Match a passion with a position
To gauge that, Adler recommends digging deeply into a candidate's work history. "You need to take the time to do a detailed, job-by-job review. Where did this person excel in the past? What specific achievements got recognized and rewarded? Why did she get promoted? Which job or jobs really gave him a chance to shine? This will show you pretty clearly what the candidate is passionate about. Then you can assess whether her passions match the job you're trying to fill."
Someone with a phenomenal talent for wooing new clients, for example, may not be the right fit for a sales-manager position that will put him behind a desk managing other salespeople without ever meeting a customer.
Likewise, someone whose success so far has come from passionately pursuing engineering solutions on her own may not thrive in a position that requires constant teamwork.
"The better you understand both the job itself and the person you're considering for it, the more likely you are to get someone who can direct his or her passion where you need it to go," Adler says.
Beyond that, there are some interview questions that should help you determine whether a candidate really has fire in the belly. David Sanford, now an executive vice president at recruiting and staffing firm Winter, Wyman & Co, spent the first part of his career as a human resources manager at Wang Laboratories, Bank of Boston, and Doubleday, so he's looked at this from both sides.
Look for risk-taking
"I always think that when companies talk about passion, one thing they mean is, a willingness to take risks," Sanford says. "So one question I ask candidates is, 'Tell me about some of the risks you've taken and how they turned out.' A person who has never taken a risk is probably not who you're looking for."
He adds that "passion really comes down to confidence and courage, including a willingness to push back and take an unpopular position if you really believe in it."
How can an interviewer measure that? "One test is, will this candidate debate with me?," says Sanford. "Sometimes during our conversation I'll roll out an opinion or an idea that I know is way out of left field, just to see if the candidate is willing to argue - politely, of course, but with conviction."
Sanford also pays close attention to the questions candidates ask. "Passionate people will ask you a question and then, based on your answer to that one, ask you another one," he says. "They're not sticking to a script they prepared beforehand, they're following one idea to another idea to another idea with genuine spontaneous curiosity. That shows passion."
Another tip-off: "I ask people what they are passionate about outside of work. Someone whose eyes light up when they talk about a sport or a charity or whatever it is they do in their spare time - that is someone who will probably be passionate on the job too. People don't switch their passion off when they walk into work in the morning. It carries over. By contrast, someone who's just going through the motions with no special passion outside of work will probably be the same way in the office."
According to Sanford, passion isn't all that hard to spot - if you really try. Indeed, he believes companies that can't seem to bring many passionate people on board have only themselves to blame.
"Too many employers pay lip service to the idea of passion but in fact they want cookie-cutter thinking, which is why they end up with cookie-cutter hires. They want everyone to stay in his or her neat little box," he says.
"I've seen it time and time again," Sanford continues. "Hiring managers will opt for the 'safe' candidate rather than a more provocative one - and then they're disappointed a year later when the person hasn't stepped up and produced fantastic results."
A word to the wise...
Sunday, June 24, 2007
Friday, June 22, 2007
Few tips on interviewing etiquette -
The world has changed in the last few years. I still remember a story we had in school in which a scholarly candidate is called to an interview. Though infallible in knowledge, he is at a loss when a panel of interviewers confronts him. He is asked how many buttons he has on his shirt, how many steps he climbed and the number of the taxi he came in. Thus demolished, the erudite professional staggers out of the hall completely shattered. One can safely imagine that he not only counted every step on his way down but the number of the taxi he took home is indelibly branded in letters of fire on his heart.
This incident is history and one can imagine the business executives, who have faced the effects of a "talent crunch" in almost every industry today, laughing derisively while reading the story. And the truth is that, in an interview, the evaluation takes place on both sides. The candidate is probably assessing the organization more carefully than the organisation is assessing the candidate.
First impressions are lasting impressions. The interview is the beginning of the candidate's relationship with the company. Interviewing is central to employee engagement and that brings it directly into the ambit of business etiquette. Since most managers are involved in the process of interviewing, a few tips on interviewing etiquette may be immensely useful to them.
· Introduce yourself to the candidate briefly so that the candidate knows who is talking to him. If it is a panel, the senior-most can take the initiative of introducing everyone else. This sets the tone of the interview that it is a conversation and not an examination.
· Do not jump into questions. Begin with small talk. It relaxes the candidate and makes him or her more receptive to answering. Remember, openness begets openness.
· The interviewer must read the candidate's curriculum vitae before the interview. It is rude to read it after the candidate sits in front of you. The candidate can feel the slow build-up of tension and start twisting uncomfortably on the chair if one takes too long. Some interviewers add insult to injury by periodically looking at the interviewee while reading the curriculum vitae, as if they are examining a protozoa specimen under a microscope.
· Initial questions must be open-ended, focusing on the achievements of the candidate. One must desist from interrupting the candidate unless the candidate becomes too long-winded.
· It is equally important not to ask a set of negative questions that may put the candidate on the defensive. Frightened candidates usually answer in monosyllables and sometimes not at all. In certain countries, there are clear guidelines of what is thought to be discriminatory and hence against the law. But whether the same law exists everywhere or not, its tenets as etiquette are useful while interviewing everyone, irrespective of their location, in a global company.
· One must tell the candidate about the next step, whether it is about another interview or about approximately in what time the decision will be communicated. If it is a senior candidate, it is polite for someone from the interview panel to walk the candidate to the lift.
Finally, do not forget to ask the candidate his or her name before beginning the interview. One interviewer sincerely followed all the rules and ended the interview after an hour with, "Thank you , Ashok." "But Sir, "answered the candidate, "I am Vasant." It was then that the interviewer realized he had been interviewing the wrong person correctly.
This incident is history and one can imagine the business executives, who have faced the effects of a "talent crunch" in almost every industry today, laughing derisively while reading the story. And the truth is that, in an interview, the evaluation takes place on both sides. The candidate is probably assessing the organization more carefully than the organisation is assessing the candidate.
First impressions are lasting impressions. The interview is the beginning of the candidate's relationship with the company. Interviewing is central to employee engagement and that brings it directly into the ambit of business etiquette. Since most managers are involved in the process of interviewing, a few tips on interviewing etiquette may be immensely useful to them.
· Introduce yourself to the candidate briefly so that the candidate knows who is talking to him. If it is a panel, the senior-most can take the initiative of introducing everyone else. This sets the tone of the interview that it is a conversation and not an examination.
· Do not jump into questions. Begin with small talk. It relaxes the candidate and makes him or her more receptive to answering. Remember, openness begets openness.
· The interviewer must read the candidate's curriculum vitae before the interview. It is rude to read it after the candidate sits in front of you. The candidate can feel the slow build-up of tension and start twisting uncomfortably on the chair if one takes too long. Some interviewers add insult to injury by periodically looking at the interviewee while reading the curriculum vitae, as if they are examining a protozoa specimen under a microscope.
· Initial questions must be open-ended, focusing on the achievements of the candidate. One must desist from interrupting the candidate unless the candidate becomes too long-winded.
· It is equally important not to ask a set of negative questions that may put the candidate on the defensive. Frightened candidates usually answer in monosyllables and sometimes not at all. In certain countries, there are clear guidelines of what is thought to be discriminatory and hence against the law. But whether the same law exists everywhere or not, its tenets as etiquette are useful while interviewing everyone, irrespective of their location, in a global company.
· One must tell the candidate about the next step, whether it is about another interview or about approximately in what time the decision will be communicated. If it is a senior candidate, it is polite for someone from the interview panel to walk the candidate to the lift.
Finally, do not forget to ask the candidate his or her name before beginning the interview. One interviewer sincerely followed all the rules and ended the interview after an hour with, "Thank you , Ashok." "But Sir, "answered the candidate, "I am Vasant." It was then that the interviewer realized he had been interviewing the wrong person correctly.
Chastise if you must, but gently
It is a Monday morning. The manager enters his office with the prospect of a long week ahead. Suddenly, the phone rings and there is an angry customer at the other end. The customer is at his vitriolic best and harsh words tumble out in perfect flow. The customer ends his one sided conversation by banging down the phone. The manager is left shaking with fury. When he recovers, he calls a junior and lets his hostility loose. The junior is perplexed. It was only yesterday that the manager was praising her. She cannot understand how she turned into a complete nincompoop in his eyes overnight.
This could happen anywhere and on any day. Passing on criticism in a burst of anger is similar to smashing a mosquito that bites us. The pain of the bite remains, but somehow it feels better that to have eliminated the source of the pain. But this kind of criticism confuses the person it is directed at, and can be very demoralising.
But there is something called criticising constructively. This falls directly within the gamut of business etiquette because it can be a great performance tool in an organisation. In fact, continuous feedback, both positive and negative helps people excel and overcome their limitations. In the book “What Your Boss Doesn’t Tell You Until it is Too Late,” Robert Branson says our “behavioural quirks can and will limit the degree to which we benefit from our best and most exceptional qualities”. Ramesh Emani, President, Product Engineering Solutions, Wipro Technologies, echoes this feeling when he says, “a person's strengths will help him rise in the initial part of his career. But his weaknesses will decide the point at which he stops rising.” Managers, who care about the growth of their juniors, thus have to learn the art of criticising responsibly before their juniors hit an irreversible career road block. But while supervisors are willing to do this comfortably in the heat of anger, they shy away from doing the deed in cold blood. That is one of the reasons why most managers keep appraisal discussions pending for as long as they can or hand over appraisals, looking in some other direction, with very superficial remarks, like “Great job done. Keep it up.” Yet, confronting development areas is one of the most important tasks of a manager.
So, how does one criticise responsibly? Here are a few tips:
Criticise the behaviour and not the person. Any criticism directed at the person will be met with defensiveness.
It is important to describe the context of the behaviour. Why is it right or wrong? What consequences will it have on the business or on other people?
Speak of the suboirdinate's strengths and positive attributes as well. Strengths recognised not only give the person confidence but also the energy to change. But do not dilute the criticism with so much praise that the person does not know whether she was praised or criticised.
It is important to ask what the person himself or herself thinks of the behaviour and the situation. It not only gives an opportunity to understand the situation better but also builds ownership for the problem.
Be sensitive to subtle nuances of change in the expression of the person. Some people do not show they are hurt but they are.
Separate emotion from facts. If the negative feedback is given in anger, then people remember the emotion and discount the facts.
Finally, keep the criticism appropriate to the situation. There is no point emulating a Dementor in Harry Potter series that sucks away all hope. It is impossible for a person to change if the message given is that he or she is incorrigible.
Ranjan Acharya is Senior Vice President – Corporate Human Resources Development at Wipro Corporation
This could happen anywhere and on any day. Passing on criticism in a burst of anger is similar to smashing a mosquito that bites us. The pain of the bite remains, but somehow it feels better that to have eliminated the source of the pain. But this kind of criticism confuses the person it is directed at, and can be very demoralising.
But there is something called criticising constructively. This falls directly within the gamut of business etiquette because it can be a great performance tool in an organisation. In fact, continuous feedback, both positive and negative helps people excel and overcome their limitations. In the book “What Your Boss Doesn’t Tell You Until it is Too Late,” Robert Branson says our “behavioural quirks can and will limit the degree to which we benefit from our best and most exceptional qualities”. Ramesh Emani, President, Product Engineering Solutions, Wipro Technologies, echoes this feeling when he says, “a person's strengths will help him rise in the initial part of his career. But his weaknesses will decide the point at which he stops rising.” Managers, who care about the growth of their juniors, thus have to learn the art of criticising responsibly before their juniors hit an irreversible career road block. But while supervisors are willing to do this comfortably in the heat of anger, they shy away from doing the deed in cold blood. That is one of the reasons why most managers keep appraisal discussions pending for as long as they can or hand over appraisals, looking in some other direction, with very superficial remarks, like “Great job done. Keep it up.” Yet, confronting development areas is one of the most important tasks of a manager.
So, how does one criticise responsibly? Here are a few tips:
Criticise the behaviour and not the person. Any criticism directed at the person will be met with defensiveness.
It is important to describe the context of the behaviour. Why is it right or wrong? What consequences will it have on the business or on other people?
Speak of the suboirdinate's strengths and positive attributes as well. Strengths recognised not only give the person confidence but also the energy to change. But do not dilute the criticism with so much praise that the person does not know whether she was praised or criticised.
It is important to ask what the person himself or herself thinks of the behaviour and the situation. It not only gives an opportunity to understand the situation better but also builds ownership for the problem.
Be sensitive to subtle nuances of change in the expression of the person. Some people do not show they are hurt but they are.
Separate emotion from facts. If the negative feedback is given in anger, then people remember the emotion and discount the facts.
Finally, keep the criticism appropriate to the situation. There is no point emulating a Dementor in Harry Potter series that sucks away all hope. It is impossible for a person to change if the message given is that he or she is incorrigible.
Ranjan Acharya is Senior Vice President – Corporate Human Resources Development at Wipro Corporation
What do you think? - By Ranjan Acharya
Negotiations happen all the time. At home, children negotiate for a few extra minutes of sleep on a school day. On the road, vehicles negotiate for every miniscule gap in the traffic to move ahead. Negotiations are an integral part of business and form the basis of most decisions. If the negotiation is done well, both parties have the satisfaction of having squeezed the best out of the deal. But if the negotiation is conducted badly, it can appear insulting, create avoidable bitterness and in some cases, lead to broken jaws.
Negotiation etiquette, thus, is an important element of business etiquette.
Negotiation is about moving forward, not getting stuck in a position. Research by Ury and Fischer demonstrates that when people are fixated in their positions, they cannot negotiate. To influence, one must demonstrate openness to be influenced.
It is important to keep one’s temper on ice. When Don Corleone tells Johnny Fontane in The Godfather, “I’m gonna make him an offer he can’t refuse”, he says so in a barely audible Marlon Brando rumble. He does not leave too much room for negotiation there but that is not the point. What is important is the coolness with which Don conducts his negotiations. He firmly believes that no one needs to raise his voice to be heard.
The exception is for people who can use their emotion to their advantage. There are negotiators who use anger when they are not angry and impatience just to get things moving. But one cannot do this too often or others see through the ploy.
n Always ask the other person, “What do you think?” This helps not only in the other person feeling involved in the decision, but also makes her or him actually give you new ideas and different options. Also, it helps in building a step by step commitment to the final agreement.
Negotiation etiquette depends on the cultural nuances. In some cultures, it is acceptable to get straight to the point whereas in others, it is important to go through the elaborate tapestry of formality.
Neil Rakham, the guru of negotiations, differentiates between good negotiators and excellent negotiators. Good negotiators say, “I disagree because of the following reasons”. The other person does not hear beyond, “I disagree”. Excellent negotiators say “For all these reasons, I find it difficult to agree”.
Finally, humour can lighten a tense moment. But it must be appropriate or it can become a deal-breaker. There is a character in a Wodehouse novel, desperate to sell his house. But he has a joke that he just cannot resist telling. Just when the deal is about to close, he blurts out, “In the summer, the lake is at the bottom of the house. In winter, the house is at the bottom of the lake.” The prospective buyer drops the pen with which he was about to sign the cheque and heads for wide open spaces.
Good negotiators say, “I disagree because of the following reasons”. The other person does not hear beyond, “I disagree”. Excellent negotiators say “For all these reasons, I find it difficult to agree”.
Ranjan Acharya is Senior Vice President – Corporate Human Resources Development at Wipro Corporation
Negotiation etiquette, thus, is an important element of business etiquette.
Negotiation is about moving forward, not getting stuck in a position. Research by Ury and Fischer demonstrates that when people are fixated in their positions, they cannot negotiate. To influence, one must demonstrate openness to be influenced.
It is important to keep one’s temper on ice. When Don Corleone tells Johnny Fontane in The Godfather, “I’m gonna make him an offer he can’t refuse”, he says so in a barely audible Marlon Brando rumble. He does not leave too much room for negotiation there but that is not the point. What is important is the coolness with which Don conducts his negotiations. He firmly believes that no one needs to raise his voice to be heard.
The exception is for people who can use their emotion to their advantage. There are negotiators who use anger when they are not angry and impatience just to get things moving. But one cannot do this too often or others see through the ploy.
n Always ask the other person, “What do you think?” This helps not only in the other person feeling involved in the decision, but also makes her or him actually give you new ideas and different options. Also, it helps in building a step by step commitment to the final agreement.
Negotiation etiquette depends on the cultural nuances. In some cultures, it is acceptable to get straight to the point whereas in others, it is important to go through the elaborate tapestry of formality.
Neil Rakham, the guru of negotiations, differentiates between good negotiators and excellent negotiators. Good negotiators say, “I disagree because of the following reasons”. The other person does not hear beyond, “I disagree”. Excellent negotiators say “For all these reasons, I find it difficult to agree”.
Finally, humour can lighten a tense moment. But it must be appropriate or it can become a deal-breaker. There is a character in a Wodehouse novel, desperate to sell his house. But he has a joke that he just cannot resist telling. Just when the deal is about to close, he blurts out, “In the summer, the lake is at the bottom of the house. In winter, the house is at the bottom of the lake.” The prospective buyer drops the pen with which he was about to sign the cheque and heads for wide open spaces.
Good negotiators say, “I disagree because of the following reasons”. The other person does not hear beyond, “I disagree”. Excellent negotiators say “For all these reasons, I find it difficult to agree”.
Ranjan Acharya is Senior Vice President – Corporate Human Resources Development at Wipro Corporation
Tuesday, June 12, 2007
Marketing concepts creatively explained
Marketing concepts creativvely explained
A Professor at IIM Ahmedabad, was explaining marketing
concepts to the Students:-
1. You see a gorgeous girl at a party. You go up to her and say: "I am
very rich. Marry me!" - That's Direct Marketing .
2. You're at a party with a bunch of friends and see a gorgeous
girl.One of your friends goes up to her and pointing at you says:
"He's very rich, Marry him." - That's Advertising .
3. You see a gorgeous girl at a party. You go up to her and get her
telephone number. The next day, you call and say: "Hi, I'm very rich.
Marry me." - That's Telemarketing .
4. You're at a party and see gorgeous girl. You get up and straighten
your tie, you walk up to her and pour her a drink, you open the door
(of the car)for her, pick up her bag after she drops it, offer her
ride and then say:"By the way, I'm rich. Will you marry me?" - That's
Public Relations .
5. You're at a party and see gorgeous girl. She walks up to you and
says: "You are very rich! Can you marry ! me?" - That's Brand
Recognition .
6. You see a gorgeous girl at a party. You go up to her and say: "I am
very rich. Marry me!" She gives you a nice hard slap on your face. -
That's Customer Feedback .
7. You see a gorgeous girl at a party. You go up to her and say: "I am
very rich. Marry me!" And she introduces you to her husband. - That's
demand and supply gap .
8. You see a gorgeous girl at a party. You go up to her and before you
say anything, another person come and tell her: "I'm rich. Will you
marry me?" and she goes with him - That's competition eating into your
market share .
9. You see a gorgeous girl at a party. You go up to her and before you
say: "I'm rich, Marry me!" your wife arrives. - That's restriction for
entering new markets .
A Professor at IIM Ahmedabad, was explaining marketing
concepts to the Students:-
1. You see a gorgeous girl at a party. You go up to her and say: "I am
very rich. Marry me!" - That's Direct Marketing .
2. You're at a party with a bunch of friends and see a gorgeous
girl.One of your friends goes up to her and pointing at you says:
"He's very rich, Marry him." - That's Advertising .
3. You see a gorgeous girl at a party. You go up to her and get her
telephone number. The next day, you call and say: "Hi, I'm very rich.
Marry me." - That's Telemarketing .
4. You're at a party and see gorgeous girl. You get up and straighten
your tie, you walk up to her and pour her a drink, you open the door
(of the car)for her, pick up her bag after she drops it, offer her
ride and then say:"By the way, I'm rich. Will you marry me?" - That's
Public Relations .
5. You're at a party and see gorgeous girl. She walks up to you and
says: "You are very rich! Can you marry ! me?" - That's Brand
Recognition .
6. You see a gorgeous girl at a party. You go up to her and say: "I am
very rich. Marry me!" She gives you a nice hard slap on your face. -
That's Customer Feedback .
7. You see a gorgeous girl at a party. You go up to her and say: "I am
very rich. Marry me!" And she introduces you to her husband. - That's
demand and supply gap .
8. You see a gorgeous girl at a party. You go up to her and before you
say anything, another person come and tell her: "I'm rich. Will you
marry me?" and she goes with him - That's competition eating into your
market share .
9. You see a gorgeous girl at a party. You go up to her and before you
say: "I'm rich, Marry me!" your wife arrives. - That's restriction for
entering new markets .
Monday, June 11, 2007
'FREE SOFTWARE IS ABOUT FREEDOM, NOT COST'
'FREE SOFTWARE IS ABOUT FREEDOM, NOT COST'
Leslie D'Monte, Mumbai, June 11, 2007
Business Standard“Software patents are a killer for the economy in the end”. It’s natural to be surprised at this statement when most major global and Indian information technology firms – right from IBM, Microsoft, Sun to Tata Consultancy Services, Infosys and Wipro – speak of their patents and innovation in the same breath.
But, then, it’s the 34-year-old Georg C F Greve that you’re speaking to – President of the Free Software Foundation, Europe –, whose sole mission is to make a strong case for “free software” and explain why “software patents” should be anathema to society.
On his first trip to India, Greve surely has an idea of what he’s speaking about. He has a classic scientific background as “Diplom” Physicist and software development was part of his life since he was 12 years old. He says “there’s no scientific study in the world to show that patents increase innovation. It’s simply a way of locking the competition out”.
He’s makes a clear distinction between copyrights and patents. “Copyright refers to a concrete implementation, the concrete program, and the line of code. Whereas a patent always refers to an idea, to the principle, to the vague idea behind the program, and any program incorporates thousands, hundreds of thousands of such ideas sometimes, he explains.
“There is no way anyone can get away from this truth. The only real issue for you is when you violate them (the software patents), will you be prosecuted, or are you big enough to resist this? As it turns out, only very few, very large players are big enough to resist this,” he adds.
Leslie D'Monte, Mumbai, June 11, 2007
Business Standard“Software patents are a killer for the economy in the end”. It’s natural to be surprised at this statement when most major global and Indian information technology firms – right from IBM, Microsoft, Sun to Tata Consultancy Services, Infosys and Wipro – speak of their patents and innovation in the same breath.
But, then, it’s the 34-year-old Georg C F Greve that you’re speaking to – President of the Free Software Foundation, Europe –, whose sole mission is to make a strong case for “free software” and explain why “software patents” should be anathema to society.
On his first trip to India, Greve surely has an idea of what he’s speaking about. He has a classic scientific background as “Diplom” Physicist and software development was part of his life since he was 12 years old. He says “there’s no scientific study in the world to show that patents increase innovation. It’s simply a way of locking the competition out”.
He’s makes a clear distinction between copyrights and patents. “Copyright refers to a concrete implementation, the concrete program, and the line of code. Whereas a patent always refers to an idea, to the principle, to the vague idea behind the program, and any program incorporates thousands, hundreds of thousands of such ideas sometimes, he explains.
“There is no way anyone can get away from this truth. The only real issue for you is when you violate them (the software patents), will you be prosecuted, or are you big enough to resist this? As it turns out, only very few, very large players are big enough to resist this,” he adds.
Signing of 3 MOUs Buttresses Saudi-Indian Business Network
Signing of 3 MOUs Buttresses Saudi-Indian Business Network
K.S. Ramkumar, Arab News
JEDDAH, 11 June 2007 — Saudi-India relations are centuries old and they need to be nurtured and developed beyond the scope of business, speakers told a meeting here on Saturday night.
The scope of bilateral ties could be expanded beyond trade into cultural, educational, sports and other spheres of life, Ghazi Faisal Binzagr of Beit Binzagr said in his keynote address at a symposium on “Partnership in prosperity” organized by Saudi-Indian Business Network (SIBN) in association with the Consulate General of India at the InterContinental Hotel.
The event was held to commemorate second anniversary of SIBN and was marked by the signing of three memorandums of understanding. One of them, between SIBN and the Jeddah Chamber of Commerce and Industry, was signed by JCCI Vice Chairman Mazen Batterjee and Amr Hassan Enany, who heads the Enany Group of companies and is the honorary consul general of the Czech Republic. The other two were signed by Enany and Sunanda Rajendran, executive director of Mumbai-based Indo-Arab Chamber of Commerce & Industries, and by Enany and Dr. Mohammed Imran, national president of Bangalore-based Indo-Middle East Chamber of Commerce.
