At a time when software firm Mahindra Satyam is rationalising its headcount, its BPO arm seems to be on a hiring spree with plans to recruit 300 employees by the next month.
The company has recently bagged a major contract from a domestic client for providing it back office support.
“To support the client we have already hired 700 employees in the last one month and will hire another 300 by the end of next month," Mahindra Satyam BPO CEO Vijay
Rangineni said.
However, he declined to divulge the name of the new client or the deal size. According to sources, the new win is in the telecom space.
The total headcount of the company after the recruitment would stand at 2,900. Though the parent firm Mahindra Satyam have a considerable presence in the domestic market, this is the first major win by Mahindra Satyam BPO in the domestic space.
Rangineni further said the company would now focus on the sizeable domestic market.
"Post the acquisition by Tech Mahindra, we now have a footprint globally and will leverage the strengths of Tech Mahindra wherever they are present," he said.
Mahindra Satyam BPO has one delivery centre each in Hyderabad, Bangalore, Chennai and Pune. The company, however, do not have a global delivery centre so far.
Agencies
Showing posts with label Pune. Show all posts
Showing posts with label Pune. Show all posts
Friday, August 28, 2009
Wednesday, May 13, 2009
Will Capgemini layoff 100 in Chennai?
Consulting and outsourcing firm Capgemini has laid off nearly 100 employees at its Chennai centre.
The pink slips were issued for employees mostly in the middle management positions. This comes on the back of reports that said Capgemini sacked 600 employees in Hyderabad and Pune. The company has nearly 20,000 people working in India.
An employee said the layoff across centers was because of the overall economic slowdown, which was impacting the company’s project flow and clients.
“While some clients have ramped down on the size of contracts, other projects, like the Lehman Brothers account closed after the company’s collapse. Apart from the middle management, some employees on probation were also asked to leave,” said the employee at one of the company’s locations, who did not wish to be named.
When contacted, Capgemini India’s chief people officer Cyprian D’Souza said through an email, “India is central to our global delivery model and we are in the process of mapping our existing skills with the business in hand and the business outlook. The economic condition is tough and no company is immune to its effects.”
D’Souza added that the industry was seeing an overhaul within all the affected verticals. “The process though tough, has to be undertaken to align our business with global economic realities, optimise operational efficiency, ensure financial health and enable future growth.”
For the first quarter of 2009, Capgemini group posted consolidated revenues of Euro 2,205 million, up 0.9 per cent compared with the year-ago period.
Agencies
The pink slips were issued for employees mostly in the middle management positions. This comes on the back of reports that said Capgemini sacked 600 employees in Hyderabad and Pune. The company has nearly 20,000 people working in India.
An employee said the layoff across centers was because of the overall economic slowdown, which was impacting the company’s project flow and clients.
“While some clients have ramped down on the size of contracts, other projects, like the Lehman Brothers account closed after the company’s collapse. Apart from the middle management, some employees on probation were also asked to leave,” said the employee at one of the company’s locations, who did not wish to be named.
When contacted, Capgemini India’s chief people officer Cyprian D’Souza said through an email, “India is central to our global delivery model and we are in the process of mapping our existing skills with the business in hand and the business outlook. The economic condition is tough and no company is immune to its effects.”
D’Souza added that the industry was seeing an overhaul within all the affected verticals. “The process though tough, has to be undertaken to align our business with global economic realities, optimise operational efficiency, ensure financial health and enable future growth.”
For the first quarter of 2009, Capgemini group posted consolidated revenues of Euro 2,205 million, up 0.9 per cent compared with the year-ago period.
Agencies
Friday, February 27, 2009
Are salaries at Indian IT MNCs melting?
Software multinationals in India have begun freezing wage increases, slashing salaries and postponing merit-based hikes, a study by Indian consulting firm Zinnov has found.
"Though Bangalore stands highest in its average salary for multinational R&D firms, followed by Pune and Chennai, the economic slump is causing undue pressure on them to retain compensation levels," Zinnov director for advisory services C S Chandramouli, said after the survey was made public.
