Software firms that were banking on a revival in the second half of the fiscal can take some cheer from the words of Gartner’s top man in India.
Partha Iyengar, who heads the India arm of the global research organisation, says the collapse of Lehman and other financial giants will not significantly worsen the slowdown for software firms and a revival could be in the offing before the fiscal end.
“Software firms are already in a slowdown. I don’t see that trajectory changing because of the events of last week. The December quarter will follow the quarter we are in currently. We will start seeing an uptake after the US elections. The sentiment will start to shift after that and software companies may recoup some of the losses they made in the earlier quarter in the fourth quarter,” Iyengar, vice-president, Gartner India, told ET.
Contrary to the gloom inspired by the fresh bout of bad news, his outlook for FY09 remains ‘cautiously optimistic’ and that for FY10 ‘fairly optimistic’ with growth returning to earlier levels. Iyengar said there were big differences across the key IT markets.
There was a higher level of uncertainty and close to a sense of panic among IT buyers in the US and UK (because of its proximity to US). But companies in Asia-Pacific, while being cautious, were going ahead with their IT projects. The sentiment among European buyers fell somewhere between Asia Pacific and US buyers, he said.
Since the events of last week, the BSE-IT index has lost 167 points over worries dogging some of the largest customers of Indian IT companies. Merrill is one of the top financial services clients for number one software exporter Tata Consultancy Services, while Wipro and HCL Tech have exposure to Lehman.
On Monday, outsourcing firm eClerx Services Ltd, which went public less than year ago, said it had outstanding receivables of $1 million from Lehman. The collapsed investment bank was one of its top five clients, accounting for about 13 per cent of revenues.
However, Iyengar said some of the consolidation among large financial services players such as Bank of America’s acquisition of Merrill Lynch and Lloyd TSB’s takeover of HBOS would provide huge integration opportunities for IT firms.
“It’s true, there will be some redundancies and IT vendor consolidation but they will take time to play out. The bigger issue will be the integration opportunity it creates in the near-term, integration is the biggest single issue for banks,” he said.
The most significant difference between the last slowdown in 2001-02 and the current one was the ‘incredible amount of credibility’ Indian firms have built. Gartner is also advising IT firms not go back on job offers they have already made and not cut too deep to the bone when they rationalise recruitment.
“Resources (people) tend to have fairly long memories, and when the company gets back to hire-mode, you don’t want it to have negative impact,” he added.
source : times of india
IT to bounce back soon: Gartner
SC wants law to protect owners from squatters
NEW DELHI: The Supreme Court will bring cheers to those who have lost their house or land to squatters. On Tuesday, the court said it wanted a change in the law that gives ownership rights to the one who has usurped a property by squatting by taking advantage of the fact that the owners were have had little time to inquire about their property.
Terming the ousting of real owners from their property by squatters as a serious human rights violation, a Bench comprising Justices Dalveer Bhandari and H S Bedi has requested the Centre to take a fresh look and suitably amend the land laws that recognise "adverse possession" as a means to acquire title over a property by ousting the real owners.
The apex court was at loss to understand how the law could place a premium on dishonesty by legitimising possession of a trespasser and compelling the real owner to lose his title simply because the owner has not taken back his house or land within a stipulated time.
"There is an urgent need of fresh look regarding the law on adverse possession. We recommend the Union
of India to seriously consider and make suitable changes in the law of adverse possession,” said the Bench rushing a copy of its judgment to the law ministry and legislative department for appropriate steps in accordance with law.
The case that prompted the court to do so related to a real owner losing out his title to a squatter. The Bench — despite the existing law — restored the property to the real owner, saying the trespasser had miserably failed to establish his title over it and said it was a pity that law recognised "adverse possession" as a means to take over property from a non-alert owner.
Writing the judgment for the Bench, Justice Bhandari said: "The law of adverse possession which ousts an owner on the basis of inaction within limitation is irrational, illogical and wholly disproportionate...The law as it exists is extremely harsh for the true owners and a windfall for a dishonest person who had illegally taken possession of the property of the true owner."
The concern of the court was that law, which is meant to do justice, could not be seen to benefit a person "who in a clandestine manner takes possession of the property of the owner in contravention of the law."
Though right to property has been deleted from the list of fundamental rights and has been reduced to the status of a mere legal right, the apex court termed it as an important human right.
"The right to property is now considered to be not only a constitutional right or statutory right but also a human right," the Bench said, while observing that claim of adverse possession had to be dealt with keeping in mind this important right.
source: times of india
Senate panel clears N-deal as PM lands in US
WASHINGTON: A US Senate Foreign Relations Committee on Tuesday approved the US-India Nuclear Agreement by a 19-2 margin even as Prime Minister Manmohan Singh arrived in NEW YORK, providing a glimmer of hope that the deal would be consummated by the time he visits Washington DC on Thursday.
The Senate panel appended agreement for consideration at its business meeting on Tuesday at the very last minute, adding it as item no.9 in its mark-up list. It was not immediately clear who were the two lawmakers who voted against it, but at the SFRC hearing last week, Senators Barbara Boxer of California and Russ Feingold of Wisconsin took the strongest stand against the deal.
Action is now awaited on the House side.
Meanwhile, Prime Minister Manmohan Singh arrived in New York even as President Bush began a major re-casting of the war on terror by moving the focus from Iraq to Pakistan-Afghanistan in the waning days of his presidency, while at the same time battling a financial conflagration that threatens to engulf the world.