Binzagr, who gave a human touch to the age-old bilateral relations, recounted his pleasant experiences with Indians in his personal life and also at his company in an extempore speech.
“I have not visited India so far,” he said, but he had been interacting with Indians and knew them as “sincere, honest, dedicated, committed and diligent.” His grandmother once told him, “somewhere in the lineage there was an Indian grandmother.”
He mentioned some other Indians who had been working with him and for his company toward growth. He also singled out Hassan Ghias, vice president of his company, and Anil Mehra of Unilever Arabia. “We have a relationship that is centuries old and we need to develop them in all spheres of life,” Binzagr said.
Dr. N. Janardhan, program manager, Gulf-Asia Relations and editor of “Gulf in the Media” at Dubai-based Gulf Research Center, in his keynote address, said with India viewing the Gulf, South Asia and Central Asia as “strategically interactive and interrelated regions,” it was time for the GCC to reciprocate in a commensurate way. “A GCC-India relationship based purely on selling and buying of oil is untenable in the long run. The GCC countries need to take note of the fact that India’s basket of energy suppliers is widening,” he said, adding that with a view to strengthening and diversifying relations, it was imperative for both to acquire fresh dimensions to consolidate their positions in a fast-changing world.
Enany said he took up SIBN’s presidency after being persuaded by its PR executive Asar Khan. “However, after seeing the video clips of SIBN provided by its General Secretary C.J. Shahjahan, I must say it is a challenging task, especially after King Abdullah endorsed the bilateral relationship during his visit to India last year. Which means we will have to live up to his vision.” He hoped the three MOUs signed would further strengthen the bilateral ties and follow many more to come.
Indian Ambassador M.O.H. Farook told Saudi investors to consider India as the best destination for business. “Come and see India and the big role it can play. The country will be the third largest economy by 2020,” he said.
SIBN’s founder President Abdul Khaliq Saeed hoped that SIBN would play a bigger role to promote bilateral business under Enany’s leadership.
Indian Consul General Dr. Ausaf Sayeed said Saudi Arabia offered several attractions to Indian investors, especially after its entry into the World Trade Organization. “I am confident that the vast business potential available in the Kingdom will be taken advantage of by Indian businessmen,” he said. Referring to the recent trends in bilateral relations, he said: “We have not tapped even a fraction of the bilateral potential. Much remains to be done. There are several complementary areas in the two economies that need to be identified, he said and hoped that during Enany’s leadership, businessmen of the two countries would discover newer opportunities for trade, investment and joint ventures.
Saudi executive members of SIBN include Dr. Saud Saleh Islam, Ziad Al-Bassam, Mazen M. Batterjee, Dr. Adil A. Bushnak, Dr. Ghazi Faisal Binzagr, Osama Abdullah El Khereiji, Hany M. Aref and Dr. Asma Siddiki.
SIBN’s executive committee for 2007-08 includes Amassador M.O. H. Farook as patron, Consul General Dr. Ausaf Sayeed as vice patron, Hasan Ghias as vice president, C.J. Shahjahan as general secretary, Dr. Asma Siddiki as joint secretary, Dr. Asar Khan as PR officer and Mohammed Salabat Lodhi as treasurer.
Indian executive members of SIBN include Mehboob Peshimam, Shoheb Kazi, Chander Nain, Shabbir A Patel, M.K. Hasanuddin, Mohammed Khursheed Akhtar, Atul Dua, Aziz Ur rab, Riaz Mulla and Ramesh T. Dhas.
K.S. Ramkumar, Arab News
JEDDAH, 11 June 2007 — Saudi-India relations are centuries old and they need to be nurtured and developed beyond the scope of business, speakers told a meeting here on Saturday night.
The scope of bilateral ties could be expanded beyond trade into cultural, educational, sports and other spheres of life, Ghazi Faisal Binzagr of Beit Binzagr said in his keynote address at a symposium on “Partnership in prosperity” organized by Saudi-Indian Business Network (SIBN) in association with the Consulate General of India at the InterContinental Hotel.
The event was held to commemorate second anniversary of SIBN and was marked by the signing of three memorandums of understanding. One of them, between SIBN and the Jeddah Chamber of Commerce and Industry, was signed by JCCI Vice Chairman Mazen Batterjee and Amr Hassan Enany, who heads the Enany Group of companies and is the honorary consul general of the Czech Republic. The other two were signed by Enany and Sunanda Rajendran, executive director of Mumbai-based Indo-Arab Chamber of Commerce & Industries, and by Enany and Dr. Mohammed Imran, national president of Bangalore-based Indo-Middle East Chamber of Commerce.
Binzagr, who gave a human touch to the age-old bilateral relations, recounted his pleasant experiences with Indians in his personal life and also at his company in an extempore speech.
“I have not visited India so far,” he said, but he had been interacting with Indians and knew them as “sincere, honest, dedicated, committed and diligent.” His grandmother once told him, “somewhere in the lineage there was an Indian grandmother.”
He mentioned some other Indians who had been working with him and for his company toward growth. He also singled out Hassan Ghias, vice president of his company, and Anil Mehra of Unilever Arabia. “We have a relationship that is centuries old and we need to develop them in all spheres of life,” Binzagr said.
Dr. N. Janardhan, program manager, Gulf-Asia Relations and editor of “Gulf in the Media” at Dubai-based Gulf Research Center, in his keynote address, said with India viewing the Gulf, South Asia and Central Asia as “strategically interactive and interrelated regions,” it was time for the GCC to reciprocate in a commensurate way. “A GCC-India relationship based purely on selling and buying of oil is untenable in the long run. The GCC countries need to take note of the fact that India’s basket of energy suppliers is widening,” he said, adding that with a view to strengthening and diversifying relations, it was imperative for both to acquire fresh dimensions to consolidate their positions in a fast-changing world.
Enany said he took up SIBN’s presidency after being persuaded by its PR executive Asar Khan. “However, after seeing the video clips of SIBN provided by its General Secretary C.J. Shahjahan, I must say it is a challenging task, especially after King Abdullah endorsed the bilateral relationship during his visit to India last year. Which means we will have to live up to his vision.” He hoped the three MOUs signed would further strengthen the bilateral ties and follow many more to come.
Indian Ambassador M.O.H. Farook told Saudi investors to consider India as the best destination for business. “Come and see India and the big role it can play. The country will be the third largest economy by 2020,” he said.
SIBN’s founder President Abdul Khaliq Saeed hoped that SIBN would play a bigger role to promote bilateral business under Enany’s leadership.
Indian Consul General Dr. Ausaf Sayeed said Saudi Arabia offered several attractions to Indian investors, especially after its entry into the World Trade Organization. “I am confident that the vast business potential available in the Kingdom will be taken advantage of by Indian businessmen,” he said. Referring to the recent trends in bilateral relations, he said: “We have not tapped even a fraction of the bilateral potential. Much remains to be done. There are several complementary areas in the two economies that need to be identified, he said and hoped that during Enany’s leadership, businessmen of the two countries would discover newer opportunities for trade, investment and joint ventures.
Saudi executive members of SIBN include Dr. Saud Saleh Islam, Ziad Al-Bassam, Mazen M. Batterjee, Dr. Adil A. Bushnak, Dr. Ghazi Faisal Binzagr, Osama Abdullah El Khereiji, Hany M. Aref and Dr. Asma Siddiki.
SIBN’s executive committee for 2007-08 includes Amassador M.O. H. Farook as patron, Consul General Dr. Ausaf Sayeed as vice patron, Hasan Ghias as vice president, C.J. Shahjahan as general secretary, Dr. Asma Siddiki as joint secretary, Dr. Asar Khan as PR officer and Mohammed Salabat Lodhi as treasurer.
Indian executive members of SIBN include Mehboob Peshimam, Shoheb Kazi, Chander Nain, Shabbir A Patel, M.K. Hasanuddin, Mohammed Khursheed Akhtar, Atul Dua, Aziz Ur rab, Riaz Mulla and Ramesh T. Dhas.
Sunday, June 10, 2007
GOOGLE HELPS US SEE HOW MUCH OPTIONS ARE WORTH
GOOGLE HELPS US SEE HOW MUCH OPTIONS ARE WORTH
Las Vegas
The Economic Times
Say this for Google: The company that created the dominant search engine for the Internet doesn’t lack for intriguing ideas. Take its plan to let employees, other than senior officers, sell their stock options, announced last month. Starting April, holders of vested options will be able to auction them to Wall Street securities firms.
The theory is that setting up such an auction will create more value per option share for employees. Till the California-based company came up with its plan, a Google employee could only exercise his or her option. It couldn’t be sold.
But as option fans know, the true value of an option with time remaining is always higher than the current paper profit in that option. Indeed, even an underwater option has some value — provided it can be sold — so long as it hasn’t expired. At present, the typical employee either doesn’t understand how much his or her options are worth or, alternatively, thinks they are worth very little.
Las Vegas
The Economic Times
Say this for Google: The company that created the dominant search engine for the Internet doesn’t lack for intriguing ideas. Take its plan to let employees, other than senior officers, sell their stock options, announced last month. Starting April, holders of vested options will be able to auction them to Wall Street securities firms.
The theory is that setting up such an auction will create more value per option share for employees. Till the California-based company came up with its plan, a Google employee could only exercise his or her option. It couldn’t be sold.
But as option fans know, the true value of an option with time remaining is always higher than the current paper profit in that option. Indeed, even an underwater option has some value — provided it can be sold — so long as it hasn’t expired. At present, the typical employee either doesn’t understand how much his or her options are worth or, alternatively, thinks they are worth very little.
TEACHERS IN LEARNING
TEACHERS IN LEARNING
Radhieka Pandeya, New Delhi
Business StandardIn keeping with the times, teachers are now being trained to make full use of technology.
“We don’t need no education,” sang Pink Floyd in their hit single. True. We don’t. But teachers insist on teaching. And now they’re getting a taste of their own medicine.
Government schools and private institutions alike are training their teachers in technology, leadership and entrepreneurship in association with various organisations like Microsoft, Intel, Oracle, Azim Premji Foundation and the Wadhwani Foundation.
Started in 2002, Microsoft’s Project Shiksha has impacted over 1.1 lakh teachers in government schools across the country, especially in the rural areas. Technologically the most advanced government schools in the country are the Navodaya Vidyalayas spread all over the country.
H N S Rao, deputy commissioner for academics, Jawahar Navodaya Vidyalayas, says, “We now have the infrastructure required to impart quality education and so we can focus on training our teachers to make full use of the infrastructure.” With facilities like the upcoming video conferencing and existing video multicasting in 201 schools of the total 539, the future looks bright.
Besides teaming with Microsoft to impart IT education to its teachers, the schools have also tied up with Intel, which trains principals and administrators in leadership through its Intel Learning Program, Oracle, which trains teachers in using programmes like think.com and thinkquest.com while the Azim Premji Foundation has given content software to the schools.
The schools, in fact, are now training their teachers to use open source software — free software like Linux Operating System.
Radhieka Pandeya, New Delhi
Business StandardIn keeping with the times, teachers are now being trained to make full use of technology.
“We don’t need no education,” sang Pink Floyd in their hit single. True. We don’t. But teachers insist on teaching. And now they’re getting a taste of their own medicine.
Government schools and private institutions alike are training their teachers in technology, leadership and entrepreneurship in association with various organisations like Microsoft, Intel, Oracle, Azim Premji Foundation and the Wadhwani Foundation.
Started in 2002, Microsoft’s Project Shiksha has impacted over 1.1 lakh teachers in government schools across the country, especially in the rural areas. Technologically the most advanced government schools in the country are the Navodaya Vidyalayas spread all over the country.
H N S Rao, deputy commissioner for academics, Jawahar Navodaya Vidyalayas, says, “We now have the infrastructure required to impart quality education and so we can focus on training our teachers to make full use of the infrastructure.” With facilities like the upcoming video conferencing and existing video multicasting in 201 schools of the total 539, the future looks bright.
Besides teaming with Microsoft to impart IT education to its teachers, the schools have also tied up with Intel, which trains principals and administrators in leadership through its Intel Learning Program, Oracle, which trains teachers in using programmes like think.com and thinkquest.com while the Azim Premji Foundation has given content software to the schools.
The schools, in fact, are now training their teachers to use open source software — free software like Linux Operating System.
GOVT TO WORK WITH B-SCHOOLS FOR E-GOV
GOVT TO WORK WITH B-SCHOOLS FOR E-GOV
Mumbai/Ahmedabad
Business StandardThe Department of Information Technology, Government of India, will avail of consultancy services of premier management schools like the Indian Institute of Management, Ahmedabad (IIM-A) and Management Development Institute (MDI), Gurgaon for assessing its e-governance projects.
The management institutes will be the third party project leaders and validators of government projects functional for a period of at least one year.
The department has identified 200 to 300 e-governance projects for external evaluation which include computerisation of land records, registration, income tax, commercial taxes among others.
“Institutes like IIM-A and MDI, Gurgaon, will be associated in a knowledge partnership and will take up roles of project leaders and validators for the e-governance projects implemented by the department of IT,” said R Chandrashekhar, Additional Secretary, Department of IT, Govt of India
Mumbai/Ahmedabad
Business StandardThe Department of Information Technology, Government of India, will avail of consultancy services of premier management schools like the Indian Institute of Management, Ahmedabad (IIM-A) and Management Development Institute (MDI), Gurgaon for assessing its e-governance projects.
The management institutes will be the third party project leaders and validators of government projects functional for a period of at least one year.
The department has identified 200 to 300 e-governance projects for external evaluation which include computerisation of land records, registration, income tax, commercial taxes among others.
“Institutes like IIM-A and MDI, Gurgaon, will be associated in a knowledge partnership and will take up roles of project leaders and validators for the e-governance projects implemented by the department of IT,” said R Chandrashekhar, Additional Secretary, Department of IT, Govt of India
TAX SHADOW OVER VENTURE FUNDS
TAX SHADOW OVER VENTURE FUNDS
Hema Ramakrishnan & Shaji Vikraman, New Delhi
The Economic TimesStarting April 1, 2007, venture capital funds (VCFs) will have to pay tax on income — whether interest or capital gains — earned from their past investments in firms operating in a host of sectors ranging from manufacturing and real-estate to non-tech services. By nature, VCFs invest in unlisted firms or start-ups (called venture capital undertakings (VCUs) in tax jargon) and exit a few years down the line after the firms stabilise their operations.
VCFs registered with Sebi enjoy the benefit of a pass-through status under the income-tax law: they don’t pay tax on any income earned from investments made in a VCU. Sebi regulations define a VCU as a domestic company which has not listed its shares on the and is in the business of providing services, production or manufacturing that are not in the negative list of the Central Government. Venture funds are also not permitted to invest in financial services and gold financing.
The government has now proposed to limit the tax benefits to investments made by venture funds in nine select sectors from April 1, 2007. A VCU is being redefined as an unlisted company engaged in the business of biotechnology, information technology relating to software and hardware development, nanotechnology, seed research and development, R&D of new chemical entities in the pharma sector, dairy industry, poultry industry, production of bio-fuels and hotel-cum-convention centres with a capacity of at least 3,000.
According to officials, Sebi-registered VCFs which have until now invested in sectors other than those specified in the finance bill 2007 (and listed above) will cease to enjoy a tax exemption on income that accrues to them from these investments after April 1, 2007.
This means such VCFs will have to pay tax on income earned on investments made in equities prior to April 1, 2007. Officials said that the government has decided to curtail the tax benefits after getting reports of misuse of the tax benefits by several funds.
It is another matter that the move will also help further discourage investment flows into real estate. In fact, some venture funds investing in India had revised their original charters to include investment in realty also as a permissible activity.
According to Shefali Goradia, head, international taxes, Nishith Desai Associates, the implications of the proposed amendment are likely to be far-reaching, for domestic VCFs. Foreign funds investing in India directly into the Indian portfolio companies will not be impacted by the proposal as most of these funds have been set up in tax neutral jurisdictions like Mauritius and will continue to enjoy tax exemption on capital gains tax under the Double Tax Avoidance Agreements.
However, those funds which follow a unified structure and invest through a domestic Sebi registered VCF, may have an uncertain fate till there is clarity on the acceptability of pass-through for domestic trusts under the general tax regime under Sections 160-164 of I-T Act.
“It is not advisable in the taxation statute to introduce provisions that take away benefits mid-course as investors would have made their decisions on the basis of the prevailing law at that time. Such proposals would amount to breach of promissory estoppel,” said Sudhir Kapadia, partner KPMG.
Hema Ramakrishnan & Shaji Vikraman, New Delhi
The Economic TimesStarting April 1, 2007, venture capital funds (VCFs) will have to pay tax on income — whether interest or capital gains — earned from their past investments in firms operating in a host of sectors ranging from manufacturing and real-estate to non-tech services. By nature, VCFs invest in unlisted firms or start-ups (called venture capital undertakings (VCUs) in tax jargon) and exit a few years down the line after the firms stabilise their operations.
VCFs registered with Sebi enjoy the benefit of a pass-through status under the income-tax law: they don’t pay tax on any income earned from investments made in a VCU. Sebi regulations define a VCU as a domestic company which has not listed its shares on the and is in the business of providing services, production or manufacturing that are not in the negative list of the Central Government. Venture funds are also not permitted to invest in financial services and gold financing.
The government has now proposed to limit the tax benefits to investments made by venture funds in nine select sectors from April 1, 2007. A VCU is being redefined as an unlisted company engaged in the business of biotechnology, information technology relating to software and hardware development, nanotechnology, seed research and development, R&D of new chemical entities in the pharma sector, dairy industry, poultry industry, production of bio-fuels and hotel-cum-convention centres with a capacity of at least 3,000.
According to officials, Sebi-registered VCFs which have until now invested in sectors other than those specified in the finance bill 2007 (and listed above) will cease to enjoy a tax exemption on income that accrues to them from these investments after April 1, 2007.
This means such VCFs will have to pay tax on income earned on investments made in equities prior to April 1, 2007. Officials said that the government has decided to curtail the tax benefits after getting reports of misuse of the tax benefits by several funds.
It is another matter that the move will also help further discourage investment flows into real estate. In fact, some venture funds investing in India had revised their original charters to include investment in realty also as a permissible activity.
According to Shefali Goradia, head, international taxes, Nishith Desai Associates, the implications of the proposed amendment are likely to be far-reaching, for domestic VCFs. Foreign funds investing in India directly into the Indian portfolio companies will not be impacted by the proposal as most of these funds have been set up in tax neutral jurisdictions like Mauritius and will continue to enjoy tax exemption on capital gains tax under the Double Tax Avoidance Agreements.
However, those funds which follow a unified structure and invest through a domestic Sebi registered VCF, may have an uncertain fate till there is clarity on the acceptability of pass-through for domestic trusts under the general tax regime under Sections 160-164 of I-T Act.
“It is not advisable in the taxation statute to introduce provisions that take away benefits mid-course as investors would have made their decisions on the basis of the prevailing law at that time. Such proposals would amount to breach of promissory estoppel,” said Sudhir Kapadia, partner KPMG.
MANAGING DATA THE SMART WAY
MANAGING DATA THE SMART WAY
V. Rishi Kumar, March 26, 2007
The Hindu Business LineFor rapidly expanding enterprises in the banking and financial services, telecom, manufacturing and retail verticals, managing increasing data flow has become a key technology infrastructure issue.
For, database is the underlying foundation for business applications, be it for core banking or enterprise resource planning (ERP) or customer relationship management (CRM).
Oracle Corporation provides insights into how database management is being handled by Indian companies.
According to S.P.S. Grover, Vice-President, Technology Sales, Oracle India, market trends point towards an increasing number of Indian enterprises taking to Real Application Clusters (RACs) and Grid computing technologies.
To put it simply, real application clusters allow a database to be installed across multiple servers in an IT infrastructure. The clustering technology distributes transaction processing across several servers.
Grid computing offers an opportunity to improve existing IT infrastructures while lowering costs. Oracle's grid infrastructure says the company, pools IT resources into a single virtual computer that analyses demand and adjusts supply accordingly.
For more on these concepts, here are excerpts from a chat eWorld had with Grover:
What challenges are enterprises facing in managing large databases?
Data or information has become one of the most valuable assets for an organisation to facilitate decision-making and comply with various regulatory requirements. Businesses are highly dependent on information technology for day-to-day operational and strategic decisions as they churn out huge volumes of operational data every hour.
This applies to all organisations whether they are small, medium or large. In order to manage and maintain their information, companies need a reliable, scalable and flexible IT infrastructure. This is where databases play a critical role.
How are companies addressing this need?
Enterprises are evaluating low-cost computing options to address this business imperative. India witnessed one of the sharpest increases in grid adoption, according to the Oracle Grid Index IV report released in August 2006. At a 38 percent increase, the high grid adoption rate implies the readiness and maturity of Indian enterprises to invest in modern, flexible and dynamic information technology infrastructure.
What role is Oracle playing in this space?
Going by the commercial success of enterprises adopting grid-computing technology, we feel that mainstream business is getting more comfortable and technology savvy.
Oracle is taking initiatives to make the grid popular in the Indian market. We are working with customers as well as local Independent Software vendors (ISVs) and large system integrators (SI) in India to enable them on grid.
Our channel partners are also playing an important role in educating customers on the benefits of this technology.
Compliance-related issues and the need for storage have added to the technology challenge and complexity?
It's not only the need for storage or storage management.
It's the need to generate, protect, share and manage that data effectively so as to enable businesses to meet compliance norms, and become successful.
How does Business Intelligence (BI) application fit into the real application cluster space?
BI, in the form of data warehousing, can consolidate and organise data so it can be easily managed, accessed, and analysed.
V. Rishi Kumar, March 26, 2007
The Hindu Business LineFor rapidly expanding enterprises in the banking and financial services, telecom, manufacturing and retail verticals, managing increasing data flow has become a key technology infrastructure issue.
For, database is the underlying foundation for business applications, be it for core banking or enterprise resource planning (ERP) or customer relationship management (CRM).
Oracle Corporation provides insights into how database management is being handled by Indian companies.
According to S.P.S. Grover, Vice-President, Technology Sales, Oracle India, market trends point towards an increasing number of Indian enterprises taking to Real Application Clusters (RACs) and Grid computing technologies.
To put it simply, real application clusters allow a database to be installed across multiple servers in an IT infrastructure. The clustering technology distributes transaction processing across several servers.
Grid computing offers an opportunity to improve existing IT infrastructures while lowering costs. Oracle's grid infrastructure says the company, pools IT resources into a single virtual computer that analyses demand and adjusts supply accordingly.
For more on these concepts, here are excerpts from a chat eWorld had with Grover:
What challenges are enterprises facing in managing large databases?
Data or information has become one of the most valuable assets for an organisation to facilitate decision-making and comply with various regulatory requirements. Businesses are highly dependent on information technology for day-to-day operational and strategic decisions as they churn out huge volumes of operational data every hour.
This applies to all organisations whether they are small, medium or large. In order to manage and maintain their information, companies need a reliable, scalable and flexible IT infrastructure. This is where databases play a critical role.
How are companies addressing this need?
Enterprises are evaluating low-cost computing options to address this business imperative. India witnessed one of the sharpest increases in grid adoption, according to the Oracle Grid Index IV report released in August 2006. At a 38 percent increase, the high grid adoption rate implies the readiness and maturity of Indian enterprises to invest in modern, flexible and dynamic information technology infrastructure.
What role is Oracle playing in this space?
Going by the commercial success of enterprises adopting grid-computing technology, we feel that mainstream business is getting more comfortable and technology savvy.
Oracle is taking initiatives to make the grid popular in the Indian market. We are working with customers as well as local Independent Software vendors (ISVs) and large system integrators (SI) in India to enable them on grid.
Our channel partners are also playing an important role in educating customers on the benefits of this technology.
Compliance-related issues and the need for storage have added to the technology challenge and complexity?
It's not only the need for storage or storage management.
It's the need to generate, protect, share and manage that data effectively so as to enable businesses to meet compliance norms, and become successful.
How does Business Intelligence (BI) application fit into the real application cluster space?
BI, in the form of data warehousing, can consolidate and organise data so it can be easily managed, accessed, and analysed.
LINUX GROUP PLANS COUNTER TO MICROSOFT-NOVELL DEAL
LINUX GROUP PLANS COUNTER TO MICROSOFT-NOVELL DEAL
Boston
The Economic TimesThe non-profit group that owns rights to much of the Linux operating system says it will seek to undermine a controversial deal between Microsoft Corp and Novell Inc through a new software licensing agreement to be unveiled on Wednesday. The two companies announced a partnership in November that included a cross-patent protection agreement that some critics say implies Microsoft has legal rights to Linux, the cooperatively developed software that is gaining ground with corporate users.
