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
Friday, February 27, 2009
IBM to host gen-next technology competition
As part of its University Relations programme, IBM has rolled out a novel gen-next technology challenge titled "IBM Blue Battle" in over 25 leading engineering colleges across India.
The first in the "IBM Blue Battle" series has been launched at IIIT Hyderabad and is being conducted on IBM Multi-core architecture for gaming. Colleges to follow include UVCE Bangalore, JNTU Hyderabad, Madras Institute of Technology (Anna University) Chennai, few IITs and NITs.
Amol Mahamuni, programme director, WebSphere Solutions and Technology and University Relations-IBM India/SA, said, "The challenge will enhance the students' knowledge on technologies that are at the helm of innovation across the industry and provide them with an opportunity to develop innovative solutions in real work scenario." It hones their technical skills while learning basic on-the-job skills such as teamwork, organization, and working under deadlines, he added.
The competition will enable participants to work on technologies such as Multi processors/Nano technology, electronics, service oriented architecture (SOA), Multi Core Architecture, Enterprise Computing (IBM System z), Information Management, Web 2.0, cloud computing, virtualization and High Performance Computing (HPC). Mentors from IBM, along with the college faculty, will closely work with the students throughout the programme.
This competition will also enable students to work on projects using IBM products, applications, tools and services in the future through further collaboration and mentoring by IBM experts.
The winners of this competition will receive prizes including Lenovo Ideapad laptops, along with certification from IBM.
IBM's University Relations has been partnering with academia to drive evolving open standards-based IT skills.
CXOtoday.com
The first in the "IBM Blue Battle" series has been launched at IIIT Hyderabad and is being conducted on IBM Multi-core architecture for gaming. Colleges to follow include UVCE Bangalore, JNTU Hyderabad, Madras Institute of Technology (Anna University) Chennai, few IITs and NITs.
Amol Mahamuni, programme director, WebSphere Solutions and Technology and University Relations-IBM India/SA, said, "The challenge will enhance the students' knowledge on technologies that are at the helm of innovation across the industry and provide them with an opportunity to develop innovative solutions in real work scenario." It hones their technical skills while learning basic on-the-job skills such as teamwork, organization, and working under deadlines, he added.
The competition will enable participants to work on technologies such as Multi processors/Nano technology, electronics, service oriented architecture (SOA), Multi Core Architecture, Enterprise Computing (IBM System z), Information Management, Web 2.0, cloud computing, virtualization and High Performance Computing (HPC). Mentors from IBM, along with the college faculty, will closely work with the students throughout the programme.
This competition will also enable students to work on projects using IBM products, applications, tools and services in the future through further collaboration and mentoring by IBM experts.
The winners of this competition will receive prizes including Lenovo Ideapad laptops, along with certification from IBM.
IBM's University Relations has been partnering with academia to drive evolving open standards-based IT skills.
CXOtoday.com
Thursday, February 26, 2009
Electronic hardware manufacturing to touch $155 bn by 2015
With the increasing consumption of electronic items in the country, the hardware manufacturing industry in India is poised to touch $155 billion by 2015.
"As per study made by Frost and Sullivan, the (global) market for electronics hardware is expected to grow by 30 per cent to $320 billion in 2015," Department of Information Technology Secretary Jainder Singh said at the Componex Nepcon exhibition here today.
"There is a potential for the domestic hardware manufacturing to grow to $155 billion in 2015," he added.
Indian electronic hardware production increased from Rs 43,800 crore in 2003-04 to Rs 80,800 crore in 2007-08, with a cumulative annual growth rate of 16.6 per cent, he added.
Increased consumption of mobile phones, computers and televisions is driving the domestic demand for the industry in India.
"While the sales of PCs have reached 7.3 million units a year, about 8-10 million mobile phones are sold. The market for colour televisions has also increased to about 15 million units a year," he said.
Singh noted that with the relaxation in import policies and progressive reduction in duties, import of manufactured components has increased, which has in turn suppressed the domestic demand.
Agencies
"As per study made by Frost and Sullivan, the (global) market for electronics hardware is expected to grow by 30 per cent to $320 billion in 2015," Department of Information Technology Secretary Jainder Singh said at the Componex Nepcon exhibition here today.
"There is a potential for the domestic hardware manufacturing to grow to $155 billion in 2015," he added.
Indian electronic hardware production increased from Rs 43,800 crore in 2003-04 to Rs 80,800 crore in 2007-08, with a cumulative annual growth rate of 16.6 per cent, he added.
Increased consumption of mobile phones, computers and televisions is driving the domestic demand for the industry in India.
"While the sales of PCs have reached 7.3 million units a year, about 8-10 million mobile phones are sold. The market for colour televisions has also increased to about 15 million units a year," he said.