The twin crisis has put the much-awaited US-India nuclear deal on the backburner as Washington, euphemism for the US administration, has momentarily moved to New York, and is seized with more urgent priorities that also affect India.
Among them is the new American resolve to get a handle on Pakistan, which will require New Delhi's cooperation and inputs given India's influential position and stakes in the region, particularly in Afghanistan. A more active Indian role in the region, including additional inputs in Afghanistan, is slated for discussion when Prime Minister Singh meets Bush in the White House on September 25.
Bush met Pakistan's newly-elected, but already embattled, leader Asif Ali Zardari in New York first-up on Tuesday even as the White House began a major re-appraisal of its policy in the region, spurred by the horrendous bombing of the Marriott in Islamabad.
The usual bromides about Pakistan being an ally in the war on terror was essayed by both leaders, but fundamentally, the White House appears to be correcting its policy of extreme dependency on Pakistan's military and intelligence, which have now been assessed as being unreliable and treacherous, public affirmation about cooperation notwithstanding.
In remarks that followed their meeting, Bush indicated that Zardari had brought up the issue of US incursions into Pakistan in a strong way, but offered no assurance that it would end.
"Your words have been very strong about Pakistan's sovereign right and sovereign duty to protect your country, and the United States wants to help," Bush said, remaining non-committal on the hot-button issue.
From all accounts though, Washington now wants to strengthen the hands of Pakistan's civilian government, make the country's military subservient to it as it happens in most democracies, and purge the ISI of rogue elements and subversive orientation. Pakistan's civilian leadership has seen the need for US intervention in areas that it has no control over, but the country's military generals, who have used the lawless regions as staging ground for jihad, are the ones resenting the US intrusion and putting pressure on the civilian leadership to make it an issue.
INDIA will be drawn into giving its take on the whole issue when the two sides have bilateral exchanges in Washington later this week, even as the conclusion of the nuclear deal, which remained on top of the agenda till this weekend, is up in the air.
Singh will also meet Zardari in NEW YORK tomorrow to discuss issues ranging from terrorism to trade and commerce, now that New Delhi has gotten over its fixation with deposed military dictator Pervez Musharraf.
Meanwhile, Indian officials were hopeful that the nuclear deal would be consummated in Congress before the Prime Minister's arrival in Washington on Thursday, but were not particularly exercised about the prospect of it not happening.
"We would rather it be done correctly than done hastily," one official involved in the proceedings told TOI.
US administration officials dealing with the matter were locked in battle with Democrats over the wording of the resolution to be presented in Congress, warning them that New Delhi would not accept any riders, even if they were non-binding.
Some Democrats, primed by non-proliferation hardliners, seem determined to shaft the deal even at this late stage by using a plethora of what officials describe as "spurious" arguments, including procedural issues.
All this is happening against the backdrop of the new Surge and Splurge that is roiling the capital. The new surge refers to the sudden diversion of US troops from Iraq to Afghanistan's border, following the Bush administration acceptance of Pakistan as the ground zero of the war on terror. The splurge refers to the infusion of government capital to resolve the Wall Street crisis.
Bush, making his final speech to the UN General Assembly on Tuesday morning, referred to both the war on terror and the financial crisis issues, expressing his determination to overcome both.
source : times of india
We don't need a partner to survive, say Goldman Sachs, Morgan Stanley
LONDON: Global financial service majors Goldman Sachs and Morgan Stanley believe they have financial strength to survive as the last two remaining large stand-alone investment banks and are not interested in pairing with a commercial bank, a media report said. "In the wake of the collapse of Lehman Brothers and the sale of Merrill Lynch to Bank of America at the weekend, the two Wall Street firms maintained that they could survive as independents without linking up with a commercial bank to gain access to broader sources of funding," according to UK daily Financial Times . Goldman Sachs maintained that it was not interested in pairing with a commercial bank, even as it has reported a 70 per cent fall in third-quarter profits, its highest decline in quarterly earnings since it went public in 1999. Besides, Morgan Stanley beat expectations to show a seven per cent year-on-year fall in its net income to 1.4 billion dollars. Further, the report quoted Goldman Sachs Chief Financial Officer David Viniar as saying that, "We have a lot of compassion" for the people at Lehman and Merrill, but the bank stands to benefit from the demise of formidable competitors. "When there's less competition, that's better for us. We have pricing power, and it gives us an even better competitive advantage," Viniar added. Besides, the media report quoted Morgan Stanley Chief Financial Officer Colm Kelleher as saying that "These markets are all about confidence and we are proudly confident in the robustness of our franchise, business model and balance sheet."