“We need to make sure such deals don’t make a mockery of the goals of free software,” Peter Brown, executive director of the Free Software Foundation, said in an interview with Reuters late on Monday. Free software, which is also known as open-source software, refers to computer programs that are available to the general public to be used, revised and shared. Products from companies like Microsoft are considered proprietary and their code generally cannot be revised and shared.
While open-source software is free, it also has become big business. An industry of consultants and other services supports it, and corporations contribute heavily to open-source development. Linux runs on more than 20% of global server computers, compared to well over 60% of such powerful machines running Windows, according to recent Gartner data.
Boston
The Economic TimesThe non-profit group that owns rights to much of the Linux operating system says it will seek to undermine a controversial deal between Microsoft Corp and Novell Inc through a new software licensing agreement to be unveiled on Wednesday. The two companies announced a partnership in November that included a cross-patent protection agreement that some critics say implies Microsoft has legal rights to Linux, the cooperatively developed software that is gaining ground with corporate users.
“We need to make sure such deals don’t make a mockery of the goals of free software,” Peter Brown, executive director of the Free Software Foundation, said in an interview with Reuters late on Monday. Free software, which is also known as open-source software, refers to computer programs that are available to the general public to be used, revised and shared. Products from companies like Microsoft are considered proprietary and their code generally cannot be revised and shared.
While open-source software is free, it also has become big business. An industry of consultants and other services supports it, and corporations contribute heavily to open-source development. Linux runs on more than 20% of global server computers, compared to well over 60% of such powerful machines running Windows, according to recent Gartner data.
VC FORTUNES HINGE ON EARNINGS CATEGORY
VC FORTUNES HINGE ON EARNINGS CATEGORY
Sugata Ghosh & Shishir Prasad, Mumbai
The Economic TimesThe worst isn't over for venture capital funds (VCFs). The million-dollar question before funds now is the rate at which their earnings will be taxed. Will it be 10% that stock investors pay on "capital gains" or, will the IT assessing officer use his discretion and treat the earnings as "business income" and slap a 30% tax?
There is no straight answer to this: while one may argue that VCFs buy stocks with the clear purpose to invest and hold on for a few years, it is also perceived that trusts are set up for the "business of investment" and hence what they earn is business income.
More so, since VCFs invest in unlisted stocks, where long-term gains are also taxed. A 30% tax could deal a body blow to VCFs, making them significantly less attractive as invesment vehicles. The tricky issue has cropped up even as funds are finding it difficult to come to terms with the new proposal that brings most VCFs under the tax net.
"This will be an issue in trust taxation. Appropriate safeguards should be taken in terms of documentation and conduct of the trust activities that the gains are not characterised as business profit," feels Punit Shah, head of banking & financial services at RSM & Co.
Till now, a VCF was considered a "tax-transparent entity", where the trust did not pay tax and only the investors in the fund were liable to pay taxes directly on the income received by them from the fund. According to Finance Bill 2007, only those VCFs which invest in specified sectors (like biotechnology, R&D, dairy and poultry industry) would enjoy tax exemption.
Sugata Ghosh & Shishir Prasad, Mumbai
The Economic TimesThe worst isn't over for venture capital funds (VCFs). The million-dollar question before funds now is the rate at which their earnings will be taxed. Will it be 10% that stock investors pay on "capital gains" or, will the IT assessing officer use his discretion and treat the earnings as "business income" and slap a 30% tax?
There is no straight answer to this: while one may argue that VCFs buy stocks with the clear purpose to invest and hold on for a few years, it is also perceived that trusts are set up for the "business of investment" and hence what they earn is business income.
More so, since VCFs invest in unlisted stocks, where long-term gains are also taxed. A 30% tax could deal a body blow to VCFs, making them significantly less attractive as invesment vehicles. The tricky issue has cropped up even as funds are finding it difficult to come to terms with the new proposal that brings most VCFs under the tax net.
"This will be an issue in trust taxation. Appropriate safeguards should be taken in terms of documentation and conduct of the trust activities that the gains are not characterised as business profit," feels Punit Shah, head of banking & financial services at RSM & Co.
Till now, a VCF was considered a "tax-transparent entity", where the trust did not pay tax and only the investors in the fund were liable to pay taxes directly on the income received by them from the fund. According to Finance Bill 2007, only those VCFs which invest in specified sectors (like biotechnology, R&D, dairy and poultry industry) would enjoy tax exemption.
VC/PE INFLOW DOUBLES TO $2.4 BILLION IN JAN-MARCH
VC/PE INFLOW DOUBLES TO $2.4 BILLION IN JAN-MARCH
Thanuja B M, Bangalore
The Economic TimesDespite the seesawing of the stock markets and the Budget announcements, the overall VC/PE investments in India seems to be riding on a crest. The first quarter of 2007 (January-March) has seen VC/PE investments almost double to about $2.4 billion across 78 deals compared with $1.4 billion across 69 deals in the same period last year.
"The overall VC/PE scenario is doing well, what with investments in the first quarter of this year almost doubling to about $2.4 billion. If this growth continues, we could very well see total investments crossing $10 billion in 2007, especially with several new funds coming in," says Arun Natarajan of Venture Intelligence India, which tracks VC/PE investments in India. The figure of $2.4 billion doesn't include real estate investments made in the first three months of the year.
As far as segments go, IT, manufacturing, financial services, engineering and construction, transport and logistics reign when it comes to attracting investments.
Some of the big deals announced in the first quarter include a combined deal of about $500 million for stake in National Stock Exchange by New York Stock Exchange, Goldman Sachs, Softbank and General Atlantic; Nimbus Communications received funding of about $125 million from British investment firm 3i Group Plc, Cisco Systems Inc and Oman International Fund in January; Khazanah Nasional Berhad, the investment arm of the Malaysian government, hiking its stake in IDFC to 9.95% by paying around Rs 820 crore in March; Kotak Mahindra Bank's Private Equity Group investment of Rs 100 crore in DRS Logistics, a logistics and transportation service provider based out of Hyderabad; ADM, an HK-based fund, invested $82 million for a 10% stake in SKNL; Ramky Infra, a Hyderabad-based construction company, raised Rs 125 crore from IL&FS Investment Managers and UAE based Sabre-Abraaj PE fund etc.
However, there has been a flat growth in VC investments, which accounted for only about $100 million in Q1 across 15 deals. The figure includes 11 deals in the sub-$10 million category. Q1 of 2006 had seen a couple of more deals than this year, says Natarajan, adding that the sectors seeing traction continued to be Internet, mobile VAS and BPO.
Natarajan feels that buyouts, mid-market deals and early stage deals would see significant growth during 2007 while pre-IPO deals might see a slowdown if the stock markets keep up their volatility.
Thanuja B M, Bangalore
The Economic TimesDespite the seesawing of the stock markets and the Budget announcements, the overall VC/PE investments in India seems to be riding on a crest. The first quarter of 2007 (January-March) has seen VC/PE investments almost double to about $2.4 billion across 78 deals compared with $1.4 billion across 69 deals in the same period last year.
"The overall VC/PE scenario is doing well, what with investments in the first quarter of this year almost doubling to about $2.4 billion. If this growth continues, we could very well see total investments crossing $10 billion in 2007, especially with several new funds coming in," says Arun Natarajan of Venture Intelligence India, which tracks VC/PE investments in India. The figure of $2.4 billion doesn't include real estate investments made in the first three months of the year.
As far as segments go, IT, manufacturing, financial services, engineering and construction, transport and logistics reign when it comes to attracting investments.
Some of the big deals announced in the first quarter include a combined deal of about $500 million for stake in National Stock Exchange by New York Stock Exchange, Goldman Sachs, Softbank and General Atlantic; Nimbus Communications received funding of about $125 million from British investment firm 3i Group Plc, Cisco Systems Inc and Oman International Fund in January; Khazanah Nasional Berhad, the investment arm of the Malaysian government, hiking its stake in IDFC to 9.95% by paying around Rs 820 crore in March; Kotak Mahindra Bank's Private Equity Group investment of Rs 100 crore in DRS Logistics, a logistics and transportation service provider based out of Hyderabad; ADM, an HK-based fund, invested $82 million for a 10% stake in SKNL; Ramky Infra, a Hyderabad-based construction company, raised Rs 125 crore from IL&FS Investment Managers and UAE based Sabre-Abraaj PE fund etc.
However, there has been a flat growth in VC investments, which accounted for only about $100 million in Q1 across 15 deals. The figure includes 11 deals in the sub-$10 million category. Q1 of 2006 had seen a couple of more deals than this year, says Natarajan, adding that the sectors seeing traction continued to be Internet, mobile VAS and BPO.
Natarajan feels that buyouts, mid-market deals and early stage deals would see significant growth during 2007 while pre-IPO deals might see a slowdown if the stock markets keep up their volatility.
ARE INDIANS READY FOR GEN X OUTSOURCING?
ARE INDIANS READY FOR GEN X OUTSOURCING?
Ganesh Natarajan
Hindustan TimesSpeaking at the Center for the Advanced Study of India in Philadelphia, USA earlier this year, Kishore Mahbubani, Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore said, "Many small and medium-sized companies in America had never heard of outsourcing before Lou Dobbs. Now, thanks to Lou Dobbs, they have heard of outsourcing and they are going to India." This is true today, not just of American companies but even smaller firms in Asia, Africa and even India which are suddenly realising the value of focusing on the core and outsourcing context activites - IT, HR administration, recruiting and even accounts receivable follow-ups to the IT and BPO sector in India.
Bharti in its landmark deal with IBM, which was celebrated even by Nasscom through the conferment of one its prestigious Innovation awards at the recent Nasscom Leadership summit in Mumbai, was perhaps the pioneer in understanding and deriving the value from a outsourcing relationship and the good news is that many other candidates are waiting in the wings to take the step towards appointing an outsourcing partner. The provider community is also revisiting their business models to make it easy for first time participants to get their feet wet without getting drenched by some of the harsher issues that confront total outsourcing with in any country or offshore.
New models are emerging to decrease the up front investments - Salesforce.com and Oracle's new On Demand Services are just two examples, one with a completely hosted solution which customers can avail of on a per seat basis and the other still necessitating purchase of software but eliminating the hassles of managing the application by enabling all that to be done by consultants outside the firm.
For a first time outsourcer, the is sues to content with are not just those that the larger firms like GE, CISCO and HSBC have had to contend with in their out sourcing journey but a whole new set of challenges that are unique to smaller firms. The solution lies in three core services that the larger firms may not need but which can make the difference between success and failure for smaller ones.
The writer is deputy chairrnan & MD of Zensar Technologies
Ganesh Natarajan
Hindustan TimesSpeaking at the Center for the Advanced Study of India in Philadelphia, USA earlier this year, Kishore Mahbubani, Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore said, "Many small and medium-sized companies in America had never heard of outsourcing before Lou Dobbs. Now, thanks to Lou Dobbs, they have heard of outsourcing and they are going to India." This is true today, not just of American companies but even smaller firms in Asia, Africa and even India which are suddenly realising the value of focusing on the core and outsourcing context activites - IT, HR administration, recruiting and even accounts receivable follow-ups to the IT and BPO sector in India.
Bharti in its landmark deal with IBM, which was celebrated even by Nasscom through the conferment of one its prestigious Innovation awards at the recent Nasscom Leadership summit in Mumbai, was perhaps the pioneer in understanding and deriving the value from a outsourcing relationship and the good news is that many other candidates are waiting in the wings to take the step towards appointing an outsourcing partner. The provider community is also revisiting their business models to make it easy for first time participants to get their feet wet without getting drenched by some of the harsher issues that confront total outsourcing with in any country or offshore.
New models are emerging to decrease the up front investments - Salesforce.com and Oracle's new On Demand Services are just two examples, one with a completely hosted solution which customers can avail of on a per seat basis and the other still necessitating purchase of software but eliminating the hassles of managing the application by enabling all that to be done by consultants outside the firm.
For a first time outsourcer, the is sues to content with are not just those that the larger firms like GE, CISCO and HSBC have had to contend with in their out sourcing journey but a whole new set of challenges that are unique to smaller firms. The solution lies in three core services that the larger firms may not need but which can make the difference between success and failure for smaller ones.
The writer is deputy chairrnan & MD of Zensar Technologies
GOOGLE’S NEW DIRECTORY SERVICE
GOOGLE’S NEW DIRECTORY SERVICE
San Francisco, April 09, 2007
DNAWeb search leader Google stepped up an experiment to use speech recognition on telephones so consumers can ask for local information, in a challenge to directory assistance providers.
The company is inviting US callers to dial 1-800-GOOG-411 (1-800-466-4411) from any phone to test a voice-activated service free-of-charge that it calls Google Voice Local Search, which is available on its experimental Google Labs site.
“Using this service, you get fast access to the same local information you’d find on Google Maps,” an explanation of the new experiment said on the Google Labs site. “You don’t need a computer, you don’t need an Internet connection, and you don’t even need to use your cellphone keypad,” it said.
Google’s experiment comes weeks after Microsoft agreed to acquire voice search firm Tellme Networks, in a deal sources said is valued at more than $800 million.
San Francisco, April 09, 2007
DNAWeb search leader Google stepped up an experiment to use speech recognition on telephones so consumers can ask for local information, in a challenge to directory assistance providers.
The company is inviting US callers to dial 1-800-GOOG-411 (1-800-466-4411) from any phone to test a voice-activated service free-of-charge that it calls Google Voice Local Search, which is available on its experimental Google Labs site.
“Using this service, you get fast access to the same local information you’d find on Google Maps,” an explanation of the new experiment said on the Google Labs site. “You don’t need a computer, you don’t need an Internet connection, and you don’t even need to use your cellphone keypad,” it said.
Google’s experiment comes weeks after Microsoft agreed to acquire voice search firm Tellme Networks, in a deal sources said is valued at more than $800 million.
THE TEAM IS THE CLINCHER
THE TEAM IS THE CLINCHER'
D. Murali/C. Ramesh, April 09, 2007
The Hindu Business LineVenture capitalists are generally perceived to be reclusive folk, difficult to get in touch with and rarely engaging in public debate. But Alok Mittal comes as a pleasant surprise in the inaccessible world of venture fund managers.
The executive director of Canaan Partners, who helped the company establish its Indian operations, Mittal is actively involved with Band of Angels (he's a founding member) and www.venturewoods.org, a blog that acts as an interface between innovators, VCs and anyone tracking the sector.
As a successful entrepreneur who founded JobsAhead.com and sold it to Monster for Rs 40 crore, Mittal is now on the other side, with the mandate of identifying opportunities, companies and people to build companies in the wireless, technology and Internet domains.
As one riding the crest of the second wave of VC activity in the country, he is confident that the right mix of VC support and home-grown talent can produce world-beating companies. "There is a lot of energy and enthusiasm we see in entrepreneurs. With the right quality of mentoring and support, I believe that some of these businesses can create large successes. We are very excited about the quality of entrepreneurs we are seeing in India."
His stint as an entrepreneur holds him in good stead, as he is able to bring both perspectives to the table. "Having done it yourself gives a credible position to help other entrepreneurs in building their companies. Personally, a VC job is very exciting because you meet hundreds of entrepreneurs on a monthly basis, and each of them comes with new ideas, energy and perspectives."
Canaan is an early stage investor in IT businesses in areas such as Internet, wireless, BPO, productised services and software products. "We are seeing exciting ideas in each of these categories. One reason why there is such optimism around the entrepreneurial activity today is that there are some very large businesses that are just becoming feasible due to explosive growth in the Indian market."
D. Murali/C. Ramesh, April 09, 2007
The Hindu Business LineVenture capitalists are generally perceived to be reclusive folk, difficult to get in touch with and rarely engaging in public debate. But Alok Mittal comes as a pleasant surprise in the inaccessible world of venture fund managers.
The executive director of Canaan Partners, who helped the company establish its Indian operations, Mittal is actively involved with Band of Angels (he's a founding member) and www.venturewoods.org, a blog that acts as an interface between innovators, VCs and anyone tracking the sector.
As a successful entrepreneur who founded JobsAhead.com and sold it to Monster for Rs 40 crore, Mittal is now on the other side, with the mandate of identifying opportunities, companies and people to build companies in the wireless, technology and Internet domains.
As one riding the crest of the second wave of VC activity in the country, he is confident that the right mix of VC support and home-grown talent can produce world-beating companies. "There is a lot of energy and enthusiasm we see in entrepreneurs. With the right quality of mentoring and support, I believe that some of these businesses can create large successes. We are very excited about the quality of entrepreneurs we are seeing in India."
His stint as an entrepreneur holds him in good stead, as he is able to bring both perspectives to the table. "Having done it yourself gives a credible position to help other entrepreneurs in building their companies. Personally, a VC job is very exciting because you meet hundreds of entrepreneurs on a monthly basis, and each of them comes with new ideas, energy and perspectives."
Canaan is an early stage investor in IT businesses in areas such as Internet, wireless, BPO, productised services and software products. "We are seeing exciting ideas in each of these categories. One reason why there is such optimism around the entrepreneurial activity today is that there are some very large businesses that are just becoming feasible due to explosive growth in the Indian market."
MICROSOFT, AT YOUR SERVICE NOW
MICROSOFT, AT YOUR SERVICE NOW
N Shivapriya & Shishir Prasad
The Economic TimesKevin Turner, COO, Microsoft, is responsible for the strategic and operational leadership of Microsoft’s world-wide sales, marketing and services organisation. He leads a global set-up of more than 35,000 employees, including field sales and marketing professionals, who delivered over $44 billion revenue in fiscal 2006.
Prior to the Microsoft stint, Turner worked for nearly 20 years at Wal-Mart Stores, where he started as a cashier while still in the college. In 1995, at the age of 29, he became the youngest corporate officer ever named at Wal-Mart. Along with Bill Gates, Steve Ballmer and five other senior executives, Turner serves on the Senior Leadership Team that sets the overall strategy and direction for Microsoft.
Turner was in India to meet customers.
What are the implications for Microsoft as company when you move from a PC on every desktop to connecting the digital lifestyle and workplace?
Where we work, how we work and when we work is getting blurred. It has changed dramatically and will continue to evolve as technology gets better, lighter and more mobile. The ability to hook up and get access anywhere, anytime, on anything is certainly a big aspiration. Our research department works very hard at building the technology and software to help enable that.
When the company whose DNA is building products and breakthrough technologies gets into managed software and services, is there a disconnect?
It makes it easier because we have a founder who believes in continually reinventing the company - Be it the GUI or web browser or internet, Bill has repositioned the company and chartered us around emerging technologies as they have hit the market multiple times in our history. This is a company with a willingness to change with a willingness to reinvent itself.
What are the implications of Windows Live, Office Live, XBOX live - software which is continuously on. what does it mean for technology development and the organisation?
It means you got to have more data centres, great connectivity and generally have lots of storage, and it means that you need to be very good at building 24/7 application. This forces us to rethink our business model and start from outside in rather than outwards from the product. So we have to think about what the customer will pay and work backwards.
What does it mean to the way you make products or develop software itself. What is the first step in this model vis-a-vis normal-packaged product business?
The first thing is to find out which of our products today look good as a service. Do people want us to host e-mail, calendaring, e-mail filtering, security, desktop management? So, it is not hard. You pick up your business model and figure out which things the partners want to be part of and which things customers want to be part of and make sure that you build software that connects those. That is how we think about it. The simple part is starting with the products and solutions that we have today and then figuring out how we can make it more of a hosted service that is a very strategic thing as it relates to starting from outside and working backwards.
How India plays a strategic role within Microsoft? Are the innovations here interesting enough to be taken global?
There were some incredible innovations in Vista which we built here, particularly in the networking space. Some features of Vista that we shipped worldwide came out of the R&D centre in India. And that’s a real testimony to where we are and where we are heading for. Work is in progress at the centre of excellence in RFID, a technology that I have a passion for and believe that it can do wonders for a lot industries. We will continue to find those things and see how we can export them globally and learn. We have some interesting work happening in IPTV and will try some interesting business models. It is in partnership with Reliance.
There is another trend emerging where we leverage the capabilities of the R&D centre to innovate for the local market as well. One of the really cool things that emerged out of research two years ago is the multi-mouse. We realised that most schools have one PC that the whole class uses.
Usually, the bully in the crowd gets hold of the mouse and the game is over. So, they developed an application called multi-mouse to attach multiple mice to a single process. Until each child solves the problem, the group cannot progress to the next stage in the exercise. This has been commercialised and launched in the market place globally. Most importantly, it has an HSK that allows developers to create applications taking advantage of this capability.
N Shivapriya & Shishir Prasad
The Economic TimesKevin Turner, COO, Microsoft, is responsible for the strategic and operational leadership of Microsoft’s world-wide sales, marketing and services organisation. He leads a global set-up of more than 35,000 employees, including field sales and marketing professionals, who delivered over $44 billion revenue in fiscal 2006.
Prior to the Microsoft stint, Turner worked for nearly 20 years at Wal-Mart Stores, where he started as a cashier while still in the college. In 1995, at the age of 29, he became the youngest corporate officer ever named at Wal-Mart. Along with Bill Gates, Steve Ballmer and five other senior executives, Turner serves on the Senior Leadership Team that sets the overall strategy and direction for Microsoft.
Turner was in India to meet customers.
What are the implications for Microsoft as company when you move from a PC on every desktop to connecting the digital lifestyle and workplace?
Where we work, how we work and when we work is getting blurred. It has changed dramatically and will continue to evolve as technology gets better, lighter and more mobile. The ability to hook up and get access anywhere, anytime, on anything is certainly a big aspiration. Our research department works very hard at building the technology and software to help enable that.
When the company whose DNA is building products and breakthrough technologies gets into managed software and services, is there a disconnect?
It makes it easier because we have a founder who believes in continually reinventing the company - Be it the GUI or web browser or internet, Bill has repositioned the company and chartered us around emerging technologies as they have hit the market multiple times in our history. This is a company with a willingness to change with a willingness to reinvent itself.
What are the implications of Windows Live, Office Live, XBOX live - software which is continuously on. what does it mean for technology development and the organisation?
It means you got to have more data centres, great connectivity and generally have lots of storage, and it means that you need to be very good at building 24/7 application. This forces us to rethink our business model and start from outside in rather than outwards from the product. So we have to think about what the customer will pay and work backwards.
What does it mean to the way you make products or develop software itself. What is the first step in this model vis-a-vis normal-packaged product business?
The first thing is to find out which of our products today look good as a service. Do people want us to host e-mail, calendaring, e-mail filtering, security, desktop management? So, it is not hard. You pick up your business model and figure out which things the partners want to be part of and which things customers want to be part of and make sure that you build software that connects those. That is how we think about it. The simple part is starting with the products and solutions that we have today and then figuring out how we can make it more of a hosted service that is a very strategic thing as it relates to starting from outside and working backwards.
How India plays a strategic role within Microsoft? Are the innovations here interesting enough to be taken global?
There were some incredible innovations in Vista which we built here, particularly in the networking space. Some features of Vista that we shipped worldwide came out of the R&D centre in India. And that’s a real testimony to where we are and where we are heading for. Work is in progress at the centre of excellence in RFID, a technology that I have a passion for and believe that it can do wonders for a lot industries. We will continue to find those things and see how we can export them globally and learn. We have some interesting work happening in IPTV and will try some interesting business models. It is in partnership with Reliance.
There is another trend emerging where we leverage the capabilities of the R&D centre to innovate for the local market as well. One of the really cool things that emerged out of research two years ago is the multi-mouse. We realised that most schools have one PC that the whole class uses.
Usually, the bully in the crowd gets hold of the mouse and the game is over. So, they developed an application called multi-mouse to attach multiple mice to a single process. Until each child solves the problem, the group cannot progress to the next stage in the exercise. This has been commercialised and launched in the market place globally. Most importantly, it has an HSK that allows developers to create applications taking advantage of this capability.
MNCS FAST CATCHING-UP WITH INDIAN OFFSHORE FIRMS: STUDY
MNCS FAST CATCHING-UP WITH INDIAN OFFSHORE FIRMS: STUDY
New Delhi
MintThe latest wave report by Forrester Research, analysing leading North American applications outsourcing (AO) providers, reveals that MNCs and offshore providers are increasingly competing for the same deals, and that offshore players still have the edge in price competitiveness.
