Software industry body, Nasscom expects at least 70,000-80,000 engineering graduates who passed out in June 2009 and were offered jobs in their 5th and 6th semesters by TCS, Infosys and Accenture, among others, to get absorbed by March 2010. Not too long ago, there were apprehensions that the appointments of these tech grads could get deferred till 2011 in the aftermath of the global slowdown. However, the perception appears to have changed.
Speaking to the media, Nasscom Vice-President Sangeeta Gupta said, "There's some amount of pick-up in IT spending and clients have become active in the decision-making process. This augurs well for the IT industry and is likely to result in hiring by IT companies. Companies like TCS, Infosys and Accenture, among others, are expected to start honouring the offers they made. As a result, at least 70k-80k engineering graduates, who were issued offer letters, are expected to get absorbed by March 2010."
For instance, the country's biggest software firm Tata Consultancy Services (TCS) had made some 24,000 offers in 2008-09, according to its Q2 analyst call. The company had indicated that it would honour these offers this fiscal. In Q3, TCS is expected to absorb about 8,000-odd, and the balance, in the following quarter. Till Q2, the company had absorbed some 1,800 people.
Similarly, Infosys, in its Q2 earnings call, indicated that it would add 20,000 people instead of 18,000 indicated earlier. The additional 2,000 would be partly in BPO while the rest would make up laterals at Infosys Technologies.
Incidentally, Nasscom has urged member companies to recruit those who've completed their eighth semester to ensure that hiring is closer to the need of companies. For this fiscal, Nasscom has projected a mere 4-7 percent export growth. It is likely, that with IT sector showing signs of recovery, Nasscom will review the export target. "We can review the export target by end- December," she added.
McKinsey in its report titled 'Perspectives in the IT industry by 2020', has noted that with the current pace of reforms and expected constraints in talent and infrastructure supply, the exports component of the Indian IT industry is slated to reach $175 billion in revenues by 2020. The domestic component will contribute $50 billion in revenues by 2020, which is larger than the total export revenues for India now.
Agencies
Showing posts with label ITES. Show all posts
Showing posts with label ITES. Show all posts
Monday, November 2, 2009
Monday, September 28, 2009
IT SEZ from realty firm in Ahmedabad
A city based realty developer Calica Construction and Impex pvt Ltd laid the foundation stone for an It and ITeS Special Economic Zone here on Sunday.
The SEZ will be spread over 20 acres of land on the outskirts of the city and would house small and medium sized information technology companies.
The developers have planned to complete the first phase of the project in two years with initial investment of Rs 300 crore while total estimated cost of the project is Rs 650 crore.
Union minister of state for small and medium enterprises Dinsha Patel and Gujarat minister of state for industry and energy Saurabh Patel were among those present at the foundation stone lying ceremony.
According to Bipin Shah, one of the developers of the new venture, the company has already got the notification from the Board of Approval (BoA) for SEZ and other clearances are in the process.
He said that over 30,000 square feet space will be created for the It and ITeS companies.
He added that they are also in the process of tying up with major IT firms to set up their centres in the SEZ which would offer world class infrastructural facilities.
Agencies
The SEZ will be spread over 20 acres of land on the outskirts of the city and would house small and medium sized information technology companies.
The developers have planned to complete the first phase of the project in two years with initial investment of Rs 300 crore while total estimated cost of the project is Rs 650 crore.
Union minister of state for small and medium enterprises Dinsha Patel and Gujarat minister of state for industry and energy Saurabh Patel were among those present at the foundation stone lying ceremony.
According to Bipin Shah, one of the developers of the new venture, the company has already got the notification from the Board of Approval (BoA) for SEZ and other clearances are in the process.
He said that over 30,000 square feet space will be created for the It and ITeS companies.
He added that they are also in the process of tying up with major IT firms to set up their centres in the SEZ which would offer world class infrastructural facilities.
Agencies
Sunday, July 12, 2009
Has Siemens IT arm sacked over 500 as Union claims?
IT firm Siemens Information Systems, a unit of German conglomerate Siemens, today said it has laid off 128 employees as part of its cost cutting measures, debunking union's claim that 500 employees had lost jobs.
