for this reason, we are looking into the existing policies and the necessary changes required in so as to make the SME role more proactive in order to achieve greater economic goals,' he said.

Genpact to target Asian clients

Bangalore, March 21: Genpact Ltd, a provider of business process and technology services, plans to target more domestic clients in Asia and has not been pinched by the squeeze in the US economy, its chief executive said.

"We want to start approaching local companies ... in India and China," Chief Executive Pramod Bhasin said in a telephone interview.

The exporter of back-office services, which operates in more than nine countries, is looking at opportunities to provide services in financial accounting, analytics, risk management and re-engineering works as the rapidly growing economies mature, Bhasin said.

Export-driven outsourcers, who get a large portion of their revenue from the United States, are increasingly eyeing deals in emerging markets amid widespread fears that a weakening economy will cut into US clients' spending.

Genpact, which went public in August 2007, got about 44 percent of its 2007 revenue from banking, financial services and insurance clients.

But the credit-crunch fuelled turmoil currently ravaging financial markets has not spread its tentacles to Genpact, Bhasin said.

"For us, there is absolutely zero impact from this crisis."

While Bhasin admitted that worries that the United States may be heading into, or already in, a recession could hurt Genpact's clients, he viewed the crisis as "a potentially great

opportunity for the BPO industry." Analysts have predicted that companies operating in the hard-hit financial sector would look to outsource more of their operations to save money as they lick their wounds.

Boost from Global Clients



Shares of the company jumped as much as 20 percent to a high of USD 13.78 Thursday on the New York Stock Exchange, a day after Genpact posted quarterly earnings that more than doubled.

The company's stock had lost almost a quarter of its value in 2008 before Thursday's gains.

The fourth-quarter results beat market estimates as revenue from global clients grew more than what was expected. Genpact on Wednesday also forecast a strong 2008.

Genpact got its start in 1997 as the India-based business process services unit of GE Capital, General Electric Co's financial services business.

The Bermuda-based company became independent in 2005 and has entered into contracts with clients in the banking and finance, insurance, manufacturing, transportation and health care industries.

GE is the company's top client, contributing almost half of its revenue. Genpact, which competes with IBM, Accenture and WNS Holdings, counts Wachovia Corp, GlaxoSmithKline and Cadbury Schweppes among its other clients

India top recipient of remittances in 2007: WB

Washington, March 20: India received a whopping USD 27 billion in remittances, beating China and Mexico to become the top country for such inflows, the World Bank has said in its latest report.

The top five recipients of remittances in 2007 were India (USD 27 billion), China (USD 25.7 billion), Mexico (USD 25 billion), the Philippines (USD 17 billion), and France (USD 12.5 billion), according to the report titled `migration and remittances factbook 2008`.

"In many developing countries, remittances provide a life line for the poor. They are often an essential source of foreign exchange and a stabilising force for the economy in turbulent times," said Dilip Ratha, senior economist with the World Bank, and co-author of the report.

The inward remittances to India has more than doubled from around USD 12.89 billion in 2000 to USD 27 billion in 2007.

In 2006, inward remittances were USD 25.43 billion, while the outward flow constituted around USD 1.58 billion.

Rich countries are still the main source of remittances with the United States leading the pack.

"The United States is by far the largest, with USD 42 billion in recorded outward flows in 2006. Saudi Arabia ranks as the second largest, followed by Switzerland and Germany," the factbook added.

The US was also the top immigration country in 2005, with 38.4 million immigrants, followed by the Russian Federation (12.1 million), and Germany (10.1 million). Among low-income countries, India had the highest immigration volume of 5.7 million, followed by Pakistan (3.3 million), it stated.

Textile exports to US show rising trend, beat Re blues
22 Mar, 2008, 0403 hrs IST,Sanjeev Choudhary, TNN

NEW DELHI: Despite rupee appreciation, Indian textile and apparel exports to the US for 2007 showed a marginal increase in value terms over the previous year, even as unit value realisation came down. The US comprises 25-30% of Indian textile and apparel exports and so growth in exports to the US means exporters may have been able to successfully handle the rupee appreciation.

The steep rupee appreciation of last year had hit textile exporters earnings in rupee terms and had blunted their competitive edge in international market. As the crisis deepened many exporters were finding it tough to garner new business contracts, leading to decline in textile export figures in several months of the last year. The scene, however, seems to have improved as the year closed.

According to the latest US government data, US textile import in value terms increased 3.35% in 2007 over the previous year, while volumes increased only 1.84%, clearly showing that the per unit prices paid by US importers in dollar terms were higher in 2007 compared to the previous year. But for Indian exporters per unit realisation actually went down, as is evident in its growth figures for textile exports in value and volume terms.
Indian textile and apparel exports to the US rose in value terms to $5,103 million in 2007, up 1.45% over previous year. The volumes, however, were marginally better. It went up 2.56% to 2722 sq meter equivalent (sme).

“Textile and apparel exporters cut prices to retain their market share. Therefore, the unit value realisation for exporters came down even as they managed to marginally increase their export in value terms,” says Confederation of Indian Textile Industry secretary general D K Nair.

In the apparel segment, however, Indian exports to US increased in volume (from 840 sme to 867 sme), but declined in value (from $3186 million to $3169 million). “There is more competition in the apparel category compared to textile. We face stiff competition from low-cost producers such as China and Bangladesh,” explains Mr Nair.