The report ‘The Forrester Wave - North American Applications Outsourcing, Q1 2007’ names five offshore providers – Cognizant, Infosys, Satyam, TCS and Wipro, and 6 MNC providers - Accenture, Capgemini, CSC, IBM, Keane, Perot Systems as leaders in North American applications outsourcing. CGI and EDS, the MNC providers, were judged strong performers. Forrester evaluated 13 leading AO providers across 50 criteria and spoke with more than 60 user client references who were customers of these 13 firms for this wave report.
”Though offshore players still hold the lead in price competitiveness, MNC players still have the edge in global reach. And with once-distinct value propositions between global players and offshore players converging, AO providers now exhibit contrasting — and in many ways complementary — strengths,” said Forrester Research vice president and research director Christine Ferrusi Ross.
According to Forrester, these companies offer adequate service offerings but they must be more proactive in demonstrating both business and technical value in AO engagements, though their customers are a generally satisfied bunch. Customers have to push their providers to supply the best practices that they assume they have learned from other customer engagements.
New Delhi
MintThe latest wave report by Forrester Research, analysing leading North American applications outsourcing (AO) providers, reveals that MNCs and offshore providers are increasingly competing for the same deals, and that offshore players still have the edge in price competitiveness.
The report ‘The Forrester Wave - North American Applications Outsourcing, Q1 2007’ names five offshore providers – Cognizant, Infosys, Satyam, TCS and Wipro, and 6 MNC providers - Accenture, Capgemini, CSC, IBM, Keane, Perot Systems as leaders in North American applications outsourcing. CGI and EDS, the MNC providers, were judged strong performers. Forrester evaluated 13 leading AO providers across 50 criteria and spoke with more than 60 user client references who were customers of these 13 firms for this wave report.
”Though offshore players still hold the lead in price competitiveness, MNC players still have the edge in global reach. And with once-distinct value propositions between global players and offshore players converging, AO providers now exhibit contrasting — and in many ways complementary — strengths,” said Forrester Research vice president and research director Christine Ferrusi Ross.
According to Forrester, these companies offer adequate service offerings but they must be more proactive in demonstrating both business and technical value in AO engagements, though their customers are a generally satisfied bunch. Customers have to push their providers to supply the best practices that they assume they have learned from other customer engagements.
CAMBRIDGE SOLUTIONS NAMED TO WORLD’S TOP 100 OUTSOURCING COMPANIES LIST
CAMBRIDGE SOLUTIONS NAMED TO WORLD’S TOP 100 OUTSOURCING COMPANIES LIST
Bangalore
Press Release The Hindu Business LineCambridge Solutions Ltd., one of the leading knowledge-based IT and BPO firms in the world, has been named to ‘The International Association of Outsourcing Professionals (IAOP)’ “2007 Global Outsourcing 100” list.
In addition to its inclusion in the top 100 list, Cambridge is also included on sub-lists for the top firms in six specific verticals: Financial Services–Banking; Financial Services–Insurance; Financial Management; Government; Information and Communications Technology Management; and Transaction Processing.
Geographically, Cambridge is included in the lists for best outsourcing companies in India and Western Europe.
The 2007 Global Outsourcing 100 recognizes the world’s best outsourcing service providers. It is based on applications received and evaluated by an independent judges’ panel. According to Christina L. Powers, Executive Director, IAOP, “Making the Global Outsourcing 100 list is a real accomplishment for both the established leaders in our industry as well as for its up and coming rising stars.”
The selection is based on a wide range of factors, including size and growth, the customer experience, depth and breadth of competencies, and management capabilities.
“Cambridge’s selection in the IAOP lists recognizes our leadership position within the strategic global outsourcing industry, as well as our specializations in finance, insurance, finance and accounting, and transaction processing,” said Chris Sinclair, Executive Chairman and CEO of Cambridge Solutions. “Our strong showing in financial services validates the value proposition that our offshore operations have brought to the market.”
Cambridge was also recently ranked No. 1 on the annual Top Ten BPO Full Service Transaction Processing list, compiled by Brown-Wilson Group, which is led by the authors of the best-selling book, “The Black Book of Outsourcing.” The company was also ranked within the top 10 in three other lists: BPO Mid-market firms (# 2), Full Service Banking BPO (# 4) and Finance and Accounting Outsourcing Accounts Receivable (# 7).
Additionally, Cambridge was named one of the top three “Best Performing BPO Providers” in the world for the second year by Global Services and neoIT, which also cited the company as one of the top three Leaders in Human Capital Development
Bangalore
Press Release The Hindu Business LineCambridge Solutions Ltd., one of the leading knowledge-based IT and BPO firms in the world, has been named to ‘The International Association of Outsourcing Professionals (IAOP)’ “2007 Global Outsourcing 100” list.
In addition to its inclusion in the top 100 list, Cambridge is also included on sub-lists for the top firms in six specific verticals: Financial Services–Banking; Financial Services–Insurance; Financial Management; Government; Information and Communications Technology Management; and Transaction Processing.
Geographically, Cambridge is included in the lists for best outsourcing companies in India and Western Europe.
The 2007 Global Outsourcing 100 recognizes the world’s best outsourcing service providers. It is based on applications received and evaluated by an independent judges’ panel. According to Christina L. Powers, Executive Director, IAOP, “Making the Global Outsourcing 100 list is a real accomplishment for both the established leaders in our industry as well as for its up and coming rising stars.”
The selection is based on a wide range of factors, including size and growth, the customer experience, depth and breadth of competencies, and management capabilities.
“Cambridge’s selection in the IAOP lists recognizes our leadership position within the strategic global outsourcing industry, as well as our specializations in finance, insurance, finance and accounting, and transaction processing,” said Chris Sinclair, Executive Chairman and CEO of Cambridge Solutions. “Our strong showing in financial services validates the value proposition that our offshore operations have brought to the market.”
Cambridge was also recently ranked No. 1 on the annual Top Ten BPO Full Service Transaction Processing list, compiled by Brown-Wilson Group, which is led by the authors of the best-selling book, “The Black Book of Outsourcing.” The company was also ranked within the top 10 in three other lists: BPO Mid-market firms (# 2), Full Service Banking BPO (# 4) and Finance and Accounting Outsourcing Accounts Receivable (# 7).
Additionally, Cambridge was named one of the top three “Best Performing BPO Providers” in the world for the second year by Global Services and neoIT, which also cited the company as one of the top three Leaders in Human Capital Development
US CO EYEING INDIAN FIRMS TO EXPAND LINUX ECOSYSTEM
US CO EYEING INDIAN FIRMS TO EXPAND LINUX ECOSYSTEM
Bangalore
The Hindu Business LineThe US-based Open Invention Network is seeking out "big Indian firms" to licence out open source products. Recently, Oracle became a licensee of patents held by OIN and the firm is now looking at Indian firms to expand the Linux ecosystem, according to Jerry Rosenthal, CEO, Open Invention Network.
It announced on Tuesday that two Indian licensees have been added. IT consultancy ClickforHelpIndia.com and offshore software solutions firm Quad One Technologies, have joined the growing list of companies that are leveraging OIN to ensure Linux-based, intellectual property protection for themselves and their end-user customers.
OIN was formed in 2005 and has taken upon itself the onus of `Defender of Linux patents'. Backed by Big Blue, Red Hat, Sony, Novell, Philips and NEC, it seeks to reassure customers who are worried about patent issues related to Linux.
The firm acquires patents and licences them out, royalty-free, to any company, institution or individual on the condition that the licensee agrees not to assert its patents against the `Linux System'.
Bangalore
The Hindu Business LineThe US-based Open Invention Network is seeking out "big Indian firms" to licence out open source products. Recently, Oracle became a licensee of patents held by OIN and the firm is now looking at Indian firms to expand the Linux ecosystem, according to Jerry Rosenthal, CEO, Open Invention Network.
It announced on Tuesday that two Indian licensees have been added. IT consultancy ClickforHelpIndia.com and offshore software solutions firm Quad One Technologies, have joined the growing list of companies that are leveraging OIN to ensure Linux-based, intellectual property protection for themselves and their end-user customers.
OIN was formed in 2005 and has taken upon itself the onus of `Defender of Linux patents'. Backed by Big Blue, Red Hat, Sony, Novell, Philips and NEC, it seeks to reassure customers who are worried about patent issues related to Linux.
The firm acquires patents and licences them out, royalty-free, to any company, institution or individual on the condition that the licensee agrees not to assert its patents against the `Linux System'.
NATIONAL MEET ON SOFTWARE ENGG UNDER WAY
NATIONAL MEET ON SOFTWARE ENGG UNDER WAY
Kochi
The Hindu Business LineDr P.K. Abdul Azis, Vice-Chancellor of Cochin University of Science and Technology, inaugurated the National Conference on Software Engineering NCSOFT - 07, organised by the Computer Science Department in association with Computer Society of India, Software Division and Cochin Chapter.
In his inaugural address, Dr Azis mentioned the upcoming Smart City project and said the university wanted to play a major role in grooming IT professionals and in taking up projects for the IT industry.
He also talked of his vision of starting an IT park and evolving a business model in the campus by utilising the human resources of the computer science and allied departments.
Satheesh Babu, Secretary, National Execom, CSI, said the academic programmes in software engineering were insufficient to cater to the current demands of the IT industry.
The conference proceedings comprising 50 research papers were released by H.R. Mohan, Chairman of the Software Division of CSI and Associate Vice-President of The Hindu by handing over a copy to the Vice-Chancellor.
Kochi
The Hindu Business LineDr P.K. Abdul Azis, Vice-Chancellor of Cochin University of Science and Technology, inaugurated the National Conference on Software Engineering NCSOFT - 07, organised by the Computer Science Department in association with Computer Society of India, Software Division and Cochin Chapter.
In his inaugural address, Dr Azis mentioned the upcoming Smart City project and said the university wanted to play a major role in grooming IT professionals and in taking up projects for the IT industry.
He also talked of his vision of starting an IT park and evolving a business model in the campus by utilising the human resources of the computer science and allied departments.
Satheesh Babu, Secretary, National Execom, CSI, said the academic programmes in software engineering were insufficient to cater to the current demands of the IT industry.
The conference proceedings comprising 50 research papers were released by H.R. Mohan, Chairman of the Software Division of CSI and Associate Vice-President of The Hindu by handing over a copy to the Vice-Chancellor.
IT MAJORS SIT ON GROWING CASH MOUNTAIN
IT MAJORS SIT ON GROWING CASH MOUNTAIN
Leslie D'Monte & B G Shirsat, Mumbai
Business StandardRiding high on a booming economy and growing outsourcing opportunities, the top five Indian information technology players – Tata Consultancy Services, Infosys Technologies, Wipro, Satyam Computer Services and HCL Technologies – have piled up net cash in excess of Rs 20,000 crore.
The net cash figure jumped 31 percent to Rs 21,148.42 crore in 2006-07 from Rs 16,151.36 crore in the previous year. Analysts estimate the figure to increase by 60 percent in the current financial year.
The logic lies in the revenue and net profit numbers of these companies. For instance, the total turnover of the five companies for the 2006-07 financial year stands at Rs 57,397 crore — a jump of nearly 40 percent over last fiscal’s number of Rs 41,033 crore.
If these companies continue growing at this pace, their total income should surpass $20 billion by 2009, even factoring the rupee appreciation and wage inflation, say analysts.
The aggregate net profit of these IT firms increased by around 56 percent to touch Rs 13,135 crore in the 2007 financial year. Accounting for analyst estimates of the net profit and likely dividend to be given to shareholders in the 2008 financial year, these five firms are expected to have Rs 33,743 crore as net cash – a 59.5 percent jump over the previous year’s figure.
So, what are they doing with the money? Almost all of them said the best thing to do with their cash mountains was to turn them over to shareholders. The five companies paid Rs 3,391.50 crore as dividend to shareholders in 2006-07, against Rs 3,341 crore in the previous year (which includes a special dividend by Infosys).
They also plan to use the cash for capital expenditure requirements (which is not much since these are service firms), acquisitions and hedging against adversities. “As with any IT firm, we use it (cash) to pay dividend, for capital expenditure (capex) and expansion, to fund existing business and develop sale and marketing presence, for potential acquisitions and to hedge against adversities like a 9/11 kind of situation,” said an HCL Technologies spokesperson.
A TCS spokesperson said the company uses the cash for capex, rewarding shareholders with dividends and funding inorganic growth.
IT firms generally dole out anywhere between 10 and 20 percent of their cash reserves as dividend.
Wipro, on the other hand, has been using cash to acquire companies and plans to buy companies (each deal worth $100 million) in pharmaceutical and aviation sectors. The company, which is sitting on Rs 5,564 crore in cash, says it prefers the cash acquisition route to equity.
Infosys Technologies is sitting on the largest pile of cash (Rs 6,157 crore). V Balakrishnan, CFO, Infosys Technologies, said, “The robust financial model followed at Infosys allows the company to balance profitability as well as invest in growth and maintain the liquidity position.” Infosys Technologies is also making substantial investments to scale up.
Leslie D'Monte & B G Shirsat, Mumbai
Business StandardRiding high on a booming economy and growing outsourcing opportunities, the top five Indian information technology players – Tata Consultancy Services, Infosys Technologies, Wipro, Satyam Computer Services and HCL Technologies – have piled up net cash in excess of Rs 20,000 crore.
The net cash figure jumped 31 percent to Rs 21,148.42 crore in 2006-07 from Rs 16,151.36 crore in the previous year. Analysts estimate the figure to increase by 60 percent in the current financial year.
The logic lies in the revenue and net profit numbers of these companies. For instance, the total turnover of the five companies for the 2006-07 financial year stands at Rs 57,397 crore — a jump of nearly 40 percent over last fiscal’s number of Rs 41,033 crore.
If these companies continue growing at this pace, their total income should surpass $20 billion by 2009, even factoring the rupee appreciation and wage inflation, say analysts.
The aggregate net profit of these IT firms increased by around 56 percent to touch Rs 13,135 crore in the 2007 financial year. Accounting for analyst estimates of the net profit and likely dividend to be given to shareholders in the 2008 financial year, these five firms are expected to have Rs 33,743 crore as net cash – a 59.5 percent jump over the previous year’s figure.
So, what are they doing with the money? Almost all of them said the best thing to do with their cash mountains was to turn them over to shareholders. The five companies paid Rs 3,391.50 crore as dividend to shareholders in 2006-07, against Rs 3,341 crore in the previous year (which includes a special dividend by Infosys).
They also plan to use the cash for capital expenditure requirements (which is not much since these are service firms), acquisitions and hedging against adversities. “As with any IT firm, we use it (cash) to pay dividend, for capital expenditure (capex) and expansion, to fund existing business and develop sale and marketing presence, for potential acquisitions and to hedge against adversities like a 9/11 kind of situation,” said an HCL Technologies spokesperson.
A TCS spokesperson said the company uses the cash for capex, rewarding shareholders with dividends and funding inorganic growth.
IT firms generally dole out anywhere between 10 and 20 percent of their cash reserves as dividend.
Wipro, on the other hand, has been using cash to acquire companies and plans to buy companies (each deal worth $100 million) in pharmaceutical and aviation sectors. The company, which is sitting on Rs 5,564 crore in cash, says it prefers the cash acquisition route to equity.
Infosys Technologies is sitting on the largest pile of cash (Rs 6,157 crore). V Balakrishnan, CFO, Infosys Technologies, said, “The robust financial model followed at Infosys allows the company to balance profitability as well as invest in growth and maintain the liquidity position.” Infosys Technologies is also making substantial investments to scale up.
FINANCIAL SERVICES WILL BE BIGGER THAN ITES SECTOR
FINANCIAL SERVICES WILL BE BIGGER THAN ITES SECTOR VOLUME'
G. Naga Sridhar, Hyderabad
The Hindu Business LineThe volume of financial services will be three times bigger than the volume of ITeS services in India over next 15 years and the employment generation would far exceed the BPO industry, according to Percy S. Mistry, Chairman, Oxford International Group.
This is because of the advent of significant portion of International Financial Services (IFS) to India and surge in volume of domestic financial services," Mistry, who headed a high-powered expert committee on making Mumbai an international finance centre said here.
Already, many global financial firms are mulling shifting of jobs to India. This would be followed by the arrival of internationally known financial firms.
"Expansion of IT services firms cannot bring or sustain a leading position for India in IFS. It can only be done by qualified and internationally known financial firms," he said.
In addition, a strong base in IFS can save lot of unnecessary expenditure for India. The proliferation of India MNCs abroad, the huge investments the country has to make in sectors such as infrastructure have already increased transfer pricing and fund-raising activities.
For infrastructure alone, we need to borrow $80 million per annum. All these add up to the quantum of IFS transactions, Mistry observed.
"Indian clients alone purchased $13 billion of IFS in 2005. It is estimated that by 2015, this could rise to $48 billion," he said.
Further, increasingly, the financial services are being out sourced to India and this would call for steps to develop financial services sector as different from BPO or IT services, he added.
G. Naga Sridhar, Hyderabad
The Hindu Business LineThe volume of financial services will be three times bigger than the volume of ITeS services in India over next 15 years and the employment generation would far exceed the BPO industry, according to Percy S. Mistry, Chairman, Oxford International Group.
This is because of the advent of significant portion of International Financial Services (IFS) to India and surge in volume of domestic financial services," Mistry, who headed a high-powered expert committee on making Mumbai an international finance centre said here.
Already, many global financial firms are mulling shifting of jobs to India. This would be followed by the arrival of internationally known financial firms.
"Expansion of IT services firms cannot bring or sustain a leading position for India in IFS. It can only be done by qualified and internationally known financial firms," he said.
In addition, a strong base in IFS can save lot of unnecessary expenditure for India. The proliferation of India MNCs abroad, the huge investments the country has to make in sectors such as infrastructure have already increased transfer pricing and fund-raising activities.
For infrastructure alone, we need to borrow $80 million per annum. All these add up to the quantum of IFS transactions, Mistry observed.
"Indian clients alone purchased $13 billion of IFS in 2005. It is estimated that by 2015, this could rise to $48 billion," he said.
Further, increasingly, the financial services are being out sourced to India and this would call for steps to develop financial services sector as different from BPO or IT services, he added.
ADOPT THE RIGHT ATTITUDE TO WORK AND COME OUT BETTER
'ADOPT THE RIGHT ATTITUDE TO WORK AND COME OUT BETTER'
Chennai
The Hindu Business LineAny job, however small or insignificant, should be approached with application and every employee should aim to excel in the job assigned to him or her.
That was the message Balakrishnan Shanmugham, Director, Global Workforce Management, Cognizant Technology Solutions, had for students and faculty members of the Department of Computer Science and Engineering at the Sai Ram Engineering College at a 'National Conference on Information and Communication Technology '07.' The meet was organised under the aegis of the BL Club.
"Be an expert in whatever you do. Develop core competence. Learn to do whatever you do well, approach it well and excel in it," Balakrishnan said.
According to him, a number of engineers neglected the importance of communication. "Unless you excel in communication, it will be difficult to converse with your team members and colleagues. Have a passion to make a difference. If you have a passion, you will do things better than others," he said.
According to Balakrishnan people could be categorised under three heads: the engaged, the disengaged, and the actively disengaged.
Engaged people were generally passionate about their work and any company would look for people who were engaged. On the other hand, the disengaged section were only partly involved in their work.
Dr M. Ponnavaikko, Director, Directorate of Research & Virtual Education, SRM University, while tracing the development of Information and Communication Technology (ICT), said it has been prevalent since the days of the Gurukulam.
ICT helped add value to education. But ICT, e-learning, online learning and virtual learning could not replace teachers. Teachers, he said, were essential.
Further, ICT had the power to bring together people living in different corners of the world. It had helped to transfer knowledge. Besides, virtual libraries were being developed with the help of ICT. "ICT does not belong to computer professionals alone. It belongs to everybody," he said
Chennai
The Hindu Business LineAny job, however small or insignificant, should be approached with application and every employee should aim to excel in the job assigned to him or her.
That was the message Balakrishnan Shanmugham, Director, Global Workforce Management, Cognizant Technology Solutions, had for students and faculty members of the Department of Computer Science and Engineering at the Sai Ram Engineering College at a 'National Conference on Information and Communication Technology '07.' The meet was organised under the aegis of the BL Club.
"Be an expert in whatever you do. Develop core competence. Learn to do whatever you do well, approach it well and excel in it," Balakrishnan said.
According to him, a number of engineers neglected the importance of communication. "Unless you excel in communication, it will be difficult to converse with your team members and colleagues. Have a passion to make a difference. If you have a passion, you will do things better than others," he said.
According to Balakrishnan people could be categorised under three heads: the engaged, the disengaged, and the actively disengaged.
Engaged people were generally passionate about their work and any company would look for people who were engaged. On the other hand, the disengaged section were only partly involved in their work.
Dr M. Ponnavaikko, Director, Directorate of Research & Virtual Education, SRM University, while tracing the development of Information and Communication Technology (ICT), said it has been prevalent since the days of the Gurukulam.
ICT helped add value to education. But ICT, e-learning, online learning and virtual learning could not replace teachers. Teachers, he said, were essential.
Further, ICT had the power to bring together people living in different corners of the world. It had helped to transfer knowledge. Besides, virtual libraries were being developed with the help of ICT. "ICT does not belong to computer professionals alone. It belongs to everybody," he said
LPO TO GENERATE $20 BILLION
LPO TO GENERATE $20 BILLION
Sutirtho Patranobis, New Delhi
Hindustan Times (Chandigarh edition)It may still be a nascent industry in India but legal process outsourcing or LPOs could generate up to $20 billion by 2015. Several MNCs in the US and Europe are outsourcing their legal requirements to Indian law firms based in Gurgaon, Noida, Bangalore and Mumbai.
Legal process outsourcing is one of the many new issues and trends that would come up for discussion at a three-day conference being jointly organised, under the aegis of the Indo-American Chamber of Commerce, by the US-based Centre for American and International and Society of Indian Law Firms (SILF). It is the first time that such a conference on law and legal framework is being held in India.
“At present, there are nearly 100 small and big law firms in India that are exclusively catering to their clients in the US, UK and other European countries. Many of them are dealing with patent applications. Indian firms go through patent applications, find out if they are in order and whether the applications conform to the country’s law. Big litigations, especially those dealing with commercial disputes, are also being referred to Indian firms which give suggestions and recommendations,’’ SILF president, Lalit Bhasin, said, adding that such issues are more or less same everywhere.
Besides going through patent applications, Indian lawyers also prepare pleadings and provide back-up support for litigation-related research. “As far as competence is considered, Indian lawyers are second to none and it also works out cheaper by about a fourth for a foreign firm to get it done by a firm in India rather than, say, by a US law firm,” Bhasin added.
Quoting Nasscom, Bhasin said Indian LPOs could generate $20 billion in the next decade. “The Services Export Promotion Council, set up by the Union Ministry of Commerce, is also looking into various issues related to LPOs,’’ Bhasin said.
He added the conference would also address concerns of foreign companies including the aspect of protecting the confidentiality clause
Sutirtho Patranobis, New Delhi
Hindustan Times (Chandigarh edition)It may still be a nascent industry in India but legal process outsourcing or LPOs could generate up to $20 billion by 2015. Several MNCs in the US and Europe are outsourcing their legal requirements to Indian law firms based in Gurgaon, Noida, Bangalore and Mumbai.
Legal process outsourcing is one of the many new issues and trends that would come up for discussion at a three-day conference being jointly organised, under the aegis of the Indo-American Chamber of Commerce, by the US-based Centre for American and International and Society of Indian Law Firms (SILF). It is the first time that such a conference on law and legal framework is being held in India.
“At present, there are nearly 100 small and big law firms in India that are exclusively catering to their clients in the US, UK and other European countries. Many of them are dealing with patent applications. Indian firms go through patent applications, find out if they are in order and whether the applications conform to the country’s law. Big litigations, especially those dealing with commercial disputes, are also being referred to Indian firms which give suggestions and recommendations,’’ SILF president, Lalit Bhasin, said, adding that such issues are more or less same everywhere.
Besides going through patent applications, Indian lawyers also prepare pleadings and provide back-up support for litigation-related research. “As far as competence is considered, Indian lawyers are second to none and it also works out cheaper by about a fourth for a foreign firm to get it done by a firm in India rather than, say, by a US law firm,” Bhasin added.
Quoting Nasscom, Bhasin said Indian LPOs could generate $20 billion in the next decade. “The Services Export Promotion Council, set up by the Union Ministry of Commerce, is also looking into various issues related to LPOs,’’ Bhasin said.