The IT-ITeS union UNITES India said the number of employees laid off by the company could be around 500. It added that Siemens is laying off its employees in Bangalore violating the Industrial Dispute Act.
When contacted SISL spokesperson said, "As a part of our cost-cutting initiatives, we have released only 128 employees from one of the business units."
UNITES Professionals India General Secretary Karthik Shekhar said, "The figures provided by the company does not include the number of employees who were on contract. In the last one month, the company has laid off more than 128 employees."
SISL has over 5,500 employees in the country. The union has also written to the headquarters of the firm in Germany.
About compensating the employees, the company said it has already compensated the affected employees higher than the contractual terms.
AGENCIES
Agencies
The IT-ITeS union UNITES India said the number of employees laid off by the company could be around 500. It added that Siemens is laying off its employees in Bangalore violating the Industrial Dispute Act.
When contacted SISL spokesperson said, "As a part of our cost-cutting initiatives, we have released only 128 employees from one of the business units."
UNITES Professionals India General Secretary Karthik Shekhar said, "The figures provided by the company does not include the number of employees who were on contract. In the last one month, the company has laid off more than 128 employees."
SISL has over 5,500 employees in the country. The union has also written to the headquarters of the firm in Germany.
About compensating the employees, the company said it has already compensated the affected employees higher than the contractual terms.
AGENCIES
Agencies
Sunday, June 21, 2009
IT, ITeS industry growth may fall to 5-year low, says IDC
Indian IT and IT-enabled services industry is expected to grow at 10.8 per cent in 2009, the lowest in the last five years, due to the global economic meltdown, a report said.
But in next four years, it would grow at 13.9 per cent to touch revenue of USD 110 billion, the report by analyst firm IDC India has said.
"In the backdrop of one of the worst ever global financial and economic meltdown, it is estimated that in 2009, the overall India IT/ITeS industry is expected to grow at 10.8 per cent, which is the lowest in the last five years.
"Going forward, the overall IT/ITeS industry is expected to grow at 13.9 per cent (CAGR 2008-2013) to touch over USD 110 billion in 2013," IDC India Country Manager Kapil Dev Singh said in the report.
The total revenue for the Indian IT industry in 2008 stood at over USD 57 billion in 2008.
"The ongoing global slowdown will definitely have its impact on the Indian IT sector. Despite that the industry is still expected to grow at a CAGR of 11.4 per cent by 2013," IDC India Country Manager Kapil Dev Singh said.
The domestic IT and IT-enabled services (ITeS) revenue is slated to touch about Rs 2,06,398 crore by 2013 from Rs 99,254 crore in 2008, growing at a CAGR of Rs 15.8 per cent, the study said.
Agencies
But in next four years, it would grow at 13.9 per cent to touch revenue of USD 110 billion, the report by analyst firm IDC India has said.
"In the backdrop of one of the worst ever global financial and economic meltdown, it is estimated that in 2009, the overall India IT/ITeS industry is expected to grow at 10.8 per cent, which is the lowest in the last five years.
"Going forward, the overall IT/ITeS industry is expected to grow at 13.9 per cent (CAGR 2008-2013) to touch over USD 110 billion in 2013," IDC India Country Manager Kapil Dev Singh said in the report.
The total revenue for the Indian IT industry in 2008 stood at over USD 57 billion in 2008.
"The ongoing global slowdown will definitely have its impact on the Indian IT sector. Despite that the industry is still expected to grow at a CAGR of 11.4 per cent by 2013," IDC India Country Manager Kapil Dev Singh said.
The domestic IT and IT-enabled services (ITeS) revenue is slated to touch about Rs 2,06,398 crore by 2013 from Rs 99,254 crore in 2008, growing at a CAGR of Rs 15.8 per cent, the study said.
Agencies
Saturday, June 13, 2009
Is LPOs set to yield $640 Million by 2011?
Legal Process Outsourcing (LPO) is a growing business segment and is expected to generate an income of $640 million by the year 2011. The industry is also expected to be the fastest growing outsourcing business, according to a report released by the research agency.
The findings based on ValueNotes maintains that India is expected to have a major share in this forecasted revenue from LPO, which will also open huge employment opportunities in India.
"LPOs are seen as a more stable career option than opportunities in the mainstream IT and ITeS sector.
