Are IT firms using SEZs to maintain tax holiday?

Over 90 information technology special economic zones, SEZs, have been cleared and atleast 40 more are going to come up. In fact IT SEZS make up for almost half of the total number of SEZS approved as yet. So, why are Indian IT companies so enthused by the SEZ concept? Is it because it offers them a chance to perpetuate a tax holiday that otherwise ends in 2009? Debating this issue are Director of Human Resources of Infosys, Mohandas Pai, CEO of i-Flex, Deepak Ghaisas and Partner at BMR & Associates, Mukesh Butani.

Excerpts from an interview given to CNBC-TV18:

Q: You said that you were convinced that if tax benefits on software exports was extended, then e so many IT companies would not clamour to set up SEZs?

Ghaisas: I think the major attraction clearly is the tax concessions that IT companies have got and if they are going to get extended by or through the mechanism of SEZs, then I think most IT companies would be interested in doing that. But there are a lot of difficulties and variations between STPI and SEZ schemes.

Q: But you said if tax concessions were extended beyond 2009, then so many IT companies would not be jumping into the SEZ bandwagon?

Ghaisas: Absolutely right.

Q: Today you have Infosys, Satyam ,Wipro and TCS - all clamouring to set up SEZs and all have got approvals to some extent. So, what do you think of this big rush to try and perpetuate a tax holiday that otherwise ends in 2009?

Pai: There are two aspects. Firstly, large companies need large infrastructure requirements for expansion. They are not finding it in the existing places except in SEZs and so they have to go to the SEZ to expand. For example, we want to set up a 25,000-person campus in Chennai and the only place you can do it is the Mahindra SEZ.

Secondly, when a policy framework has been made about an SEZ - all of us in the corporate sector have to take advantage of the policy framework so that our shareholders will not point a finger at us. Yes, Narayan Murthy has made the statement - it is a larger policy issue but while running the corporation, we have to do what is available and is required.

But one must remember that, at the national level, the tax holiday is worth about Rs 125,000 crore in terms of market value for the whole industry. The industry today has market value of Rs 500,000 crore, which works out to 25% liquid stock, 5% of revenues and around 20%-25% of profits are tax exempt - this if calculated is worth Rs 125,000 crore and we can't throw it away.

Q: So you are saying that it is all right for IT companies to try and perpetuate that tax holiday even if it doesn’t exist beyond 2009 via the SEZ route? You spoke of infrastructure, we understand that the minimum area required for an IT SEZ is 25 acres and whereas the minimum area required for a multi-product SEZ is 2,500 acres, 25 acres is the minimum but that cannot clearly be an infrastructure play, it has to be a tax play?

Pai: It is a tax play but it is not a good policy for smaller companies. For eg a smaller companies with 100 people want to set up shop and we need many more small innovative companies in this country who are into a product area. For them, an SEZ restricts their choice, they need an STPI scheme. I think from a policy point of view, it is best to extend STPI schemeS like the commerce secretary has said and also give software companies a choice of the STPI scheme. But once you have a policy, naturally all companies will take advantage of the policy to do what is best for them.

Q: Do you think it is fair that IT companies be given another chance to extend what is now becoming a 2-3 decade long tax-free period for them via the SEZ policy? And is it going to be operationally possible for them to migrate existing business contracts or the renewed ones to these zones and treat them as new businesses and avail of the benefits?

Butani: There are two aspects - one is from the policy standpoint - the expiry of tax holiday in 2009 is something that the government thought about. Several successive tax reform committees suggested that we should get rid of all tax holidays.

The second is the policy - something that the government is trying to think since the late 1990s that we should have SEZs designed on the basis of what you have in China. But it is a different story about how the policy has evolved and there is a 25 acre limit for IT SEZs and also there is a limit of one million sq.ft for developed areas. I don’t think we should confuse the tax holiday with the policy part of it. The government from a policy standpoint is saying that this policy is going to encourage greater level of investment at large, in the country.

Q: What about the fact that this investment may not be new investment, it may be existing business contracts that are renewed in a zone and thereby allowing IT companies to use this to perpetuate the holiday?

Butani: How can you say that you can renew the contract? After all, at the end of the day I don’t have to set up an SEZ just because I have to expand. I have to set up an SEZ because I may want to have multiple locations. I may have significant expansions. After all, any entrepreneur who is thinking of developing one million square feet has to demonstrate significant investment, has to demonstrate he's hiring new people and has to demonstrate he's got new contracts.

Q: So are you saying that the Department of Revenue is going to lay out very strict guidelines that doesn’t allow IT companies to actually renew existing business contracts and insist that all business in SEZs is new business?

Butani: If you look at the law today, there is no provision in the law which talks about migration. So, if today I move from an STPI into SEZ with my people and with a contract, nothing prevents me from claiming a tax holiday. The only difference here is that as a part of the amendment in the special economic zone rules, they have put a prohibition on transfer of plant and machinery.

So, if I am using a plant and machinery in an STPI I can't move it into a SEZ. However, having said that and given the larger intent and substance of the law, I won't be surprised if the Department of Revenue comes out with suitable checks and balances to prevent migration from occurring.

Q: If they come up with that list of preventions, do you think that many IT companies will actually clamour to set-up SEZs?

Ghaisas: Let us look at this arithmetic what we talked about. We are talking about 25 acres, we are talking about million square feet of built-up area within three years time and this means 10,000 people and therefore you require 10,000 new people and everybody knows that any new project that comes up, you can't just stock it with new people. You need to have the old people also working with the new people. So, I am not sure exactly how the tax benefit is going to work.