Hinting that IT salaries in 2009 would see a freeze across the board in a majority of the firms surveyed, Chandramouli said the average increment would be in the 5-12 per cent range.
"Of the 30 representative multinationals surveyed in these three cities (Bangalore, Pune and Chennai), 27 per cent of them said they have frozen salary increases this year, while 42 per cent said they would provide salary increases and 15 per cent have postponed their merit increase cycle to take a call at a later stage if the economic scenario changes," Chandramouli said.
As a preferred destination for IT services and R&D, about 680 multinationals operate in India. Many of them have more than one R&D centre and presence in one or two of the three cities surveyed.
According to Zinnov's annual report on "Compensation and Benefit Study 2009", 12 per cent of the MNCs have announced 5-10 per cent salary cuts either for senior management or across levels.
"The survey highlights that multinationals are also shifting focus to the variable pay component to reward and retain top performers as opposed to fixed pay. Some of them have even restructured their compensation, linking employee rewards to individual and organisational results," the report said.
Referring to the adverse impact of the tough economic conditions on the compensation budgets, Chandramouli said MNCs were attempting to balance their need to retain key talent and address concerns over wage increase.
"Organisations are being proactive in managing people cost as it constitutes about 62 per cent of the total operating cost," he noted.
Highlighting compensation trends across functions like engineering, quality assurance testing and technical architects, the report said senior positions such as engineering manager and director engineering continued to be on a rise, with an average 8 per cent increase.
As India's IT hub, Bangalore, however, continues to dominate the compensation index, especially in software product and R&D. "Bangalore engineers are paid 5 per cent higher than their counterparts in Pune and 8 per cent higher than in Chennai for engineering and quality positions," Zinnov consultant Sahana Shetty said.
However, average salaries of senior positions in the three cities are similar, though average salaries at junior positions are two-three per cent higher in Bangalore. "Employees are not clear if they will be laid off or if the projects they are working on will be de-prioritised. They are also concerned about the financial health of the parent company. Employees are frustrated with cost cuts for what seem like inexpensive benefits (snacks, lunch, office parties, etc)," Shetty added.
Agencies
"Though Bangalore stands highest in its average salary for multinational R&D firms, followed by Pune and Chennai, the economic slump is causing undue pressure on them to retain compensation levels," Zinnov director for advisory services C S Chandramouli, said after the survey was made public.
Hinting that IT salaries in 2009 would see a freeze across the board in a majority of the firms surveyed, Chandramouli said the average increment would be in the 5-12 per cent range.
"Of the 30 representative multinationals surveyed in these three cities (Bangalore, Pune and Chennai), 27 per cent of them said they have frozen salary increases this year, while 42 per cent said they would provide salary increases and 15 per cent have postponed their merit increase cycle to take a call at a later stage if the economic scenario changes," Chandramouli said.
As a preferred destination for IT services and R&D, about 680 multinationals operate in India. Many of them have more than one R&D centre and presence in one or two of the three cities surveyed.
According to Zinnov's annual report on "Compensation and Benefit Study 2009", 12 per cent of the MNCs have announced 5-10 per cent salary cuts either for senior management or across levels.
"The survey highlights that multinationals are also shifting focus to the variable pay component to reward and retain top performers as opposed to fixed pay. Some of them have even restructured their compensation, linking employee rewards to individual and organisational results," the report said.
Referring to the adverse impact of the tough economic conditions on the compensation budgets, Chandramouli said MNCs were attempting to balance their need to retain key talent and address concerns over wage increase.
"Organisations are being proactive in managing people cost as it constitutes about 62 per cent of the total operating cost," he noted.
Highlighting compensation trends across functions like engineering, quality assurance testing and technical architects, the report said senior positions such as engineering manager and director engineering continued to be on a rise, with an average 8 per cent increase.
As India's IT hub, Bangalore, however, continues to dominate the compensation index, especially in software product and R&D. "Bangalore engineers are paid 5 per cent higher than their counterparts in Pune and 8 per cent higher than in Chennai for engineering and quality positions," Zinnov consultant Sahana Shetty said.