Unlike other segments in outsourcing, the LPO segment has seen a robust growth even during recessionary times, thus providing a stable career option," said Lokendra Tomar, Chief Operating Officer, Asia-Pacific, Integreon, a LPO firm.
The LPO industry will be generating employment opportunities for all the lawyersincluding lawyers, graduates, freshers and MBAs.
Agencies
The findings based on ValueNotes maintains that India is expected to have a major share in this forecasted revenue from LPO, which will also open huge employment opportunities in India.
"LPOs are seen as a more stable career option than opportunities in the mainstream IT and ITeS sector.
Unlike other segments in outsourcing, the LPO segment has seen a robust growth even during recessionary times, thus providing a stable career option," said Lokendra Tomar, Chief Operating Officer, Asia-Pacific, Integreon, a LPO firm.
The LPO industry will be generating employment opportunities for all the lawyersincluding lawyers, graduates, freshers and MBAs.
Agencies
Friday, March 20, 2009
AT&T Looks for Customers for Center in India
AT&T Inc., a US-based company offering advanced IP-based business communications services, is set to acquire customers from IT, ITES, manufacturing and finance service companies for its newly launched data center in India.
AT&T set up its India data center in Bangalore last December. Since then the company is looking at the growing demand from multinational customers in India for online data centers with highly resilient facilities and a wide range of IT infrastructure management services.
Talking to CXOtoday, Gopi Gopinath, chairman and chief executive officer of AT&T Global Network Services India, said, "Since the data center has just become operational, we have not got any customers in India so far, but the data center has been build to 'Green' specifications laid down by the parent company across all data centers."
The Whitefield center has a 5,000 sq ft of capacity and can expand unlimitedly. It is part of a $1 billion planned AT&T global network and portfolio investment for 2009. Data center customers will have access to a wide range of fully integrated managed hosting, application and networking services to support their data and e-commerce needs. Connectivity to the centre can be supported with AT&T's existing suite of managed data services in India.
The data center is built to the same rigid specifications consistent with AT&T's other 37 global data centers and are enabled with services that proactively manage customers' hosting solutions for predictable application performance. They are protected from intrusion and failure with the same multi-layered security, failsafe redundancy, diversity measures, and rapid response recovery measures built into each data center.
"We will be able to support multinational customers in India who turn to AT&T for integrated hosting and network solutions, allowing them to focus on running their businesses," said Gopinath.
The center is directly connected to AT&T's global MPLS backbone to offer a portfolio of hosting solutions with network performance and features. Among them are greater agility when making real-time changes to IT environments, more control to extend applications to the customer's premises or to other data centers, and the ability to include 'on network' capabilities in a customer solution.
CXotoday
AT&T set up its India data center in Bangalore last December. Since then the company is looking at the growing demand from multinational customers in India for online data centers with highly resilient facilities and a wide range of IT infrastructure management services.
Talking to CXOtoday, Gopi Gopinath, chairman and chief executive officer of AT&T Global Network Services India, said, "Since the data center has just become operational, we have not got any customers in India so far, but the data center has been build to 'Green' specifications laid down by the parent company across all data centers."
The Whitefield center has a 5,000 sq ft of capacity and can expand unlimitedly. It is part of a $1 billion planned AT&T global network and portfolio investment for 2009. Data center customers will have access to a wide range of fully integrated managed hosting, application and networking services to support their data and e-commerce needs. Connectivity to the centre can be supported with AT&T's existing suite of managed data services in India.
The data center is built to the same rigid specifications consistent with AT&T's other 37 global data centers and are enabled with services that proactively manage customers' hosting solutions for predictable application performance. They are protected from intrusion and failure with the same multi-layered security, failsafe redundancy, diversity measures, and rapid response recovery measures built into each data center.
"We will be able to support multinational customers in India who turn to AT&T for integrated hosting and network solutions, allowing them to focus on running their businesses," said Gopinath.
The center is directly connected to AT&T's global MPLS backbone to offer a portfolio of hosting solutions with network performance and features. Among them are greater agility when making real-time changes to IT environments, more control to extend applications to the customer's premises or to other data centers, and the ability to include 'on network' capabilities in a customer solution.
