The global financial crisis could become "a human and development calamity" for many poor countries, the World Bank said, urging donor nations to speed delivery of money they have pledged and consider giving more.Developing countries, its main constituency, face "especially serious consequences with the crisis driving more than 50 million people into extreme poverty, particularly women and children," the bank said on Sunday.Bank President Robert Zoellick said some of the poorest economies are being hit by "second and third waves of the crisis." He said no one knows how long it will last or when recovery will begin."There is a widespread recognition that the world faces an unprecedented economic crisis, poor people could suffer the most and that we must continue to act in real time to prevent a human catastrophe," Zoellick said.The bank will respond by tapping its healthy balance sheet to increase lending up to $100 billion over three years and launch initiatives in social protection, public works and agriculture, he said.Zoellick spoke at a news conference that wrapped up weekend meetings of the World Bank and its sister institution, the International Monetary Fund, aimed at determining what additional action is needed to counteract the worst financial crisis in decades. The weekend kicked off with a meeting of finance ministers of the Group of Seven major industrialized nations that expanded into a meeting of the Group of 20 nations, bringing in such rising economic powerhouses as Brazil, India and China.There was general agreement at the meetings that voting shares of those nations in the IMF and World Bank should be increased to reflect the changed global economic situation. Ministers pledged to examine ways to do that.The closing news conference took an unexpected turn when Mexican Finance Minister Agustin Carstens, chairman of the World Bank policy-steering committee, outlined steps his government was taking to confront an outbreak of swine flu. He disclosed that the bank was providing a $25 million loan for medicine and logistical help and another $180 million for operational needs.Zoellick said already-mobilized bank public health experts with experience dealing with SARS, or severe, acute respiratory syndrome, and Asian bird flu would provide practical help to Mexico.In their communique, ministers at the bank meeting said "more needs to be done" as the financial crisis unfolds."We urge all donors to accelerate delivery of commitments to increase aid and for all to go beyond existing commitments," the ministers said.While they met, small groups of protesters demonstrated near the headquarters of the two organizations three blocks from the White House. They chanted "IMF, tear it down. World Bank, tear it down."Ministers attending the IMF-World Bank meetings said they saw signs that the world economy is stabilizing, but it will take until mid-2010 for the world to emerge from the worst recession in decades. They said stimulus packages, bank recapitalization and other actions taken by governments and central banks to deal with the crisis are beginning to show results."Carefully, cautiously, we can say that there is a break in the clouds," Egyptian Finance Minister Youssef Boutros-Ghali, chairman of the IMF's International Monetary and Financial Committee, said Saturday. He said some financial markets are trending up and other economic indicators are improving, "but there are still downside risks."On Saturday, as protesters demonstrated in the streets, the finance ministers tried to work out details of the $1.1 trillion plan that President Barack Obama and his G-20 counterparts announced at their recent summit in London. There was much talk about how to come up with the fresh $500 billion infusion that the G-20 pledged to the IMF at the summit. More than $300 billion is already pledged by the U.S., the European Union, Japan, Canada, Switzerland and Norway. It remains unclear which countries will open their wallets wider — or at all.To make up the shortage, the IMF agreed to sell bonds — something it's never done in its 65 years — to emerging economies such as China, Brazil and India. Those nations have said they want a greater voice at the IMF before they'll provide additional resources.The bonds would help reach the goal announced at the G-20 in London, but provide shorter-term financing than the pledges made by the U.S., European Union, Japan and others.
Source - Associated Press
Monday, April 27, 2009 (Washington)
Monday, April 27, 2009
IT firms are pushing bench staff to find alternate option
A large bench (people without assigned work) is generally considered to be an asset, a tool to control attrition. But with the global slowdown hitting the sector, it is proving to be a liability. In some companies, techies on the bench are being encouraged to find projects on their own, internally, by hardselling themselves.
This is forcing companies to devise ways to reduce bench strength, by posting in other areas and paying them less till they become productive assets.