He added the conference would also address concerns of foreign companies including the aspect of protecting the confidentiality clause
PANCHAYATS TO HAVE THEIR OWN WEB PORTALS
PANCHAYATS TO HAVE THEIR OWN WEB PORTALS
Ananthakrishnan G, Thiruvananthapuram
The Times of IndiaTaking Panchayati Raj to new heights, Kerala is all set to give its gram panchayats space in the cyber world.
Under the programme being implemented with UNESCO’s assistance, gram panchayats in the state would soon have their own web portals, that too in Malayalam.
A pilot project will soon be underway in the ruling CPM's very own district, Kannur, and will extend to select panchayats. Initially 10 panchayats and a municipality would get their own websites.
The project is being implemented through 'Akshaya', a state government IT initiative that provides Internet access in remote areas of the state
Ananthakrishnan G, Thiruvananthapuram
The Times of IndiaTaking Panchayati Raj to new heights, Kerala is all set to give its gram panchayats space in the cyber world.
Under the programme being implemented with UNESCO’s assistance, gram panchayats in the state would soon have their own web portals, that too in Malayalam.
A pilot project will soon be underway in the ruling CPM's very own district, Kannur, and will extend to select panchayats. Initially 10 panchayats and a municipality would get their own websites.
The project is being implemented through 'Akshaya', a state government IT initiative that provides Internet access in remote areas of the state
IT IS BECOMING A VIRTUAL WORLD
IT IS BECOMING A VIRTUAL WORLD
Sreekala G
The Economic TimesIt could be dubbed one of the most disruptive technologies in a decade. And with some biggies (read: Microsoft) planning to launch their new products in this domain, virtualisation technology is all set to zip. By definition, virtualisation is a technique to hide the physical characteristics of computing resources from the way in which other systems, applications, or end users interact with those resources.
This includes making a single physical resource (like a server or an operating system) appear to function as multiple logical resources or it can include making multiple physical resources (like storage devices or servers) appear as a single logical resource. In short, virtualisation technology can help break down barriers to flexibility and compatibility while improving hardware utilisation rates considerably.
The virtualisation technology market is dominated by two scenarios: PC virtualisation and server virtualisation software. “Server consolidation is the fundamental driving force behind the virtualisation of servers while PC virtualisation software will enable running of multiple operating systems on the same physical computer. Using virtual PC, one can separate virtual machines, each of which virtualises the hardware of a complete physical computer,” says Arvind Padole, group manager (windows virtual machine), Microsoft India. Server virtualisation reduces the total cost of ownership and the electrical cost of cooling and power consumption.
It also helps in business continuity management and reduces technology infrastructure complexity. According to Padole, virtual machines are hardware agnostics and that makes disaster recovery much simplified and faster when compared to physical software. “Virtual servers can also streamline and accelerate software development and test life-cycle,” he adds.
Analyst reports suggest that spend on vitrualisation market is expected to grow from $1.5 billion in 2004 to $5.3 billion in 2009. In 2004, 135,000 machines were deployed with virtualisation in mind and this will increase to 1 million machines in 2009.
Agreeing with him, Diptarup Chakraborti, principal analyst, Gartner says that once an operating system is virtualised, it is easy to deploy it on any machine capable of hosting virtual images of the same format. “This eliminates the need to install and configure operating systems on each new server received; when a new server is received, an existing virtual image can be immediately loaded on to it,” he says.
According to him, server virtualisation also provides agility as it enables multiple redeployment of images from one type of server to another to meet changing demands. “The ability to move the entire software stack as a unit creates a great deal of agility for dealing with changing workload demands and simple fail over situations.
Gartner estimates show that globally, 40 percent of the mid-sized firms will reduce server population by at least 20 percent. “This is a great opportunity where virtualisation technology can cash in on. Even among Indian companies - especially belonging to the telecom and network domains - this technology is getting popular. The main users will be large and medium enterprises as small firms need to maintain large server population,” he adds.
And Microsoft is not a lone player in this space. IBM has been a pioneer in the area of virtual machines and HP also has expanded its portfolio of virtualisation solutions. “VMware also is a major player in this segment. The expanded possibilities offered by this technology has prompted hardware majors including AMD and Intel to bake virtualisation technology into their chips,” says an industry expert.
Sreekala G
The Economic TimesIt could be dubbed one of the most disruptive technologies in a decade. And with some biggies (read: Microsoft) planning to launch their new products in this domain, virtualisation technology is all set to zip. By definition, virtualisation is a technique to hide the physical characteristics of computing resources from the way in which other systems, applications, or end users interact with those resources.
This includes making a single physical resource (like a server or an operating system) appear to function as multiple logical resources or it can include making multiple physical resources (like storage devices or servers) appear as a single logical resource. In short, virtualisation technology can help break down barriers to flexibility and compatibility while improving hardware utilisation rates considerably.
The virtualisation technology market is dominated by two scenarios: PC virtualisation and server virtualisation software. “Server consolidation is the fundamental driving force behind the virtualisation of servers while PC virtualisation software will enable running of multiple operating systems on the same physical computer. Using virtual PC, one can separate virtual machines, each of which virtualises the hardware of a complete physical computer,” says Arvind Padole, group manager (windows virtual machine), Microsoft India. Server virtualisation reduces the total cost of ownership and the electrical cost of cooling and power consumption.
It also helps in business continuity management and reduces technology infrastructure complexity. According to Padole, virtual machines are hardware agnostics and that makes disaster recovery much simplified and faster when compared to physical software. “Virtual servers can also streamline and accelerate software development and test life-cycle,” he adds.
Analyst reports suggest that spend on vitrualisation market is expected to grow from $1.5 billion in 2004 to $5.3 billion in 2009. In 2004, 135,000 machines were deployed with virtualisation in mind and this will increase to 1 million machines in 2009.
Agreeing with him, Diptarup Chakraborti, principal analyst, Gartner says that once an operating system is virtualised, it is easy to deploy it on any machine capable of hosting virtual images of the same format. “This eliminates the need to install and configure operating systems on each new server received; when a new server is received, an existing virtual image can be immediately loaded on to it,” he says.
According to him, server virtualisation also provides agility as it enables multiple redeployment of images from one type of server to another to meet changing demands. “The ability to move the entire software stack as a unit creates a great deal of agility for dealing with changing workload demands and simple fail over situations.
Gartner estimates show that globally, 40 percent of the mid-sized firms will reduce server population by at least 20 percent. “This is a great opportunity where virtualisation technology can cash in on. Even among Indian companies - especially belonging to the telecom and network domains - this technology is getting popular. The main users will be large and medium enterprises as small firms need to maintain large server population,” he adds.
And Microsoft is not a lone player in this space. IBM has been a pioneer in the area of virtual machines and HP also has expanded its portfolio of virtualisation solutions. “VMware also is a major player in this segment. The expanded possibilities offered by this technology has prompted hardware majors including AMD and Intel to bake virtualisation technology into their chips,” says an industry expert.
'MARKET WILL TOUCH 25K IN 5 YRS'
Anusri Sahu, May 6, 2007
The Economic TimesA A Sarma, Executive Vice President, IDBI Capital
"Inflation concerns will hang over the market in the near term. Government policies to control inflation will affect margins and continue to drive investor sentiments. In the past year, inflation was high not because of primary articles but on account of energy and non-primary articles. The figure will remain moderate to low in the first half of 2007 due to the base effect but it is bound to escalate in the second half. It is a demand -pull inflation and increase in demand in the commodity space will fuel the rise. The challenge for the Government will be to regulate this.
Market, however, will remain bullish in the long term. In the next 5 years, Sensex will touch the 25,000-mark. As demand will be greater than the supply, companies will make higher profits, and so the market will touch new levels. But volatility will be high. Global cues will be a major factor in determining market movement.
According to a RBI report, Rupee is overvalued. We, at IDBI Capital feel rupee will depreciate in the near future. However, in the long term, it will again appreciate.
Most infotech stocks posted positive results in the quarter ending March 2007, despite the appreciation in Rupee. The Re factor will impact the margins of IT firms in the next quarter but the leading software giants will overcome the tide. IT big boys, Infosys, Wipro and Satyam, which run business on the international platform, will be able to mitigate their risks by working in several markets. Countries like Vietnam and Kazakhstan are profitable markets for our tech companies.
A sound option for any investor is to make systematic monthly investment in nifty index funds. One ought to stay invested at-least for a period of three years. Then, one could partly harvest the funds and keep reinvesting the rest.
Anusri Sahu, May 6, 2007
The Economic TimesA A Sarma, Executive Vice President, IDBI Capital
"Inflation concerns will hang over the market in the near term. Government policies to control inflation will affect margins and continue to drive investor sentiments. In the past year, inflation was high not because of primary articles but on account of energy and non-primary articles. The figure will remain moderate to low in the first half of 2007 due to the base effect but it is bound to escalate in the second half. It is a demand -pull inflation and increase in demand in the commodity space will fuel the rise. The challenge for the Government will be to regulate this.
Market, however, will remain bullish in the long term. In the next 5 years, Sensex will touch the 25,000-mark. As demand will be greater than the supply, companies will make higher profits, and so the market will touch new levels. But volatility will be high. Global cues will be a major factor in determining market movement.
According to a RBI report, Rupee is overvalued. We, at IDBI Capital feel rupee will depreciate in the near future. However, in the long term, it will again appreciate.
Most infotech stocks posted positive results in the quarter ending March 2007, despite the appreciation in Rupee. The Re factor will impact the margins of IT firms in the next quarter but the leading software giants will overcome the tide. IT big boys, Infosys, Wipro and Satyam, which run business on the international platform, will be able to mitigate their risks by working in several markets. Countries like Vietnam and Kazakhstan are profitable markets for our tech companies.
A sound option for any investor is to make systematic monthly investment in nifty index funds. One ought to stay invested at-least for a period of three years. Then, one could partly harvest the funds and keep reinvesting the rest.
WHY THE WORLD IS REALLY FLAT
Mitu Jayashankar & PP Thimmaya, Bangalore, May 07, 2007
The Economic TimesIn December last year was called to San Jose, Cisco’s HQs to meet chairman and CEO John Chambers over an extremely important matter. It had been four months since Salgame had left his position of president — Cisco Systems, India and Saarc. In his three-year tenure, Salgame had set India on a firm growth trajectory. Cisco’s revenues from India — $300 million in 2003 when Salgame took over — are expected to touch $1 billion by end of 2007. Cisco felt Salgame’s job in India was done and it was time for him to take on another responsibility, possibly in Cisco’s HQs in the US.
In January this year Mr Salgame took over his new role as president of global projects, Cisco — something Cisco had not made public till date.
That India has been changing fortunes of global technology companies — as an emerging marketplace as well as an outsourcing destination for cutting costs — is now a well-established fact. Cisco too has bet big on India — in October 2005 Chambers announced an investment of $1.1 billion in Indian operations. But Cisco’s interest in India has clearly grown bigger than that. In December 2006, Chambers sent one of his senior most executives, Wim Elfrink to Bangalore to set up Cisco’s globalisation centre, the only one of its kind outside San Jose.
Elfrink had said that one of his tasks is to identify the next generation of products and services coming out of this region and taking it global. The two businesses that Salgame is starting from India are part of that same globalisation vision. “Traditionally when an MNC wants to after something global, it comes from the HQ, that shift has happened at Cisco,” says Salgame.
One of the businesses that Salgame is leading is building a new go-to-market strategy for Cisco where the company is on the lookout for opportunities in emerging sectors where Cisco can play a market transformation role. For example countries like Dubai, China and Qatar are spending billions of dollars on building new cities from scratch.
Salgame’s team will meet government and private construction companies in these countries to impress upon them to set up the new cities as smart cities. Cisco’s pitch is that if the cities are digitally wired and networked from the planning stage then it becomes easier for the government to run services like eHealthcare, emergency services, education and financial services and so on.
Salgame says that there are a handful of such projects that Cisco will engage with in several countries around the world. The entire thought leadership for these projects would be driven from Bangalore. “This is not a management consulting role, we will have to execute these orders too,” says Mr Salgame. He is already started hiring talent, including moving people from San Jose to Bangalore. “The advantage of being in Bangalore is that within 5-7 hours of travel time you can touch 60% of the fastest growing GDPs of the world, from China to Northern Africa,” he says.
Mitu Jayashankar & PP Thimmaya, Bangalore, May 07, 2007
The Economic TimesIn December last year was called to San Jose, Cisco’s HQs to meet chairman and CEO John Chambers over an extremely important matter. It had been four months since Salgame had left his position of president — Cisco Systems, India and Saarc. In his three-year tenure, Salgame had set India on a firm growth trajectory. Cisco’s revenues from India — $300 million in 2003 when Salgame took over — are expected to touch $1 billion by end of 2007. Cisco felt Salgame’s job in India was done and it was time for him to take on another responsibility, possibly in Cisco’s HQs in the US.
In January this year Mr Salgame took over his new role as president of global projects, Cisco — something Cisco had not made public till date.
That India has been changing fortunes of global technology companies — as an emerging marketplace as well as an outsourcing destination for cutting costs — is now a well-established fact. Cisco too has bet big on India — in October 2005 Chambers announced an investment of $1.1 billion in Indian operations. But Cisco’s interest in India has clearly grown bigger than that. In December 2006, Chambers sent one of his senior most executives, Wim Elfrink to Bangalore to set up Cisco’s globalisation centre, the only one of its kind outside San Jose.
Elfrink had said that one of his tasks is to identify the next generation of products and services coming out of this region and taking it global. The two businesses that Salgame is starting from India are part of that same globalisation vision. “Traditionally when an MNC wants to after something global, it comes from the HQ, that shift has happened at Cisco,” says Salgame.
One of the businesses that Salgame is leading is building a new go-to-market strategy for Cisco where the company is on the lookout for opportunities in emerging sectors where Cisco can play a market transformation role. For example countries like Dubai, China and Qatar are spending billions of dollars on building new cities from scratch.
Salgame’s team will meet government and private construction companies in these countries to impress upon them to set up the new cities as smart cities. Cisco’s pitch is that if the cities are digitally wired and networked from the planning stage then it becomes easier for the government to run services like eHealthcare, emergency services, education and financial services and so on.
Salgame says that there are a handful of such projects that Cisco will engage with in several countries around the world. The entire thought leadership for these projects would be driven from Bangalore. “This is not a management consulting role, we will have to execute these orders too,” says Mr Salgame. He is already started hiring talent, including moving people from San Jose to Bangalore. “The advantage of being in Bangalore is that within 5-7 hours of travel time you can touch 60% of the fastest growing GDPs of the world, from China to Northern Africa,” he says.
TUTORVISTA FIRMS UP INDIA PLANS
TUTORVISTA FIRMS UP INDIA PLANS
Thanuja BM, Bangalore, May 06, 2007
The Economic TimesA few months after raising its second round of funding worth $10.75 million (about Rs 48 crore), the Bangalore-based online tutorial firm TutorVista has charted out plans to enter the Indian market as part of its expansion plans. It also plans to foray into the Australian and Canadian markets.
The company is expected to invest about $6 million in various expansion initiatives this year. K Ganesh, CEO, TutorVista said, “We are going to offer a series of programmes under the banner Smarthealth. These are basically tutorials in subjects like maths, English and science for students between 6th to 10th standards.”
The company, which is going to launch the programme next month, is looking to reach out to 10,000 students by end of March 2008. TutorVista, which has made inroads in the US and UK markets, charges $100 and £50 per month for online tutorials in the two countries. The price will come down to Rs 499-999 in India.
TutorVista is also looking at multi-platform launches. It is currently in talks with cyber cafe chains like Reliance World and Sify for this programme. India has several regional players like Brilliant Tutorials, TIME, Agarwal Classes in the supplementary education field. However, they are not involved in online tutorials as of now. Neighbourhood teachers support the rest of supplementary education.
Thanuja BM, Bangalore, May 06, 2007
The Economic TimesA few months after raising its second round of funding worth $10.75 million (about Rs 48 crore), the Bangalore-based online tutorial firm TutorVista has charted out plans to enter the Indian market as part of its expansion plans. It also plans to foray into the Australian and Canadian markets.
The company is expected to invest about $6 million in various expansion initiatives this year. K Ganesh, CEO, TutorVista said, “We are going to offer a series of programmes under the banner Smarthealth. These are basically tutorials in subjects like maths, English and science for students between 6th to 10th standards.”
The company, which is going to launch the programme next month, is looking to reach out to 10,000 students by end of March 2008. TutorVista, which has made inroads in the US and UK markets, charges $100 and £50 per month for online tutorials in the two countries. The price will come down to Rs 499-999 in India.
TutorVista is also looking at multi-platform launches. It is currently in talks with cyber cafe chains like Reliance World and Sify for this programme. India has several regional players like Brilliant Tutorials, TIME, Agarwal Classes in the supplementary education field. However, they are not involved in online tutorials as of now. Neighbourhood teachers support the rest of supplementary education.
SECURING INDIA'S PLACE IN THE KNOWLEDGE ECONOMY
SECURING INDIA'S PLACE IN THE KNOWLEDGE ECONOMY
N R Narayana Murthy, May 07, 2007
The Economic TimesGlobalisation, led by rapid advances in information and communication technologies, has resulted in the creation of knowledge economy — an economy that creates, disseminates and uses knowledge to enhance growth and development.
Competitiveness of nations and corporations depends not just on their physical assets but also on their ability to effectively capitalise their knowledge assets. Knowledge economy is just not restricted to high-tech, information and communication technologies (ICT) industries. It is an economy that leverages the existing knowledge to improve overall productivity across industries and human development.
The new knowledge economy presents the most attractive opportunity for lifting Indians out of poverty by enhancing overall productivity and per capita income. Several studies indicate that the Total Factor Productivity (TFP) of a country increases by fostering a strong knowledge economy.
As a practitioner in the knowledge economy, I can see that the goal of creating a vibrant knowledge economy is achievable but I am also realistic enough to recognise the enormity of the challenge. Success will require us to act now and on many fronts together. Some of the resources required exist. Others can be marshalled.
In spite of having a strong intellectual capital base, India has still a long way to go in utilising her resources towards creating a strong knowledge economy. According to a World Bank publication, India and the Knowledge Economy: Leveraging Strengths and Opportunities, India is at the top of the bottom third in the global knowledge economy. India’s position has not improved much over the past ten years.
(The author is chairman and chief mentor, Infosys Technologies Ltd.)
N R Narayana Murthy, May 07, 2007
The Economic TimesGlobalisation, led by rapid advances in information and communication technologies, has resulted in the creation of knowledge economy — an economy that creates, disseminates and uses knowledge to enhance growth and development.
Competitiveness of nations and corporations depends not just on their physical assets but also on their ability to effectively capitalise their knowledge assets. Knowledge economy is just not restricted to high-tech, information and communication technologies (ICT) industries. It is an economy that leverages the existing knowledge to improve overall productivity across industries and human development.
The new knowledge economy presents the most attractive opportunity for lifting Indians out of poverty by enhancing overall productivity and per capita income. Several studies indicate that the Total Factor Productivity (TFP) of a country increases by fostering a strong knowledge economy.
As a practitioner in the knowledge economy, I can see that the goal of creating a vibrant knowledge economy is achievable but I am also realistic enough to recognise the enormity of the challenge. Success will require us to act now and on many fronts together. Some of the resources required exist. Others can be marshalled.
In spite of having a strong intellectual capital base, India has still a long way to go in utilising her resources towards creating a strong knowledge economy. According to a World Bank publication, India and the Knowledge Economy: Leveraging Strengths and Opportunities, India is at the top of the bottom third in the global knowledge economy. India’s position has not improved much over the past ten years.
(The author is chairman and chief mentor, Infosys Technologies Ltd.)
WASHINGTON CAN LEARN INNOVATION FROM INDIA’
WASHINGTON CAN LEARN INNOVATION FROM INDIA’
Huma Siddiqui, May 7, 2007
The Financial ExpressThe world continues to get flatter. Vivek Kundra of Indian origin now guards the technology empowering the Washington DC government. He is now the youngest person and the first Indian to take over as the chief technology officer, Washington DC last week. Most recently the assistant secretary of commerce and trade for the Commonwealth of Virginia, Kundra has his mission chalked out for Washington—use tech to control terrorism; simplify healthcare and spread the usage of tech especially among kids. During his visit to Delhi leading a trade delegation of Virginia, he lays out the roadmap for Washington DC.
Excerpts
As you take up the new challenge, which technologies would you want to see run Washington administration?
It is a cabinet level appointment and it is like being a minister. I will be taking care of all the technology involved in the city’s administration in such exciting times. Technology is evolving at such a rapid pace that we sometimes wonder if we can keep up with the changes. The world wide web and related technologies have changed the way systems are developed and delivered, providing global access to information and transactions. The proliferation of multimedia enhances the way we interact with systems, but strains the networks and computers on which those systems operate. Technologies such as speech recognition and wireless computing continue to improve and will ultimately provide viable alternatives for data entry and processing. Older, more stable technologies such as imaging, automated workflow, and electronic commerce also offer tremendous value. My challenge is to select technologies that have the greatest potential for improving the overall effectiveness and efficiency of the district government.
Huma Siddiqui, May 7, 2007
The Financial ExpressThe world continues to get flatter. Vivek Kundra of Indian origin now guards the technology empowering the Washington DC government. He is now the youngest person and the first Indian to take over as the chief technology officer, Washington DC last week. Most recently the assistant secretary of commerce and trade for the Commonwealth of Virginia, Kundra has his mission chalked out for Washington—use tech to control terrorism; simplify healthcare and spread the usage of tech especially among kids. During his visit to Delhi leading a trade delegation of Virginia, he lays out the roadmap for Washington DC.
Excerpts
As you take up the new challenge, which technologies would you want to see run Washington administration?
It is a cabinet level appointment and it is like being a minister. I will be taking care of all the technology involved in the city’s administration in such exciting times. Technology is evolving at such a rapid pace that we sometimes wonder if we can keep up with the changes. The world wide web and related technologies have changed the way systems are developed and delivered, providing global access to information and transactions. The proliferation of multimedia enhances the way we interact with systems, but strains the networks and computers on which those systems operate. Technologies such as speech recognition and wireless computing continue to improve and will ultimately provide viable alternatives for data entry and processing. Older, more stable technologies such as imaging, automated workflow, and electronic commerce also offer tremendous value. My challenge is to select technologies that have the greatest potential for improving the overall effectiveness and efficiency of the district government.
IBM VC GROUP EYES INDIA
IBM VC GROUP EYES INDIA
Thanuja B M, Bangalore
The Economic Times MintThe Hindu Business Line Business StandardIBM'S venture capital group which works with venture capital firms to build an ecosystem of start-up partners for developing innovative solutions and products, is now eyeing India as a potential geography. The group is in the process of identifying four-five VC firms in the country for the programme.
"Innovation in India is growing at a rapid pace, in fact faster than how it was in China when we went there a couple of years ago. So we are looking to tie up with a few VC firms including a couple of local VC players to help us identify innovative companies and technology,'' IBM Venture Capital Group MD Claudia Fan Munce said. She was speaking on the sidelines of the company's first India Innovation Forum held on Wednesday in Bangalore.
The IBM venture capital group is setting up an India presence and will have a small team in place, in one-two months. This team will work with VC firms and local IBM resources from across divisions. According to her, the hot sectors in India for the group include KPO, healthcare, Web 2.0, collaborative & content space. The area of adoption of open standards and open source software is also of interest, she added.
IBM started the group about seven years ago to partner with VC firms to create strategic advantage with portfolio companies and key technologies in new markets. Unlike other corporates like Intel and Cisco, IT major doesn't put in cash but makes, what Fan Munce calls `in-kind investment'. This includes providing hardware and software resources, people, distribution power, enablement of assets, generation of sales leads and access to Fortune 500 customers.
Fan Munce declined any specifics on the number of partners IBM is looking at in India as part of this programme. Globally though, the number of partners through VCs has gone up from the initial 21 companies in 2000 to about 1,300 currently. The group's MD said 150 plus companies out of this were generating significant revenues for IBM. The IBM Venture Capital Group, which draws its resources from all of IBM's divisions, has partners in US, China, Brazil, Europe, Germany, Ireland, Japan and Israel.
Thanuja B M, Bangalore
The Economic Times MintThe Hindu Business Line Business StandardIBM'S venture capital group which works with venture capital firms to build an ecosystem of start-up partners for developing innovative solutions and products, is now eyeing India as a potential geography. The group is in the process of identifying four-five VC firms in the country for the programme.