CXotoday
Saturday, January 31, 2009
Survey reports 38% recruiters anticipate new jobs in 2009
Thirty per cent of recruiters anticipated new jobs to be added in 2009 while 9.5 percent predicted layoffs, according to a recent survey.
Over 40 per cent recruiters in pharma, IT, ITes, retail, telecom, banking feel that there will be creation of new jobs in 2009, the survey, covering over 1500 recruiters and conducted by Naukri.com, a leading job website, said.
According to the survey, 37.8 percent expected replacement hiring while 14.3 percent expected freeze on recruitment procedure.The real estate industry expected a 16 percent layoffs in the sector in the coming months.
As per the survey, the overall job index fell from 776 in November to 697 in December 2008, a drop of 10 per cent in new jobs. Overall, it implied a 31 per cent decline in new jobs since July 2008.
City wise, Delhi, Bangalore, Chennai and Kolkata witnessed a decline in new jobs. Most of the cities saw a decline in jobs, notably Delhi - NCR, registering a drop from 841 in November to 697 in Decmber.
Mumbai moved up marginally from 692 in November to 717 in December. Ahmedabad, Chandigarh, Cochin, Baroda, where jobs grew or declined by a small margin, remained less affected.
Agencies
Over 40 per cent recruiters in pharma, IT, ITes, retail, telecom, banking feel that there will be creation of new jobs in 2009, the survey, covering over 1500 recruiters and conducted by Naukri.com, a leading job website, said.
According to the survey, 37.8 percent expected replacement hiring while 14.3 percent expected freeze on recruitment procedure.The real estate industry expected a 16 percent layoffs in the sector in the coming months.
As per the survey, the overall job index fell from 776 in November to 697 in December 2008, a drop of 10 per cent in new jobs. Overall, it implied a 31 per cent decline in new jobs since July 2008.
City wise, Delhi, Bangalore, Chennai and Kolkata witnessed a decline in new jobs. Most of the cities saw a decline in jobs, notably Delhi - NCR, registering a drop from 841 in November to 697 in Decmber.
Mumbai moved up marginally from 692 in November to 717 in December. Ahmedabad, Chandigarh, Cochin, Baroda, where jobs grew or declined by a small margin, remained less affected.
Agencies
Thursday, January 1, 2009
IT sector likely to grow 31.4 percent in '09
The domestic IT- ITeS market is likely to grow 13.4% in 2009, the slowest since 2003, as per market research firm IDC India. The market which includes hardware, software and services, grew 17.3% in 2008 to generate revenue worth Rs 1,01,031 crore.
India is likely to witness a slower growth in the coming five years, IDC said. The domestic IT-ITeS market is expected to record an average growth rate of 16.4% in 2009-13, against 24.3% during 2003-08. The slower growth will see enhanced competition, leading to a change in strategy and continuous market re-alignment on the part of players, it said.
"The issues in the short run, more pronounced throughout 2009, will be productivity, cost savings and customer retention. This would eventually pave way for innovative services by leveraging the existing infrastructure and aligning it with emerging opportunities," IDC India country manager Kapil Dev Singh.
The research firm said global IT-ITeS market is expected to grow only 2.6% in 2009, against 5% in 2008 and much slower than 7% in 2007. Despite a lower growth rate, India will continue to be the fastest-growing IT market in Asia Pacific, followed by China, Vietnam, Thailand and Philippines.
In the domestic market, the product categories expected to grow faster than the average include collaborative applications, storage software, system and network management software. Within IT services, segments likely to outgrow the average include desktop management, information systems outsourcing, network management and application management. Solutions such as virtualisation, unified communications and business continuity services will also grow faster on account of enterprises' focus on cost savings.
Among emerging technologies, cloud computing services such as software as a service (SaaS) will be tested and adopted on a larger scale and will perform even better than in 2008. IDC said the economic slowdown will further increase and accelerate the adoption of outsourcing services by the Indian enterprises, while consumer spending on IT will moderate. There will also be increased consolidation among outsourcing vendors.
Source: Economic Times
India is likely to witness a slower growth in the coming five years, IDC said. The domestic IT-ITeS market is expected to record an average growth rate of 16.4% in 2009-13, against 24.3% during 2003-08. The slower growth will see enhanced competition, leading to a change in strategy and continuous market re-alignment on the part of players, it said.