India's second-largest software company Infosys Technologies, for instance, has given its bench employees a choice, wherein they can work with the company's Business Process Outsourcing arm with the same salary and perks. It is also encouraging benched employees to apply for projects using the Intranet portal -- wininfy.com -- the failure of which may also lead to job loss.
In some companies, techies on the bench are being encouraged to find projects on their own, internally, by hardselling themselves.
Excluding trainees, Infosys officially agrees their bench strength is 3,500-4,000 people. This will increase once the 8,000 people undergoing training join in the next two months. Besides, the company has issued joining letters to around 16,000 campus recruits, who were given offers last year.
To mitigate such pressures, Infosys has already announced an increase in the current training duration from the three months to almost six months.
Wipro has already given an option to its bench resources to work for only two days a week and take a 50 per cent cut in their salary. Close to 1,000 employees, including senior managers and project managers, have availed of this offer so far, according to the company.
In some cases, the company is encouraging the bench resources, including managers, to come to office 10 days a month at a stretch and take a cut in salary.
The company is also encouraging some employees to take a sabbatical for six months or more to go for higher studies.
About 10-12 per cent of Wipro's employees with the IT services business are said to be on the bench now. "We want to keep our efficiency level fairly high. We don't want to create laxity there. It is not just the question of a bad economic situation, but working habits, too, get spoiled by doing so. It is better to keep a tight bench and keep everybody fairly engaged," says Girish Paranjpe, joint CEO of Wipro's IT business.
HCL Technologies has urged its benched employees to take a pay cut of 25 per cent. It is also asking them to find opportunities inside the company on their own, failing which they may lose their jobs.
TCS , India's largest IT firm, which added 32,000 employees last financial year, including close to 25,000 freshers, says it is very important to ensure utilisation is at least at 74 per cent, though the company claims the increasing bench is not much of a problem.
It, however, says the plan is to increase the training period of new recruits.
"The idea is to train people better, utilise people better and also help them gain experience. The normal training period is the same, but in addition to that we will give more training, if there is an additional period for which we have to keep them on the bench. We will definitely use them either in development of some of the assets (IT solutions, platforms) or we will give them some training. It can be an additional two or three months. It will differ on a case by case basis," said N Chandrasekaran, COO and executive director of India's largest IT firm.
Moreover, while the physical bench had always been there, mid-sized IT firms like Hexaware and Mastek have coined the word 'virtual desk' to define a certain section of their unutilised resources who will be enjoying lesser privileges and perks.
Hexaware had said the virtual bench has about 350 employees who will get about half their basic salary.
The ratio of unutilised resources is estimated to have increased by over 4-6 per cent during the past four to five months. Sabyasachi Satpathy, co-founder and director of Mindplex Consulting, concludes: "As the new deal pipeline starts drying up and existing clients tightening scope/volume, outsourcing vendors are facing an increasing pressure in managing resource utilisation levels. It will be crucial to have a balanced bench ratio to meet shareholder expectation (margin impact), as also staff adequately for future projects."
Source - rediff
This is forcing companies to devise ways to reduce bench strength, by posting in other areas and paying them less till they become productive assets.
India's second-largest software company Infosys Technologies, for instance, has given its bench employees a choice, wherein they can work with the company's Business Process Outsourcing arm with the same salary and perks. It is also encouraging benched employees to apply for projects using the Intranet portal -- wininfy.com -- the failure of which may also lead to job loss.
In some companies, techies on the bench are being encouraged to find projects on their own, internally, by hardselling themselves.
Excluding trainees, Infosys officially agrees their bench strength is 3,500-4,000 people. This will increase once the 8,000 people undergoing training join in the next two months. Besides, the company has issued joining letters to around 16,000 campus recruits, who were given offers last year.
To mitigate such pressures, Infosys has already announced an increase in the current training duration from the three months to almost six months.
Wipro has already given an option to its bench resources to work for only two days a week and take a 50 per cent cut in their salary. Close to 1,000 employees, including senior managers and project managers, have availed of this offer so far, according to the company.