source : times of india
Wary of terror links, US wants Pak to reform ISI
WASHINGTON: The Pakistani military's powerful and controversial spy agency needs reform but there is no indication this is happening yet, the top US diplomat for South Asia said. "It has to be done," Assistant Secretary of State for South and Central Asian Affairs Richard Boucher said of revamping the Inter-Services Intelligence agency, widely known as the ISI. Asked if he had seen signs of reform, he said: "No, I don't have anything in particular I would point to right now." Despite its help in fighting al-Qaida, the ISI is viewed with deep suspicion by US officials who believe it retains links to the Taliban and other militants blamed for supporting attacks on US forces across the border in Afghanistan. In July, Afghan president Hamid Karzai said Pakistani agents were behind some of the violence in his country, including a suicide attack on the Indian embassy in Kabul. India also has blamed Pakistani intelligence agents, a charge Pakistan denied. The spy agency is also suspected of having a hand in helping destabilize past civilian governments in Pakistan. Pakistan's new government led by PM Yousaf Raza Gilani tried to rein in the ISI in July by placing it under interior ministry control, only to reverse course within days in an embarrassing flip-flop. Asked why the new Pakistani government was more likely to act than under its predecessor, President Pervez Musharraf, Boucher replied: "It's sad to say, but the problem has become more and more acute." Pointing to growing militant violence inside Pakistan, Boucher said "increasingly, the problem is not seen as doing what the United States wants but doing what is necessary for the future of Pakistan". "I think they have really shown a lot of determination, particularly in the last month or two," he said of troops combating militants in the tribal areas.
source : times of india
US asks Congress $250 mn for Pak F-16s
WASHINGTON: The Bush Administration on Tuesday urged a skeptical US Congress to release more than $ 250 million to arm Pakistan with upgraded F-16s fighter jets even as US and Pakistani forces stood eyeball-to-eyeball on the Afghan border in a confrontational posture. The incongruous spectacle of senior state department officials pleading for arming Pakistan amid fears of a shooting match between the two militaries came amid deep cynicism among lawmakers about the administration’s Pakistan policy and a mission to Islamabad by the top US military officer, Admiral Mike Mullen, to defuse the situation. Admiral Mullen rushed to Islamabad on Tuesday on an unscheduled visit (his fifth this year) after tensions ratcheted up last week following a US airborne assault inside Pakistan and stepped up bombing by US drone on targets inside Pakistan. The hurried visit followed an announcement by Islamabad it would meet any US incursions into its territory by force and a growing clamour in the country to cut off US military supplies to its forces in Afghanistan, most of which go through Pakistan. “Mullen was scheduled to meet Pakistan’s prime minister Yousuf Gilani and army chief Pervez Kiyani to continue the dialogue that they have been maintaining and to look for ways to work better and more closely together to eliminate the safe havens for extremists in the border region,'' a US military spokesman said. On the Hill, doubts ran deep at a Congressional hearing called to question the Bush administration policy of arming what most American analysts and commentators have begun to refer to as a dubious ally and terrorist haven that constitutes a threat to the United States. ''Let's be grown-up about this. Do you think the average Pakistani thinks the symbolism has something to do with fighting terrorism or confronting India?" New York Congressman Gary Ackerman, who called the hearing to specifically question funding for Pakistan’s F-16, asked. ''I think we are trying to build the confidence of an ally that is not so allied with us sometimes.'' Lawmakers also expressed concern about the comments of Pakistan army spokesman who said the military has ordered its forces to open fire if US troops launch another air or ground raid across the Afghan border. Doubts were also expressed about the efficacy of F-16 fighter jets against terrorist elements that have frequently been described as scattered and living in caves. But a senior state department official maintained that the F-16s ''provide a critical counterterrorism capability to Pakistan'' and the Pakistan Air Force (PAF) has recently made extensive use of its ''aging'' F-16 fleet to support Pakistan Army operations in the Swat Valley and in the Bajaur Agency of the Federally Administered Tribal Areas (FATA). The official, Principal Deputy Assistant Secretary for South and Central Asia Donald Camp, told cited information furnished by the Pakistan Embassy in Washington, to inform the skeptical committee that the PAF flew 93 sorties in August 2008 in operations against the Taliban. However, their current model F-16 can be used for close air support missions only in daylight and good visibility. They cannot be employed at night, a fact not lost on the Taliban and other extremist groups being targeted, Camp said, presenting the Pakistani position.