However, average salaries of senior positions in the three cities are similar, though average salaries at junior positions are two-three per cent higher in Bangalore. "Employees are not clear if they will be laid off or if the projects they are working on will be de-prioritised. They are also concerned about the financial health of the parent company. Employees are frustrated with cost cuts for what seem like inexpensive benefits (snacks, lunch, office parties, etc)," Shetty added.
Agencies
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
Wednesday, December 10, 2008
No job losses in BPO sector, says Nasscom
Software and BPO industry body Nasscom on Wednesday said the business process outsourcing sector is not in the danger of losing jobs due to the ongoing economic downturn rather a net hirer in the current fiscal.
In a statement here Nasscom said, "Media reports suggest that the Indian BPO industry will see 2.5 lakh job losses by the first quarter of 2009, in the wake of downturn in the US and other developed economies. NASSCOM's research
and interaction with its member companies is not in support of this statement.
Our detailed industry performance and forecast for FY09 will be released in the next fortnight. However, on employment the industry will continue to be a net hirer in FY09 as a direct corollary of industry growth and fears of large scale job losses at an industry level are unfounded."
The industry body's comment comes in the wake BPO Industry Association President Samir Chopra stating that "severe job loss is expected because of recession.
We are going to request for a fiscal package from the Government but if that doesn't happen, then there be huge amount of losses in terms of manpower. I think a quarter of a million jobs will go."
The $11-billion BPO sector employs about seven lakh people.
Source: Agencies
In a statement here Nasscom said, "Media reports suggest that the Indian BPO industry will see 2.5 lakh job losses by the first quarter of 2009, in the wake of downturn in the US and other developed economies. NASSCOM's research
and interaction with its member companies is not in support of this statement.
Our detailed industry performance and forecast for FY09 will be released in the next fortnight. However, on employment the industry will continue to be a net hirer in FY09 as a direct corollary of industry growth and fears of large scale job losses at an industry level are unfounded."
The industry body's comment comes in the wake BPO Industry Association President Samir Chopra stating that "severe job loss is expected because of recession.
We are going to request for a fiscal package from the Government but if that doesn't happen, then there be huge amount of losses in terms of manpower. I think a quarter of a million jobs will go."
The $11-billion BPO sector employs about seven lakh people.
Source: Agencies
Saturday, November 29, 2008
Terror strikes; Is outsourcing safe?
Terror times; Is outsourcing safe?
large global firm runs its trading desk out of Mumbai. Bookings for a leading airline are happening out of another office in a neighbouring city, while the telecom infrastructure of an overseas operator is being remotely monitored from another location in the country.
A terror attack on any of these sites can have significant implications for corporations in the US and other parts of the developed world as India emerges as the world’s back-office.
For instance, if a trade is not squared off on time, the firm will have to carry higher liabilities. Wednesday’s attack raises questions about the vulnerability of these locations to terror threats and the preparedness of firms and authorities to tackle them.
The issue assumes importance as nearly seven out of every 10 outsourced processes come to India, according to industry estimates. While 6-7 years ago, business process outsourcing (BPO) mostly involved basic data entry, a number of mission critical processes such as airline bookings and investment research are now taking place out of offices in Mumbai, Pune and Bangalore.
In its strategic review, Nasscom, the apex industry body, notes, “Indian BPO has undergone significant transformation since its inception over a decade ago... The past few years have seen the scope of these services expand progressively to include more complex processes involving rule-based decision making and research requiring informed judgment and domain knowledge,” the apex industry body notes.
Indian firms also manage infrastructure worth over $3-4 billion remotely for clients. Damage to these locations can bring down desktops and servers, besides crippling entire sections of organisations outside India. “After 9/11, there is a greater appreciation of the risk arising from a terror attack,” admits KPMG executive director Akhilesh Tuteja.
“But the level of preparedness even for mission critical operations is below average,” he adds. The redundancy plan usually involves a backup and mutiple service providers to ensure connectivity. But process capability and an ability to swiftly execute the process at another centre are not a reality in most cases.
“Disaster recovery plans are like an insurance you may never use. There is now an awareness about the need to have them, but the decisions are usually postponed because this is not an investment that will result in growth. Firms usually make investments for growth,” says PriceWaterhouseCoopers managing consultant Nikhil Donde.