Singh noted that with the relaxation in import policies and progressive reduction in duties, import of manufactured components has increased, which has in turn suppressed the domestic demand.
Agencies
Is Nokia likely to enter laptop industry?
The world's top cellphone maker Nokia is eyeing entering the laptop business, its Chief Executive Olli-Pekka Kallasvuo said in an interview to Finnish national broadcaster YLE on Wednesday.
"We are looking very actively also at this opportunity," Kallasvuo said, when asked whether Nokia plans to make laptops.
Industry has rumoured about Nokia's possible plan to enter the PC industry since late last year, but Kallasvuo's comment was the first official admittance of such plans.
"We don't have to look even for five years from now to see that what we know as a cellphone and what we know as a PC are in many ways converging," Kallasvuo said.
"Today we have hundreds of millions of people who are having their first Internet experience on the phone. This is a good indication," he said.
Nokia's comments come a week after No 3 PC brand Acer launched a foray into the phone business with eight cellphone models, joining leader Hewlett-Packard and No. 4 Lenovo in the high-growth space.
While strong profit margins in the smartphone industry attract PC brands, the attraction of the low-margin computer industry is less obvious.
"Nokia maybe nervous about entering a market segment that is already heavily commoditised, but it would be in a position to exploit its enormous scale in manufacturing, supply chain and distribution," said Ben Wood, research director at CCS Insight.
"All leading mobile network operators and retailers are adding connected notebooks and netbooks to their portfolios alongside mobile phones. On this basis it comes as no surprise that Nokia is evaluating this segment," he said.
The global PC industry was resilient for most of last year when other technology sectors were ailing, but it too has now been caught up in the deepening economic downturn that has hit demand from consumers and corporate buyers.
Agencies
"We are looking very actively also at this opportunity," Kallasvuo said, when asked whether Nokia plans to make laptops.
Industry has rumoured about Nokia's possible plan to enter the PC industry since late last year, but Kallasvuo's comment was the first official admittance of such plans.
"We don't have to look even for five years from now to see that what we know as a cellphone and what we know as a PC are in many ways converging," Kallasvuo said.
"Today we have hundreds of millions of people who are having their first Internet experience on the phone. This is a good indication," he said.
Nokia's comments come a week after No 3 PC brand Acer launched a foray into the phone business with eight cellphone models, joining leader Hewlett-Packard and No. 4 Lenovo in the high-growth space.
While strong profit margins in the smartphone industry attract PC brands, the attraction of the low-margin computer industry is less obvious.
"Nokia maybe nervous about entering a market segment that is already heavily commoditised, but it would be in a position to exploit its enormous scale in manufacturing, supply chain and distribution," said Ben Wood, research director at CCS Insight.
"All leading mobile network operators and retailers are adding connected notebooks and netbooks to their portfolios alongside mobile phones. On this basis it comes as no surprise that Nokia is evaluating this segment," he said.
The global PC industry was resilient for most of last year when other technology sectors were ailing, but it too has now been caught up in the deepening economic downturn that has hit demand from consumers and corporate buyers.
Agencies
Tuesday, February 24, 2009
Motorola to bring live 'News on the Mobile' to India
Motorola, Inc's Indian subsidiary, Motorola India Private Limited, and digital publisher, Pressmart Media Limited, on Tuesday announced the live news-on-the-mobile service on MOTO VE66, MOTOSURF A3000 and MOTOROKR EM35 phones slated for distribution in India.
News on the mobile provides consumers access to branded news content powered by Pressmart. By selecting the WAP link "Daily News" on their Motorola phones, consumers can receive free news content and access to their favourite newspapers while on the go.
Newspapers offered on the service include Indian Express, The Financial Express, The Asian Age and Deccan Chronicle.
News-on-the-mobile is designed specifically for the mobile phone screen for optimum viewing experience.
A GPRS connection is required to access the free news content, a Motorola press release said here.
Agencies
News on the mobile provides consumers access to branded news content powered by Pressmart. By selecting the WAP link "Daily News" on their Motorola phones, consumers can receive free news content and access to their favourite newspapers while on the go.
Newspapers offered on the service include Indian Express, The Financial Express, The Asian Age and Deccan Chronicle.
News-on-the-mobile is designed specifically for the mobile phone screen for optimum viewing experience.
A GPRS connection is required to access the free news content, a Motorola press release said here.
Agencies
Is Vodafone to layoff hundreds of jobs?
Vodafone, the world's largest mobile phone group by revenue, is to cut hundreds of jobs in Britain, according to a report on Sky News.
The move to cut jobs could be made as early as Tuesday, said the report.
The mobile phone operator, which employs 10,000 people, has previously said it will boost free cash flow by cutting 1 billion pounds of costs.
Vodafone declined to comment on specific job cuts.
