Thursday, November 23, 2006

Tata in Forbes top 20 most reputed firms, Infosys at 155th

Eight Indian business houses have made to the Forbes list of world's most reputed companies, with the country's largest corporate conglomerate Tata group sharing space with the top 20 global firms.
Tatas, the largest Indian group in terms of revenues and market capitalisation, has been ranked at the 20th position among the most reputed company list of Forbes. Maruti Suzuki, Hero Honda Motors, HLL, ITC, SBI, Infosys and M&M have also managed to find place in the top 200 list.

Italian Food and Tobacco major Barilla Holdings has been ranked at the first position, followed by Denmark's consumer products firm Lego Holdings and German airline Lufthansa at the second and third positions.

Among other Indian companies, Maruti has been ranked at 91st position, Hero Honda Motors at 108th, FMCG major HLL at 116th, ITC and 137th, IT major Infosys at 155th and automotive giant Mahindra & Mahindra has been placed at 189th position.

Tata is the only Indian entity in the top 20 of the list of world's 600 largest companies in terms of corporate reputation.

The Tata group has more than over 90 operating companies, with strong international presence in Automobile, steel, IT and services sectors, with total revenue of $24 billion and a market capitalisation of $47 billion.

Original story

Wednesday, November 22, 2006

New training policy: Infosys

Bangalore : Infosys Mysore campus has implemented a new training policy based on the cumulative grade point average (CGPA).

Under this CGPA policy, the trainees who are able to get 4 out of 5 points get a third opportunity to clear the training programme even if they have not been able to clear the first two exams. If they clear the third test, they are retained in the company.

The CGPA policy was introduced last year, but this year it has been changed. Now students have to get a minimum CGPA of 4 out of 5 points. Earlier the requirement of minimum CGPA to clear the training programme was not there.

Also Infosys changed the policy later this year, wherein trainees got only two chances to clear the training programme.And trainees who didn’t get through the two exams were not retained in the company.The new training policy would serve as a great relief for the Infosys trainees.

Original story

Infy BPO sees exit at top deck

BANGALORE: Infosys Technologies’ decision to buy out Citigroup’s 23% stake in its BPO arm, the erstwhile Progeon, and consolidate the operations with itself, helped the country’s second largest IT exporter offer a seamless, end-to-end suite of services to its customers. But it left one group of stakeholders, the senior employees in Infosys BPO, clearly dissatisfied, leading to an exodus of several top functionaries.

According to sources, about six people at the vice-president and executive vice-president level, including two functional heads, have quit Infosys BPO in the past three-four months. The senior employees who have left the company include Ramit Sethi, business head of knowledge services unit, and Mahesh K Rao, V-P and SBU head, banking & capital markets. Others to quit at the vice-president level were Shamik Gupta, Satish Shenoy and Christine Bhaskaran. When contacted, a spokesperson for Infosys BPO declined to comment.

Quite a few top guys had bid adieu to the BPO arm last year. The list included chief financial officer Ramesh Kamat, operations head Rajiv Kuchal, who is now with Onmobile, and Ram Akela, head of UK operations. The former CEO of Progeon, Akshaya Bhargava, quit early this year. He, in fact, quit before it was announced that Progeon’s operations would be merged with Infosys.

The allure of joining Progeon for senior and middle-level management professionals when it was started in ’02, was that it would offer ESOPs and subsequently get listed on the bourses - and in the process perhaps repeat Infosys’ iconic IPO success story. However, Infy’s decision to buy out Citigroup’s stake and cease treating the BPO arm as a standalone unit, which would go for an IPO, put paid to these plans.

Also, integration of the BPO business with that of the parent has lead to duplicity of work, resulting in some natural attrition. Moreover, the increased interaction with the Infosys’ sales and marketing teams in the go-to-market function, made the ‘stand alone’ company executives feel that their turf was being invaded.

Infosys had paid Rs 530 crore to buy out the 23% (fully-diluted basis) shareholding of Citigroup in the BPO arm during the first quarter of the current fiscal. And the buyout process saw the technology major reportedly offering two alternatives to the Progeon stock option holders. They were either to accept encashment of their holdings or to get these options converted into Infosys shares. The deadline for this exercise is said to be mid-December this year.
For the second quarter ended September 30, ’06 Progeon (now called Infy BPO) had a topline of Rs 157 crore.

Original story

The Mother Teresa International Award

The Mother Teresa International Award was presented on the Sunday November 19, at the Taj President in Mumbai. The award is presented annually by the Harmony Foundation in association with the All India Christian Council.

Dr Mahathir Mohammed, former prime minister of Malaysia, was given the Mother Teresa International Award for Social Justice & Harmony.

Among the National awardees was Oscar Fernandes, union labour minister.
Other awardees included
Sudha Murthy (Rural Health Care),
Anna Hazare (Crusader for Public Causes),
TCS (Corporate Social Responsibility),
SEAL Org (Destitute Care ),
Teesta Setalvad (Human Rights)
Nitin Sardar (Welfare of Dalits and Tribals).

Infosys Technologies Is Losing Ground On Offering News

Infosys Technologies announced after the bell on Monday that it priced its sponsored secondary offering of 30,000,000 American Depositary Shares, representing 30,000,000 equity shares, at a price of $53.50 per ADS. The stock is now down 1.82 on 245K shares Tuesday morning.

Infosys Technologies traded in a range for the majority of Monday's session and finished up by 0.20 at $55.27. The stock rebounded off of the lower end of a one-week range at the highs of the year.

Original story

Infosys prices ADS offer, top brass gets fortune

Software leader Infosys Technologies on Tuesday priced the conversion of Indian shares into American Depositary Shares (ADS) worth about $1.6 billion in a sponsored offer at $53.5 per ADS, giving its founder-chairman NR Narayana Murthy and other top company directors, who participated in the issue, a fresh round of fortunes.

The 30 million American shares on offer were priced at $53.50 each, a 3.2 per cent discount to Monday's closing price of $55.27, but 3.6 per cent above their close on November 6 before shareholders approved the swap, which is aimed at increasing the share of floating shares of the company in the US. This would enable it to enter the Nasdaq exchange’s index of 100 shares.

Infosys shares closed and little changed at Rs 2,256 ($49.8) on the National Stock Exchange. Indian shareholders find it profitable to part with their shares under the sponsored ADS offer as the American shares command a premium over their Indian equivalents.

Company sources said Murthy, Managing Director Nandan Nilekani, board member TV Mohandas Pai and five others have collectively offered 1.3 crore shares amounting to a little over two per cent stake of their holding in Infosys in the company’s third sponsored ADR issue.

That, at the offer price, translates to nearly $700 million, if their offers are fully accepted. Valid offers have been received for 8.4 crore shares through the sponsored offer for conversion of domestic shares into American ones.

A maximum of three crore shares will be accepted. If the acceptance is in proportion to the offers received, the top five directors will net about $250 million between them.

Murthy who has offered 40 lakh shares, could get up to $214 million if all his shares are accepted, while Nilekani (27.9 lakh shares) and Chief Operating Officer S Gopalakrishnan (27.1 lakh shares) could get up to $150 million each from the issue.

Following them are promoter-directors Mr K Dinesh and SD Shibulal who have offered 16.4 lakh shares and 17.8 lakh shares, respectively.

As part of the offering, five million ADSs representing equal number of equity shares will be placed with Japanese investors through a Public Offer without Listing (POWL).

On November 17, the Indian Invitation to Offer concluded, with 3,477 valid offers for 84 million, or 8.4 crore, equity shares being offered for sale in the sponsored secondary ADS offering, of which 3 crore would be accepted. Unsold shares will be returned.

Infosys got shareholder approval for the ADS on November 7. Moving the resolution at the at the company's extraordinary general meeting (EGM), Mr Murthy had said that the company’s ADS float would rise to 19 percent from the current 14 percent of the total stock of 556 million equity shares after the issue.

The issue will increase the float to 107 million ADSs from 77 million ADSs now. The previous ADS offerings were made in 2003 and 2005 respectively.


original story

Tuesday, November 21, 2006

Infosys Founders in Forbe's "India's 40 Richest" List.

Infosys founders N R Narayana Murthy, Nandan Nilekani, S Gopalakrishnan and K DInesh are in the Forbes' "India's 40 Richest" list.
Original story

Running the “Flat company” - Nilekani

Nandan Nilekani could well be India’s offshore outsourcing ambassador to the world. This 51 year old well-spoken strategist with a leadership style that comes almost naturally, took over as President of Infosys Technologies after the company chairman and founder NR Narayana Murthy retired in August this year. In fact, Nilekani was recently awarded the Dataquest IT person of the year award in recognition of “the smooth transition at the helm at a time of rapid scaling up and intense competitive pressure; and of the continuing, and considerable contribution to 'brand India'. ”


The main agenda on Nilekani’s plate is to manage the challenge of achieving scale and efficiency in global IT services without compromising on values, client satisfaction and culture-these are all complex challenges. “The other part is how do we change as an organization and go up the value chain and be seen as more consultative and trusted partner to customers. That is not about business as usual. That is about change.”