Companies are saving costs amid the slowdown, as every bit can eat into margins. Multinational parents are managing a majority of the mission critical operations by way of captives. Ideally, 70% of the process should be offshored and 30% retained at the onsite location to minimise the risks, according to Mr Tuteja. But again there is a trade-off on costs, with real benefits kicking in only when the process is completly offshored.
In client contracts with third-party firms, it is not uncommon to find clauses related to business process continuity (BCP). However, these clauses rarely go into specifics and are usually interpreted in terms of having a multi-locational presence, back-up capability and multiple connectivity providers. Rarely do they consider whether the alternate locations will have people with the necessary skills. And this is really the biggest threat in a terror attack, when people at one location can be killed, say the experts.
Source: Economic Times
large global firm runs its trading desk out of Mumbai. Bookings for a leading airline are happening out of another office in a neighbouring city, while the telecom infrastructure of an overseas operator is being remotely monitored from another location in the country.
A terror attack on any of these sites can have significant implications for corporations in the US and other parts of the developed world as India emerges as the world’s back-office.
For instance, if a trade is not squared off on time, the firm will have to carry higher liabilities. Wednesday’s attack raises questions about the vulnerability of these locations to terror threats and the preparedness of firms and authorities to tackle them.
The issue assumes importance as nearly seven out of every 10 outsourced processes come to India, according to industry estimates. While 6-7 years ago, business process outsourcing (BPO) mostly involved basic data entry, a number of mission critical processes such as airline bookings and investment research are now taking place out of offices in Mumbai, Pune and Bangalore.
In its strategic review, Nasscom, the apex industry body, notes, “Indian BPO has undergone significant transformation since its inception over a decade ago... The past few years have seen the scope of these services expand progressively to include more complex processes involving rule-based decision making and research requiring informed judgment and domain knowledge,” the apex industry body notes.
Indian firms also manage infrastructure worth over $3-4 billion remotely for clients. Damage to these locations can bring down desktops and servers, besides crippling entire sections of organisations outside India. “After 9/11, there is a greater appreciation of the risk arising from a terror attack,” admits KPMG executive director Akhilesh Tuteja.
“But the level of preparedness even for mission critical operations is below average,” he adds. The redundancy plan usually involves a backup and mutiple service providers to ensure connectivity. But process capability and an ability to swiftly execute the process at another centre are not a reality in most cases.
“Disaster recovery plans are like an insurance you may never use. There is now an awareness about the need to have them, but the decisions are usually postponed because this is not an investment that will result in growth. Firms usually make investments for growth,” says PriceWaterhouseCoopers managing consultant Nikhil Donde.
Companies are saving costs amid the slowdown, as every bit can eat into margins. Multinational parents are managing a majority of the mission critical operations by way of captives. Ideally, 70% of the process should be offshored and 30% retained at the onsite location to minimise the risks, according to Mr Tuteja. But again there is a trade-off on costs, with real benefits kicking in only when the process is completly offshored.
In client contracts with third-party firms, it is not uncommon to find clauses related to business process continuity (BCP). However, these clauses rarely go into specifics and are usually interpreted in terms of having a multi-locational presence, back-up capability and multiple connectivity providers. Rarely do they consider whether the alternate locations will have people with the necessary skills. And this is really the biggest threat in a terror attack, when people at one location can be killed, say the experts.
Source: Economic Times
Friday, October 17, 2008
Business does not stop due to non-availability of IT
The seriousness of IT in the real estate industry is still at a nascent stage in India Despite the seriousness of IT in the real estate industry being at a nascent stage, the Mumbai-based Lavasa Corporation Limited, a leading property deveoper undertaking large-scale lifestyle development in India has deveoped a new urbanism principle towards IT. In a discussion with Manu Sharma of CIOL Bureau, Vinod Vyas, Head – Information Systems of Lavasa Corporation Limited spoke about the new communications sytems implemented and also on what are the challenges he forsees in the future.
CIOL: What are the major challenges faced by you in your organization?
