Effect of Recession on Individual's Life

Budget Highlights 2011

2011-03-01T08:52:00.000-08:00

Direct Taxes

Exemption limit for the general category of individual taxpayers enhanced from 1,60,000 to 1,80,000 giving uniform tax relief of 2,000. (No relief females as their slab not changed from existing 1,90,000)
Exemption limit enhanced and qualifying age reduced for senior citizens.
Higher exemption limit for Very Senior Citizens, who are 80 years or above.
Current surcharge of 7.5 per cent on domestic companies proposed to be reduced to 5 per cent.
Rate of Minimum Alternative Tax proposed to be increased from 18 per cent to 18.5 per cent of book profits.
Tax incentives extended to attract foreign funds for financing of infrastructure.
Additional deduction of ` 20,000 for investment in long-term infrastructure bonds proposed to be extended for one more year.
Lower rate of 15 per cent tax on dividends received by an Indian company from its foreign subsidiary.
Benefit of investment linked deduction extended to businesses engaged in the production of fertilisers.
Investment linked deduction to businesses developing affordable housing.
Weighted deduction on payments made to National Laboratories, Universities and Institutes of Technology to be enhanced to 200 per cent.
System of collection of information from foreign tax jurisdictions to be strengthened.
A net revenue loss of 11,500 crore estimated as a result of proposals.

Indirect Taxes

To stay on course for transition to GST.
Central Excise Duty to be maintained at standard rate of 10 per cent.
Reduction in number of exemptions in Central Excise rate structure.
Nominal Central Excise Duty of 1 per cent imposed on 130 items entering in the tax net.
Lower rate of Central Excise Duty enhanced from 4 per cent to 5 per cent.
Optional levy on branded garments or made up proposed to be converted into a mandatory levy at unified rate of 10 per cent.
Peak rate of Custom Duty held at its current level.

Agriculture and Related Sectors

Scope of exemptions from Excise Duty enlarged to include equipments needed for storage and warehouse facilities on agricultural produce.
Basic Custom Duty reduced for specified agricultural machinery from 5 per cent to 2.5 per cent.
Basic Custom Duty reduced on micro-irrigation equipment from 7.5 per cent to 5 per cent.
De-oiled rice bran cake to be fully exempted from basic Custom Duty. Export Duty of 10 per cent to be levied on its export.

Manufacturing Sector

Basic Custom Duty reduced for various items to encourage domestic value addition vis-à-vis imports, to remove duty inversion and anomalies and to provide a level playing field to the domestic industry.
Rate of Export Duty for all types of iron ore enhanced and unified at 20 per cent ad valorem. Full exemption from Export Duty to iron ore pellets.
Basic Custom Duty on two critical raw materials of cement industry viz. petcoke and gypsum is proposed to be reduced to 2.5 per cent.
Cash dispensers fully exempt from basic Customs Duty.

Environment

Full exemption from basic Customs Duty and a concessional rate of Central Excise Duty extended to batteries imported by manufacturers of electrical vehicles.
Concessional Excise Duty of 10 per cent to vehicles based on Fuel cell technology.
Exemption granted from basic custom duty and special CVD to critical parts/assemblies needed for Hybrid vehicles.
Reduction in Excise Duty on kits used for conversion of fossil fuel vehicles into Hybrid vehicles.
Excise Duty on LEDs reduced to 5 per cent and special CVD being fully exempted.
Basic Customs Duty on solar lantern reduced from 10 to 5 per cent.
Full exemption from basic Customs Duty to Crude Palm Stearin used in manufacture of laundry soap.
Full exemption from basic Excise Duty granted to enzyme based preparation for pre-tanning.

Infrastructure

Parallel Excise Duty exemption for domestic suppliers producing capital goods needed for expansion of existing mega or ultra mega power projects.
Full exemption from basic Customs Duty to bio-asphalt and specified machinery for application in the construction of national highways.