Planning ahead

To meet this challenge, the company has put in place a structured approach to plan for the future. Nilekani along with its think-tank of senior managers have formulated three horizons of planning-at the high end of which is the five-year scenario planning; an intermediate three year planning and the quarterly and yearly planning at the operational level.

The five-year scenario planning helps in checking if the assumptions made by the company a few years back still hold good or whether Infosys needs to rejig itself to suit a new set of realities. “Companies run on a set of set of explicit, tacit assumptions about the market, customers, about the future, world and technology. What happens to them often is that some of those assumptions are changing. There is something happening either in the external environment and internally where theory of business is changing,” explains Nilekani.

In the three-year strategic planning exercise, business units and support units pool in ideas on what they will do different about the corporate strategy. “These are the nuts and bolts of running our firm. These are the instruments we use to ensure that our operational excellence is maintained as well as our strategic direction is not out of date.”

This kind of assumption setting ensures that the company is quick to capitalize on any opportunity that comes its way and is ready to hit the ground running at the right time. This strategy has paid off for Infosys which now has 40 per cent of its revenues coming in from services that did not exist five years ago.

The company revised its annual revenue guidance thanks to a whopping 52 per cent growth in net profit from the previous quarter, and is confident of closing revenues of over $3 billion this year.

The journey

Nilekani spent many of his early years in Dharwad and entered the portals of IIT Mumbai in 1973 to do his BTech in Electrical Engineering. The IIT years were a revelation to Nilekani and he credits this time as the period when his latent personality and skills started to bloom.

“I was from a small town and not at all sophisticated. I was surrounded by all these boys from Cathedral and other up-market schools from Bombay. So learning how to survive and flourish in that environment gave me self confidence.”

He reckons that having multi-dimensional and having a well-rounded life is a differentiator for success.

Besides studies, Nilekani was an avid quizzer and also organized IIT Mumbai’s collegiate cultural fest Mood Indigo. “Doing these helps you learn about the real world, how to get things done, learn to deal with people with diverse backgrounds, conflict resolution and so forth,” feels Nilekani.

Soon after his graduation in 1978, he joined Patni Computer Systems where NR Narayana Murthy was then the head of software. Three years later, in 1981 seven employees from the company including Nandan and Murthy started Infosys.

For a person who joined Infosys when he was 25, Nilekani has come a long way both in terms of experience and stature. He recalls a time in the 80s when the Infosys team was tempted to throw in the towel and close shop since their business was not clicking. “But we crossed that bridge. We wanted to make it work. Building a great institution is an addictive thing,” he says.

A familiar refrain you will hear from people close to Nilekani is about what a natural leader he is. His penchant for driving strategy and rallying people around comes with an almost effortless ease.

He can hold his own with any professor or CEO on technology and strategy. Whether it is about holding forth on outsourcing with Thomas Friedman or dealing with rookies in the company, Nilekani has the knack to get people on to his side. His innate ability to rally around people and drive strategy was demonstrated early this year at the World Economic Forum at Davos. Nandan conceptualized and took the lead in pushing the “India everywhere” campaign that caught the world’s attention and brought to focus India’s strengths and enormous opportunities. Kris Gopalakrishnan, Infosys’ COO, raves about Nandan’s ability to bring together diverse sets of people and getting them to work as a team. “He stood out as a leader from day one at Infosys.”

Many accolades have come his way including The Padma Bhushan and being named of hundred most influential people in the world by the Time magazine.

On his personal aspirations, Nilekani admits that he got more than he has deserved. “I’m unusually lucky and it is not necessarily because of my competence. I know enough guys in IIT who were much smarter than me. Luck is a huge part –the fact that I met Murthy. It is all serendipity, and also timing,” he says modestly.

However he has two goals-one for Infosys to take full advantage of business opportunity and achieve the full potential of everyone’s aspirations, and also make a contribution to the country by helping India do better in the globalized economy.

Nilekani also wishes he could “relax a little more.” But with Infy on a roll, that would be an aspiration that would have to wait a while.

Priya Padmanabhan
©CyberMedia News

Original story

Remembering Manjunath Shanmugam

GURGOAN: He pinned up the `thought for the day' on the notice board of the Indian Institute of Management Studies-Lucknow (IIML), which largely went unnoticed. However, the legacy of Manjunath Shanmugam, an Indian Oil Corporation sales officer, who was killed for trying to stop adulteration of oil, has gone beyond the IIM community to become an inspiration for the whole country.

On Sunday, his friends and others gathered here to ensure that the legacy of honesty lives on. The Manjunath Shanmugam Trust (MST), formed by members of the international IIM alumni network earlier this year, together with Parivartan, a non-government organisation, launched a national Right to Information helpline on the occasion. It will answer queries that ordinary people might have about the RTI Act. The helpline — 9250-400-100 — will be manned by 10 trained personnel seven days a week. It will initially be in Hindi and English, but will soon include Tamil.

Calling from Johannesburg in South Africa to support the helpline, Narayana Murthy, chairman and chief mentor of Infosys, said: "For any democracy to consider itself evolved, it is imperative that there is an accountability of governments and authorities. This Act allows the public to question and seek answers from the establishment, thus making decision-making and governance transparent. This more than anything else contributes to the development of any nation."

The Trust also announced the Manjunath memorial award to felicitate individuals or organisations, which try to uphold the values that Manjunath lived and died for. The IOC officer played football, was into music and like any ordinary 27-year-old never set out to be a hero. But unlike most young people who dream to get into top management schools to land a high-paying job, he wanted to do something responsible. Sunday's gathering also got a chance to remember a classmate who always had a smile on his face.

"He was lively, chirpy and carefree. He was never interested in the highest-paying job. He said he wanted to do something responsible. He knew what he stood for and never got swayed by what anyone said. No matter how many times he met you in the day, he would always smile. I will never be able to forget his face,' said Supreet Kaur, a classmate.

Original story

IT firms hiring big in India

New Delhi, Nov. 21 (PTI): Domestic IT firms are continuing their hiring juggernaut, but it is their bench strength or reserve employees that is growing at a higher rate than the overall pace of recruitments.

The total headcount of the fab-five club of Indian IT space -- TCS, Infosys, Wipro, Satyam Computer and HCL Technologies -- has increased by nearly 38 per cent with addition of more than 75,000 employees in the past one year.

At the same time, the bench strength of the top five players has grown at a higher rate of 48.5 per cent with approximately 28,000 employees being added to their reserves during the same period.

The high levels of attrition and job-poaching prevalent in the technology sector has always forced companies to maintain a strong bench staff team with them -- which enables them to cope up with any sudden outgo of employees as well as in the times of any major contract win that requires a bigger talent pool.

However, the trend has been further shifting toward maintaining a bigger bench strength in the recent past, an analysis of total hiring patterns of the country's top five IT firms over the past one year shows.

Original story

Wednesday, November 15, 2006

Infosys buyback: A great opportunity

Are you an Infosys shareholder? Then you must be aware that their buyback offer is on. Although technically it is not strictly a buyback, the process and taxation work similarly.

However, actually what Infosys is doing is sponsoring an additional ADR/GDR offering against equity shares offered by its existing shareholders. In other words, Infosys is inviting you as a selling shareholder to participate in a public offering of American Depository Shares (ADS) on the Nasdaq.

Now for the main question. Should you go for it or not? This will depend upon the following two factors:

* The price at which the shares are bought back from you; and
* The tax impact of this transaction on you.

Unfortunately, the first point cannot be answered, even by Infosys. The price at which the shares will be bought back from you depends upon how much the underwriters can get for the ADSs being sold -- which in turn depends upon the prevailing market conditions at the time of sale.

The proceeds of the ADS sale after deduction of registration and other expenses will be distributed between the selling shareholders in proportion of the shares accepted from them.

However, at this point it is pertinent to note that historically Infosys ADSs have largely been trading at a premium to the domestic share price. The historical data in this regard can give a selling shareholder a fair idea about the price appetite that the foreign market has for the offered shares.

The offer document contains data in this regard since September 2005 till October 2006 and one finds that the premium is in the range of a high of 28 per cent to a low of 14 per cent with the mean being somewhere close to 20 per cent.

This information is important as it can serve as a benchmark for your tax calculations upon accepting the offer. However, apart from the price realization, shareholders need to understand the tax impact, if any, of the above transaction since taxes will directly cut into your profits.

Readers would know that long-term capital gains (on shares held for over one year) are tax-free while short-term capital gains (on shares held for less than one year) are taxed at 10 per cent.

Now, first and foremost note that these rates will NOT be applicable to this Infosys offer. The reason for this is that the abovementioned rates of capital gains taxes are only applicable for shares sold on a recognized stock exchange where the seller pays STT (Securities Transaction Tax).

The offer doesn't meet these conditions, i.e. it does not constitute a sale on a recognised stock exchange and the seller will not be paying STT thereon. Instead, it would be construed as an off-market transaction.