source : times of india
French commandos free hostages from Somali pirates
PARIS: French commandos freed a couple seized by pirates off Somalia in the second such mission this year, leading President Nicolas Sarkozy to call on Tuesday for an international crackdown on sea raiders. The special forces operation, ordered by Sarkozy late Monday, came as officials said heavily-armed pirates had attacked a Hong Kong-registered chemical tanker in the Gulf of Aden, taking its crew of 22 hostage. Thirty commandos killed one pirate and detained six others in an operation lasting less than 10 minutes to free Jean-Yves Delanne and his wife Bernadette, both 60, Sarkozy told a press conference. A French warship backed the commandos for the operation carried out at sea outside Somali waters. The six captured men were to be transferred to France, which is already holding six Somalis seized in a commando operation in April. The French leader said the assault was a "warning" to pirates plaguing the Somali coastline, the world's most dangerous waters for merchant ships, fishing fleets and pleasure yachts alike. The hijackers captured the Delanne couple in their yacht the Carre d'As on September 2, and were reportedly demanding a ransom of more than one million dollars, as well as the release of their six compatriots. Sailing enthusiasts based in Tahiti, the couple were on their way from Australia to France when they were attacked. Sarkozy said both were safe on the French warship, the Courbet, and were being taken to Djibouti. "This is a huge relief. All we can say is thank you, thank you so much," their daughter Alizee told French radio. French commandos staged a raid on April 11 to release a French luxury yacht, Le Ponant, and its 30 crew. The French president said he ordered the new operation after it became clear the pirates were heading for their coastal base in the town of Eyl, in Somalia's northeastern semi-autonomous Puntland region. "France will not allow crime to pay," Sarkozy said. "This operation is a warning to all those who indulge in this criminal activity. This is a call for the mobilisation of the international community." Sarkozy said he backed the creation of a "marine police" to secure the region, and "punitive action" against pirates, saying the issue would be raised at next week's United Nations general assembly in New York. He also thanked Germany and Malaysia for their help with the operation. In Berlin, the German defence ministry said two army reconnaissance planes supported the French operation, without giving further details. The authorities in Puntland welcomed the French move. "The state of Puntland encourages such steps and calls on other governments whose nationals are being held to do the same thing," Puntland presidential adviser Bille Mohamoud Qabowsade said. Since July, 12 ships have been hijacked in the narrow waterway separating Yemen and Somalia by pirates operating high-powered speedboats, according to the International Maritime Bureau. Eleven are still being held for ransom. Two rockets were fired at a French tuna fishing boat some 700 kilometres off Somalia on Saturday, in a sign the pirates are moving further out to sea to evade military patrols in coastal shipping areas. In recent months, a multinational task force based in Djibouti has been patrolling parts of the Gulf of Aden and the Red Sea, where a pirate mothership is believed to be operating. France and Spain called in July for the creation of an international force to tackle piracy in the region, which is hampering the delivery of vital food aid to the lawless Horn of Africa nation. The UN Security Council in June adopted a resolution authorising foreign warships to enter Somalia's territorial waters with the government's consent to combat pirates, though it has yet to be implemented. European foreign ministers agreed Monday to set up a special unit to coordinate the fight against piracy off Somalia, raising the possibility of an EU naval mission to the region.
source : times of india
'100 women raped daily in Karachi'
KARACHI: If a Karachi police surgeon is to be believed, on an average 100 rapes take place in the port city of Karachi alone, and mostly working women are the victims. He said because of the "lengthy medical process and delayed justice system in Pakistan", only 0.5% of rape cases are reported to the police. "On average, 100 women are raped every 24 hours in Karachi city alone, and a majority of them are working women. I am saying with full authority that such a large number of rape cases happen in the city. But very few rape survivors have the courage to come forward in search of justice," Additional Police Surgeon Zulfiqar Siyal said on Monday. He added that a majority of the victims working as domestic help.
source : times of india
Google phone to debut next week
SAN FRANCISCO: T-Mobile plans to show off the first wireless phone powered by Google Inc's much-anticipated Android software system at a September 23 news conference. Although T-Mobile intends to demonstrate the phone for reporters and analysts invited to next week's event in New York, the handset isn't expected to be available in stores until next month. More specifics about the phone's shipping date and pricing are still to come. T-Mobile is expected to subsidise part of the phone's cost for buyers who agree to subscribe to the carrier's mobile service. The phone, made by HTC, has generated a big buzz because it will be the first to use Google's Android software, which is supposed to make it easier and more enticing to surf the Internet on a handset. Google is counting on the software, announced last November, to help sell more advertising by encouraging more people to use its Internet search engine and other services while they are away from the office or home. T-Mobile's phone will face stiff competition from Apple Inc's iPhone, which is Google's largest source of mobile traffic so far, and Research In Motion Ltd's BlackBerry. If Google realises its ambitions, hundreds of different mobile devices will run on the Android system.
source : times of india
Credit crisis: IT cos may cut 25K jobs
BANGALORE/NEW DELHI: The banking, financial services and insurance (BFSI) segment is the largest outsourcing vertical for Indian technology players. The space contributes up to 40 per cent of the revenues for some top IT firms. The industry employs around 3,50,000 people in the BFSI space of which the top six players alone account for 180,000 jobs. The domain accounted for $10 billion of the total $32 billion revenues the industry posted during the last fiscal. What’s happening in the global financial markets can result in the loss of as many as 20,000 to 25,000 jobs in India. That means, the likes of Cognizant, TCS, Infosys, HCL, Wipro and Satyam will announce huge layoffs over the next couple of quarters. According to Dr Naresh Malhan, MD, Manpower India , about 9 per cent of the people employed in the BFSI, insurance, IT and ITeS sectors in India risk losing their jobs as a result of the financial meltdown. However, he says the overall market remains robust, with other sectors like manufacturing and construction still very promising. Not everyone shares this view. “Many firms will also use the present economic environment as an excuse to cut flab,” says Uday Chawla, managing Partner, Transearch, India. “Letting go of people in good times is not acceptable, but is sure to escape media scrutiny in the current climate,” he adds. But what is a threat for some, is an opportunity for others. “Merrill Lynch and Lehman are respected for the quality of talent they attract and train. It’s an opportunity for small firms desperate for quality leadership,” says Sanjiv Sachar, partner, Egon Zehnder. “Candidates are insisting on protection clauses, with employment letters guaranteeing 1 or 2 years salary. This is more the rule than the exception today. There is a greater play on variable pay in this high-risk environment,” adds Sachar. “Economy is growing at 8 per cent. The layoffs in the financial services will make skills available to other sectors which are facing a leadership crunch,” agrees R Sankar, head-HR consulting practice at PwC.