In some cases, the company is encouraging the bench resources, including managers, to come to office 10 days a month at a stretch and take a cut in salary.
The company is also encouraging some employees to take a sabbatical for six months or more to go for higher studies.
About 10-12 per cent of Wipro's employees with the IT services business are said to be on the bench now. "We want to keep our efficiency level fairly high. We don't want to create laxity there. It is not just the question of a bad economic situation, but working habits, too, get spoiled by doing so. It is better to keep a tight bench and keep everybody fairly engaged," says Girish Paranjpe, joint CEO of Wipro's IT business.
HCL Technologies has urged its benched employees to take a pay cut of 25 per cent. It is also asking them to find opportunities inside the company on their own, failing which they may lose their jobs.
TCS , India's largest IT firm, which added 32,000 employees last financial year, including close to 25,000 freshers, says it is very important to ensure utilisation is at least at 74 per cent, though the company claims the increasing bench is not much of a problem.
It, however, says the plan is to increase the training period of new recruits.
"The idea is to train people better, utilise people better and also help them gain experience. The normal training period is the same, but in addition to that we will give more training, if there is an additional period for which we have to keep them on the bench. We will definitely use them either in development of some of the assets (IT solutions, platforms) or we will give them some training. It can be an additional two or three months. It will differ on a case by case basis," said N Chandrasekaran, COO and executive director of India's largest IT firm.
Moreover, while the physical bench had always been there, mid-sized IT firms like Hexaware and Mastek have coined the word 'virtual desk' to define a certain section of their unutilised resources who will be enjoying lesser privileges and perks.
Hexaware had said the virtual bench has about 350 employees who will get about half their basic salary.
The ratio of unutilised resources is estimated to have increased by over 4-6 per cent during the past four to five months. Sabyasachi Satpathy, co-founder and director of Mindplex Consulting, concludes: "As the new deal pipeline starts drying up and existing clients tightening scope/volume, outsourcing vendors are facing an increasing pressure in managing resource utilisation levels. It will be crucial to have a balanced bench ratio to meet shareholder expectation (margin impact), as also staff adequately for future projects."
Source - rediff
Saturday, April 25, 2009
How serious we are on this recession ?
Many of seen some recessions in past also, but as this is said by expert that intensity of this recession is much higher than any previous recession. It’s now more than 16 months we are into recession and it has started impacting every sector and region. Many of my friends have also lost their job in this time. We never thought its impact would be so serious. Indian government says our economy is strong and recession proof. While you can clearly see, recession has come in our country as well. Our export has been badly impacted and most of the organization has shown lower growth in last quarter.
Some people say that recession is just a bad time, which will eventually pass away and good time will be back again. Hence no need of worry here. I understand in sometime it will pass away and who have lost job, will be back to their work, economy will get strong again. But every thing will not get same again, something will not come again. Ask those individual, after loosing job they lost their love also. Some got divorced, mentally disturbed. Even I read few news as some people committed suicide also. Here I feel we should really take this seriously.
But here is the question that what as individual are we doing to fight with this recession? I tell your answer of this question – Those who have been effected like have lost job are just waiting when this bad time will get over and they will be back again in some job. While who have not been affected yet are just waiting when recession will affect them.
I know in our society people are not serious about their own life; yes they can be serious for some Film star’s or celebrity’s life.
I remember whenever film star Amitabh Bachhan got hospitalized due to some health issue, in all over world his fans did prayer, pooja, havan etc for wished for his good health. These people were those, who have never met their favorite film star.
Here I never heard the news as some group or people are doing some worship/prayer, havan, pooja etc and wish to get this recession over at the earliest without making any serious injury to any one.
I feel various groups and leaders from our society should come forward in this bad time and should work out something, so that we fight with this recession as an united group not as an individual.
deepak.thaper@gmail.com
Some people say that recession is just a bad time, which will eventually pass away and good time will be back again. Hence no need of worry here. I understand in sometime it will pass away and who have lost job, will be back to their work, economy will get strong again. But every thing will not get same again, something will not come again. Ask those individual, after loosing job they lost their love also. Some got divorced, mentally disturbed. Even I read few news as some people committed suicide also. Here I feel we should really take this seriously.