Here the tax rates on long-term capital gains will be 20 per cent with indexation benefits or 10 per cent without indexation, whichever is lower.

Any short-term gains will be added to your other general income and be taxed at the slab rates applicable to you. As generally most investors would be in the 30 per cent bracket, it would be safe to say that such short-term gains would be taxed at 30 per cent.

There is yet another twist in the tale. Remember, Infosys declared a bonus in July. Since you will be offering the shares from your demat account, the FIFO (First In First Out) method will apply. In a bonus issue, the original shares are carried at the same cost (the price you paid for them) whereas the bonus shares are taken at nil value.

Therefore, in all probability, by selling your shares in this offer, you would book a notional capital loss. I cannot emphasise the word 'notional' enough. In other words, on your investment as a whole, there would (or more appropriately) should be a profit. It is only on account of the taxation system that a notional loss comes about.

Now, this loss (though notional) can be used for tax planning. The rule is that long-term loss can only be set-off against taxable long-term gains whereas short-term loss can be set-off against short-term gains or taxable long-term gains.

Ergo, this Infosys offer has the potential of being a win-win. On the one hand you can make some money over and above what you would have, had you sold the shares in the market and at the same time, you can save some tax on your other profits.

On the accepted 5 shares, FIFO will apply and your cost per share would be Rs 2,700. You have sold these at Rs 2,600 thereby making a notional loss of Rs 100 per share. Why notional? Because your actual average cost per share is Rs 1,350 (Rs 54,000/40). So ipso facto, though you are earning a profit of Rs 1,250 per share, tax wise you are actually booking a loss.

Depending upon your period of holding, the loss is either long-term or short-term as the case maybe and the tax treatment would be as explained before in the article.

In conclusion, the offer offers the Indian shareholder to earn some arbitrage profits on account of the differential price of Infosys on the Nasdaq. You can always buy back the accepted shares in the domestic market thereby making some relatively risk-free profit.

The tax benefit is just icing on the cake. Note that the offer closes on November 17.

The writer is Director, A N Shanbhag NR Group. He may be contacted at sandeep.shanbhag@gmail.com

Original story

Infosys Technologies’ Credit Risk Management Solutions Are Implemented by Zions Bancorporation

Zions Bancorporation Leverages Customized Business Solutions Delivered by Global Delivery Model for Enhanced Service and Overall Cost Savings

FREMONT, Calif.--(BUSINESS WIRE)--In an effort to enhance the delivery of its credit risk management systems and strengthen compliance with Basel II regulations, Zions Bancorporation (NASDAQ:ZION), one of the nation's premier financial services companies, is implementing Infosys Technologies’ (NASDAQ:INFY) Credit Risk Management solutions delivered by its unique Global Delivery Model. The agreement provides Zions’ loan officers an end-to-end web execution of Zions’ existing risk rating models that supports a more strategic approach to financial risk management.

“We are very pleased with Infosys’ application development model for our credit risk management solutions which has brought greater consistency to the financial risk management model we have in place,” said Gerald Dent, chief credit officer at Zions Bancorporation. “With the challenges of industry regulations and a desire to remain competitive, Zions is focused on executing the best risk assessment strategies.”

Zions Bancorporation is benefiting from Infosys’ unique development approach. This approach combines Infosys’ engagement experience, technical expertise, and industry best practices.

“Infosys’ priority is to help companies turn the increasing challenges that come with the ever-changing market into profitable opportunities and we are honored that a prestigious financial institution such as Zions has partnered with us to assist the company in implementing an advanced risk system that will allow it to gain a competitive edge in the industry,” said Ashok Vemuri, senior vice president and head of Infosys’ Banking & Capital Markets business unit.

“With Infosys’ wide range of unique, pioneering solutions, we are looking beyond its credit risk management services to enhance our services and our cost savings,” said Michael DeVico, executive vice president and head of operations/technology at Zions Bancorporation. “In the increasingly competitive banking industry our priority is to stay a step ahead of the continuously changing market and Infosys’ services are helping us achieve this with its overall leadership in aligning infrastructure services.”

Original story

Tuesday, November 14, 2006

Wharton Infosys Business Transformation Awards 2006 Announced

Southwest Airlines, Dr. Leroy Hood, FUNDESUMA, and Enrique Gómez Junco B. Receive Prestigious Awards for Innovative Use of Technology

SAN ANTONIO--(BUSINESS WIRE)--Infosys Technologies Ltd. (NASDAQ:INFY) and the Wharton School of the University of Pennsylvania today announced the winners of the 2006 Wharton Infosys Business Transformation Awards (WIBTA) for North America and Latin America. Now entering their fifth year, the awards recognize visionaries and organizations around the world that use technology in an innovative and creative manner to revolutionize their businesses and society as a whole.

The winners from North America and Latin America were formally recognized last night at Confluence 2006, Infosys’ customer conference, in San Antonio. Awards were presented in two categories: “Enterprise Business Transformation Award,” which honors an organization that has best used IT to transform itself, and “Technology Change Agent Award,” which recognizes an individual who has used technology to affect change.

North America Winners

Southwest Airlines: Winner of the Enterprise Business Transformation Award

Widely regarded as one of the most profitable and efficient airlines in the U.S., Southwest Airlines has long used information technology as a strategic competitive differentiator. It was one of the first airlines to sell plane tickets online and it pioneered ticket-less travel, since copied by many other airlines. Southwest's customer reservation system gate readers and kiosks help to keep costs low and customer service high. Other innovative features include Southwest Shortcut, an online tool that helps customers find the lowest fare over an entire month, and DING!, a downloadable desktop application that notifies customers of reduced fares.

Dr. Leroy Hood: Winner of the Technology Change Agent Award

Self-described as an immunologist and technologist, Dr. Leroy Hood is the President of the Institute for Systems Biology in Seattle, which pioneers a systems-based approach to biology and medicine. An early advocate of the Human Genome Project, Dr. Hood’s contributions to molecular biology – the protein sequencer and synthesizer, and DNA sequencer and synthesizer – made the mapping of the human genome possible. By combining advanced technology with molecular biology, Dr. Hood has laid a new foundation for the study of human genomics. His current work at the Institute of Systems Biology analyzes biological systems in their entirety and is a revolutionary new approach to medicine that will vastly improve our ability to predict and prevent diseases.

Latin America Winners

FUNDESUMA: Winner of the Enterprise Business Transformation Award

Disaster relief is often hindered not by a lack of humanitarian supplies, but by the lack of an efficient delivery mechanism to get food, water, medicines, shelter and other emergency supplies. Within the first few hours following a major disaster an abundance of humanitarian supplies begin arriving by boat, plane and land, overwhelming local authorities and increasing an already chaotic time. FUNDESUMA, an effort sponsored by the Pan American Health Organization and the World Health Organization, has developed an information management tool and methodology that helps local and national authorities coordinate the efficient reception, storage, classification, control and distribution of humanitarian supplies in times of crises. By improving transparency and accountability of supply distribution and capacity building, FUNDESUMA has set a new standard for Latin America disaster response and is being examined by various United Nation agencies as a possible global standard to use in humanitarian relief supply management.

Enrique Gomez Junco B: Winner of the Technology Change Agent Award

An environmental entrepreneur, Enrique Gomez Junco B. founded Celsol, a company providing solar energy to hotels in Mexico. Despite initial early success, Celsol began to falter because of a lack of financing. Unwavering in his commitment to provide “green” power, Gomez Junco re-launched his business in 2000, with a new name, Optima Energía, and a transformed business model that provided energy and water efficiency through performance contracting, in the most economic and environmentally friendly way. Since then, Optima Energía has saved its clients, 84 million kilowatts of electricity, 11.9 million liters of natural gas, 2 million cubic meters of water, 14 million liters of diesel, for a total of $1,000,000 (USD) a month; proving that “green” is good for the environment and business.

“Technological innovation has the ability to revamp entire businesses and improve society as a whole,” said N. R. Narayana Murthy, non-executive chairman and chief mentor of Infosys Technologies and a judge on the WIBTA panel. “The entire panel was impressed with the way each of these winners used technology to think up radical new approaches to benefit both their own organizations and their communities at large.”

“Five years ago, Wharton and Infosys teamed to express our shared commitment to promoting business innovation through the establishment of the Wharton-Infosys Business Transformation Awards,” said Patrick Harker, Dean of the Wharton School. “We are proud to celebrate organizations that have used technology to create new business paradigms and pleased to recognize these remarkable individuals whose achievements have created lasting societal change.”

In September, Infosys and Wharton presented WIBTA awards to European winners. Skype, a service allowing users to make calls over their computers at low or no cost, was awarded the “Enterprise Business Transformation Award.” The “Technology Change Agent Award” was presented to Inditex group, one of the largest fashion distributors, for drastically reducing the time it takes to get merchandise from its design phase to its in-store phase.