More than that, the Ministry of Finance's real intention is not to give the tax benefits left right and centre as it was before, and therefore my worry is that the laws are going to be so stringent. And therefore, there will be a lot of disputes with the income tax department going forward - that people are not going to get benefits like they used to under the STPI.

Q: Are you in favour or do you think the industry would be in favour of very strict guidelines that ensure that only new business is set up in special economic zones?

Pai: The industry would be in favour of good guidelines. One that there is incremental large-scale investment and two, large-scale incremental employment is created and three large-scale incremental works. I don’t think the industry expects the existing work to shift to the SEZ. They would expect to play by the rules and the rules are very clear - ie. incremental investment, incremental employment and incremental business.

Earlier, the Software Technology Parks Of India (STPI) policy was existing and continuing possibly to grow. Now the existing STPIs will not grow and all new investment, new development and new employment will be in the SEZs - that is the interpretation the industry is making

Q: Do you think we are going about this entire SEZ policy in the right fashion? Should we be following the China example or do you think that is not applicable to India?

Pai: I think the vision should be much larger. Our vision is very myopic. We should make large-scale investment. We should ensure that manufacturing gets priority, followed by services but the division has to be much larger. The way it is today, the division is very myopic and too small and I am afraid that we may not get the benefits that China did.

Q: What do you think of the SEZ policy?

Ghaisas: The SEZ policy in-principle is fine. We require big townships to balance growth in the country. The areas which are underdeveloped need to get developed through SEZ schemes and that is how the SEZ policy should be implemented - with very simple and straightforward rules, which don’t give any interpretation disputes later on.

Q: Do you approve of this - about not leaving any space open for interpretation?

Butani: I entirely echo Deepak's view and I would rather make one suggestion - that if there is a single window clearance by the Minister of Commerce and Board of Approvals, then why can't they actually guarantee tax exemption at that stage itself. That will prevent all kinds of controversy and litigations that could come up in the future.

Innovation: Outsourcing's Second Wave

Companies want an edge through new business models, but in innovative strategic thinking for clients, Indian IT firms lag the global giants, says Forrester's Navi Radjou

Back in June, IBM's (IBM) Chief Executive Sam Palmisano lit a traditional Indian lamp to kick off the company's largest-ever town hall meeting in Bangalore. Then he announced to his 43,000 Indian employees—an eighth of his global workforce—that IBM would invest $6 billion in India over the next three years.

It was a significant event for IBM—but it was an even more significant moment in the history of the global IT service industry. Palmisano heralded a new chapter in outsourcing, one where the big global players like IBM and Accenture (ACN) will lord it over the upstart Indian offshore IT services companies.

For the last two decades, the Indians pioneered and dominated the outsourcing game. Companies like Infosys (INFY), Wipro (WIT), and Tata Consultancy Services (TACSF), with their low-cost global delivery of services model, were able to leverage their talent at a low cost and deliver competitively priced IT services.

They specialized in providing such things as application development, infrastructure support, and business process outsourcing (BPO) to cost-conscious, top-tier multinational clients. The Indians disrupted the existing business models of high-priced consultants like IBM and Accenture, which saw their IT service revenues dwindle in recent years.

But now these Western players are turning the tables on their Eastern rivals. Corporate leaders are seeking more than cost efficiency to help boost profits. They are looking for innovation from their IT consultants that will help them increase their revenues. Here, global players like IBM and Accenture are coming out tops.

COMPETING THROUGH OPERATIONS. First, they are starting to beat the Indians at their own game by expanding the size of their offshore workforce to keep up with the competition for talent. IBM has more than quadrupled its Indian technical staff in recent years and is catching up with Accenture, which has already drastically expanded its offshore services capabilities.

Secondly, while using their offshore locations like India to help customers save costs, these Western consulting firms are now using their industrywide expertise to create global innovation networks (GIN), which they can tap into to create competitive new products and business models for their customers.

According to a recent survey of top-level executives sponsored by SAP (SAP), 55% of corporate leaders worldwide report that new business models—organizational structures, competencies, processes, and partnerships that define how a company operates—will confer a greater strategic advantage than new products and services by 2010. And both IT and business execs tell us that consultants remain one of their top sources for such business innovations.

This is where the Indian and other offshore providers lag. Offshore vendors are currently telling clients: "We will free resources for you to innovate." To which chief executives at client firms are now responding: "No, we want you to help us innovate." When Satyam (SAY) and Infosys talk about "process innovation" or "service innovation," they mean applying Six-Sigma or agile development techniques to optimize their own internal IT service delivery processes, not to innovate their clients' industry-specific processes and services.

And while Wipro and Tata Consulting employ research and development teams that can help firms innovate their products, they are not trained to deliver what chief executives care about most: new business models. So, offshore outsourcers need to align their interpretation of innovation with their clients'.

TEAMS OF INNOVATORS. Here, smart Western consultants have sensed and seized the opportunity. Here's how they work. These players are upgrading their own global delivery infrastructure to deliver not just technical services like applications development, but also business innovation services. That's where the global innovation networks come in. These are global ecosystems of internal and external partners that collaboratively design and deliver business innovations that clients want.

For instance, the software activities of IBM's Center for Business Optimization, whose consultants help reengineer and optimize clients' business models, are done in Bangalore by PhDs trained in operations research. In one current project, these Bangalore-based PhDs are working with IBM's logistics experts in Zurich and Japanese software engineers in IBM's Yamato Software Lab to jointly develop and deliver a scalable supply-chain optimization model to European and Asian clients.

Ditto for Accenture, whose Institute for High Performance relies on India-based MBAs to devise industry-transforming business models. And Deloitte's Intellectual Asset Management practice relies on a 100%-virtual innovation network, tapping a global expert network of 300-plus respected scientists, engineers, and physicians to help clients worldwide maximize their intellectual property (IP) portfolio value.