But here is the question that what as individual are we doing to fight with this recession? I tell your answer of this question – Those who have been effected like have lost job are just waiting when this bad time will get over and they will be back again in some job. While who have not been affected yet are just waiting when recession will affect them.
I know in our society people are not serious about their own life; yes they can be serious for some Film star’s or celebrity’s life.
I remember whenever film star Amitabh Bachhan got hospitalized due to some health issue, in all over world his fans did prayer, pooja, havan etc for wished for his good health. These people were those, who have never met their favorite film star.
Here I never heard the news as some group or people are doing some worship/prayer, havan, pooja etc and wish to get this recession over at the earliest without making any serious injury to any one.
I feel various groups and leaders from our society should come forward in this bad time and should work out something, so that we fight with this recession as an united group not as an individual.
deepak.thaper@gmail.com
Friday, April 24, 2009
News - TCS raises standards for staff performance
Tata Consultancy Services [Get Quote] has raised the performance bar for its 143,000 odd employees. Those under the scanner will now be given only three months to improve their skills.
The company, India's largest for information technology services, will no longer give an extension.
"We have reduced the time period for improving skills. Earlier, if an employee would show even a small improvement, we would give an extension of a few more months. Henceforth, that will not be done," said Ajoy Mukherjee, vice-president and head, global human resources.
The company will consider an employee's performance for the past three years so as to maintain consistency.
Mukherjee dismissed allegations that the company had put over 1,000 employees under the scanner in India.
"Globally, we had around 1,100 employees under our performance improvement programme. Of this, the India number was 700-725, which is not even 1 per cent of the TCS headcount. The reason for this number to be more than the usual 500 is because our employee base has also increased," said Mukherjee.
The company added close to 22,000 trainees in fiscal year 2009. Despite this, it managed to reduce its employee cost by Rs 121 crore (Rs 1.21 billion).
Mukherjee believes some measures the company has put in place in the first quarter of FY09 have begun yielding results. These include changing the mix of trainees to lateral (experienced hands).
From the third quarter, it hired laterals in a controlled manner. By the end of the year, TCS' mix of trainees to lateral was 72:28.
Further, the offshoring focus reduced employee cost. Over 1,000 employees of the company onsite have returned, as a result of which the allowance cost has come down.
While Mukherjee did not give any details on variable pay for fiscal year 2010, he said the status quo would be maintained.
News source - rediff.com
The company, India's largest for information technology services, will no longer give an extension.
"We have reduced the time period for improving skills. Earlier, if an employee would show even a small improvement, we would give an extension of a few more months. Henceforth, that will not be done," said Ajoy Mukherjee, vice-president and head, global human resources.
The company will consider an employee's performance for the past three years so as to maintain consistency.
Mukherjee dismissed allegations that the company had put over 1,000 employees under the scanner in India.
"Globally, we had around 1,100 employees under our performance improvement programme. Of this, the India number was 700-725, which is not even 1 per cent of the TCS headcount. The reason for this number to be more than the usual 500 is because our employee base has also increased," said Mukherjee.
The company added close to 22,000 trainees in fiscal year 2009. Despite this, it managed to reduce its employee cost by Rs 121 crore (Rs 1.21 billion).
Mukherjee believes some measures the company has put in place in the first quarter of FY09 have begun yielding results. These include changing the mix of trainees to lateral (experienced hands).
From the third quarter, it hired laterals in a controlled manner. By the end of the year, TCS' mix of trainees to lateral was 72:28.
Further, the offshoring focus reduced employee cost. Over 1,000 employees of the company onsite have returned, as a result of which the allowance cost has come down.
While Mukherjee did not give any details on variable pay for fiscal year 2010, he said the status quo would be maintained.
News source - rediff.com
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