Vinod Vyas: The seriousness towards IT in Real Estate industry is still less because of simple reason that business does not stop due to non-availability of IT. However, certain organizational necessities cannot be avoided such as office automation, finance & accounts, sales and MIS. Thus major challenge is to aware users to use IT for automation where traditionally they are completely manual such as construction, projects, land department etc.
CIOL: Does your organization link IT budget with the company's performance/growth? If yes please elobrate?
Vinod Vyas: No. Our management has a strong conviction that IT is critical to the business of Lavasa and hence IT is viewed as a critical investment.
CIOL: Can you cite any specific areas where IT has come up as an accomplishment in your stint?
Vinod Vyas: Introducing integration of conventional communication methodologies with new IP based communication systems such as IPPBX, VoIP etc.
CIOL: Going forward, what are the challenges that you foresee?
Vinod Vyas: Change Management (User's acceptance to automation and revised business processes.)
CIOL: How far have you come as regards to adopting 'Green IT technologies'? Vinod Vyas: We are concerned about the global warming. The initiatives are at planning stage.
CIOL: What will be the IT budget for the new fiscal year? What is the growth rate over last year?
Vinod Vyas: The budget is significantly more than the previous year.
CIOL: Name the top 5 items that you expect to spent during the fiscal year?
Vinod Vyas: Some of the major IT items that we invested during the last fiscal include: Infrastructure & Telecom and also in ERP.
CIOL: Do you feel the amount allocated for IT is sufficient if yes why? If not why not? How much should you be spending?
Vinod Vyas: The amount is decided by Head – IT and COO together and its sufficient as per business need.
CIOL: Has the prices of the IT products (hardware/software) been on the decline due to the current stronger rupee against the US dollar in 2007?
Vinod Vyas: Not much
CIOL: Since the rupee is growing stronger against the dollar in 2007, don't you thing it is the right time to purchase IT products both hardware/software?
Vinod Vyas: It effects when the purchases are huge in quantity.
CIOL: How big is the IT staff in your organization?
Vinod Vyas: The strength in our organization is presently ten.
CIOL: What are the major challenges faced by you in your organization?
Vinod Vyas: The seriousness towards IT in Real Estate industry is still less because of simple reason that business does not stop due to non-availability of IT. However, certain organizational necessities cannot be avoided such as office automation, finance & accounts, sales and MIS. Thus major challenge is to aware users to use IT for automation where traditionally they are completely manual such as construction, projects, land department etc.
CIOL: Does your organization link IT budget with the company's performance/growth? If yes please elobrate?
Vinod Vyas: No. Our management has a strong conviction that IT is critical to the business of Lavasa and hence IT is viewed as a critical investment.
CIOL: Can you cite any specific areas where IT has come up as an accomplishment in your stint?
Vinod Vyas: Introducing integration of conventional communication methodologies with new IP based communication systems such as IPPBX, VoIP etc.
CIOL: Going forward, what are the challenges that you foresee?
Vinod Vyas: Change Management (User's acceptance to automation and revised business processes.)
CIOL: How far have you come as regards to adopting 'Green IT technologies'? Vinod Vyas: We are concerned about the global warming. The initiatives are at planning stage.
CIOL: What will be the IT budget for the new fiscal year? What is the growth rate over last year?
Vinod Vyas: The budget is significantly more than the previous year.
CIOL: Name the top 5 items that you expect to spent during the fiscal year?
Vinod Vyas: Some of the major IT items that we invested during the last fiscal include: Infrastructure & Telecom and also in ERP.
CIOL: Do you feel the amount allocated for IT is sufficient if yes why? If not why not? How much should you be spending?
Vinod Vyas: The amount is decided by Head – IT and COO together and its sufficient as per business need.
CIOL: Has the prices of the IT products (hardware/software) been on the decline due to the current stronger rupee against the US dollar in 2007?
Vinod Vyas: Not much
CIOL: Since the rupee is growing stronger against the dollar in 2007, don't you thing it is the right time to purchase IT products both hardware/software?
Vinod Vyas: It effects when the purchases are huge in quantity.
CIOL: How big is the IT staff in your organization?
Vinod Vyas: The strength in our organization is presently ten.
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