WIBTA Jury

Applications were judged by a distinguished panel that includes: David Boyles, Founder and principle of CXO Technology Advisory Pty Ltd (CXOTA); Esther Dyson, Editor-at-large, CNET Networks; Michael Eskew, Chairman and Chief Executive Officer, United Parcel Services; Sir Paul Judge, Corporate Leader and Political Luminary; Harbir Singh, Co-director of the William and Phyllis Mack Center for Technological Innovation at the Wharton School; and N. R. Narayana Murthy, Non-Executive Chairman and Chief Mentor, Infosys Technologies.

For more information about WIBTA, please visit: http://www.wibta.com/

Original story

Blogging acquires corporate hue

On November 3, a prominent blogger got the first official post by a chairman of the Securities and Exchange Commission (SEC), Christopher Cox. “...Technology now plays an integral role in timely informing the markets and investors about important corporate information and developments,” the post reads.

The blog in question was of no less a person than chief executive of Sun Microsystems, Jonathan Schwartz. The SEC chief was responding to Schwartz’s recent request to use blogs too to inform investors. “I (Cox) mailed the response to your letter yesterday..., but...I thought you might appreciate my taking advantage of the Internet’s speed and potential for broad dissemination by posting here (on Jonathan’s blog) as well...The Commission encourages the use of websites as a source of information to the market and investors...”

Corporate blogging, though in its infacy, has got a shot in the arm with this post. It is estimated that 40 Fortune 500 companies publish corporate blogs, allowing CEOs, employees to bypass the public relations department, journalists and industry analysts and speak directly to the public. Amazon, Cisco and Oracle were early adopters with AMD, Dell, Kodak, GE, Intel, Microsoft, Sun, Yahoo and Xerox following suit.

Not much is happening in India on this front, though. Of course, Infosys has its weblogs called infosysblogs.com and Rajesh Jain (one of the pioneers of the Internet in India) has his emergic.org. But we don’t have a Narayana Murthy, Nandan Nilekani or an Azim Premji blogging like Schwartz.

But isn’t blogging supposed to be personal? Michael Gartenberg who leads Jupiter Research’s team on emerging technology platforms, has an interesting say on this when someone asked him why he doesn’t get more personal when he writes on his blogspace. “The answer is that this is not a personal Weblog. Unlike other bloggers, I get paid to blog. It’s part of my job and I get to do it on company time.” This means you won’t find his views on politics, links to his favourite cheesecake recipes or other insights that make other blogs more personal.

Not all corporate bloggers are necessarily paid. Corporate blogging means the use of company-sponsored blogs as a way to connect with internal and external audiences – interactive, instant, efficient and sometimes explosive. However, with the total number of blogs surpassing 55 million, one needs to understand how to use (not misuse) this new communications channel.

Organisations like McDonald’s and the London School of Business are using blogs and so do firms like Boeing, HP, NetApp and Unica. However, General Motors is one blog that appears to have taken it a step further. It uses consumer-generated content from YouTube and Flickr and encourages people to label images in Flickr with the tag GMFYI.

Successful blogging (personal or corporate) is all about connecting with an audience and nurturing that relationship. Using RSS feed search engines such as technorati.com and blogpulse.com, one can monitor corporate blog posts as well as important developments in the industry. As this space matures, companies will have to set clear guidelines about what is appropriate for a corporate blog and what is not. And we hope SEBI takes the cue?

Original story

India's outsourcing firms look to hire overseas

S Padmanabhan jokes that of all the roles he has played at Tata Consultancy Services Ltd., including taking India's largest computer services company public, his current job is the most challenging.

As the global human resources manager, Padmanabhan — "Paddy" as he likes to be called — is responsible for juggling the breakneck growth of the workforce, which reached 78,028 in September.

"You're dealing with over 78,000 moving parts," he said. "Last quarter we added 100 people a day."

Further complicating the picture is that today at least 8 of every 100 are foreigners working abroad, a number he expects to rise to 15 in about three years.

India's biggest information technology outsourcing companies are beginning to increase their workforces in other parts of the world. The trend is not being driven by shortages of talent in India but rather by factors such as the need for skills in languages other than English and the wish of clients to have staff to deal with in their own time zones.

For most Indian outsourcing companies, the U.S. is by far the biggest market, followed by Europe.

"As we globalize, we have to become more truly global in every aspect including in the people who work for us. That's what a truly global and multicultural firm is," said Nandan Nilekani, chief executive of Infosys Technologies Ltd., India's second-largest computer services company.

The increase in overseas hiring by Indian firms is in its infancy, with non-Indians making up about 2% to 3% of the industry's workforce, said Sunil Mehta, vice president of the National Assn. of Software and Service Companies, a trade group.

But among market leaders, the number is rising. Tata Consultancy began focusing on diversification in 2002 when U.S. companies were grappling with a downturn at home and began shifting more of their operations to other regions.

Tata began setting up development centers in time zones close to its major markets, with Latin America serving the U.S. and the local market; Eastern Europe serving Western Europe; and China serving its local market, Japan and South Korea.

"In Latin America, we have people with Spanish or Portuguese language skills. When we do work for Western Europe, it's important we have German or French speakers," Padmanabhan said.

S Gopalakrishnan, chief operating officer at Infosys, said one factor driving the trend, dubbed "near-sourcing," was the need to "de-risk": If outsourcing companies concentrate all of their operations in India, there is a risk that services could be disrupted by a crisis there.

Until recently, the outsourcing companies made heavy use of Indian staff members overseas. But as Indian talent becomes more expensive and the cost of visas rises, it is becoming cost-effective to employ local engineers in some regions.

Acquisitions are another driver behind the increased use of foreign nationals. Wipro Technologies, for instance, added 300 international staff members when it acquired Enabler, a European information technology company. HCL Technologies Ltd., a software company, bought a call center in Belfast, Northern Ireland, from Britain's BT Group and now has 2,000 workers there.

But the same factor that stops Indian information technology companies from making giant acquisitions overseas will also stop them from having a large portion of their workforce offshore — margins.

The market judges the companies on their ability to continue to deliver high margins. To do this, their current business model of using plentiful and highly skilled low-cost Indian workers to deliver global services remains unassailable.

Although the industry faces a shortage of engineers domestically, India still produces some 450,000 annually.

"In terms of the actual number of people employed," said Gopalakrishnan of Infosys, "India will continue to be the best and the largest."

Original story

Saturday, November 11, 2006

You don't need techies to do IT

NEW DELHI: This is the IT industry’s clarion call to all those who have been left behind in the race to become ‘techville' inhabitants. With IT companies such as Infosys, Wipro, Patni and Polaris now eyeing professionals in other sectors to meet their manpower & talent needs, thousands of non-IT professionals are quitting their traditional jobs to jump onto the tech bandwagon.

Take Patni’s case — the company trains non-IT professionals via evening classes. The part-time classes — packed with modules on sofware training and practical shop floor lessons, allow non-IT professionals to test the waters before joining the tech fraternity. Targetting the young workforce, PCS organises these free-of-cost evening classes to attract non-IT professionals from sectors as diverse as insurance, manufacturing, finance and banking.

IT major Infosys, on the other hand, expects to add around 1,000 professionals this year from non-IT sectors for its domain expertise. Others such as Wipro and Polaris too are busy absorbing professionals from varied industries holding glamour, healthy prospects and better compensation as a lure.

“The varied domain expertise that these professionals get to the company is what makes them extremely attractive, unlike the fresh graduates. Our industry needs a lot of non-software expertise as well because of the kind of clients we have on board,” says Patni training GM Sunil Kuwalekar.

The company has 80% conversion rate from these evening classes. The professionals who flock to these classes are engineering graduates having majored in disciplines like mechanical, manufacturing or chemical engineering, but with little software knowledge.

Infosys, meanwhile, is planning to hire from industries such as manufacturing, automotive, banking and financial services. “The hirings are driven by our intent to recruit people with domain expertise of a particular industry. These people are then used as managers in particular practices. We look for learnability amongst such professionals,” says Infosys HR head TV Mohandas Pai.

Endorsing Infosys’ views, Polaris Software chairman Arun Jain — the company hires from banking and insurance sectors — says, “These professionals understand the business requirements of customers and enable a better solutions delivery. They are not software programmers but business analysts who come from nationalised and private banks.”

Polaris gives these professionals training for about four weeks. “The programme imparts the perspective of software so that they understand customer requirements and can interact better with customers who are leading global banks,” he adds.

Wipro too shares the same aggressiveness. But its strategy is primarily driven by the need to get domain experts, says Wipro strategic sourcing vice-president Achuthan Nair.

On the flipside, HR honchos say the implication of this movement of talent will cause a level of disruption in those sectors from where these professionals are coming in.

“This influx of talent from non-IT sectors indicates a definite dearth of talent within IT. And training professionals from other sectors is better than training freshers as they already have instilled in them a corporate culture,” says Hewitt India practice leader Rakesh Malik.