MORE THAN ENGINEERS. For now, the Western players are galloping away with the prizes. Offshore players in India and elsewhere can catch up—but only if they change their mindset and move fast. They need to acquire a new client-focused innovation mindset by recasting their operationally focused mission statement to help clients innovate by transforming their business processes, market offerings, or business models to boost value for their enterprise.

To effectively carry out this client-focused business innovator mission, offshore providers need a fresh, new talent pool and expertise. They need business designers who can invent new business models, industry specialists who can tailor business innovations to suit the client's context, and they need to extend their reach to global players who can broker and orchestrate the GINs for them.

So, in addition to the famous IIT-minted software engineers and mechanical engineering PhDs who can create massive programs and design jumbo jets, offshore providers also need MBAs and PhDs in economics who can design clients' new business models. These business designers must operate not out of India, but on European and U.S. soil where their clients are based. That way, while its software programmers in Bangalore are coding customer Food Lion's multichannel commerce platform, for instance, Infosys' U.S.-based microeconomists can invent the cross-channel pricing models.

STRATEGIC ADVISERS. Business execs in multinationals tell us that they are impressed by offshore providers' technical talent and project management skills, but underwhelmed by their vertical-specific process knowledge and domain expertise. To deliver business innovation to non-IT execs, offshore providers must retrain their consultants to act less as client order-takers or peddlers of cookie-cutter tech frameworks, and more as strategic advisers who can anticipate clients' business needs and engage them in collaborative innovation scenarios.

For example, before responding to a proposal from General Motors' (GM) IT department to upgrade its OnStar telematics software, Wipro's management consultants should proactively propose to the carmaker's chief financial officer a value-based pricing scheme, with risk-reward sharing, to co-develop and co-market an energy-efficient new car in emerging markets.

Finally, what is needed are some savvy global brokers. Offshore providers today promote their human assets, i.e., "we can rapidly assemble a team of our 5,000 engineers just for you." But users don't want to rely on a single provider's expertise alone to address their multifaceted innovation needs: Most users tell Forrester they prefer best-of-breed IT services from all over instead.

EMPHASIS ON ACUMEN. Offshore providers must form business development teams capable of seeding and orchestrating the external ecosystems of innovation specialists. With such Innovation Networks in place, Tata Consulting can quickly tap a Shanghai-based logistics expert to co-develop an innovative global transportation solution for GE's (GE) manufacturing unit in China.

Offshore players are behind in this second wave of outsourcing, but they needn't be if they can quickly build upon their existing strengths—trust-based, transparent client relationships and mature, automated global delivery processes—to shape these global innovation networks. Some already have pockets of expertise to drive industry-specific business innovation—Infosys has an expertise in financial services and Wipro in IP portfolio management, for instance. But their technical skills typically overshadow their business acumen.

Now is the time for Indian and other offshore players to emphasize the latter and transform themselves from low-margin IT vendors into strategic GIN services providers. As these global networks take off, companies will be able to access innovation twice over: from within their organizations and from outside, through their vendors or partners. That's when the true benefits of globalization will start to accrue, and make customers the real winners.

Navi Radjou is a vice-president with Forrester Research. He advises senior executives including chief information officers worldwide, on new organizational designs and business processes their firms must adopt to sustain global competitiveness through technology-enabled innovation
Original story

How Infosys Was Born - Sudha Murthy

This is written by Sudha Murthy in Ananda Vikatan newsletter, about her life and the story of how Infosys was born.

It was in Pune that I met Narayan Murty through my friend Prasanna who is now the Wipro chief, who was also training in Telco. Most of the books that Prasanna lent me had Murty's name on them, which meant that I had a preconceived image of the man. Contrary to expectations, Murty was shy, bespectacled and an introvert. When he invited us for dinner, I was a bit taken aback as I thought the young man was making a very fast move. I refused since I was the only girl in the group. But Murty was relentless and we all decided to meet for dinner the next day at 7.30p.m. At Green Fields hotel on the Main Road, Pune.

The next day I went there at 7 o'clock since I had to go to the tailor near the hotel. And what do I see? Mr. Murty waiting in front of the hotel and it was only seven. Till today, Murty maintains that I had mentioned (consciously!) that I would be going to the tailor at 7 so that I could meet him... And I maintain that I did not say any such thing consciously or unconsciously because I did not think of Murty as anything other than a friend at that stage. We have agreed to disagree on this matter. Soon, we became friends. Our conversations were filled with Murty's experiences abroad and the books that he has read.

My friends insisted that Murty was trying to impress me because he was interested in me. I kept denying it till one fine day, after dinner Murty said I want to tell you something. I knew this was it. It was coming. He said, "I am 5'4" tall. I come from a lower middle class family. I can never become rich in my life and I can never give you any riches. You are beautiful, bright, and intelligent and you can get anyone you want. But will you marry me?" I asked Murty to give me some time for an answer.

My father didn't want me to marry a wannabe politician, (a communist at that) who didn't have a steady job and wanted to build an orphanage...

When I went to Hubli I told my parents about Murty and his proposal. My mother was positive since Murty was also from Karnataka, seemed intelligent and came from a good family. But my father asked: What's his job, his salary, his Qualifications etc? Murty was working as a research assistant and was earning less than me. He was willing to go Dutch with me on our outings. My parents agreed to meet Murty in Pune on a particular day at 9 a.m. sharp. Murty did not turn up. How can I trust a man to take care of my daughter if he cannot keep an appointment, asked my father. At 12 noon, Murty turned up in a bright red shirt! He had gone on work to Bombay, was stuck in a traffic jam on the ghats, so he hired a taxi (though it was very expensive for him) to meet his would-be father-in-law.