"Innovation in India is growing at a rapid pace, in fact faster than how it was in China when we went there a couple of years ago. So we are looking to tie up with a few VC firms including a couple of local VC players to help us identify innovative companies and technology,'' IBM Venture Capital Group MD Claudia Fan Munce said. She was speaking on the sidelines of the company's first India Innovation Forum held on Wednesday in Bangalore.
The IBM venture capital group is setting up an India presence and will have a small team in place, in one-two months. This team will work with VC firms and local IBM resources from across divisions. According to her, the hot sectors in India for the group include KPO, healthcare, Web 2.0, collaborative & content space. The area of adoption of open standards and open source software is also of interest, she added.
IBM started the group about seven years ago to partner with VC firms to create strategic advantage with portfolio companies and key technologies in new markets. Unlike other corporates like Intel and Cisco, IT major doesn't put in cash but makes, what Fan Munce calls `in-kind investment'. This includes providing hardware and software resources, people, distribution power, enablement of assets, generation of sales leads and access to Fortune 500 customers.
Fan Munce declined any specifics on the number of partners IBM is looking at in India as part of this programme. Globally though, the number of partners through VCs has gone up from the initial 21 companies in 2000 to about 1,300 currently. The group's MD said 150 plus companies out of this were generating significant revenues for IBM. The IBM Venture Capital Group, which draws its resources from all of IBM's divisions, has partners in US, China, Brazil, Europe, Germany, Ireland, Japan and Israel.
INCLUSION, THE WAY TO MARKET GROWTH
INCLUSION, THE WAY TO MARKET GROWTH
Arun Maira
The Economic TimesCompassion, partnerships, and innovations in business models are the keys to grow incomes and thereby expand markets.
CK Prahalad's book, The Fortune at the Bottom of the Pyramid, asks managers to shed the blinkers of conventional guidelines that are constraining their view of markets for their companies. Conventional wisdom would suggest that until their incomes rise above a certain level, large masses of poor people cannot be a target market. Prahalad points out that innovations in products and pricing could make products affordable to people with even lesser incomes and thus expand a company's markets. HLL's single use shampoo sachet became the shorthand version of this idea. A recent study by WRI and IFC sizes this market of, in its estimate, 4 billion low-income customers for a variety of products and services.
Down-sizing products and services to make them affordable is one way to tap into this potential market. The other is to accelerate the growth of incomes of people below the required income line by providing them with opportunities to increase their incomes through employment or business entrepreneurship. Thus Henry Ford increased the wages of his employees dramatically so that they could buy his cars, he said. HLL's 'shakti-amma' project, which engages women in Indian villages as its roving retailing agents enabling them to earn incomes, is another example.
Leaders, however, take risks and break out of industry conventions. A principal factor for the remarkable success of Indian software and BPO companies is their access to the largest pool of educated, English-speaking youth in the world. Therefore it is surprising that, with overall levels of unemployment remaining high in the country, many companies begin to complain about shortages and rising costs of employees. To break out of this constraint, Genpact, a pioneer of the Indian BPO industry, has tapped into non-traditional pools of manpower. Applying best practices from supply chain management and vendor development to the HR domain, it has redefined the paradigm of people recruitment and development. It hires directly in Tier-2 and Tier-3 towns, traditionally beyond the scope of most companies' hiring processes. It also hires from non-conventional talent pools like students who could not complete college, retired people, housewives, etc. To access this wide range of sources, Genpact has begun applying the retail sourcing model to hiring by opening storefronts for recruiting - job stores where candidates can walk in to apply for jobs and get offers within four to six hours.
By redesigning its people sourcing process, Genpact is obtaining resources at competitive costs and is also providing employment to people who were not considered 'employable' earlier. The Byrraju Foundation, an offshoot of Satyam Computers, has gone one step further and tapped into the rural areas for building a BPO business. Combining social services with a business agenda, the Foundation has opened call-centres in villages in Andhra Pradesh. Thus it has created incomes at the bottom of the pyramid and also created a competitive advantage in the BPO business by tapping into lower cost (and lower attrition) manpower resources.
(The author is chairman, BCG India)
Arun Maira
The Economic TimesCompassion, partnerships, and innovations in business models are the keys to grow incomes and thereby expand markets.
CK Prahalad's book, The Fortune at the Bottom of the Pyramid, asks managers to shed the blinkers of conventional guidelines that are constraining their view of markets for their companies. Conventional wisdom would suggest that until their incomes rise above a certain level, large masses of poor people cannot be a target market. Prahalad points out that innovations in products and pricing could make products affordable to people with even lesser incomes and thus expand a company's markets. HLL's single use shampoo sachet became the shorthand version of this idea. A recent study by WRI and IFC sizes this market of, in its estimate, 4 billion low-income customers for a variety of products and services.
Down-sizing products and services to make them affordable is one way to tap into this potential market. The other is to accelerate the growth of incomes of people below the required income line by providing them with opportunities to increase their incomes through employment or business entrepreneurship. Thus Henry Ford increased the wages of his employees dramatically so that they could buy his cars, he said. HLL's 'shakti-amma' project, which engages women in Indian villages as its roving retailing agents enabling them to earn incomes, is another example.
Leaders, however, take risks and break out of industry conventions. A principal factor for the remarkable success of Indian software and BPO companies is their access to the largest pool of educated, English-speaking youth in the world. Therefore it is surprising that, with overall levels of unemployment remaining high in the country, many companies begin to complain about shortages and rising costs of employees. To break out of this constraint, Genpact, a pioneer of the Indian BPO industry, has tapped into non-traditional pools of manpower. Applying best practices from supply chain management and vendor development to the HR domain, it has redefined the paradigm of people recruitment and development. It hires directly in Tier-2 and Tier-3 towns, traditionally beyond the scope of most companies' hiring processes. It also hires from non-conventional talent pools like students who could not complete college, retired people, housewives, etc. To access this wide range of sources, Genpact has begun applying the retail sourcing model to hiring by opening storefronts for recruiting - job stores where candidates can walk in to apply for jobs and get offers within four to six hours.
By redesigning its people sourcing process, Genpact is obtaining resources at competitive costs and is also providing employment to people who were not considered 'employable' earlier. The Byrraju Foundation, an offshoot of Satyam Computers, has gone one step further and tapped into the rural areas for building a BPO business. Combining social services with a business agenda, the Foundation has opened call-centres in villages in Andhra Pradesh. Thus it has created incomes at the bottom of the pyramid and also created a competitive advantage in the BPO business by tapping into lower cost (and lower attrition) manpower resources.
(The author is chairman, BCG India)
INDIA STAYS AT 27TH SPOT IN COMPETITIVENESS
INDIA STAYS AT 27TH SPOT IN COMPETITIVENESS
New Delhi
Business StandardThe country has improved in high-tech exports, IT, investment flows.
India has remained at the 27th place in competitiveness in 2007, according to a survey by IMD, a Lausanne-based premier business school. However, the country's position has improved substantially since 2003, when it was ranked 42.
The parameters for the survey included domestic economy, international trade, international investment, labour market, social framework and employment.
In the Asia-Pacific region, India has been ranked ninth for the second year in a row. Among the countries with population of more than 20 million, India has secured the 10th ranking, compared with 18th in 2003.
According to the survey report, India has improved the most in the number of mobile phone subscribers, direct investment in stocks abroad, export of commercial services, Internet users, high-tech exports, total reserves, per capita number of computers, stock market capitalisation, export of goods, direct investment inflows, trade-to-GDP ratio, and urbanisation.
The areas in which India has seen the sharpest decline are personal income tax rates, consumer price inflation, direct investment flows abroad, ease of doing business, long-term employment, brain drain, emphasis on science in schools, freedom to foreign investors to acquire control of domestic companies, bureaucracy, exchange rates, current account balance, and water transportation.
New Delhi
Business StandardThe country has improved in high-tech exports, IT, investment flows.
India has remained at the 27th place in competitiveness in 2007, according to a survey by IMD, a Lausanne-based premier business school. However, the country's position has improved substantially since 2003, when it was ranked 42.
The parameters for the survey included domestic economy, international trade, international investment, labour market, social framework and employment.
In the Asia-Pacific region, India has been ranked ninth for the second year in a row. Among the countries with population of more than 20 million, India has secured the 10th ranking, compared with 18th in 2003.
According to the survey report, India has improved the most in the number of mobile phone subscribers, direct investment in stocks abroad, export of commercial services, Internet users, high-tech exports, total reserves, per capita number of computers, stock market capitalisation, export of goods, direct investment inflows, trade-to-GDP ratio, and urbanisation.
The areas in which India has seen the sharpest decline are personal income tax rates, consumer price inflation, direct investment flows abroad, ease of doing business, long-term employment, brain drain, emphasis on science in schools, freedom to foreign investors to acquire control of domestic companies, bureaucracy, exchange rates, current account balance, and water transportation.
EYEING WEB PHONE ON A CHIP, INTEL INVESTS IN JAJAH
EYEING WEB PHONE ON A CHIP, INTEL INVESTS IN JAJAH
Santa Clara
The Economic TimesWeb-based phone-calling company Jajah Inc has won Intel Corp's backing for its bid to blur the distinction between phones and computers, the two companies said on Wednesday.
Jajah, which has more than 2 million users of its free or low-cost global calling service, said Intel Corp has agreed to marketing, patent and distribution deals with it and Intel's venture capital arm is leading a $20 million financing round.
"Computers are becoming phones and phones are becoming computers," Jajah Chief Executive Trevor Healy said in an interview.
The deal gives Jajah access to Intel's sales channel of thousands of dealers, personal computer makers and software developers, and could lead to Jajah becoming a desktop icon on PCs later this year, Healy said, although no plans are set.
Over time, Jajah hopes to see its Internet phone-calling technology being embedded into microprocessors, or so-called central processor units (CPUs) -- Intel's main business.
"It is our intention to bring a best-of-class, next generation solution to the market which will be embedded in any CPU for use on any computing device," Jajah co-founder Daniel Mattes said in a statement, without elaborating further.
Jajah encourages consumers to use its service through a Web browser. But, with Intel, it is now looking at reviving an early version of its software that runs on PC desktops. Intel Capital's undisclosed investment was one of six new investments totalling $31 million it announced on Wednesday at its annual CEO Summit in Carlsbad, California. A second strategic Jajah investor will be revealed later.
Santa Clara
The Economic TimesWeb-based phone-calling company Jajah Inc has won Intel Corp's backing for its bid to blur the distinction between phones and computers, the two companies said on Wednesday.
Jajah, which has more than 2 million users of its free or low-cost global calling service, said Intel Corp has agreed to marketing, patent and distribution deals with it and Intel's venture capital arm is leading a $20 million financing round.
"Computers are becoming phones and phones are becoming computers," Jajah Chief Executive Trevor Healy said in an interview.
The deal gives Jajah access to Intel's sales channel of thousands of dealers, personal computer makers and software developers, and could lead to Jajah becoming a desktop icon on PCs later this year, Healy said, although no plans are set.
Over time, Jajah hopes to see its Internet phone-calling technology being embedded into microprocessors, or so-called central processor units (CPUs) -- Intel's main business.
"It is our intention to bring a best-of-class, next generation solution to the market which will be embedded in any CPU for use on any computing device," Jajah co-founder Daniel Mattes said in a statement, without elaborating further.
Jajah encourages consumers to use its service through a Web browser. But, with Intel, it is now looking at reviving an early version of its software that runs on PC desktops. Intel Capital's undisclosed investment was one of six new investments totalling $31 million it announced on Wednesday at its annual CEO Summit in Carlsbad, California. A second strategic Jajah investor will be revealed later.
VIRTUALISATION TO DRIVE IT INFRASTRUCTURE: GARTNER
VIRTUALISATION TO DRIVE IT INFRASTRUCTURE: GARTNER
May 14, 2007
The Times of IndiaVirtualisation will be the most important technology in IT infrastructures and operations up to 2010, according to Gartner, dramatically changing how IT departments manage, buy, deploy, plan and charge for their services.
Speaking at Gartner’s Infrastructure, Operations and Data Centre Summit in Sydney recently, Gartner vice president and distinguished analyst Thomas Bittman said that virtualisation was no longer only about server and storage consolidation and cost saving. “It is now less about the technology and more about process change and cultural change within organizations,” said Bittman. “Virtualisation enables alternative delivery models for services. Each virtualised layer can be managed relatively independently or even owned by someone else, for example, streamed applications or employee-owned PCs. This can require major cultural changes for organizations.”
May 14, 2007
The Times of IndiaVirtualisation will be the most important technology in IT infrastructures and operations up to 2010, according to Gartner, dramatically changing how IT departments manage, buy, deploy, plan and charge for their services.
Speaking at Gartner’s Infrastructure, Operations and Data Centre Summit in Sydney recently, Gartner vice president and distinguished analyst Thomas Bittman said that virtualisation was no longer only about server and storage consolidation and cost saving. “It is now less about the technology and more about process change and cultural change within organizations,” said Bittman. “Virtualisation enables alternative delivery models for services. Each virtualised layer can be managed relatively independently or even owned by someone else, for example, streamed applications or employee-owned PCs. This can require major cultural changes for organizations.”
INDIA INC DIVIDEND PAYOUT RISES 12.5 PERCENT IN FY07
INDIA INC DIVIDEND PAYOUT RISES 12.5 PERCENT IN FY07
Pradip Kumar Dey, May 13, 2007
The Financial ExpressThe corporate sector paid Rs 11,541 crore in dividend in 2006-07, up 12.5 percent from Rs 10,258 crore in 2005-06. According to a study, the net profit of 209 companies rose 41.2 percent, from Rs 39,785 crore in 2005-06 to Rs 56,190 crore in 2006-07. The ratio of dividends to net profit decreased from 25.78 percent in 2005-06 to 20.54 percent in 2006-07.
On the basis of the rate of equity dividend, Tata Consultancy Services (TCS) topped the list of top 10 corporates followed by Hindustan Lever, Godrej Consumer Products, GG Dandekar Machine Works, Eicher Motors, Grasim Industries, Wipro, Infosys Technologies, Ircon International and Sterlite Industries India.
DR Dogra, ED, Care Ratings said, “The dividend has not grown at the same level at which profits have grown as the companies have plans to invest their accruals in their capital expansion plans. Some companies also do not increase dividend payments beyond a certain level looking into the cyclical nature of their industries, as in case of downward cycle, it may be difficult to reduce the dividend rate.” Among the 209 dividend-paying companies for 2006-07 and 2005-06, 96 raised the rates of dividend, 40 paid lower rates and 73 maintained their levels.
Among the 209 companies which raised their dividend payments significantly during 2006-07 are Sterlite Industries, Eicher Motors, Hindustan Zinc, Gujarat Ambuja Cements, Ultratech Cement and SRF Ltd.
Significant increase in the dividend payment of Sterlite Industries can be explained by the profit performance of the company. The company’s PAT for the year 2006-07 showed a quantum leap to Rs 901.04 crore during 2006-07 compared to Rs 511.12 crore of the previous year.
On the other hand, companies, which reduced their dividend rate significantly during 2006-07, are Infosys Technologies, Sesa Goa, Tube Investments Of India, GlaxoSmithkline Pharmaceuticals, Kansai Nero and EID Parry India.
Pradip Kumar Dey, May 13, 2007
The Financial ExpressThe corporate sector paid Rs 11,541 crore in dividend in 2006-07, up 12.5 percent from Rs 10,258 crore in 2005-06. According to a study, the net profit of 209 companies rose 41.2 percent, from Rs 39,785 crore in 2005-06 to Rs 56,190 crore in 2006-07. The ratio of dividends to net profit decreased from 25.78 percent in 2005-06 to 20.54 percent in 2006-07.
On the basis of the rate of equity dividend, Tata Consultancy Services (TCS) topped the list of top 10 corporates followed by Hindustan Lever, Godrej Consumer Products, GG Dandekar Machine Works, Eicher Motors, Grasim Industries, Wipro, Infosys Technologies, Ircon International and Sterlite Industries India.
DR Dogra, ED, Care Ratings said, “The dividend has not grown at the same level at which profits have grown as the companies have plans to invest their accruals in their capital expansion plans. Some companies also do not increase dividend payments beyond a certain level looking into the cyclical nature of their industries, as in case of downward cycle, it may be difficult to reduce the dividend rate.” Among the 209 dividend-paying companies for 2006-07 and 2005-06, 96 raised the rates of dividend, 40 paid lower rates and 73 maintained their levels.
Among the 209 companies which raised their dividend payments significantly during 2006-07 are Sterlite Industries, Eicher Motors, Hindustan Zinc, Gujarat Ambuja Cements, Ultratech Cement and SRF Ltd.
Significant increase in the dividend payment of Sterlite Industries can be explained by the profit performance of the company. The company’s PAT for the year 2006-07 showed a quantum leap to Rs 901.04 crore during 2006-07 compared to Rs 511.12 crore of the previous year.
On the other hand, companies, which reduced their dividend rate significantly during 2006-07, are Infosys Technologies, Sesa Goa, Tube Investments Of India, GlaxoSmithkline Pharmaceuticals, Kansai Nero and EID Parry India.
MOVE OVER BPOS, ITS TIME FOR PPOS
MOVE OVER BPOS, ITS TIME FOR PPOS
New Delhi, May 14, 2007
The Economic TimesIT giants like IBM, Infosys, Wipro and WNS - providing offshore services from India to clients in the developed part of the world - have got a new rival on the fast expanding BPO landscape. More importantly, the new challenger is not some thousand-employees strong Business Process Outsourcing firm, but individuals who could be sitting anywhere alone before their personal computer, but have before them an addressable market worth over 20 billion dollars in the US alone.
While outsourcing of services by medium and large-size companies from the US and Europe to low-cost countries like India has been going on for a decade now, the new trend in this space to watch out for is Person-to-Person Offshoring (PPO), says global research and analytics firm Evalueserve.
PPO consists of services that can be offshored to individual professionals by entrepreneurs seeking to bootstrap their business and can be utilised by anyone with the technology advances and growth of Internet in today's world.
All a professional requires to render these services is a PC and a reliable Internet connection. While each PPO contract is often of low value usually between $100 and $5,000 (Rs 4,000 to Rs 20,000) but due to the large number of end consumers involved, the total addressable market in the US alone has exceeded $20 billion, Evalueserve Chairman Alok Aggarwal said.
To make the things easier, there are already close to 100 websites such as Guru.com, Elance.com, RentACoder.com and GetAFreelancer.com acting as trading platforms for such services and over ten lakh professionals -- a majority of who are from India -- are already registered on these sites as PPO providers.
Guru follows a "closed auction" bidding and also provides a "SafePay Escrow" account that protects the interests of both the client and the vendor during the execution of the project. California-based Elance.com has approximately 80,000 registered vendors and free-lance professionals, of which about 50 per cent are from low-wage countries. RentACoder.com, a Florida based marketplace, has over 175,000 registered freelancers and is focussed on IT sector.
Another such marketplace, GetAFreelancer.com has mostly IT programmers from low-wage countries as its registered freelancers. Here, the buyers decide between closed or open bidding, while it also provides a payment escrow service.
One of the fastest growing segment in the PPO market is editorial and writing services, which include writing for books, copy writing, editing, proof-reading, news articles, newsletters, press releases, translation and web content.
New Delhi, May 14, 2007
The Economic TimesIT giants like IBM, Infosys, Wipro and WNS - providing offshore services from India to clients in the developed part of the world - have got a new rival on the fast expanding BPO landscape. More importantly, the new challenger is not some thousand-employees strong Business Process Outsourcing firm, but individuals who could be sitting anywhere alone before their personal computer, but have before them an addressable market worth over 20 billion dollars in the US alone.
While outsourcing of services by medium and large-size companies from the US and Europe to low-cost countries like India has been going on for a decade now, the new trend in this space to watch out for is Person-to-Person Offshoring (PPO), says global research and analytics firm Evalueserve.
PPO consists of services that can be offshored to individual professionals by entrepreneurs seeking to bootstrap their business and can be utilised by anyone with the technology advances and growth of Internet in today's world.
All a professional requires to render these services is a PC and a reliable Internet connection. While each PPO contract is often of low value usually between $100 and $5,000 (Rs 4,000 to Rs 20,000) but due to the large number of end consumers involved, the total addressable market in the US alone has exceeded $20 billion, Evalueserve Chairman Alok Aggarwal said.
To make the things easier, there are already close to 100 websites such as Guru.com, Elance.com, RentACoder.com and GetAFreelancer.com acting as trading platforms for such services and over ten lakh professionals -- a majority of who are from India -- are already registered on these sites as PPO providers.
Guru follows a "closed auction" bidding and also provides a "SafePay Escrow" account that protects the interests of both the client and the vendor during the execution of the project. California-based Elance.com has approximately 80,000 registered vendors and free-lance professionals, of which about 50 per cent are from low-wage countries. RentACoder.com, a Florida based marketplace, has over 175,000 registered freelancers and is focussed on IT sector.
Another such marketplace, GetAFreelancer.com has mostly IT programmers from low-wage countries as its registered freelancers. Here, the buyers decide between closed or open bidding, while it also provides a payment escrow service.
One of the fastest growing segment in the PPO market is editorial and writing services, which include writing for books, copy writing, editing, proof-reading, news articles, newsletters, press releases, translation and web content.
POWERING TRAINING
POWERING TRAINING
Archana Venkat, May 14, 2007
The Hindu Business LineIn Std X11, saddled with books and competition, he was told `studies' would be stress-free once he joined college.
Maintaining good grades through college, he wondered if getting a job would put an end to the endless studying.
Three years into a job, the `studying' has not ceased.
"Training happens almost everyday at work. There are nuances to technology and industry/client specific issues that one needs to understand. We are constantly given documentation and training on these aspects," says Bharatan K, a module leader at Wipro Technologies.
Bharatan's counterparts working for other IT majors may share similar views. For, over the last five years, training has grown in status to a core function for organisations. Massive hiring of fresh graduates at the entry level, shortage of middle management level candidates, changing technologies and the need to develop leaders have deepened the scope of training and expanded budgets.
eWorld spoke to some industry majors to trace the trends in training.
Infosys Technologies spent close to $140 million (about Rs 560 crore) in 2006-07 on training. It is likely that fresher training constituted a large portion of this as the company spent $5,000 per fresher. Fresh recruits undergo a 16-week programme covering generic and stream-specific training in various technology areas, along with stress on soft skills and leadership development.
"This financial year we are investing about Rs 1,600 crore in our training centre at Mysore and by December we should be able to train about 13,500 candidates at a time," says Bikramjit Maitra, Vice President and Head, Human Resources, Infosys.
Though fresher training continues to take up a large chunk (up to 50 percent) of training budgets of IT companies, upgradation training (updating employee skills on technical and behavioural aspects), technical and management training have gained significant ground over the last five years.
At HCL Technologies, the training spend per person has more than doubled in the last five years — from about $1,500 to over $4,000. "This is because we are servicing higher end markets where, in addition to technical skills, we are required to build business and behavioural skills in our engineers," says Anand Pillai, Vice-President - Talent Transformation and Entrepreneurship Development, HCL Technologies. Management and upgradation training together take up 50 percent of allocated training spends at the company.
Archana Venkat, May 14, 2007
The Hindu Business LineIn Std X11, saddled with books and competition, he was told `studies' would be stress-free once he joined college.
Maintaining good grades through college, he wondered if getting a job would put an end to the endless studying.
Three years into a job, the `studying' has not ceased.
"Training happens almost everyday at work. There are nuances to technology and industry/client specific issues that one needs to understand. We are constantly given documentation and training on these aspects," says Bharatan K, a module leader at Wipro Technologies.
Bharatan's counterparts working for other IT majors may share similar views. For, over the last five years, training has grown in status to a core function for organisations. Massive hiring of fresh graduates at the entry level, shortage of middle management level candidates, changing technologies and the need to develop leaders have deepened the scope of training and expanded budgets.
eWorld spoke to some industry majors to trace the trends in training.
Infosys Technologies spent close to $140 million (about Rs 560 crore) in 2006-07 on training. It is likely that fresher training constituted a large portion of this as the company spent $5,000 per fresher. Fresh recruits undergo a 16-week programme covering generic and stream-specific training in various technology areas, along with stress on soft skills and leadership development.
"This financial year we are investing about Rs 1,600 crore in our training centre at Mysore and by December we should be able to train about 13,500 candidates at a time," says Bikramjit Maitra, Vice President and Head, Human Resources, Infosys.
Though fresher training continues to take up a large chunk (up to 50 percent) of training budgets of IT companies, upgradation training (updating employee skills on technical and behavioural aspects), technical and management training have gained significant ground over the last five years.