source : times of india
Barclays announces deal to buy Lehman parts
LONDON: Barclays announced on Wednesday that it had reached an agreement to acquire Lehman Brothers North American investment banking and capital markets businesses. "The board of Barclays announces that Barclays has agreed, subject to US Court and relevant regulatory approvals, to acquire Lehman Brothers North American investment banking and capital markets operations and supporting infrastructure," said the bank, Britain's third largest. Barclays said it would acquire trading assets with an estimated value of 40 billion pounds (50 billion euros, 72 billion dollars) and trading liabilities worth 38 billion pounds. It will also acquire Lehman's New York headquarters. Barclays had at the weekend walked away from a merger deal with the beleaguered US investment giant, saying that such a tie-up would not have been in the best interests of Barclays' shareholders. Lehman went bankrupt on Monday, plunging the global financial system into turmoil. The massive Lehman bankruptcy filing in US federal court in New York listed 639 billion dollars in assets and 613 billion in debt. "This is a once in a lifetime opportunity for Barclays," said the British bank's president, Robert Diamond. "We will now have the best team and most productive culture across the world's major financial markets, backed by the resources of an integrated universal bank. "We welcome the opportunity to add Lehman's people and capabilities to the Barclays team." In the same statement, Lehman Brothers' chief operating officer, Herbert McDade, said: "Lehman Brothers strength has always been our client franchise. "With this transaction, we have the opportunity to continue the growth and development of our US investment banking and capital market franchises with one of the leading financial institutions in the world."
source : times of india
Rupee seen up after RBI steps, stock cues
MUMBAI: Rupee may rise on Wednesday, after posting its biggest single-day fall on Tuesday, supported by Reserve Bank of India's move to make rates on deposits by non-residents more attractive. After markets had shut on Tuesday, the apex bank also said it would continue to sell dollars in the local foreign exchange market either directly or through state-run banks to augment supply. Asian stocks rose and oil was up $3 a barrel on Wednesday after the Federal Reserve said it would bail out American International Group. The recovery of Asian shares could check capital outflows. The partially convertible rupee ended at 46.89/90 per dollar on Tuesday, off a trough of 46.99, which was its lowest since July 24, 2006. The rupee fell 1.8 percent from its close of 46.05/06 on Monday.
source : times of india
PM to make flying visit to Washington
WASHINGTON: Prime Minister Manmohan Singh will make what could arguably be the shortest visit by an Indian leader to a major foreign capital when he stops by for a mere six hours in Washington DC on September 25 to meet President Bush. "Don't-blink-or-you'll-miss-him," could well be the tagline for what is being dubbed a "working visit," a diplomatic label that sits below "official visit" and the grand "state visit" in the protocol register. Singh will arrive in the US capital from New York late afternoon on September 25 (a Thursday) to meet Bush in the White House Oval Office and the two will straightaway head from there to a "working dinner" – jokingly referred to among diplomats as an 'eat-while-you-talk' meeting. As things stand, there will be no other engagement -- not even a press conference or briefing -- and he will return to New York the same night. In fact, a 35-member Indian media party accompanying the prime minister is being advised to stay back in New York and told that briefing on the PM's White House engagement will take place after he returns to New York. Several reasons are being advanced for this spare, no-frills visit. Both sides want to avoid any sign of triumphalism over the expected passage of the US-India nuclear deal at a time the world community will be gathering in New York for the UN General Assembly. And although officials expect the agreement to be cleared by Congress, they prefer to be circumspect, just in case... The Indian side is also leery of the final contours of the agreement. An additional factor is the PM's own tight schedule. He is scheduled to make a speech on the Millennium Development Goals on 25th morning and his UN GA address is slotted for 26th morning. So that leaves him only the afternoon and evening of 25th for the DC stopover. Between all this, he will also squeeze in an Indian community reception in New York, and a few bilateral meetings, including one with President Zardari of Pakistan. Therefore, no pomp and ceremony, no bells and whistles, no prolonged stay - and no media engagement in Washington DC. Things could change if Congress okays the nuclear agreement well before the Prime Minister arrives here, but officials once again expect it to go down to the wire, as it did in Congress the first time around when the vote was taken past 2 a.m. on the final day of the session leaving no time to plan any celebration. Typically, the White House likes to avoid big visits to Washington DC in September when the UN General Assembly convenes, bringing scores of world leaders to New York. The US President himself goes to Turtle Bay, site of the UN, for his address, and meets world leaders at a reception he hosts. Bush has made exceptions to this ritual, and in recent years, squeezed in a few invitees to Washington DC. In fact, Singh will be followed to the capital by the Afghan President Hamid Karzai, who meets Bush at the White House on September 26. Besides, Singh has already had the privilege of a state visit with all the accompanying 'band-baja' when he came here in July 2005 (when the nuclear deal was signed). He is only one of only six international leaders to be feted with a state banquet in eight years of Bush White House - said to be the lowest among all modern presidencies. Most of the ceremonial visits involve close allies or developing country leaders (Mexico, Poland, Philippines, and Kenya got the red carpet; the last state dinner in May 2007 was for Britain's Queen Elizabeth II and Prince Philip.) Bush, who is said to dislike the starchy events - prefers the rough and tumble of his ranch - hosted what was described as the last black-tie state dinner of his presidency on Tuesday for President John Kufuor of Ghana. The two joked about how they will both soon belong to the club of ex-presidents, having come to office at around the same time and bowing out also around the same time. Singh, on the other hand, will be hoping his US engagement, and the nuclear deal that resulted from it, will bring him back to another term in South Block.