Father was unimpressed. My father asked him what he wanted to become in life. Murty said he wanted to become a politician in the communist party and wanted to open an orphanage. My father gave his verdict. NO.

I don't want my daughter to marry somebody who wants to become a communist and then open an orphanage when he himself doesn't have money to support his family. Ironically, today, I have opened many orphanages, something, which Murty wanted to do 25 years ago. By this time, I realized I had developed a liking towards Murty, which could only be termed as love. I wanted to marry Murty because he is an honest man. He proposed to me highlighting the negatives in his life. I promised my father that I would not marry Murty without his blessings though at the same time, I cannot marry anybody else.

My father said he would agree if Murty promised to take up a steady job. But Murty refused saying he will not do things in life because somebody wanted him to. So, I was caught between the two most important people in my life.

The stalemate continued for three years during which our courtship took us to every restaurant and cinema hall in Pune. In those days, Murty was always broke. Moreover, he didn't earn much to manage. Ironically today, he manages Infosys Technologies Ltd.; one of the worlds's most reputed companies. He always owed me money. We used to go for dinner and he would say, I don't have money with me, you pay my share, and I will return it to you later. For three years I maintained a book on Murty's debt to me. No, he never returned the money and I finally tore it up after my wedding. The amount was a little over Rs. 4,000/-.

During this interim period, Murty quit his job as research assistant and started his own software business. Now, I had to pay his salary too! Towards the late 70s computers were entering India in a big way. During the fag end of 1977, Murty decided to take up a job as General Manager at Patni Computers in Bombay. But before he joined the company, he wanted to marry me since he was to go on training to the US after joining. My father gave in as he was happy Murty had a decent job now.

We were married in Murty's house in Bangalore on February 10, 1978 with only our two families present. I got my first silk sari. The wedding expenses came to only Rs. 800/- (US $ 17) with Murty and I pooling in Rs. 400/- each.

I went to the US with Murty after marriage. Murty encouraged me to see America on my own because I loved traveling. I toured America for three months on backpack and had interesting experiences, which will remain fresh in my mind forever. Like the time when I was taken into custody by the New York police because they thought I was an Italian trafficking drugs in Harlem. Or the time when I spent the night at the bottom of the Grand Canyon with an old couple. Murty panicked because he couldn't get a response from my hotel room even at midnight. He thought I was either killed or kidnapped.

In 1981Murty wanted to start Infosys. He had a vision and zero capital...

Initially, I was very apprehensive about Murty getting into business. We did not have any business background. Moreover, we were living a comfortable life in Bombay with a regular paycheck and I didn't want to rock the boat. But Murty was passionate about creating good quality software. I decided to support him. Typical of Murty, he just had a dream and no money. So I Gave him Rs 10,000/- that I had saved for a rainy day, without his knowledge and told him, this is all I have. Take it. I give you three years sabbatical leave. I will take care of the financial needs of our house. You go and chase your dreams without any worry. But you have only three years!

Murty and his six colleagues started Infosys in 1981, with enormous interest and hard work. In 1982, I left Telco and moved to Pune with Murty.

We bought a small house on loan, which also became the Infosys office. I was a clerk-cum-cook-cum-programmer. I also took up a job as Senior Systems Analyst with Watchband group of Industries to support the house.

In 1983, Infosys got their first client, MICO, in Bangalore. Murty moved to Bangalore and stayed with his mother while I went to Hubli to deliver my second child, Roan. Ten days after my son was born, Murty left for the US on project work. I saw him only after a year, as I was unable to join Murty in the US because my son had infantile eczema, an allergy to vaccinations. So for more than a year, I did not step outside our home for fear of my son contracting an infection. It was only after Roan got all his vaccinations that I came to Bangalore where we rented a small house in Jayanagar and rented another house as Infosys headquarters. My father presented Murty a scooter to commute. I once again became a cook, programmer, clerk, and secretary, office assistant et al. Nandan Nilekani (MD of Infosys) and his wife Rohini stayed with us. While Rohini babysat my son, I wrote programmes for Infosys. There was no car, no phone, just two kids and a bunch of us working hard, juggling our lives and having fun while Infosys was taking shape. It was not only me but the wives of other partners too who gave their unstinted support.

Murty made it very clear that it would either be me or him working at Infosys. Never the two of us together. I was involved with Infosys initially. Nandan Nilekani suggested I should be on the Board but Murty said he did not want a husband and wife team at Infosys. I was shocked since I had the relevant experience and technical qualifications. He said, Sudha if you want to work with Infosys, I will withdraw, happily. I was pained to know that I will not be involved in the company my husband was building and that I would have to give up a job that I am qualified to do and love doing. It took me a couple of days to grasp the reason behind Murty's request.

I realized that to make Infosys a success one had to give one's 100 percent. One had to be focused on it alone with no other distractions. If the two of us had to give 100 percent to Infosys, then what would happen to our home and our children? One of us had to take care of our home while the other took care of Infosys. I opted to be a homemaker, after all Infosys was Murty's dream. It was a big sacrifice but it was one that had to be made. Even today, Murty says, "Sudha, I stepped on your career to make mine. You are responsible for my success." I might have given up my career for my husband's sake. But that does not make me a doormat. Many think that I have been made the sacrificial lamb at Narayan Murty's altar of success.

A few women journalists have even accused me of setting a wrong example by giving up my dreams to make my husbands a reality. Isn't freedom about living your life the way you want it? What is right for one person might be wrong for another. It is up to the individual to make a choice that is effective in her life. I feel that when a woman gives up her right to choose for herself is when she crosses over from being an individual to doormat.