Agencies
The move to cut jobs could be made as early as Tuesday, said the report.
The mobile phone operator, which employs 10,000 people, has previously said it will boost free cash flow by cutting 1 billion pounds of costs.
Vodafone declined to comment on specific job cuts.
Agencies
Nokia, Qualcomm tie up after years in court battles
Top cellphone maker Nokia will use Qualcomm's chips in its advanced cellphones, the firms said on Tuesday, marking a further warming of ties between the former courtroom rivals.
The cooperation gives Qualcomm access to a major share of the smartphone market, while it enables Nokia to further lower production costs.
"In the end of the day Qualcomm needs Nokia as much as Nokia needs Qualcomm," said Gartner analyst Carolina Milanesi.
The deal marks the first time Nokia will use Qualcomm chipsets in its 3G phones, and brings the firms closer together after years of bitter disputes over intellectual property rights and royalty payments.
"We are very very excited about this opportunity," Andrew Gilbert, the head of Qualcomm's European business told the media in an interview. "We are going to compete for as much of their business as we can."
Nokia's key suppliers of 3G chipsets have been Texas Instruments and STMicro, which has spun off wireless chips into a joint venture with Ericsson.
Nokia and the new ST-Ericsson venture said on Tuesday they would cooperate on providing ST-Ericsson's U8500 chips for 3G smartphones using Symbian foundation software.
Nokia said on Tuesday it had tapped also Broadcom, its current supplier of second-generation technology chips, to supply 3G chipsets.
Nokia eyes U.S. Market
Nokia and Qualcomm agreed last July to a 15-year settlement that included a hefty 1.7 billion euro one-time payment from Nokia, ending a three-year legal battle where the firms raised dozens of cases against each other on three continents.
The agreement also comes against the backdrop of an ailing cellphone market, with 2009 sales set to drop as consumers rein in spending on new gadgets due to the economic recession.
Nokia said it would introduce the first model using Qualcomm chipset and Nokia's software in the middle of next year.
The phones would initially be for the North American market and work on third-generation networks and run on the Symbian operating system, the most widely-used smartphone software that is currently controlled by Nokia but will eventually be made royalty-free for all users.
Nokia shares were down 2.2 percent at 9.11 euros on a weaker Dow Jones Stoxx European Technology Index.
"I don't see the markets reacting since the products are expected to be sold only around mid-2010," said Nordea analyst Martti Larjo. "(But) at least the cooperation shows that Nokia is focusing its efforts on the North American market."
Nokia has long struggled in the U.S. market. North American sales dropped 20 percent year-on-year in the fourth quarter, and Nokia's North American market share of some 8.7 percent was well below its global figure of 37 percent.
Agencies
The cooperation gives Qualcomm access to a major share of the smartphone market, while it enables Nokia to further lower production costs.
"In the end of the day Qualcomm needs Nokia as much as Nokia needs Qualcomm," said Gartner analyst Carolina Milanesi.
The deal marks the first time Nokia will use Qualcomm chipsets in its 3G phones, and brings the firms closer together after years of bitter disputes over intellectual property rights and royalty payments.
"We are very very excited about this opportunity," Andrew Gilbert, the head of Qualcomm's European business told the media in an interview. "We are going to compete for as much of their business as we can."
Nokia's key suppliers of 3G chipsets have been Texas Instruments and STMicro, which has spun off wireless chips into a joint venture with Ericsson.
Nokia and the new ST-Ericsson venture said on Tuesday they would cooperate on providing ST-Ericsson's U8500 chips for 3G smartphones using Symbian foundation software.
Nokia said on Tuesday it had tapped also Broadcom
Nokia eyes U.S. Market
Nokia and Qualcomm agreed last July to a 15-year settlement that included a hefty 1.7 billion euro one-time payment from Nokia, ending a three-year legal battle where the firms raised dozens of cases against each other on three continents.
The agreement also comes against the backdrop of an ailing cellphone market, with 2009 sales set to drop as consumers rein in spending on new gadgets due to the economic recession.
Nokia said it would introduce the first model using Qualcomm chipset and Nokia's software in the middle of next year.
The phones would initially be for the North American market and work on third-generation networks and run on the Symbian operating system, the most widely-used smartphone software that is currently controlled by Nokia but will eventually be made royalty-free for all users.
Nokia shares were down 2.2 percent at 9.11 euros on a weaker Dow Jones Stoxx European Technology Index.
"I don't see the markets reacting since the products are expected to be sold only around mid-2010," said Nordea analyst Martti Larjo. "(But) at least the cooperation shows that Nokia is focusing its efforts on the North American market."
Nokia has long struggled in the U.S. market. North American sales dropped 20 percent year-on-year in the fourth quarter, and Nokia's North American market share of some 8.7 percent was well below its global figure of 37 percent.
Agencies
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