"The issues in the short run, more pronounced throughout 2009, will be productivity, cost savings and customer retention. This would eventually pave way for innovative services by leveraging the existing infrastructure and aligning it with emerging opportunities," IDC India country manager Kapil Dev Singh.
The research firm said global IT-ITeS market is expected to grow only 2.6% in 2009, against 5% in 2008 and much slower than 7% in 2007. Despite a lower growth rate, India will continue to be the fastest-growing IT market in Asia Pacific, followed by China, Vietnam, Thailand and Philippines.
In the domestic market, the product categories expected to grow faster than the average include collaborative applications, storage software, system and network management software. Within IT services, segments likely to outgrow the average include desktop management, information systems outsourcing, network management and application management. Solutions such as virtualisation, unified communications and business continuity services will also grow faster on account of enterprises' focus on cost savings.
Among emerging technologies, cloud computing services such as software as a service (SaaS) will be tested and adopted on a larger scale and will perform even better than in 2008. IDC said the economic slowdown will further increase and accelerate the adoption of outsourcing services by the Indian enterprises, while consumer spending on IT will moderate. There will also be increased consolidation among outsourcing vendors.
Source: Economic Times
Friday, December 26, 2008
50,000 Indian IT jobs may go, says UNITES
Over 50,000 IT professionals in the country may lose their jobs over the next six months as the situation in the sector is expected to worsen due to the impact of global economic meltdown on the export-driven industry, a forecast by a union of IT Enabled Services warned.
"...there would be 50,000 job losses (IT and BPO put together) over the next six months," Karthik Shekhar, general secretary of UNITES India, a politically neutral union of ITES professionals told the media.
The job loss in the IT and BPO sector in the country topped 10,000 in the September-December period, Shekar said.
While employees of medium-sized companies bore the brunt of job losses in the September-December period, it's going to be their counterparts in the big and small firms who would increasingly face the axe in the coming six months, he said.
UNITES India, affiliated to the global union United Network International, suggested that the companies in trouble could resort to salary and incentive cuts without trying to "squeeze" the staff, rather than adopting the "layoff path".
Employees are willing to take such cuts for 12-16 months till the demand picks up again, when such benefits should be restored to them.
Shekhar said senior officials of the industry had concurred with the figure of 10,000 job loses in September-December, stating that it accounted for "bottom five per cent of the performers".
Consultations with the union's counterparts in the US and UK suggested that slowdown would continue to hit the offshore sourcing space, he said.
He said factors like continued slowdown, likely "tax application" to companies outsourcing jobs under the new US regime and tightening in regard to H1-B visas were among the key reasons cited for the acceleration in issue of pink slips.
Source: Agencies
"...there would be 50,000 job losses (IT and BPO put together) over the next six months," Karthik Shekhar, general secretary of UNITES India, a politically neutral union of ITES professionals told the media.
The job loss in the IT and BPO sector in the country topped 10,000 in the September-December period, Shekar said.
While employees of medium-sized companies bore the brunt of job losses in the September-December period, it's going to be their counterparts in the big and small firms who would increasingly face the axe in the coming six months, he said.
UNITES India, affiliated to the global union United Network International, suggested that the companies in trouble could resort to salary and incentive cuts without trying to "squeeze" the staff, rather than adopting the "layoff path".
Employees are willing to take such cuts for 12-16 months till the demand picks up again, when such benefits should be restored to them.
Shekhar said senior officials of the industry had concurred with the figure of 10,000 job loses in September-December, stating that it accounted for "bottom five per cent of the performers".
Consultations with the union's counterparts in the US and UK suggested that slowdown would continue to hit the offshore sourcing space, he said.
He said factors like continued slowdown, likely "tax application" to companies outsourcing jobs under the new US regime and tightening in regard to H1-B visas were among the key reasons cited for the acceleration in issue of pink slips.
Source: Agencies
Wednesday, November 19, 2008
Zenith forays into BPO space; Goes ahead with expansion
Despite the global recession and the massive layoffs, Zenith software, a leading software company and part of the $120 million Zenith Group, having recently forayed into the KPO space is going ahead with its expansion plans. The Bangalore-based company is expanding its office into a new campus that can house that can accommodate 500-600 per shift.