Original story

Friday, November 10, 2006

Sudha Murthy to act in teleserial

Bangalore, Nov 10: Writer Sudha Murthy, wife of Infosys chief mentor and non-executive chairman N R Narayana Murthy, will act in a television serial for the first time.

The chairperson of Infosys Foundation is playing the role of a judge in popular Kannada serial 'Preethi Illada Mele' being telecast by ETV.

"It's a first time for me. It's a new field. I am happy and looking forward to it", an excited Sudha Murthy told reporters.

If things go well, Sudha said, she would take up acting offers in future if happy with the roles.

Sudha has authored a dozen books some of which have been translated in different languages. (Agencies)

Original story

Fwd: An Original Letter from a Trainee to NRN

Disclaimer: Got this email forwarded from someone, we do not know the authenticity of this email. We are not responsible for the content and ready to remove this if an email request is received from the concerned people.


Subject: Fwd: FA letter to NRN from a S/W trainee in Mysore

This is a letter written to N R Narayanmurthy by a S/W trainee who recently joined at Mysore.It is being widely circulated within Infosys intranet.This a 100% authentic letter and may provide an insight into the dream machine called INFOSYS.
Respected Sir,

I want to draw your attention to some of the issues which are against the "INFOSYS" objectives and which are making the environment in company worse and worse every day!!
1) Status of trainee:
Sir, as per my experience the trainee has no value in the company. Senior employees are just treating the trainees like animals. Sir, in "C-LIFE" sessions which held in multiplex HR called the trainee as "mosquito".(The session was supposed to teach values of infy to trainees. Also the respected person was late for the session. So he just leaded by the example!!!)
As examination policy of Infosys is not transparent# and perfect# the students who failed in comprehensive exam went to one of the batch owner asking for revaluation. He insulted them by saying "we have to take care no garbage is sent to production." I am asking are we garbage? Then why Infosys has recruited us? (I have cleared the comprehensive exam but still I am upset because this can happen with me also!!! Also some of us have proved themselves on various situations on national level!! I have AIR gate ranking 123 and was having option of Accenture till 2nd August still I opted for Infosys why???)
# Also E and R department of mysore a\has accepted the fact. Because for IWT module and some module in Finacle stream, trainee in batch has got extra marks .There was ambiguity in question which was pointed by some trainees. If trainees were garbage and reluctant, then it was just as simple to call the exam system perfect. Also trainees don't know which answer is wrong or right or question is wrong or right because there is no transparent scheme. Also our SGT member sent mail to higher authorities but got no answer.
2) Discrimination between Indian and US batch:

Sir please check the status of Indian and other trainees in Mysore campus. I will just condemn the discrimination. Also I don't like the difference in facilities. What we have done wrong??? I will not tell any extra word just check and then justify.
3) Brain Drain:
Sir, please stop brain drain. You are recruiting the talented people for just software clerking which is creating brain drain and dissatisfaction in employees. When I was giving interview I was told that at Infosys I will get lots of things to learn. But here to my disappointment I got just too many thing to mug up and too less things to learn. Infosys is just playing with the employee brains and emotions please stop this.
4)Attrition rate:
Sir, in some colleges the HR told the trainees that the attrition rate is very low. Say
Only 1 or 2 trainees will loose their job. In same year after recruitment the company changed the policy.This is real cheating. And trainees had no option than to sign new policy. Because in colleges they were not allowed to sit for second company. If HR tells policy of company at recruitment and relying on that if any trainee sits for company how much is it legal and moral to cheat the trainee by changing the company policy???(I know that company can make it legal but never moral!!! Trusting that company will be truthful to us many of our trainees sacrificed other job offered to them.)
There are unsaid issues which are not brought to your notice. We are unaware whether things are happening with or without your notice. Sir, in any case I can tell that other companies are better in a way that they do not pretend to follow values. I tell you to remove "Driven by values" from Infosys logo. Because her values changes from policy to policy, is your driven by values only to the customers and clients .if you can maintain a strong policy towards the clients and customers with values why not to the employees who make Infosys to grow better and better day by day.
Sir, I want to be honest to you that before joining the Infosys I was proud to say that I am going to be an Infoscion. But now I am feeling ashamed of myself being in company and also not interested in propaganding false promises to the college in future and to the public . Sir, I hope I could regain some self respect, if you can do something to these issues.
If you are not doing anything to the issues, I am giving resignation notice to company that I want to discontinue employment with company from july17, 2007 as I will complete 12 months in company at that day and also will be morally and legally free from any company bonds!!! (Even if Infosys is not behaving in moral ways I respect the moral and legal bond. That's why I am giving 9 months prior notice.)
I feel its my responsibility to bring this issues to your kind attention as I am honest to the Job I work for.
Expecting for kind cooperation and attention from your side.



With regards thanking you,
J.
Emp No. 67***
Infosys Technologies Limited.
Mysore
(Updated 29-Aug-07: Name and Employee number removed as per the request from an ex-infoscion)

Picture - President Kalam, Ballmer, NRN, Malvinder Mohan Singh



GREAT MINDS: President APJ Abdul Kalam, Microsoft CEO Steve Ballmer, Infosys co-founder Narayan Murthy and Ranbaxy Laboratories CEO Malvinder Mohan Singh pose for photographs at the 'Bridging the Two Indias' event in New Delhi. (AP Photo)

Original story

Learn from China's farm sector experiment: Narayana Murthy

`IT sector should equip stakeholders with information for value-addition'

Bangalore: The Government should learn from the Chinese experience of drawing marginal farmers into low-tech manufacturing industries, Infosys Chief Mentor N.R. Narayana Murthy has said.

He was delivering the keynote address at the fifth international conference of the Asian Federation for Information Technology in Agriculture (AFITA) here on Thursday.

China had successfully moved 150 million people from farming into low-tech sectors. In India, where 72 per cent of the population involved in agriculture was facing the challenges of stagnant growth and depletion of resources, the Information Technology sector should help stakeholders by equipping them with relevant information for value-addition, he said.

This was particularly relevant in a situation when severe shortfall of food grains was imminent. By 2010, the demand for wheat in India was expected to reach 84 million tonnes as against a stipulated production of 70-72 million tonnes, Mr. Narayana Murthy said.

The water table in places such as Punjab and Haryana, which depended heavily on tube wells, was sinking by an alarming 20 cm a year, he said.

The success of experiments such as the Bhoomi project initiated by the State Government to digitalise land records and the e-Choupal project spread across six States to make information accessible to farmers were good examples of how IT could help, Mr. Narayana Murthy said. The crucial thing was to provide easy access to affordable broadband across rural India, he said.

Speaking on the occasion, Principal Secretary, Agriculture and Horticulture, A. Ramaswamy, said the State had the ambition of doubling its agricultural production in the next 10 years, leveraging its IT potential of the State.

India was "not a tiger economy but a elephant economy" that might not have speed, but had strength, he added.

The inaugural session was attended by Seishi Ninomiya, Secretary-General of AFITA, and V.C. Patil, president of the Indian Society of Agricultural Information Technology.

Chief Minister H.D. Kumaraswamy and Deputy Chief Minister B.S. Yediyurappa, who were expected, did not attend the function.

Original story

NRN gives call for improving teledensity

Bangalore, Nov 9 (UNI) Infosys Chief Mentor N R Narayana Murthy today drew attention to the need for improving teledensity and connectivity in India.

Stating that teledensity and connectivity in the country were one of the lowest in the world, he emphasised that both electronic and knowledge connectivity were essential to obtain the desired effect.

Mr Murthy was speaking after inaugurating the fifth international conference of Asian Federation of Information Technology for Agriculture, hosted by the Indian Society of Agriculture Information Technology, Dharwad, here.

Underlining the need for newer IT applications in solving the problems of rural India, he said IT must be affordable. IT was very much relevant to agriculture as it had the potential to transform a traditional farmer to e-farmer. He quoted the success of the e-chaupal initiative by the Indian Tobacco Company, which had benefitted more than 3.5 million farmers and was expected to cover 16 per cent of rural India in the near future.

He lauded the Bhoomi programme of the Karnataka Government, which had maintained 20 million land records in the State. IT was also used in Tamil Nadu for executing complex designs by silk industry.

Karnataka Agriculture Marketing Minister Sharanabasappa Darshanapur, speaking after releasing the conference publications, said the new agriculture policy of the State was on the anvil. He detailed initiatives taken by the Government, including 'Bhoomi', 'Krishi Marata Vahini' and 'Raita Mitra Kendras'.

In his welcome address, State Principal Secretary (Agriculture and Horticulture) A Ramaswamy, emphasising more attention for the development of horticulture, poultry and livestock, stressed the need for moving from the traditional grain-based strategy to diversification.

Stating that Karnataka was aiming to become a significant player in global agricultural trade by leveraging IT technology, he said ''we should welcome knowledge with open arms when she comes to our portals, but we should not make the mistake of forgetting her more bashful sister, wisdom.''