Murty's dreams encompassed not only himself but also a generation of people. It was about founding something worthy, exemplary and honorable. It was about creation and distribution of wealth. His dreams were grander than my career plans, in all aspects. So, when I had to choose between Murty's career and mine, I opted for what I thought was a right choice. We had a home and two little children. Measles, mumps, fractures, PTA meetings, wants and needs of growing children do not care much for grandiose dreams. They just needed to be attended to. Somebody had to take care of it all. Somebody had to stay back to create a home base that would be fertile for healthy growth, happiness, and more dreams to dream.

I became that somebody willingly. I can confidently say that if I had had a dream like Infosys, Murty would have given me his unstinted support. The roles would have been reversed. We are not bound by the archaic rules of marriage. I cook for him but I don't wait up to serve dinner like a traditional wife. So, he has no hassles about heating up the food and having his dinner. He does not intrude into my time especially when I am writing my novels. He does not interfere in my work at the Infosys Foundation and I don't interfere with the running of Infosys.

I teach Computer Science to MBA and MCA students at Christ college for a few hours every week and I earn around Rs 50, 000 a year. I value this financial independence greatly though there is no need for me to pursue a teaching career. Murty respects that. I travel all over the world without Murty because he hates traveling. We trust each other implicitly.

We have another understanding too. While he earns the money, I spend it, mostly through the charity. Philanthropy is a profession and an art. The Infosys Foundation was born in 1997 with the sole objective of uplifting the less-privileged sections of society. In the past three years we have built hospitals, orphanages, rehabilitation centres, school buildings, science centers and more than 3500 libraries.

Our work is mainly in the rural areas amongst women and children. I am one of the trustees and our activities span six states including Karnataka, Tamil Nadu, Andhra, Orissa, Chandigarh and Maharashtra. I travel to around 800 villages constantly. Infosys Foundation has a minimal staff of three trustees and three office members. We all work very hard to achieve our goals and that is the reason why Infosys Foundation has a distinct identity. Every year we donate around Rs 5-6 crore (Rs 50 - 60 million). We run Infosys Foundation the way Murty runs Infosys - in a professional and scientific way. Philanthropy is a profession and an art. It can be used or misused.

We slowly want to increase the donations and we dream of a time when Infosys Foundation could donate large amounts of money. Every year we receive more than 10, 000 applications for donations. Everyday, I receive more than 120 calls. Amongst these, there are those who genuinely need help and there are hood winkers too. I receive letters asking me to donate Rs. Five lakh to someone because five lakh is, like peanuts to Infosys. Some people write to us asking for free Infosys shares. Over the years I have learnt to differentiate the wheat from the chaff, though I still give a patient hearing to all the cases.

Sometimes, I feel I have lost the ability to trust people. I have become shrewder to avoid being conned. It saddens me to realize that even as a person is talking to me I try to analyse them: Has he come here for any donation? Why is he praising my work or enquiring about my health, does he wants some money from me? Eight out of ten times I am right. They do want my money. But I feel bad for the other two whom I suspected. I think that is the price that I have to pay for the position that I am in now.

The greatest difficulty in having money is teaching your children the value of it and trying to keep them on a straight line. Bringing up children in a moneyed atmosphere is a difficult task.

Even today, I think twice if I have to spend Rs. 10/- on an auto when I can walk up to my house. I cannot expect my children to do the same. They have seen money from the time they were born. But we can lead by example. When they see Murty wash his own plate after eating and clean the two toilets in the house everyday, they realize that no work is demeaning irrespective of how rich you are. I don't have a maid at home because I don't see the need for one. When children see both parents working hard, living a simple life, most of the time they tend to follow. This doesn't mean we expect our children to live an austere life. My children buy what they want and go where they want but they have to follow certain rules.

They will have to show me a bill for whatever they buy. My daughter can buy five new outfits but she has to give away five old ones. My son can go out with his friends for lunch or dinner but if he wants to go to a five star hotel, we discourage it. Or we accompany him. So far my children haven't given me any heartbreak. They are good children. My eldest daughter is studying abroad, whereas my son is studying in Bangalore. They don't use their father's name in vain. If asked, they only say that his name is Murty and that he works for Infosys. They don't want to be recognized and appreciated because of their father or me but for themselves. I don't feel guilty about having money for we have worked hard for it. But I don't feel comfortable flaunting it.

It is a conscious decision on our part to live a simple, so-called middle class life. We live in the same two-bedroom, sparsely furnished house we had before Infosys became a success. Our only extravagance is buying books and CDs. My house has no lockers for I have no jewels. I wear a stone earring, which I bought in Bombay for Rs. 100/-. I don't even wear my mangalsutra until i attend some family functions or I am with my mother-in-law. I am not fond of jewellery or saris. Five years ago, I went to Kashi where tradition demands that you give up something and I gave up shopping.

I still have the same sofa at home, which my daughter wants to change. However, we have indulged ourselves with each one having their own music system and computer. I don't carry a purse and neither does Murty most of the time. I do tell him to keep some small change with him but he doesn't. I borrow money from my secretary or my driver if I need cash. They know my habit so they always carry extra cash with them. But I settle the accounts every evening. Murty and I are very comfortable with our lifestyle and we don't see the need to change it now that we have money.

Murty and I are two opposites that complement each other... Murty is sensitive and romantic in his own way. He always gifts me books addressed as "From Me to You", or "To the person I most admire", etc. We both love books. We are both complete opposites. I am an extrovert and he is an introvert. I love watching movies and listening to classical music. Murty loves listening to English classical music. I go out for movies with my students and secretary every other week. I am still young at heart. I really enjoyed watching "Kaho Na Pyaar Hai" and I am a Hrithik Roshan fan. It has been more than 20 years since Murty and I went for a movie. My daughter once gave us a surprise by booking tickets for Titanic. Since I had a prior engagement that day, Murty went for the movie with his secretary Pandu. I love traveling whereas Murty loves spending time at home.