source : times of india
IIMs feel US meltdown heat
BANGALORE: Even as Wall Street struggles to cope with the Lehman Brothers-Merrill Lynch double whammy, the aftershocks are reverberating across the Indian Institutes of Managements in India. For, they have been great hunting grounds for these banks. Lehman Brothers has been recruiting from IIM-Ahmedabad since 1997 and in the past few years, been picking 12 people on an average every year. In March 2008, Lehman Brothers recruited 10 students from IIM-A. Mihir Lal, co-ordinator, placement cell for class 2009 at IIM-A said, "It's too soon to say whether or how this will affect our placements. We'll know only in November when we have our lateral placements and then in February when we have our final placement." In the summer placements of IIM, Bangalore, for class 2009, investment banking accounted for 68% in the internship profile of the students, while 17% opted for management consultancy. Lehman Brothers was the major recruiter, selecting 13 students, while JP Morgan and Macquarie took the second position by recruiting 11 students each. Saurav Mukherjee, chairperson-placement of IIM-B, said the institute is not counting on Lehman for campus recruitment this year. However, "Since Merrill Lynch has been taken over by Bank of America, we are hopeful about it. We might write to Bank of America for placement," Mukherjee said, adding that none had so far withdrawn their summer placement offers. The news of Lehman Brothers going bust has kicked fuelled apprehension among students at IIM Calcutta, especially because Lehman Brothers is considered one of the top recruiters there, both for pre-placement offers and final placements. This year, it has already made pre-placement offers to at least 10 students and the letters have just reached them. "We're reading about the bank going bankrupt but yet to receive an official communique on this. However, if this comes true, these letters to our students will not stand. Naturally, it is a cause of concern. However, we're still hoping against hope," said Krishnan, representative, external relations cell. Lehman Brothers, a Slot 0 recruiter (the first day of campus recruitment) at IIM-C, will not make it next March when final placements happen. "We have at least 15 other investment bankers who come calling, but the absence of Lehman Brothers will certainly be felt because it is invariably among those who make the highest offers," Krishnan added. So, employees will probably have to kiss those lavish hikes and bonuses goodbye. Especially now that many companies are said to be reviewing bench strength and HR goodies like salsa classes. In more ways than one, the sweet music may be coming to a halt. India front office and nearly 2,500 employees of its captive units will have to look for alternate employment. Search firms across India expect the ripple effect to be felt across sectors, with IT/ITES companies which depend heavily on the banking and financial services industry likely to be directly hit. According to market guesstimates, as many as 25,000 jobs could be lost in India. There are fears that IT majors may announce huge layoffs over the next few quarters. Prospective employers, though, are loving it, especially the ones in sectors which have been complaining of a talent crunch. The so called A-minus companies can now dare to dream of hiring A-plus talent without having to pay the moon for them.
source : times of india
TCS, Wipro recast hiring plans
AHMEDABAD: As the heat of global slowdown spreads, several players in the IT and ITeS sector have modified recruitment policies, keeping them in sync with the changing market conditions and their pockets.
The likes of TCS, Wipro and Keane are either going slow on recruitment or are hiring more number of trained hands.
“During 2008, recruitments in IT/ITeS sector has seen a fall of 20-22 per cent as compared to the same period last year. The players have become more cautious,” says Bangalore-based HR firm Ikya Human Capital Solutions chairman Marcel Parker.
“There is a delay in decision making. While most IT firms have deferred their hiring, some have postponed their training programmes. A few have opted for judicious just-in-time recruitment process,” Parker said.
TCS, which recruits about 18,000 employees every year has decided to make significant cuts in recruitment patterns to tide over the crisis. “This year we are not going for any mass recruitment. We have cut down on at least 20 per cent of the total recruitment,” said a senior HR official of TCS in Gujarat. “Our focus has largely been to hire more experienced candidates than go in for fresh recruits,” the official added.
Similarly, international IT firm, Keane is not just going slow on recruitments, but have also adopted a ‘just-in-time-approach’ on hiring. “Since the last three years, we used to hire 30-40 per cent more people than the previous year. But this year we are sticking to almost the same number of people we recruited last year,” said Keane India senior VP S G Raja Sekharan.
“Since January we have already made job offers to 3,000 students, which is in the range of what we had did last year. We do not want to make job offers and scale back (if market conditions deteriorate),” he said.
source: times of india
Hewlett-Packard to cut 24,600 jobs
SAN FRANCISCO: Hewlett-Packard Co plans to cut 7.5 per cent of its work force, or 24,600 jobs, seeking to realise savings from its recent acquisition of Electronic Data Systems Corp, the company said.
HP said it will carry out the cutbacks over the next three years, while replacing about half the jobs in new areas of its services business. It announced the plan ahead of a meeting with Wall Street analysts to detail the merger plans.
Nearly half of the job reductions will take place in the United States, the Palo Alto, California-based company said. EDS was headquartered in Plano, Texas, near Dallas.
HP said it will take a charge of $1.7 billion in the fiscal fourth quarter ending in October. Accounting for goodwill will cost $1.4 billion, while cost of the restructuring will involve anther $300 million.
HP estimated $1.8 billion in annual cost savings once the three-year cost-cutting programme is completed.