Original story

IT czar Narayana Murthy among TIME magazine's "Asian Heroes"

New Delhi, Nov 09: Architects of modern India Mahatma Gandhi and Jawaharlal Nehru, cricketer Sachin Tendulkar, steel baron Lakshmi Mittal and IT czar Narayana Murthy have been named among TIME magazine``s "Asian Heroes" in its forthcoming 60th anniversary issue.

"For six decades, Time has chronicled the triumphs and travails of Asia. In this special anniversary issue, we pay tribute to the remarkable men and women who have shaped these times," the magazine says. The anniversary edition will be available on November 13.

Terming Gandhi and Nehru as opposite in nature, the magazine says "they shared a passion for freedom and justice, and together created a giant of democracy".

"Gandhi``s unique method of resistance through civil disobedience, allied to a talent for organisation, gave the Indian nationalist movement both a saint and a strategist."

"The principal pillars of Nehru``s legacy-democratic institution-building, staunch pan-Indian secularism, socialist economics at home and a foreign policy of nonalignment-were all integral to a vision of Indianness that sustained the nation for decades," the magazine says.

Other prominent figures in the list include - Nobel-winning economist Amartya Sen, Burma``s democracy icon Aung San Suu Kyi and her father Aung San, Thailand``s King Bhumibol Adulyadej, China``s Deng Xiaoping, Tibetan spiritual leader Dalai Lama, Sufi singing legend Nusrat Fateh Ali Khan, Pakistan``s founder Mohammed Ali Jinnah, martial arts exponent Bruce Lee, mountaineers Tenzing Norgay and Edmund Hillary, Mother Teresa, this year``s Nobel Peace Prize winner Muhammad Yunus and writer Salman Rushdie.

Tendulkar has been described as the "greatest living exponent of his craft".

"When he``s in form, which is often, Tendulkar can rout the world``s best bowlers with ease."

About Mittal, chief executive officer of Arcelor Mittal, the magazine writes: "His boldness and spectacular wealth reflect India``s growing financial might."

TIME pays its tribute to Sen saying he is a "philosopher and economist who preaches tolerance to a divided world".

On Narayana Murthy, it writes, "From a Bombay bedsit, he launched an economic revolution. His wildly successful company - Infosys - had laid the groundwork for the business process-outsourcing- that defines globalisation in action."

Bureau Report

Original story

Tuesday, November 07, 2006

Infy wants place in NASDAQ-100, raise brand equity - Murthy



Infosys Chief mentor N R Narayana Murthy today said the sponsored secondary ADR issue is part of the company's ambition to get into the NASDAQ-100 index, raise brand equity in the US and win more customers there.

Responding to questions at an Extra-ordinary General Meeting (EGM) here, he said: "We want to be the first Indian registered company to get into the NASDAQ index. That particular journey requires that we enhance liquidity in the US. This is part of reaching that goal".

In the lively EGM, where a section of shareholders expressed concern over the ADR issue and wondered whether such exercises are a precurssor to the Bangalore-based company being taken over by 'foreigners', Murthy asserted that the aim is to make Infosys bigger.

The special resolution on the ADR issue (not exceeding 30 million shares) was passed with requisite majority; it was not unanimous.

Currently, Foreign Institutional Investors hold 36 per cent stock of Infosys and ADR holders around 14 per cent. As much as 13.95 per cent of the total company stocks are listed and traded outside India.

If the issue -- which is the company's third after the ones in 2003 and 2005 -- is fully subscribed, the figure of 13.95 per cent would go up to 19.35 per cent, Infosys Chief Financial Officer V Balakrishnan said. PTI

Original story

Bangalore name change is not important - Murthy

Infosys chief mentor Narayana Murthy today wanted the Karnataka government to show the same enthusiasm in improving the city's infrastructure as it displayed in changing the city's name to Bengalooru.

Talking to reporters, he said it did not matter to him by what name the country's IT hub was called.

"For me, changing the name is not important. As a Kannadiga and as a person who speaks Kannada at home, you always called it Bengalooru. So I don't think that matters much," Murthy said.

He rather wished that "all this energy, enthusiasm and debate" (over name change), instead, takes place on how to improve city infrastructure, road safety, health care and education.

"I would say those are the issues that should be debated rather than Bangalore or Bengalooru," the software icon said. "This (name change) is a very easy thing. Government can issue an order and change it. That does not require any hard work".

Asked whether he was not in favour of the name change or he was not proud of it, Murthy said: "This is immaterial to me. This is not what I would spend my time on. I would spend my time on improving the quality of life of every Bangalorean....".

Original story

Jamnalal Bajaj awards presented by Murthy

Gandhian S.N. Subbarao, environmental scientist Anil Prakash Joshi, social activist Rani Abhay Bang and the former World Bank vice-president Ismail Serageldin were, on Monday, presented the Jamnalal Bajaj awards by N.R. Narayana Murthy, board chairman, Infosys Technologies at a function in Mumbai.

Given each year by the Jamnalal Bajaj Foundation, theseawards carry with them a citation, a trophy and a cash prize of Rs. five lakh.

Original story

Friday, November 03, 2006

Airtel Customer care camp at Infosys Trivandrum

---------- Forwarded message ----------
From: Sheeju.A@airtel.in <Sheeju.A@airtel.in >
Date: Nov 3, 2006 3:59 PM
To: infynews@gmail.com

Dear All,

Airtel Customer care camp will be at infosys Trivandrum office on the following days.

6th November 2006 at 3rd floor (Bhavani Bldng. Infosys)

7th November 2006 at 1st floor (Bhavani Bldng. Infosys)

8th November 2006 at 3rd floor (Bhavani Bldng. Infosys)

Make your payments
All information about Value added service
For special plans and tariff please contact our sales counter

Please feel free to walkin with your queries and complaints (if any)
Your suggestions make us serve you better.

Contact Brijesh 9895708717

Regards

Thursday, November 02, 2006

Infosys Says Trainees not kept in the dark

Infosys says that the trainees were not kept in the dark but were informed at the induction programme at the start of the training that the norms had been changed and a signed declaration taken from the recruits. The company also points out that one swallow doesn’t make for a summer.

Mr Pai told ET, “There is a cut-off mark for the training. Some trainees don’t study or perform to expected levels. We then try the outplacement route for them.” He insisted that the dropout rate from the training programme is still in single digits. Incidentally, Mr Pai had said during the recent Q2 results that involuntary attrition in the company was about 2.7%.

He added, “We test a large number of students across institutions in India for learnability skills. Some students get through learning by rote or other ways. This small percentage gets into our 16-week training as well.” He added, “earlier, people who failed got a lot more chances. But some freshers treat the training like a holiday. Training is serious business and we are paying them salaries as well. They have to be more responsible.”

Trainees feel that the company should make the entrance exam more stringent to ensure better quality. Says one, “there is no technical round during the entrance test. If the company is so concerned about the brand image, why don’t they make the entrance exam more stringent, thereby making recruitment policy stronger.” He added, “What is the difference between an academic environment and a professional one if we are not tested on job after the three months training?”

Infosys’ Mysore training centre has a capacity of 4,500 seats and trains about 4,000 people at any given time. This year, about 20,000 people are expected to undergo training at the facility. The company spends about Rs 2.5 lakh per person for the 14-16 week training.

The issue has come to the fore at a time when Indian IT services industry is hiring in thousands by the quarter as business for the bulge bracket firms continues to gallop at 40-50 % plus levels.

As the companies widen the network of colleges and institutes they pick freshers from, there is bound to be an asymmetry in quality. As the time spent in training is critical, most firms today do not have the luxury of getting the laggards to repeat their training programme. As companies up the training demands, some mismatch is showing up.

Original story

Infosys merit scholarships for SC/ST students

DAVANAGERE: Students who belong to SC/ST with merit must toil hard to earn good recognition and seek higher degrees for a better living, called upon Sugar Minister S A Ravindranath here recently.

Distributing merit-scholarship of Rs 5,000 each to 30 meritorious students who had scored highest marks in SSLC and PUC exams in district sponsored by Infosys Foundation at a programme organised by district administration, he said the students of these communities who face all sort of difficulties and challenges in their life will score more marks and become model for others.

Try to get good name and fame to your parents, teachers and society through your bright education, he called upon. After securing jobs, work for the total welfare of society and not become a trouble shooter for society, he advised.

It was good work done by Infosys Foundation of identifying the poor, helping them financially, said MP G M Siddeshwara. Since large number of SCs and STs population was found in district, continuing their education had become a problem, it was right decision of district administration joining hands with the Infosys for presenting such merit scholarships, he lauded.

Although government was giving drinking water, furniture, study materials to schools, financial assistance for education was important.

This honest and great work taken up by Sudha Murthy, was commendable, Shivshankar said. Through Infosys library facility for schools were given. Identification of merit students was additional encouragement for poor students to reach the ladder of success, said DC M B Dyaberi.

Original story

Infosys bags Competitive Workforce Award

On July 31, 2006, Infosys Technologies Ltd. was the first company in Asia—and the third company outside the United States—to ring the opening bell on the Nasdaq stock market. From Mysore, India, Chairman N. R. Narayana Murthy and CEO Nandan Nilekani pushed the electronic button that signaled the commencement of trading.