But that doesn't mean I don't have true friends. I do have genuine friends, a handful, who have been with me for a very long time. My equation with these people has not changed and vice versa. I am also very close to Narayan Murty's family, especially my sister-in-law Kamala Murty, a schoolteacher, who is more of a dear friend to me. I have discovered that these are the few relationships and friendships that don't fluctuate depending on the price of Infosys shares.

Have I lost my identity as a woman, in Murty's shadow? No. I might be Mrs. Narayan Murty. I might be Akshata and Rohan's mother. I might be the trustee of Infosys Foundation. But I am still Sudha. I play different roles like all women. That doesn't mean we don't have our own identity.

Women have that extra quality of adaptability and learn to fit into different shoes. But we are our own selves still. And we have to exact our freedom by making the right choices in our lives, dictated by us and not by the world.

Original story

Joke - Infosys Interview & Selection Process

Interviewer: Tell me about yourself.

Candidate: I am Rameshwar Kulkarni. I did my Tele Communication engineering from BabanRao Dhole-Patil Institute of Technology.

Interviewer: BabanRao Dhole-Patil Institute of Technology? I had never heard of this college before!

Candidate: Great! Even I had not heard of it before getting an admission into it . What happened is - due to cricket world cup I scored badly in 12th. I was getting a paid seat in a good college. But my father said (I prefer to call him 'baap') - "I can not invest so much of money".

(The baap actually said - "I will never waste so much of money on you").

So I had to join this college. Frankly speaking this name - BabanRao Dhole-Patil, can at the most be related to a Shetakari Mahavidyalaya.

Interviewer: ok, ok. It seems you have taken 6 years to complete your engineering.

Candidate: Actually I tried my best to finish it in 4 years. But you know, these cricket matches and football world cup, and tennis tournaments..It is difficult to concentrate. So I flunked in 2nd and 3rd year. So in all I took 4 + 2 = 7 years.

Interviewer: But 4+2 is 6.

Candidate: Oh, is it? You know I always had KT in maths. But I will try to keep this in mind. 4+2 is 6, good, thanks. These cricket matches really affect exams a lot. I think they! should ban it.

Interviewer: Good to know that you want cricket matches to be banned.

Candidate: No, no.. I am talking about Exams!!

Interviewer: Ok, What is your biggest achievement in life?

Candidate: Obviously, completing my Engineering. My mom never thought I would complete it. In fact, when i flunked in 3rd year, she was looking for a job for me in BEST(Bus corporation in Maharashtra) through some relative .

Interviewer: Do you have any plans of higher study?

Candidate: he he he.. Are you kidding? completing 'lower' education itself was so much of pain!!

Interviewer: Let's talk about technical stuff. On which platforms have you worked?

Candidate: Well, I work at SEEPZ, so you can say Andheri is my current platform. Earlier I was at Vashi center. So Vashi was my platform then. As you can see I have experience of different platforms ! (Vashi and Andheri are the places in Mumbai)

Interviewer: And which languages have you used?

Candidate: Marathi, Hindi, English. By the way, I can keep quiet in German, French, Russian and ma! ny other languages.

Interviewer: Why VC is better than VB?

Candidate: It is a common sense - C comes after B. So VC is a higher version than VB. I heard very soon they are coming up with a new language VD!

Interviewer: Do you know anything about Assembly Language?

Candidate: Well, I have not heard of it. But I guess, this is the language our ministers and MPs use in assembly.

Interviewer: What is your general project experience?

Candidate: My general experience about projects is - most of the times they are in pipeline!

Interviewer: Can you tell me about your current job?

Candidate: Sure, Currently I am working for Bata InfoTech ltd. Since joining BIL, I am on Bench. Before joining BIL, I used to think that Bench was another software like Windows.

Interviewer: Do you have any project management experience?

Candidate: No, but I guess it shouldn't be difficult. I know Word and Excel. I can talk a lot. I ! know how to dial for International phone call and use speaker facility. And very important - I know few
words like -'Showstoppers' , 'hotfixes','SEICMM','quality','versioncontrol','deadlines' , 'Customer Satisfaction' etc. Also I can blame others for my mistakes!

Interviewer: What are your expectations from our company?

Candidate: Not much.
1. I should at least get 40,000 in hand.
2. I would like to work on a live EJB project. But it should not have deadlines. I personally feel that pressure affects natural talent.
3. I believe in flexi-timings.
4. Dress code is against basic freedom, so I would like to wear t-shirt and jeans.
5. We must have sat-sun off. I will suggest Wednesday off also, so as to avoid breakdown due to overwork.
6. I would like to go abroad 3 times a year on short term preferably 1-2 months) assignments. Personally I prefer US,Australia and Europe. But considering the fact that there is a world cup in West Indies in 2007, I don't mind going there in that period . As you can see I am modest and don't have many expectations. So can I assume my selection?

Interviewer: he he he ha ha ha. Thanks for your interest in our Organization. In fact I was never entertained so much before. ..happy :))

We look forward to working with you ..

Welcome to Infosys happy :)

Joke - Infosys Guys and Gals

Written by Infosys Guys:

1. What is the beautiful girl called in Infosys?
A. Visitor.

2. What happens when all the Infosys girls go on a trip to moon?
A. Average beauty of the earth increases and that of moon decreases.

3. What happens when hundred new girls join ?
A. Average beauty of Infosys further decreases.

4. What happens when a Infosys girl has very malignant brain tumor?
A. She will get her knee operated.

5. What happens when two Infosys girls meet generally at fashion show?
A. They will discuss the cause of the two smaller bugs in software.