In an interview with Manu Sharma of CIOL Bureau, Sampath Kumar, CEO of Zenith Software talks about the new business foray and its recruitment drive in India. Excerpts.
CIOL: What has been the impact of recession on Zenith Software?
Sampath Kumar: The US recession has not affected us so far. The only problem is that the US companies want to push the dates. No one wants to decide immediately but business has not affected us in any way. But they are keen on outsourcing the work to India. It is a ‘wait n watch’ situation to gauge its impact in 2009.
CIOL: What has been your recent expansion plans?
SK: Since we are foraying into the information technology enabled services (ITES) in a big way, we are expanding our office by moving into a new campus of 25,000 sqft of built-in space located in Koramangala. The building will comprise of four floors and can accommodate 400-500 employees per shift and we can be further expanded to accommodate 1,500-2000 if necessary.
CIOL: What is Recruitment Process Outsourcing (RPO), why has Zenith forayed into this space?
SK: Zenith has signed up with NovusSTS (pioneers in the newly defined recruitment process optimization business) for providing RPO services. RPO is a form of Business Process Outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.
CIOL: What are the work involved in RPO and its benefits?
SK: RPO involves the outsourcing of all or just part of recruitment functions and process. RPO providers manage the entire recruiting/hiring process from job profiling through the on boarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance. The RPO service provider is the source for in-scope recruitment activity.
CIOL: What is the future of RPO industry in India?
SK: Since only about 20-25 companies are into this pace in India, we see a bright future. Our policy is not to target the big players but instead found a partner for the delivery.
CIOL: What is Zenith role in the LPO industry?
SK: Zenith has been in this sector for the last three months and has entered into a joint venture with a law firm based in US. We have started with the training process and have about 10 employees, who are corporate lawyers and LPO professionals involved in document reviews, immigration services and contract drafting.
CIOL: Explain the travel software developed by Zenith?
SK: The company has developed a travel software similar to IBS. It is a total integrated software for the tour operators operating across the country. This is the first product by Zenith and was earlier exhibited in Mumbai in a travel expo called – Travel Eye. The product is likely to hit the market by 2009. In respect to the pricing of the software, we have planned to price it between Rs 5-10 lakh, depending on the module, we will customize it as per your requirements. The product was developed over the last two years and about 10 software engineers were involved in the product.
CIOL: What are the other software developed by Zenith?
SK: Following our success with the travel software, we are also developed a software for a retail company in Australia. Similarly also developed a automobile product for the Norwegian market expected to be rolled out in 2009.
For the insurance sector, we have signed up with a UK-based company for the development and support of large US insurance firms. This is for the life insurance products and we will handle the customisation, maintenance and the enhancement of the product. Similarly, we have also signed up with a Swiss company for non-life insurance. We have completed the prototype of the product using Java and the product will be out by end of 2009.
CIOL: What has been the attrition in your organization?
SK: The attrition in our company is only 8-10 percent much lesser than the industry standards of 25-30 percent in BPO industry. Presently we have a 50:50 mix of developers and ITES (BPO) employees. I feel ITES will outdo IT and already we have employed 35 members in the last one-month and will hire another 25-30 in the next few months.
CIOL: When has Zenith forayed into the Scandinavian market?
SK: Zenith has forayed into the Scandinavian market through a partnership with Norway-based Software Offshoring Consulting (SOC). SOC is part of the Norwegian Data-Invest Group that has been providing progressive and market oriented solutions and services. This partnership will expand Zenith Software Ltd’s (ZSL) footprint in the European market.
ZSL and SOC have been working together on joint product development for the automotive industry. This product will also be maintained by ZSL for all the clients across the globe. This relationship has now matured into partnership wherein ZSL-SOC would jointly market and provide offshore development services. This is an exciting phase in ZSL’s growth plans. With SOC’s strengths we will be able grow in the Nordic.
CIOL: How do you see the future of Zenith Software shaping up?