"We are good at integrating companies ... I believe we will do it well," chairman and chief executive Mark Hurd told financial analysts at the company's headquarters.
At the time the $13.2 billion merger of computer services provider EDS into HP was announced in May, Hewlett-Packard counted 178,000 employees on its books and EDS had 142,000 employees.
Including the value of common stock, options and restricted stock units, the enterprise value of the deal totals $13.9 billion. The deal closed last month.
Hewlett-Packard said the vast majority of the cuts would focus on eliminating overlapping jobs at EDS in corporate functions such as legal, accounting, information technology and human resources.
Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, HP said. The company will provide employees affected by this restructuring programme with severance packages, counseling and job placement services.
source: times of india
Merrill, Lehman debacle: IT Inc wary
The news sent the global stock markets crashing, including Indian where Bombay Stock Exchange Sensex plunged 850 points or 6.1 per cent in intra-day trading. It later recovered half way to close at 13,531 points. However, Lehman and Merrill Lynch's India connections go far beyond just the financial industry.
The crisis at two iconic institutions could have come at a worst time for the Indian IT majors already reeling under slowdown in their biggest market US. The US financial market crisis is only likely to add to the troubles of Indian tech majors.
The erstwhile giants work with over a dozen service providers in the country, including big ticket players like TCS, Infosys, Wipro, Satyam, HCL and IBM.
The catastrophic events overtaking global financial majors will dent the revenues of Indian outsourcing majors, both in terms of the expected business and contracts they have already undertaken. As the affected investment banks are expected to pull out of some of their outsourcing arrangements.
The bankrupt Lehman Brothers has relationships with a number of top vendors but is not a major outsourcing company compared to some of its peers. “Lehman has been the worst outsourcing company among the investment banks. Compared to it, JP Morgan, Merrill Lynch and Morgan Stanley have been outsourcing a lot more aggressively. In 2003, its total outsourcing to vendors in India was only around $100 million,” said an analyst, adding that Wipro and TCS were among its vendors here.
“Lehman Brothers does not account for a significant portion of our revenue and we are in dialogue with them during this difficult period of uncertainty. Wipro is monitoring the US economic situation closely, but we have nothing more specific to communicate,” a statement from the company said. Wipro has around 400 employees working on software services and infrastructure management projects for Lehman.
Lehman's major impact will be on the lead provider Wipro and the second-largest provider TCS," said an industry observer. Lehman, which focuses on derivatives, broker dealer and asset management services, outsources application development and management solutions and services as well as back office solutions to Indian providers.
Number one software services vendor, Tata Consultancy Services, is likely to be worse off than its peers because of its significant exposure to Merrill Lynch which, analysts said, ranks among its top five financial services clients. The company is also a significant client of Satyam.
However, a Wipro spokesperson said Lehman does not account for a significant portion of the company's revenues. "We are in dialogue with them in this difficult period of uncertainty. Wipro is monitoring the US economic situation closely, but at this time we have nothing more specific to communicate,'' the company said.
HCL Technologies is also a vendor to Lehman but Premkumar S, who heads HCL financial services business, said its exposure was less than a single integer in percentage terms. Among the top five IT firms in India, HCL Technologies could possibly be the least hit by the crisis overtaking the global financial giants because of its lower exposure to financial services clients compared to its peers.
Traditionally, the company has been strong in engineering services. Apart from Bear Stearns, which was bailed out by JP Morgan, Citigroup is its other major financial services client of note. Analysts were unsure of who the other Indian IT and BPO vendors of Lehman were. They said Satyam and Infosys may also be among its vendors but none of them are were likely to have above $50 million in annual revenues from the bankrupt firm.
Merrill is also a significant client for Satyam Computer Services. Analysts estimate nearly 2,500 employees at TCS and Satyam work for Merrill.
According to reports, over 3,000 people are said to be working on Lehman's account from Mumbai and Bangalore, of which about 800 to 1,000 are likely to lose jobs. In the last six to nine months, Lehman was moving work from its third party players to its captive centres in Mumbai and Hyderabad. Aanad Lavi, head of Tholons Capital, said, "Generally it's a disturbing piece of information for providers in the country."
Sources say that Lehman Brother's captive unit in Mumbai has already issued termination letters to a majority of its 1500 employees. The captive unit provided support and financial process outsourcing to the company.
The Bank Am-Merrill Lynch deal may also have repercussions on Indian software outsourcing firms. Bank of America works with Infosys while Merrill Lynch outsources to Satyam.
"A vendor rationalisation is expected post integration. BoA may choose to stay with Infosys. There could be some over-lapping so there could be loss of a couple of hundred jobs in India. But it may take some six months," said an analyst.
Also, while like Satyam, Merrill Lynch is one of the key clients of TCS, the latter has an advantage as it already has a relationship going with Bank Am. However, Infosys happens to be on the right side of the deal. The company has a large relationship with Bank Am, while it also works for Merrill on a smaller scale.
Analysts don't see any major challenge for IT companies in the short-term. However, in the long term it would lead to reduction in the amount of work outsourced to these service providers.
Also, with the US election on cards there is bound to be a further lag in outsourcing deals as outsourcing to countries like India remains a politically sensitive issue.
"The industry was expecting a recovery by mid 2009 and now it will be further delayed," said Sabya Sachi Satpathy, senior director of IT consulting company neoIT.