6. What happens when a Infosys girl contests a fashion show?
A. She will get best possible points in the field of morale boosting.

7. What happens if you present a book named "How to fall in love" to a Infosys girl?
A. She will use it as a mouse pad.

8. When there is a competition in beauty and two Infosys girls participate,it's called a competition.
A. If a Infosys girl and other outside girl competes, its called overconfidence.

9. What happens when two Infosys girls compete for same guy?
A. He will commit suicide.

Quote: Generally 99.9999% of the girls in the world are beautiful, rest are in Infosys

Written by Infosys Girls:

1. What is it when an Infosys-guy is wearing a black t-shirt?
A. It's just a white t-shirt , badly in need of a good washing.

2.What happens when a dirty, smelly sheep and an i.g.(Infosys-guy) enter a room together?
A. The sheep runs out.

3. What happens when an i.g. starts combing his hair?
A. The comb gets lost in his hair.

4.What does an i.g. tell Julia Roberts?
A. Your hair remind me of "sine curves".

5.Where does an i.g. take his girl on the 1st date?
A. Obviously, to the Infosys library.

6.How does an i.g. shine his battery (specs)?
A. With a shoe-shine polish.

7.What do you call a guy wearing shoes in Infosys?
A. A visitor.

8. What happens when some i.g.s go on a trip to U.S.A.?
A. Average cleanliness of INDIA increases, and that of U.S.A decreases.

9.What happens to the 2 ants, 1 falling on an i.g.'s shirt, and other on a visitor's shirt?
A. The 2nd one slips down quickly, while the 1st one gets lost in the mountainous region. (such a crumpled shirt!).

10.How will an i.g. tell his friend "go there"?
A. He will actually GO there and say,"come here".

11.What happens when an i.g. falls in love?
A. He starts finding out the depth to which he's fallen, with the velocity and time of falling in love known to him.

12. What does an i.g. comment about a v. pretty girl?
A. "Non existing function of beauty".

13. What happens when an i.g. proceeds with a suitcase to his home-town?
A. On reaching home, realizes that his suitcase is missing.

14. What happens when an i.g. is attending a wedding?
A. He starts developing a software to find out how many people attended the marriage and how many didn't.

Quote: 0.0001% of the garbage on earth is outside Infosys and the remaining 99.9999% is in Infosys.

Joke - Elephant and Infosys, Wipro & TCS Folks

Another email forward.

One day, three consultants, one from Wipro, one from Infosys and one from TCS, went together for a walk. They were old buddies from b-school, and they were joining together to remember the tough old days they went as students together.

For no apparent reasons, they went into this zoo an passed an elephant.Having worked in the same field and from the same school, of course there is a little bit of peer competition going on between themselves, so when he saw this elephant, an idea clicked the Infosys guy, he said to the others ' Why don't we prove who are the best among ourselves?'. The other two, of course, agreed.

Then the Infoscion said 'Let's make a test. Whoever can make this elephant to laugh, he works for the best firm'.

After they all agreed, they started. Being a pure logical strategist, the Infoscion tried to make the elephant laugh by telling jokes. Of course it stayed still... As a more practical consultant, the Wipro guy tried to make funny gestures... and the elephant still stayed still.... Now, comes the TCS guy.. Being the practical guy he was always told to be, he whispered something to the elephant, and it laughed at him while pointing its fingers to him...

The other two were astonished. How come this TCS guy be able to beat them? So the Wipro guy said 'OK, let's make another test. Let's make this elephant cry !!'. So there they went again, practicing the same method as before. The Infosys guy told sad sad stories, the Wipro guy made sad gestures, and they fail again......

Then, the TCS guy whispered something again to the elephant's ear and it just cried, weeping.....and patting the TCS guy's shoulder.
This cannot be, thought the other two. So the Infoscion said 'OK, you've won twice. If you can win this test, we will bow to you. Let's make this elephant run'.

He went and bark to the elephant orders to run. Of course, it stayed still .... The Wipro guy pushes the elephant and stab it with stake to make it run, it stayed still. So...our TCS guy come to it and whispered something again to it's ear and the elephant run and run as fast as it could, as if it was scared to death.

The other two surrendered. They say 'OK, you're the best pal. You work for a very good firm, tell us your secret'.

'Well' said the TCS guy, 'the first time I made it laugh, I said I work for TCS'.

' When I made it cry as if it were very sad and patted me, I told the elephant how much I get paid'.

' And when I made it run scared to death, I said to it, Why don't you join TCS?'

Joke - About Infosys Guys

An email forward, enjoy the joke!

1. What is it when an Infosys-guy is wearing a black T-Shirt?

Ans: It's just a white T-Shirt , badly in need of a good washing.

2.What happens when a dirty, smelly sheep and an Infosys Guy(Infosys-guy) enter a room together?

Ans: The sheep runs out.

3. What happens when an Infosys Guy starts combing his hair?

Ans: The comb gets lost in his hair.

4.What does an Infosys Guy tell julia roberts?

Ans: Your hair remind me of "sine curves".

5.Where does an Infosys Guy take his girl on the 1st date?

Ans: Obviously, to the Infosys library.

6.How does an Infosys Guy shine his battery (spectacles)?

Ans: With a shoe-shine polish.

7.What do you call a guy wearing shoes in Infosys?

Ans: visitor.

8. What happens when some Infosys Guys go on a trip to U.S.A.?

Ans: Average cleanliness of INDIA increases, and that of U.S.A decreases.

9.How will an Infosys Guy tell his friend "go there"?

Ans: He will actually GO there and say,"come here".