SK: With our foray into BPO/KPO space and from the present turnover of $6 million, we had anticipated a jump of $10-12 million by 2009. But do the present industry scenario we may now expect only a 50 percent growth from the initial target of 75 percent. The only problem we are facing is that things are not happening and projects are getting delayed. The trend is not only in the US market but also in UK and European markets as well. ”US is creating a ripple affect on other countries.”
By 2012, Zenith expects the company to have 2000 plus employees with major revenues from UK, European countries and a 10 percent decline from the US markets. The company will strongly look at analytics, insurance, claim processing, medical billing and market research in the future. We are in talks with insurance and healthcare industries.
CIOL: Any IPO plans in the pipeline?
SK: We have seen a good growth so far which has been totally debts free. We see inorganic growth growing faster than organic growth. We plan to roll out an Initial Public Offering (IPO) when the company reaches a turnover of about $50 million and with over 3000 employees.
CIOL: What are your plans for expansion into Tier II cities?
SK: The company is also targeting at Tier II cities like Mysore, Mangalore. But we find a number of problems like poor resource stain, poor infrastructure is another major problem. In fact, we initially looked at a SEZ in Salem, but later withdrew the idea.
In an interview with Manu Sharma of CIOL Bureau, Sampath Kumar, CEO of Zenith Software talks about the new business foray and its recruitment drive in India. Excerpts.
CIOL: What has been the impact of recession on Zenith Software?
Sampath Kumar: The US recession has not affected us so far. The only problem is that the US companies want to push the dates. No one wants to decide immediately but business has not affected us in any way. But they are keen on outsourcing the work to India. It is a ‘wait n watch’ situation to gauge its impact in 2009.
CIOL: What has been your recent expansion plans?
SK: Since we are foraying into the information technology enabled services (ITES) in a big way, we are expanding our office by moving into a new campus of 25,000 sqft of built-in space located in Koramangala. The building will comprise of four floors and can accommodate 400-500 employees per shift and we can be further expanded to accommodate 1,500-2000 if necessary.
CIOL: What is Recruitment Process Outsourcing (RPO), why has Zenith forayed into this space?
SK: Zenith has signed up with NovusSTS (pioneers in the newly defined recruitment process optimization business) for providing RPO services. RPO is a form of Business Process Outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.
CIOL: What are the work involved in RPO and its benefits?
SK: RPO involves the outsourcing of all or just part of recruitment functions and process. RPO providers manage the entire recruiting/hiring process from job profiling through the on boarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance. The RPO service provider is the source for in-scope recruitment activity.
CIOL: What is the future of RPO industry in India?
SK: Since only about 20-25 companies are into this pace in India, we see a bright future. Our policy is not to target the big players but instead found a partner for the delivery.
CIOL: What is Zenith role in the LPO industry?
SK: Zenith has been in this sector for the last three months and has entered into a joint venture with a law firm based in US. We have started with the training process and have about 10 employees, who are corporate lawyers and LPO professionals involved in document reviews, immigration services and contract drafting.
CIOL: Explain the travel software developed by Zenith?
SK: The company has developed a travel software similar to IBS. It is a total integrated software for the tour operators operating across the country. This is the first product by Zenith and was earlier exhibited in Mumbai in a travel expo called – Travel Eye. The product is likely to hit the market by 2009. In respect to the pricing of the software, we have planned to price it between Rs 5-10 lakh, depending on the module, we will customize it as per your requirements. The product was developed over the last two years and about 10 software engineers were involved in the product.
CIOL: What are the other software developed by Zenith?
SK: Following our success with the travel software, we are also developed a software for a retail company in Australia. Similarly also developed a automobile product for the Norwegian market expected to be rolled out in 2009.
For the insurance sector, we have signed up with a UK-based company for the development and support of large US insurance firms. This is for the life insurance products and we will handle the customisation, maintenance and the enhancement of the product. Similarly, we have also signed up with a Swiss company for non-life insurance. We have completed the prototype of the product using Java and the product will be out by end of 2009.
CIOL: What has been the attrition in your organization?
SK: The attrition in our company is only 8-10 percent much lesser than the industry standards of 25-30 percent in BPO industry. Presently we have a 50:50 mix of developers and ITES (BPO) employees. I feel ITES will outdo IT and already we have employed 35 members in the last one-month and will hire another 25-30 in the next few months.