Lehman Brothers also has investments in a few IT firms. Lehman investments in India also include a 40 per cent stake in an IT park project of Peninsula Land in Hyderabad for an initial investment of Rs 50 crore.
Industry estimates that Lehman's cumulative outsourcing to Indian providers is worth around $200 million and that about 40 per cent of this business would be affected.
source: times of india
AP girl's cousin also found dead in US
HYDERABAD: It's a deadly double blow for the Tummala family. Even as they grieve the death of 23-year-old Soumya Reddy - who was murdered in Chicago on Sunday - came another shocker when the authorities in Missouri found the body of Soumya's cousin Tummala Vikram Kumar Reddy in a lake on Monday.
The body of 27-year-old Vikram surfaced from the lake at around 11.45 am on Monday. Vikram, son of Soumya's mother's elder sister, was working as a software engineer in Chicago. His death was expected to have taken place around the same time as Soumya's, St Louis County police official Rick Eckhard said. The St Louis County police, who said Vikram was also shot, though would not discuss the specifics but stopped short of calling the shootings a murder-suicide.
Vikram, hailing from Anksapur village in Nizamabad district, completed his engineering from Hashim College and went to the US six years ago to do an MS. "After finishing his MS, he had been working with a software company," Srinivas Reddy, a close relative of the family, told 'TOI.' Vikram's father Venkat Reddy is an employee of the telecom department, while his elder sister Pratibha is working as a doctor in Hyderabad. Soumya's mother Hemalatha lives in Venkat Reddy's house at Padmarao Nagar.
Since they came to know about Soumya's death, the family members were trying to contact Vikram, but could not reach him. "Now, comes the shocking news of Vikram's death," Srinivas Reddy said. However, the family said they haven't received any information from the US authorities on Vikram's death till Tuesday night.
Earlier, the body of Soumya, slumped in a car belonging to Vikram, was found near Sunfish Lake boat ramp close to Spanish Lake Park by early morning joggers. The car, a 1995 Ford Taurus, was registered in Vikram's name. Eckhard said it's not clear why Vikram and Soumya would have been at the park. It is learnt that Vikram and Soumya shared the house in Maryville.
The St Louis County police said investigation would continue to unravel the mystery behind the murders. No arrests have been made in connection with either death as the police believe that the deceased were the only people involved based on preliminary investigations. FBI sleuths are also investigating the case from all angles. Initially, it was said that an African-American pumped bullets into Soumya. The Spanish Lake Park is a 30-minute drive across the Illinois-Missouri state border and 20 miles from the Southern Illinois University campus at Edwardsville where Soumya was a second year student pursuing her MS in Electrical Engineering.
Soumya, who celebrated her 23rd birthday on September 7, had telephoned her mother Hemalatha on Saturday and had told her that she would come home in March next year after her exams. Some of their neighbours said the family was also planning for the marriage of Vikram and he was expected to come down in December. Vikram used to call up the family every Sunday but this Sunday he didn't. Police were also examining whether the wounds of Soumya and Vikram were from the same gun.
Praveen Dodda, president of Indian Students Association, said Soumya was a reserved person but a brilliant student. "The Indian community here is deeply shocked that Soumya and Vikram are no more," he said.
source : times of india
US government announces $85 billion loan to save AIG
WASHINGTON: The Federal Reserve says the US government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG.
The Fed said on Tuesday the US Treasury Department was in full support of the decision.
The Fed determined that a "disorderly failure" of AIG could undermine already fragile financial markets.
source : times of india
Govt may find going tough on terror law
NEW DELHI: In the wake of continuing terror attacks in the country, the UPA government has mooted a "tougher-than-Pota" law.
Although the recommendation has come from the Administrative Reforms Commission, the timing of its release — when the government is struggling to shake off a "soft on terror" tag its rivals have sought to pin to it and ahead of state polls — is seen to be loaded with significance.
Implementation of the law is not going to be easy because the Congress has not just opposed Pota, it has campaigned for its repeal. It will also have to contend with allies who remain opposed to a special anti-terror law. More crucially, special terror laws have been a fraught issue evoking strong negative vibes from the minority community, which has maintained that these have been used to frame innocents.
The declaration of intent on a special terror law at this juncture, however, ties in well with the government's political needs. Among other things, the BJP cites the repeal of Pota to accuse the government of lacking the will to fight terrorism.
Moily claimed that the neither Pota nor state legislation like Mococa were comprehensive and intrinsically strong to fight terror. The Law Commission had backed the case for a special law to deal with terrorism.
The government let on that for the past few weeks Prime Minister Manmohan Singh has had a close look at the anti-terror legal framework proposed by the Administrative Reforms Commission. This appears to signal a shift from the government's earlier position on any special anti-terror law.
Releasing the report, ARC chairman Veerappa Moily told mediapersons that the proposed law would give the agencies necessary powers to take on terrorists, and dry up their money routes. "At the same time, we have provided a network of accountability in this stand-alone law," Moily said.
He said the law — worked out through a long process of consultations with experts — would make the bail provisions for an accused stringent and provide for a longer detention period. It would also provide for confessions before police to be admissible in court.
The ARC pointed out that the legal provisions to deal with terrorism could be incorporated in a separate chapter of the National Security Act. As for safeguards against misuse, a review committee would review cases of those in custody within 30 days of registration, the report said.
source : times of india