10. What happens when an Infosys Guy falls in love?

Ans: He starts finding out the depth to which he's fallen, with the velocity and time of falling in love known to him.

11. What does an Infosys Guy comment about av. pretty girl?

Ans: "non existing function of beauty".

12. What happens when an Infosys Guy proceeds with a suitcase to his home-town?

Ans: On reaching home, realizes that his suitcase is empty.

13. What happens when an Infosys Guy is attending a wedding?

Ans: He starts developing a software to find out how many people attended the marriage and how many didn't.

Infosys bags Saudi bank contract

India's Infosys has won its first contract from a Saudi Bank for its Islamic banking solution.

Merwin Fernandes, vice president and business head for the solution, Finacle, said talks with at least three Gulf Banks for its core banking solutions were at an advanced stage.

"Saudi Arabia's Arab National Bank is our first customer for the Islamic banking solution that is currently under development. We are seeing a favourable response from several banks in the Gulf and Middle East and expect more customers," Fernandes told Gulf News.

The full-fledged Islamic Banking solution is part of the Finacle core banking solution which will be ready in early 2008.

Infosys has an ongoing contract with Egypt's Bank of Alexandria that has some 200 branches. It also has a support centre in Egypt and another in Saudi Arabia.

Original story

Offshore fuss 'rubbish' says Infosys

THE Australia head of India's largest technology company has lashed out at media coverage of offshoring at St George Bank and Westpac, calling St George's decision to move 70 jobs to Bangalore a "great move".

Infosys Australia managing director Gary Ebeyan said claims of a customer backlash provoked by the The Daily Telegraph urging its NSW readers to "send a message of disgust" to St George, were "rubbish".

St George announced it would outsource jobs to IBM's Indian operations, while Westpac has postponed until November a decision on whether to take almost 500 back-office jobs to India.

"It is unpleasant publicity, but we have never seen that sort of an impact on any of our customers," Mr Ebeyan said.

"For shareholders this is a very positive move. The media is taking the patriotic line, which is unfortunate," he said.

"Some parts of the company are going to be affected and will react negatively, but it's short-sighted criticism that ignores the wellbeing of the company and the majority of employees."

Infosys is India's largest offshorer, with almost 60,000 staff and revenue of $US2.1 billion ($2.8 billion). Its Australian revenue was $91 million for its most recently reported financial year. Its clients include Telstra, ANZ Bank, Esanda and Mayne Logistics.

Senior executives were starting to see that outsourcing IT and back-office services was essential for global competitiveness, Mr Ebeyan said.

Three years ago, such a view was largely confined to chief information officers and IT directors, he said.

"In three years the market share of Australian companies will be eroded dramatically if they don't match the costs of global players," he said.

"Now boards are seeing the necessity of offshoring."

Ultimately, banks were likely to take everything from mortgage processing to financial research overseas in an effort to cut costs, he said.

Banks such as St George were facing overwhelming competitive pressures from non-bank lenders in many of their traditional markets -- including mortgages and credit cards -- while simultaneously being challenged by newcomers such as ING, HSBC and CitiBank, all of which have low cost structures.

HSBC, for example, does much of its data entry in Kuala Lumpur. Executives say HSBC's high-income customer base is not concerned by offshoring.

Some senior managers were cautious about using Indian call centres, Mr Ebeyan said, but they should consider "carrying" local staff and reducing costs by using Indian call centres for their overflow work.

"That way you get a very local feel," he said.

Original story

Infosys’ first U.S. recruits start in India

In an effort to create what it calls a "diversified, global workforce," Infosys Technologies Ltd., the $2 billion India-based IT-services company, has launched its new Global Talent Program.

The program involves recruiting recent graduates from countries in which Infosys operates. The first phase of the plan, which started this past July, involves 126 new recruits from the United States who are studying in a customized education program in the company's facilities in Mysore. Infosys is headquartered in Bangalore.

"We wanted to make [these recruits] understand our processes," said Bikramjit Maitra, vice president of human resource development for Infosys. "[For a] global delivery model [it's] how you work in a virtual team and in a cross-cultural team. You learn the best by learning side by side with Indian colleagues."

According to Maitra, approximately 80 percent of Infosys's 58,000 employees are in India while 65 percent of the company's business comes from the United States and most projects are done in virtual teams.

Participants in the current talent program will return to the United States after six months of training and will work with Infosys's U.S. clients.

"They can take this exposure and go back to the United States and work with clients," said Maitra. "They can implement what they learned in a virtual model."

Maitra also noted that because so many of Infosys's employees come from different cultures, this training in which the American participants learn how their Indian colleagues work and "understand their mindsets" is the "best diversity training one can get."

"We are creating teams which are cross cultural in nature," he said.

So far, the program is working, noted Maitra.

"The way they are learning and taking classroom training and the way they are mixing with each other is how we anticipated it happening," he said.

The program is fully residential with both the U.S. recruits and local Indian employees staying in the same campus.

Infosys recruited participants from 82 U.S. colleges including Massachusetts Institute of Technology, Notre Dame University, Drexel University, Columbia University and University of California - Berkeley. Maitra said the company went after both engineering school graduates and liberal arts majors. The one thing the company was looking for, said Maitra was "learnability."

"Technology changes so often and they go from one client to another," he said. "They need to use knowledge from one environment in another. They need the ability to learn a knowledge and utilize [it]. We believe that's an extremely important attribute of an individual that will be successful."

The recruits will all work in the delivery side of Infosys's business.

Currently, the company said the plans are for the program to increase to 300 participants by next year. Maitra said the company anticipates the program will continue to increase but how much bigger has not yet been determined.

"This is a pilot," he said. "We are very enthusiastic about the results. This could start a significant trend," he added.

Original story