Watching from Mysore was Joel Almeida, a new hire who arrived in India from Texas just days before. “It was cool to watch a live view of it. There were cameras set up in Times Square. I watched them sign their names in Mysore and then saw their signatures on the electronic billboard in New York,” says Almeida, who graduated this spring from the University of Texas in Austin with an electrical engineering degree.

Almeida is part of a massive training initiative to bring U.S. graduates to Infosys’ Global Education Center (GEC) in Mysore for six months. The training is meant to assimilate the graduates into Infosys’ corporate culture and to gain experience in India. The scale and nature of the initiative, dubbed the Global Talent Program (GTP), earned Infosys the Society for Human Resource Management’s first-ever Competitive Workforce Award, which is given to an HR department that recognizes and successfully responds to key workforce trends and needs in an ever-changing economic climate.

The Training Initiative

Infosys is an international business and information technology consulting firm based in Bangalore, India, with 58,000 employees worldwide. Established in 1981, the company opened its first international office in Fremont, Calif., in 1987 where its U.S. headquarters are still based.

Over the next 19 years, as Infosys created a more global presence, the company foresaw difficulties in locating and placing high-quality employees abroad, specifically in the Americas. Finding high-quality Indian employees was becoming more difficult due to supply and demand constraints. Even when the company could secure talented Indian employees, the cost of deploying them across the world was becoming more expensive. Economically, it was more sensible to find and train local talent to fill geographical needs.

The solution was to create a large-scale plan to recruit and train new graduates from abroad. The GTP began with a pilot program of 10 young Americans who worked in Bangalore. Following the success of the pilot, the company set a goal of hiring 300 college graduates from 82 of the top U.S. universities in 2006.

Infosys began rolling out that initiative by hiring 126 new U.S. recruits and taking them to the company’s training facility in Mysore. “The reason we hire new grads is we believe in growing them with the company,” says Somnath Baishya, head of global entry-level hiring and campus relations. “We have invested heavily in training. We not only wanted to hire them from the local market, we wanted to bring the new hires to India to give them the experience of Infosys in India.”

U.S. campus relations manager Patrick Payne says: “We wanted to hire a local workforce, but we also wanted them to have a global experience. We have a truly amazing facility in the heart of Southern India. We wanted to get them to Mysore, to understand the culture and how Infosys operates.”

The training in India lasts a full six months—or longer, depending on the graduates’ technical skills. That may seem like a long time—and it is—but HR professionals at the company felt it was necessary to give trainees a real exposure to Indian culture, to teach them the way of doing business at Infosys and to train them in technical skills.

For the first week, trainees are briefed on Infosys and the Mysore facilities in general. Then, the trainees are grouped based on their education. Although a large number of the trainees come from an engineering background, some don’t. “We have one group that has a CS [computer science] background and one that doesn’t. Those who don’t have [a CS background] spend an extra month in training,” says HR support manager Peter Norlander in Fremont, Calif. “We believe we can hire smart and motivated people, even if they aren’t from technical backgrounds, and train them how to succeed [in IT],” says Baishya.

The trainees spend four months in Mysore, training on various technologies, such as Java. “A typical day is 9 a.m. to 5:30 p.m., during which the trainees have labs, classroom training and soft-skill training, such as communications, problem-solving and cultural assimilation,” says Arun Naya, HR manager of the GEC in Mysore. “Many nights, the HR department organizes cultural programs to teach them about the diversity in India.”

Throughout the program, the trainees take examinations to assess their learning. For the remaining two months, the trainees are deployed to development centers throughout India to gain hands-on experience with real projects.

The Hurdles

No company can undertake an initiative as massive and global in scope as this project is without facing some hurdles. A few that Infosys faced, and cleared, include:

Convincing the recruits: Despite Infosys’ stellar reputation as one of the fastest-growing technology companies, it was challenging to convince new graduates to go to India for six months. Payne says: “The pitch to the students was to talk to them about the experience, a ‘semester abroad of work-study. We realize six months is a long time in your eyes, but what other time in your experience will you be able to go to India with a growing name like Infosys who is willing to provide you a technical skill and come back to the United States with a full-time job?’ ” Alexis Heintz, a new hire who graduated from the University of North Carolina at Chapel Hill, couldn’t pass up the opportunity. “I was an international studies major, so I don’t have a background in computer software,” says Heintz, who arrived in July. “Infosys was willing to train me from the bottom up. I like to travel, and I was curious to see some of India.”

Demystifying India: Some of the new recruits are unsure about living in India. “There were a lot of initial apprehensions about what to expect when they reached India,” says Baishya. To assuage new hires’ fears, Norlander, a U.S. national who recently spent a year in India, spoke to the trainees one-on-one. “We get lots of funny questions,” he says. “Some of the new hires weren’t drinking the milk because they didn’t know if it was safe or not. There’s nothing wrong with the milk. They were nervous. ‘How do I talk to people?’ They learn through doing.”

Naya concurs “A few of the U.S. trainees talked to me about how apprehensive they were [before arriving in India] and how pleasantly surprised they were when they saw the facility.”

“Some of the people from our [group] brought their not-so-good clothes because they were afraid they would be walking on dusty roads,” says Heintz.

Managing global logistics: A training program with global components and key players in worldwide locations requires a lot of early morning and late evening phone calls, as well as a reliance on e-mail. The time difference between Pacific Coast time at headquarters and Indian time is 12.5 hours during U.S. daylight-saving time.

Just deciding how to get the new recruits to India was a challenge. “I [thought] we should fly them on their own from their home cities to Mysore,” says Payne. “The people in India wanted them to get to know each other and fly them out from one location together. We ended up doing kick-off events in San Francisco and Newark, N.J., and flying them out from those cities on six different flights.”

It turned out to be the right decision. “After 23 hours on a plane with each other, the trainees got to know each other better,” says Payne. “They were forming bonds by the time they got to Mysore.”

Expatriates working in India for more than six months must register with the Indian government, a process that typically takes days. Norlander worked with his colleagues and government officials to streamline the foreigner registration process down to two hours.

“I know other expats who work for big-name companies who spend days standing in line. We gave the government a lot of advance notice, and it was a large group” to process quickly, says Norlander. The new hires were the largest group of foreign nationals recruited to work in India ever.

Accommodating multicultural needs: Richard Lobo, head of employee relations, describes another challenge: “It’s difficult to create an environment where a person from almost any country will feel reasonably at home.”

But Infosys has built a world-class facility for trainees. The $120 million GEC spans 300 acres and accommodates up to 4,500 trainees. It is one of the largest training facilities in the world, staffed with 150 technical trainers. Moreover, the facility’s amenities appear to have received as much forethought and effort as the training. The GEC has multiple food courts; a swimming pool; gymnasium; soccer field; several amphitheatres; a 1,200-capacity multiplex showing the latest movies from Hollywood and Bollywood; basketball and volleyball courts; billiards, pingpong and bowling facilities; a Laundromat; barbershops; and grocery stores.

The HR professionals at Infosys spend a great deal of time discerning and accommodating the culinary preferences of their trainees. “Food is one of the most worrying aspects because it can cause stomach upset,” says Lobo. “Even among people from the same country, if you are not used to the cuisine, it can cause a problem. We cater to a wide variety of cuisine in our food courts.”

“When we first got here and weren’t used to eating Indian food, they brought in a chef,” says Almeida. “The chef included more mild Indian food, getting our stomachs used to it over three or four weeks. As you feel more comfortable, you move out into the food court, and now I’ll go in restaurants in the city and eat spicy Indian food. If we hadn’t slowly worked into it, we might have had trouble.”

The Outcome

The HR professionals at Infosys are pleased with the success of the initiative so far and plan to expand it. The company plans to hire more U.S. graduates in 2007 and to begin hiring graduates from the United Kingdom, says Baishya. “[This program] gives us the confidence to [implement] more such programs from across geographies and talent pools,” she says. “The intent in bringing them to India is not only to train them on the software side, but to expose the new hires to the Indian way of working and to give them the opportunity to interact with our Indian employees—to see Infosys as it is in India.”

Heintz, who is taking voluntary Hindi classes at the Mysore campus while she trains, understands the importance of the cross-cultural exchange in creating a global workforce. One evening she stumbled upon some young Indian women playing with a basketball. “I asked them if I could join them,” she recalls. “They asked me to teach them the rules of basketball because none of them had actually played. I taught them the basics. It was a lot of fun.” Heintz learned as much about the women’s culture as they learned about basketball.

The Indian experience makes a significant impact on the trainees, adds Norlander. “There’s a huge shift. People come in apprehensive and leave very confident. They’ve done something challenging and overcame uncertainties. Speaking from my own experience, it wouldn’t be remotely the same experience working for Infosys having no experience at all in India. Infosys reaps a local workforce that understands the [global] company.”