At HCL Technologies, the training spend per person has more than doubled in the last five years — from about $1,500 to over $4,000. "This is because we are servicing higher end markets where, in addition to technical skills, we are required to build business and behavioural skills in our engineers," says Anand Pillai, Vice-President - Talent Transformation and Entrepreneurship Development, HCL Technologies. Management and upgradation training together take up 50 percent of allocated training spends at the company.
CRACKING THE PROCESS CODE
CRACKING THE PROCESS CODE
Krishnan Thiagarajan, May 14, 2007
The Hindu Business LineA scientific bent of mind, clarity of thought and a charismatic personality make Ananth Krishnan an interviewer's delight. In an hour with eWorld, he engaged us completely in how Tata Consultancy Services is involved in industrialising software process delivery and building non-linearity (ensuring that the employee base does not grow in the same proportion as revenue growth) into the offshoring model.
To make an otherwise dry and technical sounding subject come alive is probably not a surprise at all. As a member of TCS Corporate Think Tank since 1999 and an invitee to the quarterly management review with the TCS Board, strategic thinking must be par for the course for this M.Tech from IIT, Delhi. Currently serving as Vice-President and Chief Technology Officer of Tata Consultancy Services, Ananth Krishnan shares his insights in the first of a two-part interview:
How has Tata Consultancy Services gone about industrialising the IT delivery function? The context is how is TCS building non-linearity into its offshoring business model...
What we are doing in the TCS context, in the industrialisation of IT... .. The first thing we have looked at is repetitive tasks in information technology, to see whether they can be automated to a certain extent. The first candidate for this was programming language transformations, which started way back in the 80's itself. This transformation was pretty successful. The unique thing that we've done in the last 3-4 years is that, we've created a tools foundry. In the past when you had to convert programming language A to programming language B, you would write a tool to do the conversion, something like translating English into Tamil, then you would write an English parser, then you would write a Tamil parser, you would resolve some of the semantic differences and then you would say that I have succeeded in translating language A into language B. But if you had to do English to a Chinese parser then you would pretty much start from scratch.
So what the tools foundry does is it says that it treats language conversion as a generic problem. Then you feed in the semantic and syntax of each language of source and target language to the tool foundry. The tool foundry outputs a tool and then the tool works. So you don't have to write a tool for every pair of translations that you do.
So that's one kind of innovation that's happened. This has happened in our Pune research centre. That was what enabled us to treat one aspect of IT in a repetitive manner.
The second set of things that were done was in relation to what is called model level development. Now model level development has been the holy grail of IT for many years. You specify in some high level manner as to what exactly should this IT system do and through some magic the IT system is actually built with the end need specified in some formal way. So there have been a lot of models developed in the last 30-40 years, but the state of the art right now, is something called Unified modeling language (UML). The UML has been around since the early 90's and three of the big UML proponents - Grady Booch, James Rumbaugh and Ivar Jacobson have brought together the modelling philosophies that created UML. And UML was successfully commercialised by a company called Rational, which is now part of IBM.
What TCS has done around UML is to look at the traditional weakness of IT. It is almost like saying, in house construction the architect's role is the most critical and any workman can put one brick over the other as per the architect's decision. But we all know that it is not that easy even when you construct a house. The architect's plan might be great, he might have an exact understanding of what the house owner wants or the end customer wants, but if the workman has done a lousy job, the house is not going to be good. What we have done in TCS is to build a very strong link between UML specifications and actual construction of code. So this is something that is a high productivity enhancer. This is built out in our tool set called MasterCraft. Now MasterCraft was designed in the mid 90's to build our own products, whether it is our banking products or financial services products and so on. From 1998 onwards we've been using it in our service engagements. Today MasterCraft is used in about 70 or 80 projects of TCS worldwide in the market space and it gives us about 5 to 10 times construction efficiency.
Krishnan Thiagarajan, May 14, 2007
The Hindu Business LineA scientific bent of mind, clarity of thought and a charismatic personality make Ananth Krishnan an interviewer's delight. In an hour with eWorld, he engaged us completely in how Tata Consultancy Services is involved in industrialising software process delivery and building non-linearity (ensuring that the employee base does not grow in the same proportion as revenue growth) into the offshoring model.
To make an otherwise dry and technical sounding subject come alive is probably not a surprise at all. As a member of TCS Corporate Think Tank since 1999 and an invitee to the quarterly management review with the TCS Board, strategic thinking must be par for the course for this M.Tech from IIT, Delhi. Currently serving as Vice-President and Chief Technology Officer of Tata Consultancy Services, Ananth Krishnan shares his insights in the first of a two-part interview:
How has Tata Consultancy Services gone about industrialising the IT delivery function? The context is how is TCS building non-linearity into its offshoring business model...
What we are doing in the TCS context, in the industrialisation of IT... .. The first thing we have looked at is repetitive tasks in information technology, to see whether they can be automated to a certain extent. The first candidate for this was programming language transformations, which started way back in the 80's itself. This transformation was pretty successful. The unique thing that we've done in the last 3-4 years is that, we've created a tools foundry. In the past when you had to convert programming language A to programming language B, you would write a tool to do the conversion, something like translating English into Tamil, then you would write an English parser, then you would write a Tamil parser, you would resolve some of the semantic differences and then you would say that I have succeeded in translating language A into language B. But if you had to do English to a Chinese parser then you would pretty much start from scratch.
So what the tools foundry does is it says that it treats language conversion as a generic problem. Then you feed in the semantic and syntax of each language of source and target language to the tool foundry. The tool foundry outputs a tool and then the tool works. So you don't have to write a tool for every pair of translations that you do.
So that's one kind of innovation that's happened. This has happened in our Pune research centre. That was what enabled us to treat one aspect of IT in a repetitive manner.
The second set of things that were done was in relation to what is called model level development. Now model level development has been the holy grail of IT for many years. You specify in some high level manner as to what exactly should this IT system do and through some magic the IT system is actually built with the end need specified in some formal way. So there have been a lot of models developed in the last 30-40 years, but the state of the art right now, is something called Unified modeling language (UML). The UML has been around since the early 90's and three of the big UML proponents - Grady Booch, James Rumbaugh and Ivar Jacobson have brought together the modelling philosophies that created UML. And UML was successfully commercialised by a company called Rational, which is now part of IBM.
What TCS has done around UML is to look at the traditional weakness of IT. It is almost like saying, in house construction the architect's role is the most critical and any workman can put one brick over the other as per the architect's decision. But we all know that it is not that easy even when you construct a house. The architect's plan might be great, he might have an exact understanding of what the house owner wants or the end customer wants, but if the workman has done a lousy job, the house is not going to be good. What we have done in TCS is to build a very strong link between UML specifications and actual construction of code. So this is something that is a high productivity enhancer. This is built out in our tool set called MasterCraft. Now MasterCraft was designed in the mid 90's to build our own products, whether it is our banking products or financial services products and so on. From 1998 onwards we've been using it in our service engagements. Today MasterCraft is used in about 70 or 80 projects of TCS worldwide in the market space and it gives us about 5 to 10 times construction efficiency.
VENTURE CAPITALISTS EAGER TO FUND INDIAN ENTREPRENEURS
VENTURE CAPITALISTS EAGER TO FUND INDIAN ENTREPRENEURS
May 14, 2007
Hindustan Times (Mumbai edition)More and more Indians who went to the US in the 1980s and early 1990s have transformed from being engineers to scientist-entrepreneurs, with venture capitalists more than eager to fund them.
These engineers-turned entrepreneurs have successfully embraced the popular US start-up culture, where technologies developed in different tech labs through years of research are turned into successful business models.
In the past two months alone, four Massachusetts based companies with Indian chief executives have registered with the Securities and Exchange Commission to go public: Starent Networks Corp, Netezza Corp, BladeLogic Inc and Virtusa Corp.
They represent a third of state companies that have filed for initial public offer (IPOs) this year.
"Rather than work on fancy long-term research, I realised I wanted to do something where I could have impact in the short term," said Ganesh Venkataraman, an IIT graduate and founder of Momenta Pharmaceuticals Inc. "That pushed me into entrepreneurship."
Many of these immigrants, and their companies, have become the gold standard for venture capital investment, the Boston Globe reported.
Most of the Indians who have become entrepreneurs are engineers who did their undergraduate work at the famed Indian Institutes of Technology (IITs).
"The focus on technology in India goes down to the very core of how computers work, how the bits and bytes flow. When you have that foundation and you come across real problems, you can think about them in a multi dimensional way," said Neeraj Agrawal, partner of Battery Ventures.
Today, everyone agrees that technical training provided in India and the startup culture in the US has proved a potent mix.
With venture outlays at a post-2001 high and the number of filings for IPOs increasing, the Indian entrepreneurs find themselves in demand.
"It's a very productive community," said Rod Randall, senior managing director at Vesbridge Partners, a Boston venture firms.
May 14, 2007
Hindustan Times (Mumbai edition)More and more Indians who went to the US in the 1980s and early 1990s have transformed from being engineers to scientist-entrepreneurs, with venture capitalists more than eager to fund them.
These engineers-turned entrepreneurs have successfully embraced the popular US start-up culture, where technologies developed in different tech labs through years of research are turned into successful business models.
In the past two months alone, four Massachusetts based companies with Indian chief executives have registered with the Securities and Exchange Commission to go public: Starent Networks Corp, Netezza Corp, BladeLogic Inc and Virtusa Corp.
They represent a third of state companies that have filed for initial public offer (IPOs) this year.
"Rather than work on fancy long-term research, I realised I wanted to do something where I could have impact in the short term," said Ganesh Venkataraman, an IIT graduate and founder of Momenta Pharmaceuticals Inc. "That pushed me into entrepreneurship."
Many of these immigrants, and their companies, have become the gold standard for venture capital investment, the Boston Globe reported.
Most of the Indians who have become entrepreneurs are engineers who did their undergraduate work at the famed Indian Institutes of Technology (IITs).
"The focus on technology in India goes down to the very core of how computers work, how the bits and bytes flow. When you have that foundation and you come across real problems, you can think about them in a multi dimensional way," said Neeraj Agrawal, partner of Battery Ventures.
Today, everyone agrees that technical training provided in India and the startup culture in the US has proved a potent mix.
With venture outlays at a post-2001 high and the number of filings for IPOs increasing, the Indian entrepreneurs find themselves in demand.
"It's a very productive community," said Rod Randall, senior managing director at Vesbridge Partners, a Boston venture firms.
MICROSOFT, AMD and US INC.
MICROSOFT UNVEILS HARDWARE FOR WEB PHONE PUSH
Seattle
The Economic TimesMicrosoft Corp introduced on Sunday phones, headsets and other devices to work with its software that aim to replace the traditional office phone and deliver e-mails, instant messages and phone calls over the Internet.
Microsoft, the world's largest software company, said it worked with nine technology manufacturers including Samsung Electronics Co Ltd and NEC Corp to develop hardware to work with its unified communications strategy.
Instead of one system for phones and another for e-mails and instant messaging, Microsoft wants all communications to run over Internet networks on its Office Communicator program.
Microsoft forecasts that the shift to Web-based phone systems will gain momentum during the next three years, eventually generating billions of dollars in new revenue for the company.
The new hardware products will be unveiled at this week's Microsoft Windows Hardware Engineering Conference in Los Angeles.
The new products include an Internet Protocol phone from NEC that connects to a computer's Universal Serial Bus and a Bluetooth headset that connects via wireless technology to the Office program made by LG-Nortel, a joint venture of LG Electronics Inc and Nortel Networks.
US INC’S PROFIT GROWTH TOPS 10% AGAIN, SURPRISES ANALYSTS
New York
The Economic TimesProfits at US companies rose by more than 10% for the 19th straight quarter in the period ended March 31 as MasterCard, Hewlett-Packard and Prudential Financial Inc. surprised analysts with better-than-estimated earnings. Companies in the Standard & Poor’s 500 Index through May 11 reported an average earnings gain of 13% in the quarter, according to data compiled. The last time growth was less than 10% was the second quarter of 2002.
Hewlett-Packard, the world’s largest maker of personal computers and printers, on May 8 said second-quarter earnings beat its forecast on higher sales of servers and home PCs. Sales increased to as much as $25.55 billion, up from its $24.5 billion projection.
AMD LAUNCHES MULTI-CORE CHIPS TO ‘LEAPFROG’ INTEL
San Francisco
Business StandardThe war between AMD and Intel will enter another phase today with AMD’s announcement of a family of microprocessors with as many as eight brains or cores.
Intel regained a technological edge last year when it released the first four-core processors by combining two dual-core ones.
AMD will announce its “Phenom” processor family, with “true quad-core” — four brains linked together on the same chip — as well as dual-core processors. It is also demonstrating an eight-core processor for enthusiasts named FASN8, pronounced “fascinate”.
The chips, based on an architecture codenamed Barcelona, will be available in the second half of the year.
Randy Allen, head of AMD’s server and workstation division, said the products were the most significant since its Opteron server processor and Athlon 64-bit desktop processors were released in 2003, leading to market-share gains over Intel.
“I think they will be pivotal in allowing us to make further progress. Barcelona is a leapfrog product that opens up the gap,” he said Intel has been regaining share since it released processors last summer based on its own new architecture, which offered lower power consumption and better performance. It also switched to chips with smaller circuitry.
“AMD has needed to bring out new products to do something about the drumbeat of introductions that Intel has had,” said Roger Kay, analyst with Endpoint Technologies.
Seattle
The Economic TimesMicrosoft Corp introduced on Sunday phones, headsets and other devices to work with its software that aim to replace the traditional office phone and deliver e-mails, instant messages and phone calls over the Internet.
Microsoft, the world's largest software company, said it worked with nine technology manufacturers including Samsung Electronics Co Ltd and NEC Corp to develop hardware to work with its unified communications strategy.
Instead of one system for phones and another for e-mails and instant messaging, Microsoft wants all communications to run over Internet networks on its Office Communicator program.
Microsoft forecasts that the shift to Web-based phone systems will gain momentum during the next three years, eventually generating billions of dollars in new revenue for the company.
The new hardware products will be unveiled at this week's Microsoft Windows Hardware Engineering Conference in Los Angeles.
The new products include an Internet Protocol phone from NEC that connects to a computer's Universal Serial Bus and a Bluetooth headset that connects via wireless technology to the Office program made by LG-Nortel, a joint venture of LG Electronics Inc and Nortel Networks.
US INC’S PROFIT GROWTH TOPS 10% AGAIN, SURPRISES ANALYSTS
New York
The Economic TimesProfits at US companies rose by more than 10% for the 19th straight quarter in the period ended March 31 as MasterCard, Hewlett-Packard and Prudential Financial Inc. surprised analysts with better-than-estimated earnings. Companies in the Standard & Poor’s 500 Index through May 11 reported an average earnings gain of 13% in the quarter, according to data compiled. The last time growth was less than 10% was the second quarter of 2002.
Hewlett-Packard, the world’s largest maker of personal computers and printers, on May 8 said second-quarter earnings beat its forecast on higher sales of servers and home PCs. Sales increased to as much as $25.55 billion, up from its $24.5 billion projection.
AMD LAUNCHES MULTI-CORE CHIPS TO ‘LEAPFROG’ INTEL
San Francisco
Business StandardThe war between AMD and Intel will enter another phase today with AMD’s announcement of a family of microprocessors with as many as eight brains or cores.
Intel regained a technological edge last year when it released the first four-core processors by combining two dual-core ones.
AMD will announce its “Phenom” processor family, with “true quad-core” — four brains linked together on the same chip — as well as dual-core processors. It is also demonstrating an eight-core processor for enthusiasts named FASN8, pronounced “fascinate”.
The chips, based on an architecture codenamed Barcelona, will be available in the second half of the year.
Randy Allen, head of AMD’s server and workstation division, said the products were the most significant since its Opteron server processor and Athlon 64-bit desktop processors were released in 2003, leading to market-share gains over Intel.
“I think they will be pivotal in allowing us to make further progress. Barcelona is a leapfrog product that opens up the gap,” he said Intel has been regaining share since it released processors last summer based on its own new architecture, which offered lower power consumption and better performance. It also switched to chips with smaller circuitry.
“AMD has needed to bring out new products to do something about the drumbeat of introductions that Intel has had,” said Roger Kay, analyst with Endpoint Technologies.
THE RIGHT MODEL
THE RIGHT MODEL
Artika Shah
The Economic TimesLarge corporations have included Six Sigma into their corporate culture, and human resources are looking to benefit from Six Sigma initiatives. Small and medium-sized enterprises (SMEs) can benefit from Six Sigma by adopting it as the standard for process improvement similar to the bigger multinational companies. Motorola pioneered Six Sigma in the mid-1980s, and has expanded itself to many manufacturing as well as service providing companies.
SAP India has implemented Human Capital Management (HCM) solutions, which delivers leading-edge human capital management capabilities that empower organisations to significantly improve workforce potential.
For example, SAP ERP HCM helps organisations attract the right people, develop and leverage their talents, align their efforts with the organisation's corporate objectives and retain top performers. SAP has a specific solution - SAP for manufacturing, which gives discrete and process manufacturers the full range of capabilities needed to plan, schedule, sequence, execute and monitor production with embedded lean. Nagaraj Bhargava, Vice President, Marketing & Sales Operations, SAP India has thrown light on the steps/processes undertaken by the firm's HR team to achieve Six Sigma. He says,
"If an organisation wants to adhere to six sigma practices, it needs to take HR and people management to the next level. Here, solutions like SAP HCM help a great deal in empowering people, which would be the key for organisations that are looking at Six Sigma."
Artika Shah
The Economic TimesLarge corporations have included Six Sigma into their corporate culture, and human resources are looking to benefit from Six Sigma initiatives. Small and medium-sized enterprises (SMEs) can benefit from Six Sigma by adopting it as the standard for process improvement similar to the bigger multinational companies. Motorola pioneered Six Sigma in the mid-1980s, and has expanded itself to many manufacturing as well as service providing companies.
SAP India has implemented Human Capital Management (HCM) solutions, which delivers leading-edge human capital management capabilities that empower organisations to significantly improve workforce potential.
For example, SAP ERP HCM helps organisations attract the right people, develop and leverage their talents, align their efforts with the organisation's corporate objectives and retain top performers. SAP has a specific solution - SAP for manufacturing, which gives discrete and process manufacturers the full range of capabilities needed to plan, schedule, sequence, execute and monitor production with embedded lean. Nagaraj Bhargava, Vice President, Marketing & Sales Operations, SAP India has thrown light on the steps/processes undertaken by the firm's HR team to achieve Six Sigma. He says,
"If an organisation wants to adhere to six sigma practices, it needs to take HR and people management to the next level. Here, solutions like SAP HCM help a great deal in empowering people, which would be the key for organisations that are looking at Six Sigma."
MAVERIC TO INVEST RS 20 CRORE
MAVERIC TO INVEST RS 20 CRORE
Chennai
Business StandardMaveric Systems Ltd, a third-party software testing company, is charting a growth plan involving an investment of Rs 20 crore for the current fiscal to double its revenue.
The company posted a revenue of Rs 27 crore for the year 2006-07 as against Rs 15.50 crore in the previous year. Its profit after tax shot up 225 percent to Rs 4.55 crore from Rs 1.40 crore in the previous year.
Addressing a press conference, Ranga Reddy, chief executive officer, Maveric Systems, said the partnership alignment in the UK and West Asia helped improve delivery management of the company and resulted in increased overseas revenue mix to 70 percent from 40 percent. The company will attempt to increase the overseas revenue mix to 80 percent during this year.
Chennai-based Maveric had recently bagged three orders worth Rs 5 crore from Dubai Municipality, Dubai Islamic Bank and Emirates Bank to offer its testing services.
As part of its growth plans, the company plans to invest Rs 8 crore in creating additional infrastructure and Rs 12 crore in other initiatives like establishment of centres of excellence for banking, insurance and automation verticals and in UK and Ireland operations. This Rs 20 crore expansion programme will be funded through a combination of internal accruals and debt.
Chennai
Business StandardMaveric Systems Ltd, a third-party software testing company, is charting a growth plan involving an investment of Rs 20 crore for the current fiscal to double its revenue.
The company posted a revenue of Rs 27 crore for the year 2006-07 as against Rs 15.50 crore in the previous year. Its profit after tax shot up 225 percent to Rs 4.55 crore from Rs 1.40 crore in the previous year.
Addressing a press conference, Ranga Reddy, chief executive officer, Maveric Systems, said the partnership alignment in the UK and West Asia helped improve delivery management of the company and resulted in increased overseas revenue mix to 70 percent from 40 percent. The company will attempt to increase the overseas revenue mix to 80 percent during this year.
Chennai-based Maveric had recently bagged three orders worth Rs 5 crore from Dubai Municipality, Dubai Islamic Bank and Emirates Bank to offer its testing services.
As part of its growth plans, the company plans to invest Rs 8 crore in creating additional infrastructure and Rs 12 crore in other initiatives like establishment of centres of excellence for banking, insurance and automation verticals and in UK and Ireland operations. This Rs 20 crore expansion programme will be funded through a combination of internal accruals and debt.
KERALA, UAE TO SET UP JOINT WORKING GROUP
KERALA, UAE TO SET UP JOINT WORKING GROUP
Thiruvananthapuram
The Hindu Business LineThe Governments of Kerala and the United Arab Emirates (UAE) will set up a joint working group to identify projects in the State in which investments from the UAE could be crystallised.
The idea for the working group emerged during the visit of the Industries Minister, Elamaram Kareem, to the UAE recently. He had held discussions with the Minister of State for Finance and Industry, Dr Muhammed K. Khirbash, and officials of Abu Dhabi Investment Authority on the possibilities of attracting investments to Kerala. Kareem said here on Tuesday that the UAE had expressed interest in making investments in petrochemical and power projects in the State.
A proposal has been made by Small Industries Development Corporation for converting the land belonging to Kerala State Salicylates and Chemicals Ltd into a telecom city.
The Kerala State Industrial Development Corporation has approached the Government with a proposal for establishing an IT park in the land occupied by Astral Watches Ltd.
Thiruvananthapuram
The Hindu Business LineThe Governments of Kerala and the United Arab Emirates (UAE) will set up a joint working group to identify projects in the State in which investments from the UAE could be crystallised.
The idea for the working group emerged during the visit of the Industries Minister, Elamaram Kareem, to the UAE recently. He had held discussions with the Minister of State for Finance and Industry, Dr Muhammed K. Khirbash, and officials of Abu Dhabi Investment Authority on the possibilities of attracting investments to Kerala. Kareem said here on Tuesday that the UAE had expressed interest in making investments in petrochemical and power projects in the State.
A proposal has been made by Small Industries Development Corporation for converting the land belonging to Kerala State Salicylates and Chemicals Ltd into a telecom city.
The Kerala State Industrial Development Corporation has approached the Government with a proposal for establishing an IT park in the land occupied by Astral Watches Ltd.
Saturday, June 9, 2007
WORLD’S MOST INNOVATIVE COMPANIES
WORLD’S MOST INNOVATIVE COMPANIES
The Economic TimesNot so long ago, no conversation about innovation would be complete without the story of 3M inventor Art Fry’s eureka moment that led to the Post-it Note. Today, that tale, which verges on cliche, has been almost universally replaced by the story of the iPod, Apple’s omnipresent icon of design.
It should come as little surprise, then, that Apple tops the BusinessWeek-Boston Consulting Group’s list of the World’s Most Innovative Companies for the third year in a row. That sort of staying power speaks volumes about the sort of innovation that matters today. Unlike the Post-it Note, which proves the value of lone inventors, the iPod epitomises today’s innovation sensibilities. These include the ascendance of design, the focus on the user’s experience, and the power of ecosystems: The iPod is a hit because it works so seamlessly with the iTunes software. The company’s much-anticipated iPhone, which launches in June, will likely keep Apple high on our list next year too.
There are some surprises this year, including four new companies in the top 25 — Disney, Boeing, Genentech, and Cisco Systems. In other cases, the resilience of corporate reputation was surprising. Wal-Mart Stores suffers from slow growth, but still commands respect for its supply-chain innovations. Dell wears the brand halo of an innovator for its efficient direct-to-consumer model, though it suffered through a management shakeup and fell from No 14 to No 22. And what of 3M? It fell too, from No 3 in 2006 to No 7 this year.
Not so long ago, no conversation about innovation would be complete without the story of 3M inventor Art Fry’s eureka moment that led to the Post-it Note. Today, that tale, which verges on cliche, has been almost universally replaced by the story of the iPod, Apple’s omnipresent icon of design.