CIOL: When has Zenith forayed into the Scandinavian market?
SK: Zenith has forayed into the Scandinavian market through a partnership with Norway-based Software Offshoring Consulting (SOC). SOC is part of the Norwegian Data-Invest Group that has been providing progressive and market oriented solutions and services. This partnership will expand Zenith Software Ltd’s (ZSL) footprint in the European market.
ZSL and SOC have been working together on joint product development for the automotive industry. This product will also be maintained by ZSL for all the clients across the globe. This relationship has now matured into partnership wherein ZSL-SOC would jointly market and provide offshore development services. This is an exciting phase in ZSL’s growth plans. With SOC’s strengths we will be able grow in the Nordic.
CIOL: How do you see the future of Zenith Software shaping up?
SK: With our foray into BPO/KPO space and from the present turnover of $6 million, we had anticipated a jump of $10-12 million by 2009. But do the present industry scenario we may now expect only a 50 percent growth from the initial target of 75 percent. The only problem we are facing is that things are not happening and projects are getting delayed. The trend is not only in the US market but also in UK and European markets as well. ”US is creating a ripple affect on other countries.”
By 2012, Zenith expects the company to have 2000 plus employees with major revenues from UK, European countries and a 10 percent decline from the US markets. The company will strongly look at analytics, insurance, claim processing, medical billing and market research in the future. We are in talks with insurance and healthcare industries.
CIOL: Any IPO plans in the pipeline?
SK: We have seen a good growth so far which has been totally debts free. We see inorganic growth growing faster than organic growth. We plan to roll out an Initial Public Offering (IPO) when the company reaches a turnover of about $50 million and with over 3000 employees.
CIOL: What are your plans for expansion into Tier II cities?
SK: The company is also targeting at Tier II cities like Mysore, Mangalore. But we find a number of problems like poor resource stain, poor infrastructure is another major problem. In fact, we initially looked at a SEZ in Salem, but later withdrew the idea.
Tuesday, November 11, 2008
IT industry in India safe, says Nasscom chief
We need not worry about the slowdown in the US economy. It is all a temporary phase and very soon, the US dollar will reach a stable position, said Ganesh Natarajan, chairman of Nasscom.
India's IT industry does not need to worry about the current economic downturn as 'we have a strong knowledge base' and the established market players here would not be affected, a top industry body official said. "We need not worry about the slowdown in the US economy. It is all a temporary phase and very soon, the US dollar will reach a stable position," said Ganesh Natarajan, chairman of the National Association of Software and Services Companies (Nasscom).
Addressing a chief executives' meeting here, he said despite the global meltdown, the Indian software business is growing at the rate of 21-24 percent every year. He, however, urged the IT industry leaders to look beyond the US market. "Plenty of opportunities are available in Latin America, Japan, China, Europe and also in some African nations," Natarajan said.
"By 2020, India can alone fulfil the need of technical talent of the whole world. By that time the whole world would need 43 billion technocrats while India will have 47 billion surplus technocrats," he said.
He added that huge investments have to be made to train the available talent. According to Natarajan, the estate and retail business would feel the heat of the economic downturn. "But our IT sector is safe and would continue to grow," he said.
India's IT industry does not need to worry about the current economic downturn as 'we have a strong knowledge base' and the established market players here would not be affected, a top industry body official said. "We need not worry about the slowdown in the US economy. It is all a temporary phase and very soon, the US dollar will reach a stable position," said Ganesh Natarajan, chairman of the National Association of Software and Services Companies (Nasscom).
Addressing a chief executives' meeting here, he said despite the global meltdown, the Indian software business is growing at the rate of 21-24 percent every year. He, however, urged the IT industry leaders to look beyond the US market. "Plenty of opportunities are available in Latin America, Japan, China, Europe and also in some African nations," Natarajan said.
"By 2020, India can alone fulfil the need of technical talent of the whole world. By that time the whole world would need 43 billion technocrats while India will have 47 billion surplus technocrats," he said.
He added that huge investments have to be made to train the available talent. According to Natarajan, the estate and retail business would feel the heat of the economic downturn. "But our IT sector is safe and would continue to grow," he said.
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