Original story

Infosys names brand ambassadors in Trivandrum

The Hindu Staff Reporter

THIRUVANANTHAPURAM: Salome Koruthu of All Saints' College and Rejini Sarah Philip of Mar Ivanios College have been selected brand ambassadors of Infosys.

The students will be the sole representatives of their colleges and will conduct various programmes to spread awareness about the growing BPO industry and the job opportunities graduates have in this sector.

Original story

Campus placements not an entry ticket to Infy anymore

All is not well at Infosys Technologies’ Mysore Campus — touted as the world’s largest training services facility — where the company puts thousands of freshers through their paces before moving them to the workplace.

Infy freshers at Mysore are learning the hard way that campus placements do not necessarily guarantee a job after the IT major changed its training policy. Until recently, recruits had six options, including two vivas, to clear the training programme. Those who failed had to undergo training again.

But sources said Infosys changed the policy this year — now trainees get only two chances to clear the training programme. And if they are unable to get through the two exams, then, unlike last year, they are not retained in the company.

One employee recently wrote an email to all Infoscians (about 66,150 people) including the management and board members via the intranet, crying foul over the training policy and complaining that they weren’t informed about the change in the policy until they arrived at the Mysore campus. The policy change has created job insecurity among trainees, who feel they might have to go through the tedious process of job hunting all over again if they don't make the grade.

The employee — ET is in possession of a copy of the e-mail — a member of the July 2006 batch at the Mysore training centre, says in his mail, ``In some colleges, the HR told trainees that the attrition rate is very low and that only 1 or 2 trainees will lose their job. In the same year after recruitment, the company changed the policy...And trainees had no option but to sign the new policy document because they were not allowed to sit for another company recruitment test on campus. Trusting that the company will be truthful to us, many of our trainees sacrificed other jobs offered.’’

According to sources, 40 trainees from the June 2006 batch were asked to leave as they failed to clear the two exams. It is learnt that around 200 out of 600 trainees who were part of the July 2006 batch have not cleared their first exam, which means if they fail in the second test as well they are out of the company, sources add. Mr Mohandas Pai, Director - HR, Infosys Mr Pai declined to comment on the numbers though he added that 40 out of 4,000 trainees amount to about 1% attrition.

Infosys says the trainees were not kept in the dark but were informed at the induction programme at the start of the training that the norms had been changed and a signed declaration taken from the recruits. The company also points out that one swallow doesn’t make for a summer.

Mr Pai told ET, ``There is a cut-off mark for the training. Some trainees don’t study or perform to expected levels. We then try the outplacement route for them.’’ He insisted that the dropout rate from the training programme is still in single digits. Incidentally, Mr Pai had said during the recent Q2 results that involuntary attrition in the company was about 2.7%.

He added, ``We test a large number of students across institutions in India for learnability skills. Some students get through learning by rote or other ways. This small percentage gets into our 16-week training as well.’’ He added, ``Earlier, people who failed got a lot more chances. But some freshers treat the training like a holiday. Training is serious business and we are paying them salaries as well. They have to be more responsible.’’

Trainees say the company should make the entrance exam more stringent to ensure better quality. Says one,``There is no technical round during the entrance test. If the company is so concerned about the brand image, why don’t they make the entrance exam more stringent, thereby making recruitment policy stronger.’’

He added, “What is the difference between an academic environment and a professional one if we are not tested on job after the three months training?” Infosys’ Mysore training centre has a capacity of 4,500 seats and trains about 4,000 people at any given time. This year, about 20,000 people are expected to undergo their training in the facility. The company spends about Rs 2.5 lakh per person for the 14-16 week training.

The issue has come to the fore at a time when Indian IT services industry is hiring in thousands by the quarter as business for the bulge bracket firms continues to gallop at 40/50% plus levels. As the companies widen the network of colleges and institutes they pick the freshers from, there is bound to be an asymmetry in quality.

Original story

Wednesday, November 01, 2006

Bangalore Set to Be Renamed Bengalooru

Bangalore, the Indian city where the largest technology companies such as Intel Corp. and Microsoft Corp. have offices, is being renamed Bengalooru.

The name change for the city, capital of southern Karnataka state and home to two of India's biggest software companies, will be announced later today by Chief Minister H.D. Kumaraswamy during the province's 50th anniversary celebrations.

Bangalore follows cities such as Mumbai, Chennai and Kolkata in adopting local-language versions of their names following independence from Britain in 1947.

``The name change is to give Bangalore the original Kannada flavor, which has been Anglicized,'' said I.M. Vittal Murthy, Karnataka's secretary of information and culture. ``It is being done in respect for the sentiments of the people.''

Bangalore had its administration taken over by the British in 1831. Today, the city of 6.5 million is home to more than 250 high-tech companies, including Infosys Technologies Ltd. and Wipro Ltd. The city is considered the technology hub of the country and often referred to as the Silicon Valley of India.

With the growth of India as an outsourcing destination, the city's name was used as a verb -- ``Bangalored'' -- to describe the loss of such jobs in the U.S. and other economies.

``I don't think it will make any difference to the Bangalore brand or to the people of Karnataka,'' T.V. Mohandas Pai, head of human resources at Infosys, said. ``It is perfectly OK to use the local name of the city. It will not affect the industry.''

Political Gains

The name change won't help much, except as a reminder of historical significance that political parties are trying to use to gain popularity, said N. Bhaskara Rao, chairman of the Centre for Media Studies, a policy research group in New Delhi.

``The changeover may cause some inconvenience to the people, especially to foreigners, and cost some additional money, but it will not have an effect on the brand name internationally,'' Rao said.

India's commercial hub changed its name to Mumbai from Bombay in 1995. The southern city of Madras switched back to Chennai in 1996 and the eastern city of Calcutta, once the capital of India during British rule, to Kolkata in 2001.

The proposal to rename Bangalore and at least eight other cities and towns in Karnataka has been sent to the federal government for approval, Murthy said. The name changes will become effective after they are notified by the federal home ministry.

The name Bengalooru was recorded in a ninth-century temple inscription, according to the Web site of the Karnataka government's department of information technology.

Original story

A tech-savvy Kerala on 50th birthday

Software giants like Infosys will employ about 20,000 engineers in land adjoining the TechnoPark and infrastructure development in both cities seems to be keeping pace.

The history of south India can be traced back to over 2,000 years. However, it was only 50 years ago when the four southern states were created along linguistic lines.

CNN-IBN unveils the changing face of south India and celebrates the Dravidian spirit in a special series The Golden South.

Thiruvanathapuram: As it turns 50, Kerala has just begun to take baby steps towards empowering a sector that has been stagnant for quite some time.

While its other southern counterparts – more specifically Karnataka and Tamil Nadu – have raced ahead, Kerala’s IT industry has been feeling withdrawal pangs for a while.

However, if the recently elected LDF regime has its way, the state would soon witness a kickstart in three mega IT projects.

When Chief Minister V S Achutanandan took over the reins of government in Kerala, he also began incorporating some big plans for the city’s IT sector.

First up was the controversial Smart City project with Dubai's Tecom group, which was put back on track, minus its contentious clauses.

The project will be heralded by the setting up of a 500-acre Technocity to complement Thiruvananthapuram's Technopark.

“The Left has a change in perception, that I agree. We don't want Kerala to be destination cheap labour alone. We are now concentrating more on knowledge-based industry. The Left, in fact, has more vision on this now,” says Chief Minister’s IT advisor, Joseph Mathew.

While it was Communists’ change of mind that provided a catalyst, the IT saturation in Bangalore and Hyderabad meant a migration to tier-two cities like Kochi and Thiruvanathapuram.

Software giants like Infosys will employ about 20,000 engineers in land adjoining the TechnoPark and infrastructure development in both cities seems to be keeping pace.

“I don't think infrastructure is a bottle neck in Cochin or Thiruvananthapuram. Rather the infrastructure in Thiruvananthapuram is excellent,” says President of Ventures Management Associates, G Vijaya Raghavan.

So when Kerala gears up to celebrate the golden jubilee of its formation, it's projects like Smart City, Kochi's LNG Terminal and the Vizhinjam Port in Thiruvananthapuram that will change the way the average Malayalee looks at his life.

It was more than a decade ago when the first IT park was built in the state, and it’s beyond doubt that very little has happened after that.

But with the new LDF government deciding to throw away the anti-IT garb, the road ahead looks more promising than ever.

Original story

Kris to attend `Kalpatha' in Technopark

Thiruvananthapuram: The Department of Business Administration of the College of Engineering, Thiruvananthapuram is organising the fourth one-day national conference `Kalpatha' at Travancore Hall, Technopark on November 1.

Experts like Infosys President and COO S Gopalakrishnan, Ratailers Association of India CEO Gibson Vedamani, Unilever Chief Advisor R R Nair, , RPG Group Chief Information Officer Amit Mukherjee, US Technology Resources Global Head (Delivery) Arun Narayan and IBS CEO V K Mathews are expected to participate it.

Original story