It should come as little surprise, then, that Apple tops the BusinessWeek-Boston Consulting Group’s list of the World’s Most Innovative Companies for the third year in a row. That sort of staying power speaks volumes about the sort of innovation that matters today. Unlike the Post-it Note, which proves the value of lone inventors, the iPod epitomises today’s innovation sensibilities. These include the ascendance of design, the focus on the user’s experience, and the power of ecosystems: The iPod is a hit because it works so seamlessly with the iTunes software. The company’s much-anticipated iPhone, which launches in June, will likely keep Apple high on our list next year too.
There are some surprises this year, including four new companies in the top 25 — Disney, Boeing, Genentech, and Cisco Systems. In other cases, the resilience of corporate reputation was surprising. Wal-Mart Stores suffers from slow growth, but still commands respect for its supply-chain innovations. Dell wears the brand halo of an innovator for its efficient direct-to-consumer model, though it suffered through a management shakeup and fell from No 14 to No 22. And what of 3M? It fell too, from No 3 in 2006 to No 7 this year.
The BusinessWeek-Boston Consulting Group 2007 list of the World’s Most Innovative Companies is based on a senior management survey about innovation and was distributed electronically to executives worldwide in late 2006. In October, surveys were sent to the 1,500 largest global corporations, determined by market capitalisation in US dollars, with instructions to send the survey to their top 10 executives in charge of innovation.
The Economic TimesNot so long ago, no conversation about innovation would be complete without the story of 3M inventor Art Fry’s eureka moment that led to the Post-it Note. Today, that tale, which verges on cliche, has been almost universally replaced by the story of the iPod, Apple’s omnipresent icon of design.
It should come as little surprise, then, that Apple tops the BusinessWeek-Boston Consulting Group’s list of the World’s Most Innovative Companies for the third year in a row. That sort of staying power speaks volumes about the sort of innovation that matters today. Unlike the Post-it Note, which proves the value of lone inventors, the iPod epitomises today’s innovation sensibilities. These include the ascendance of design, the focus on the user’s experience, and the power of ecosystems: The iPod is a hit because it works so seamlessly with the iTunes software. The company’s much-anticipated iPhone, which launches in June, will likely keep Apple high on our list next year too.
There are some surprises this year, including four new companies in the top 25 — Disney, Boeing, Genentech, and Cisco Systems. In other cases, the resilience of corporate reputation was surprising. Wal-Mart Stores suffers from slow growth, but still commands respect for its supply-chain innovations. Dell wears the brand halo of an innovator for its efficient direct-to-consumer model, though it suffered through a management shakeup and fell from No 14 to No 22. And what of 3M? It fell too, from No 3 in 2006 to No 7 this year.
Not so long ago, no conversation about innovation would be complete without the story of 3M inventor Art Fry’s eureka moment that led to the Post-it Note. Today, that tale, which verges on cliche, has been almost universally replaced by the story of the iPod, Apple’s omnipresent icon of design.
It should come as little surprise, then, that Apple tops the BusinessWeek-Boston Consulting Group’s list of the World’s Most Innovative Companies for the third year in a row. That sort of staying power speaks volumes about the sort of innovation that matters today. Unlike the Post-it Note, which proves the value of lone inventors, the iPod epitomises today’s innovation sensibilities. These include the ascendance of design, the focus on the user’s experience, and the power of ecosystems: The iPod is a hit because it works so seamlessly with the iTunes software. The company’s much-anticipated iPhone, which launches in June, will likely keep Apple high on our list next year too.
There are some surprises this year, including four new companies in the top 25 — Disney, Boeing, Genentech, and Cisco Systems. In other cases, the resilience of corporate reputation was surprising. Wal-Mart Stores suffers from slow growth, but still commands respect for its supply-chain innovations. Dell wears the brand halo of an innovator for its efficient direct-to-consumer model, though it suffered through a management shakeup and fell from No 14 to No 22. And what of 3M? It fell too, from No 3 in 2006 to No 7 this year.
The BusinessWeek-Boston Consulting Group 2007 list of the World’s Most Innovative Companies is based on a senior management survey about innovation and was distributed electronically to executives worldwide in late 2006. In October, surveys were sent to the 1,500 largest global corporations, determined by market capitalisation in US dollars, with instructions to send the survey to their top 10 executives in charge of innovation.
SOFTWARE TAKES FOUNDRY SHOP TRIALS TO TABLE TOP
SOFTWARE TAKES FOUNDRY SHOP TRIALS TO TABLE TOP
Vinson Kurian, Thiruvananthapuram
The Hindu Business LineThe National Institute for Interdisciplinary Science and Technology (NIIST, formerly Regional Research Laboratory, Thiruvananthapuram) has introduced a `Virtual Casting' software that promises to render casting simulation useful and affordable to the small and medium-scale foundry.
Virtual Casting is a solidification modelling software employed in the casting process. Developed by a group of three women scientists, Dr Roschen Sasikumar, Dr Elizabeth Jacob and Dr Savithri S., it has already made an impression in the casting and foundry segment.
The metal casting industry, representing one of the oldest and most fundamental manufacturing processes, supplies millions of parts for automotive, aerospace, mining, production machinery, and many other applications.
Vinson Kurian, Thiruvananthapuram
The Hindu Business LineThe National Institute for Interdisciplinary Science and Technology (NIIST, formerly Regional Research Laboratory, Thiruvananthapuram) has introduced a `Virtual Casting' software that promises to render casting simulation useful and affordable to the small and medium-scale foundry.
Virtual Casting is a solidification modelling software employed in the casting process. Developed by a group of three women scientists, Dr Roschen Sasikumar, Dr Elizabeth Jacob and Dr Savithri S., it has already made an impression in the casting and foundry segment.
The metal casting industry, representing one of the oldest and most fundamental manufacturing processes, supplies millions of parts for automotive, aerospace, mining, production machinery, and many other applications.
ENTREPRENEURIAL CULTURE IS THE KEY
ENTREPRENEURIAL CULTURE IS THE KEY
K Srinivas
The Financial ExpressThough a relatively young industry, the Indian private equity (PE) industry is witnessing an unprecedented growth on the back of a growing economy. Currently one of the fastest growing markets in the world, the Indian PE industry, which took off with the IT and outsourcing boom, is now witnessing large investments across various sectors – manufacturing, engineering, services, lifesciences, retail and infrastructure.
PE investment in India was estimated to be $ 7.46 billion in 2006 compared to $0.55 billion in 2002, a CAGR of around 100 percent over a 4-year period – a heady growth for any industry. The continued high economic growth, greater global integration and opening up of some of the key sectors of the economy such as infrastructure, retail, aviation, etc has attracted large foreign PE players to India. India has now emerged as a highly attractive investment destination for foreign PE players as it offers a diversified set of investment opportunities with potential for high returns.
Till a decade ago, Indian industry was largely relying upon institutional financing for both debt and risk capital. However, over the years, the PE industry emerged as an alternative funding route due to factors such as large unmet demand for growth capital owing to strong industrial growth, robust domestic demand for goods and services and growing prosperity, which has created a cascade of demand in key industries such as retail, entertainment, healthcare etc. On the other hand India’s growing recognition as a high-quality, low-cost manufacturing and research & development destination gave further impetus to economic growth by way of huge outsourcing opportunities from the global players. A combination of outsourcing opportunities from exports with internal domestic consumption driven demand for goods and services has opened up new investment opportunities for the PE industry. While PE investments during the early years were restricted to knowledge / services based industry such as IT, ITES and life science, investments are now been made across various sectors.
While the opportunities for investments have significantly broadened for the PE industry, concurrently it has also achieved the status of an alternative asset class with sustainable returns over the last five years which is reflected by some of the successful exits achieved in recent years and good returns earned by private equity firms.
Behind all these developments lies the subtle but very important change agent which is the entrepreneurial culture itself. The growth in the entrepreneurial culture, thanks to the success of the IT sector, has seen the evolution of professional entrepreneurs who were able and willing to embrace global corporate governance standards as a way of building investors’ wealth. This has brought in an entirely new entrepreneurial culture of transparency and management style imbibing the global corporate governance standards which are the fundamental attributes required for any PE fund investment.
All these factors undoubtedly bolstered the confidence of global PE players to enter the Indian market in a large way during the last 3 to 4 years. Indian PE industry has seen entry of almost all the global PE players setting up either India dedicated funds or significant allocations to India from their global funds.
Going forward, some of the growth areas for PE industry would be infrastructure and infrastructure-related services and the small and medium enterprises segment. To sustain the present economic growth, the state of infrastructure in terms of roads, industrial parks, real estate, airports, sea ports etc needs to be upgraded significantly and would require billions of dollars. The Government of India proactively helped create an Infrastructure Fund of $ 7 billion with active participation from various global and Indian PE funds. In addition, a number of global PE players set up dedicated infrastructure and real estate funds.
The author is managing partner, BTS Investment Advisors
K Srinivas
The Financial ExpressThough a relatively young industry, the Indian private equity (PE) industry is witnessing an unprecedented growth on the back of a growing economy. Currently one of the fastest growing markets in the world, the Indian PE industry, which took off with the IT and outsourcing boom, is now witnessing large investments across various sectors – manufacturing, engineering, services, lifesciences, retail and infrastructure.
PE investment in India was estimated to be $ 7.46 billion in 2006 compared to $0.55 billion in 2002, a CAGR of around 100 percent over a 4-year period – a heady growth for any industry. The continued high economic growth, greater global integration and opening up of some of the key sectors of the economy such as infrastructure, retail, aviation, etc has attracted large foreign PE players to India. India has now emerged as a highly attractive investment destination for foreign PE players as it offers a diversified set of investment opportunities with potential for high returns.
Till a decade ago, Indian industry was largely relying upon institutional financing for both debt and risk capital. However, over the years, the PE industry emerged as an alternative funding route due to factors such as large unmet demand for growth capital owing to strong industrial growth, robust domestic demand for goods and services and growing prosperity, which has created a cascade of demand in key industries such as retail, entertainment, healthcare etc. On the other hand India’s growing recognition as a high-quality, low-cost manufacturing and research & development destination gave further impetus to economic growth by way of huge outsourcing opportunities from the global players. A combination of outsourcing opportunities from exports with internal domestic consumption driven demand for goods and services has opened up new investment opportunities for the PE industry. While PE investments during the early years were restricted to knowledge / services based industry such as IT, ITES and life science, investments are now been made across various sectors.
While the opportunities for investments have significantly broadened for the PE industry, concurrently it has also achieved the status of an alternative asset class with sustainable returns over the last five years which is reflected by some of the successful exits achieved in recent years and good returns earned by private equity firms.
Behind all these developments lies the subtle but very important change agent which is the entrepreneurial culture itself. The growth in the entrepreneurial culture, thanks to the success of the IT sector, has seen the evolution of professional entrepreneurs who were able and willing to embrace global corporate governance standards as a way of building investors’ wealth. This has brought in an entirely new entrepreneurial culture of transparency and management style imbibing the global corporate governance standards which are the fundamental attributes required for any PE fund investment.
All these factors undoubtedly bolstered the confidence of global PE players to enter the Indian market in a large way during the last 3 to 4 years. Indian PE industry has seen entry of almost all the global PE players setting up either India dedicated funds or significant allocations to India from their global funds.
Going forward, some of the growth areas for PE industry would be infrastructure and infrastructure-related services and the small and medium enterprises segment. To sustain the present economic growth, the state of infrastructure in terms of roads, industrial parks, real estate, airports, sea ports etc needs to be upgraded significantly and would require billions of dollars. The Government of India proactively helped create an Infrastructure Fund of $ 7 billion with active participation from various global and Indian PE funds. In addition, a number of global PE players set up dedicated infrastructure and real estate funds.
The author is managing partner, BTS Investment Advisors
SOCIAL VENTURE FUND
SOCIAL VENTURE FUND
Rasheeda Bhagat
The Hindu Business LineAn organisation that has as exciting a story to tell as that of Pradeep Lamba, the Faridabad-based maker of corrugated boxes, is bound to go places. With support and mentoring from the Bharatiya Yuva Shakti Trust (BYST), in 1992 Lamba started his unit, serving the packaging industry. With rapid growth, in a few years his turnover went up from Rs 50,000 to Rs 50 lakh. Then disaster struck in 1997, when a fire destroyed almost everything he had set up. His turnover plummeted from Rs 50 lakh to Rs 5 lakh. "But his mentor, Brigadier Sahukar, an 80-year-old man who was at JK Corp then, said as a military man, `I don't care what you have to do, but get back on your feet'. Today his turnover is Rs 3 crore," says Lakshmi V. Venkatesan, Founding Trustee and Executive Vice President of BYST.
In 1992, she along with JRD Tata set up this NGO, which has over the years created 14,000 entrepreneurs from the unprivileged classes, turning jobseekers into job creators. "Every person we support creates 10 jobs; for every rupee we lend they create 10 rupees in wealth. Amazing things happen when we take on board entrepreneurs with fire in their belly, people from the grassroots who are not willing to sit back, support them with loans and mentoring — which is the key." Criteria for BYST help — 18-35 age group and a lower economic status.
A group of BYST's entrepreneurs have catapulted their business ventures to such a high, that the BYST is creating for 50 of its entrepreneurs, whose turnover has exceeded Rs 1 crore, a venture fund with a social objective.
But the challenge for the BYST "particularly for those who have grown from Rs 50,000 over a few years to Rs 50 lakh-1 crore, is that banks are still talking about assets and collateral and security. You take a loan, get a six-month moratorium, and you have to start paying back," says Lakshmi.
She argues that the IT industry has had a spectacular growth thanks to access to the concept of venture capital where loans didn't have to be returned immediately. But while the IT companies had an exit route either through IPOs or the M&A route, this is not possible for BYST entrepreneurs. "These people are not going to do an IPO, at least not in the near future. And they are not going to make acquisitions."
Rasheeda Bhagat
The Hindu Business LineAn organisation that has as exciting a story to tell as that of Pradeep Lamba, the Faridabad-based maker of corrugated boxes, is bound to go places. With support and mentoring from the Bharatiya Yuva Shakti Trust (BYST), in 1992 Lamba started his unit, serving the packaging industry. With rapid growth, in a few years his turnover went up from Rs 50,000 to Rs 50 lakh. Then disaster struck in 1997, when a fire destroyed almost everything he had set up. His turnover plummeted from Rs 50 lakh to Rs 5 lakh. "But his mentor, Brigadier Sahukar, an 80-year-old man who was at JK Corp then, said as a military man, `I don't care what you have to do, but get back on your feet'. Today his turnover is Rs 3 crore," says Lakshmi V. Venkatesan, Founding Trustee and Executive Vice President of BYST.
In 1992, she along with JRD Tata set up this NGO, which has over the years created 14,000 entrepreneurs from the unprivileged classes, turning jobseekers into job creators. "Every person we support creates 10 jobs; for every rupee we lend they create 10 rupees in wealth. Amazing things happen when we take on board entrepreneurs with fire in their belly, people from the grassroots who are not willing to sit back, support them with loans and mentoring — which is the key." Criteria for BYST help — 18-35 age group and a lower economic status.
A group of BYST's entrepreneurs have catapulted their business ventures to such a high, that the BYST is creating for 50 of its entrepreneurs, whose turnover has exceeded Rs 1 crore, a venture fund with a social objective.
But the challenge for the BYST "particularly for those who have grown from Rs 50,000 over a few years to Rs 50 lakh-1 crore, is that banks are still talking about assets and collateral and security. You take a loan, get a six-month moratorium, and you have to start paying back," says Lakshmi.
She argues that the IT industry has had a spectacular growth thanks to access to the concept of venture capital where loans didn't have to be returned immediately. But while the IT companies had an exit route either through IPOs or the M&A route, this is not possible for BYST entrepreneurs. "These people are not going to do an IPO, at least not in the near future. And they are not going to make acquisitions."
MICROSOFT LAUNCHES 3-D VIEWS OF WORLD CITIES
MICROSOFT LAUNCHES 3-D VIEWS OF WORLD CITIES
New York
DNAWant to roam around major cities sitting at home? With Microsoft's latest technology, it might be only a mouse click away.
Microsoft Live Search on Tuesday began offering three-dimensional photo-realistic views of several cities, including New York. They offer unusual perspective of buildings, landscape and other iconic locations that few people, apart from superman, have seen.
Besides view of New York's iconic locations, the service provides local listings, ratings and reviews and driving directions to help people easily find, discover, plan and share relevant topographical information.
The 3-D imagery of New York City debuts along with similar aerial perspectives of several other American, British and Canadian cities with Microsoft promising to make available many more by the end of the summer.
For New York City, it provides aerial views of Times Square, Central Park, Wall Street, Rockefeller Plaza besides dozens of other famous spots as also business listings, location and contact information, consumer ratings and reviews, maps and real-time traffic incidents.
Other cities that the software shows include Austin, Texas, Cape Coral, Florida, Cincinnati, Ohio, Northampton and Ottawa
New York
DNAWant to roam around major cities sitting at home? With Microsoft's latest technology, it might be only a mouse click away.
Microsoft Live Search on Tuesday began offering three-dimensional photo-realistic views of several cities, including New York. They offer unusual perspective of buildings, landscape and other iconic locations that few people, apart from superman, have seen.
Besides view of New York's iconic locations, the service provides local listings, ratings and reviews and driving directions to help people easily find, discover, plan and share relevant topographical information.
The 3-D imagery of New York City debuts along with similar aerial perspectives of several other American, British and Canadian cities with Microsoft promising to make available many more by the end of the summer.
For New York City, it provides aerial views of Times Square, Central Park, Wall Street, Rockefeller Plaza besides dozens of other famous spots as also business listings, location and contact information, consumer ratings and reviews, maps and real-time traffic incidents.
Other cities that the software shows include Austin, Texas, Cape Coral, Florida, Cincinnati, Ohio, Northampton and Ottawa
‘THERE IS THE POTENTIAL TO OVERHEAT’ IN INDIA
‘THERE IS THE POTENTIAL TO OVERHEAT’ IN INDIA
Snigdha Sengupta
MintGeneral Atlantic LLC, the New York—headquartered $17 billion private equity investor, plans to exit from at least one high-profile investment in India this year.
It may sell part of the 30 percent stake it acquired in Genpact at a cost of $250 million, after the Gurgaon-based business process outsourcer makes it debut on the New York Stock Exchange in next few weeks with a $600 million offering. It may also sell its stake in the Mumbai-based Patni Computer Ltd in which it invested $100 million for a 21 percent stake in 2002. Since then, a part of this stake has been divested through a public offer and people in the private equity business say General Atlantic is in talks with IBM Corp for selling out the remainder.
If these exits materialize, they will actually boost GA’s profile in the Indian private equity market, in which it was, relatively, a late entrant. They will also help firm up the company’s next big bet on India–infrastructure. And General Atlantic’s recently concluded $115 million acquisition of a 5 percent stake in National Stock Exchange indicates that it is also ready to move up from mid-sized deals.
Mark F. Dzialga, managing director and vice-chairman, investment committee, spoke on the firm’s investing approach and its new mandate for India.
Edited excerpts:
You entered India in 2002. Some of your peers, such as Warburg Pincus, Actis and Citigroup Ventures, had made significant headway by then. Why did you wait?
Asset management:?Mark F. Dzialga of General Atlantic LLC. There wasn’t any specific design that pushed us in 2002. If you see, much of our early activities were around BPO’s. A lot of our new investment activity in the US and Europe between 1999 and 2001 was taking place in the outsourcing markets. When we started to look for the next generation of companies around 2001, that’s when India emerged as something we needed to take on more seriously. We actually started spending real time in India in 2000 and it took us 18 months to get comfortable. We had to understand the market and the regulations. We had to develop enough relationships to be credible with promoters here before we made our first two investments—Daksh eServices and Patni Computer.
With the exception of Patni Computer, the first flush of deals here are all mid-sized investments, $20-70 million each. But that seems to be changing now. Are you going after bigger deals?
We’ve always viewed ourselves as stage agnostic. So we are more interested in the potential of the opportunity than in the exact dollar size we’re going to invest, although we pay attention to both. We are moving in the direction of investing larger amounts of capital. We’ve done things as small as $20 million and we’ve considered things as large as $400 million. That seems like a good range. I can see ourselves going higher than that. We’ve certainly looked at things that are higher. We’re increasingly more comfortable exposing more capital to the market.
Are deal sizes also getting bigger because you are looking beyond your sweet spot so far—technology services and technology-enabled services space?
I’d say it’s three things. One is that valuations are going up, clearly. Two, some of the sizes of companies we’re looking at are just fundamentally bigger. Some of the ownership stakes we’re looking at acquiring are larger as well so it obviously involves more capital. And the last thing is that we are looking at areas that have a greater level of capital intensity such as financial services, health care, some of the infrastructure in and around India. We’re seeing some very unique opportunities to involve larger investment sizes and we’re very comfortable with that.
How do you define that opportunity in Indian infrastructure now?
It’s a fabulous opportunity —everything from engineering services companies to the other end of the spectrum, actual companies that are executing these projects. So whether it is building roads, bridges, tunnels, transit lines, new marine ports, new energy companies, it is a whole series of things that you think of as India’s infrastructure. We are actively looking at all of that. I don’t think we will cross into the fundamental real estate business, that’s a different animal.
Snigdha Sengupta
MintGeneral Atlantic LLC, the New York—headquartered $17 billion private equity investor, plans to exit from at least one high-profile investment in India this year.
It may sell part of the 30 percent stake it acquired in Genpact at a cost of $250 million, after the Gurgaon-based business process outsourcer makes it debut on the New York Stock Exchange in next few weeks with a $600 million offering. It may also sell its stake in the Mumbai-based Patni Computer Ltd in which it invested $100 million for a 21 percent stake in 2002. Since then, a part of this stake has been divested through a public offer and people in the private equity business say General Atlantic is in talks with IBM Corp for selling out the remainder.
If these exits materialize, they will actually boost GA’s profile in the Indian private equity market, in which it was, relatively, a late entrant. They will also help firm up the company’s next big bet on India–infrastructure. And General Atlantic’s recently concluded $115 million acquisition of a 5 percent stake in National Stock Exchange indicates that it is also ready to move up from mid-sized deals.
Mark F. Dzialga, managing director and vice-chairman, investment committee, spoke on the firm’s investing approach and its new mandate for India.
Edited excerpts:
You entered India in 2002. Some of your peers, such as Warburg Pincus, Actis and Citigroup Ventures, had made significant headway by then. Why did you wait?
Asset management:?Mark F. Dzialga of General Atlantic LLC. There wasn’t any specific design that pushed us in 2002. If you see, much of our early activities were around BPO’s. A lot of our new investment activity in the US and Europe between 1999 and 2001 was taking place in the outsourcing markets. When we started to look for the next generation of companies around 2001, that’s when India emerged as something we needed to take on more seriously. We actually started spending real time in India in 2000 and it took us 18 months to get comfortable. We had to understand the market and the regulations. We had to develop enough relationships to be credible with promoters here before we made our first two investments—Daksh eServices and Patni Computer.
With the exception of Patni Computer, the first flush of deals here are all mid-sized investments, $20-70 million each. But that seems to be changing now. Are you going after bigger deals?
We’ve always viewed ourselves as stage agnostic. So we are more interested in the potential of the opportunity than in the exact dollar size we’re going to invest, although we pay attention to both. We are moving in the direction of investing larger amounts of capital. We’ve done things as small as $20 million and we’ve considered things as large as $400 million. That seems like a good range. I can see ourselves going higher than that. We’ve certainly looked at things that are higher. We’re increasingly more comfortable exposing more capital to the market.
Are deal sizes also getting bigger because you are looking beyond your sweet spot so far—technology services and technology-enabled services space?
I’d say it’s three things. One is that valuations are going up, clearly. Two, some of the sizes of companies we’re looking at are just fundamentally bigger. Some of the ownership stakes we’re looking at acquiring are larger as well so it obviously involves more capital. And the last thing is that we are looking at areas that have a greater level of capital intensity such as financial services, health care, some of the infrastructure in and around India. We’re seeing some very unique opportunities to involve larger investment sizes and we’re very comfortable with that.
How do you define that opportunity in Indian infrastructure now?
It’s a fabulous opportunity —everything from engineering services companies to the other end of the spectrum, actual companies that are executing these projects. So whether it is building roads, bridges, tunnels, transit lines, new marine ports, new energy companies, it is a whole series of things that you think of as India’s infrastructure. We are actively looking at all of that. I don’t think we will cross into the fundamental real estate business, that’s a different animal.
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