Other Proposals

Scope of exemptions from basic Customs Duty for work of art and antiquities extended to apply for exhibition or display in private art galleries open to the general public.
Exemption from Import Duty for spares and capital goods required for ship repair units extended to import by ship owners.
Concessional basic Custom Duty of 5 per cent and CVD of 5 per cent available to newspaper establishments for high speed printing presses extended to mailroom equipment.
Jumbo rolls of cinematographic film fully exempted from CVD by providing full exemption from Excise Duty.
Out right concession to factory-built ambulances from Excise Duty.
Relief measures proposed for raw pistachio, bamboo for agarbatti, lactose for the manufacture of homoeopathic medicines, sanitary napkins, baby and adult diapers.
Proposals relating to Customs and Central Excise estimated to result in a net revenue gain of 7,300 crore.

Service Tax

Standard rate of Service Tax retained at 10 per cent, while seeking a closer fit between present regime and its GST successor.
Hotel accommodation in excess of 1,000 per day and service provided by air conditioned restaurants that have license to serve liquor added as new services for levying Service Tax.
Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning.
Service Tax on air travel both domestic and international raised.
Services provided by life insurance companies in the area of investment and some more legal services proposed to be brought into tax net.
All individual and sole proprietor tax payers with a turn over upto 60 lakh freed from the formalities of audit.
To encourage voluntary compliance the penal provision for Service Tax are being rationalised. Similar changes being carried out in Central Excise and custom Laws

Pay cheques that world leaders take home

2011-02-16T19:47:00.000-08:00

As Egypt celebrates the success of their revolution, the focus now shifts to its ex-President, Hosni Mubarak
Mubarak, who publicly stated to take home a salary of nearly Rs 46,000 a month as President, is now facing the heat as details of the assets worldwide emerge thick and fast.
Mubarak's and his family's net worth is estimated to be between $40 billion (Rs 182,500 crore) and $70 billion (Rs 319,500 crore). The Mubarak family owns properties in London, Paris, Madrid, Dubai, Washington, New York and Frankfurt, according to a report from IHS Global Insight.

Indian Prime Minister Manmohan Singh doesn't earn a salary as such, but his various cash allowances total approximately Rs 50,000 rupees plus other perks.
President of India Pratibha Patil takes home a salary of Rs 1.5 lakh every month.
Almost everything that the President does or wants to do is taken care of by the nearly Rs 30 crore budget that the government allots for her upkeep. The allocation also covers establishment-related expenses in respect of all the staff of the secretariat and expenditure on household establishment and purchase of vehicles.

President of United States Barack Obama
Pay cheque: Obama earns $33,333 every month (about Rs 1,520,818), along with a $50,000 annual expense account, a $100,000 non-taxable travel account and $19,000 for entertainment.

President of Iran Mehmoud Ahmadinejad
Pay cheque: Ahmadinejad takes home a paltry Rs 11,373 every month. What's surprising is that, as per media reports, Ahmadinejad doesn't draw his salary as President but as a lecturer in a university college! For additional information, the Iranian President still lives in his house and not the Presidential palace.

President of China Hu Jintao
Pay cheque: Hu Jintao earns Yuan 70,078 (Rs 483,639) a month

President of South Korea Lee Myung-bak
Pay cheque: Lee Myung-bak earns close to 1.8 billion won or Rs 7.3 crore per annum

Prime Minister of Britain David Cameron
Pay cheque: At present, the prime minister receives 142,500 (Rs 1.4 crore), including a salary of Rs 65,737 as a Member of Parliament per annum

President of Chile Sebastian Pinera
Pay cheque: Pinera takes home $12,600 or Rs 5.7 lakh a month

President of Indonesia Susilo Bambang Yudhoyono
Paycheque: Yudhoyono gets Rupiah 62 million or Rs 3.16 lakh a month.

President of Zimbabwe Robert Mugabe
Pay cheque: Mugabe takes home about $1,500 or Rs 68,250 every month

President of Portugal Anibal Cavaco Silva
Pay cheque: On paper, Silva earns 6,523.93 euros or Rs 4.1 lakh a month. However, the Portuguese president Anibal Cavaco Silva has not been receiving his presidential salary ever since a new law was passed in Western Europe's poorest country prohibiting public servants from drawing both a salary and a pension at the same time. The 71-year-old conservative receives pensions from the central bank and Universidade Nova von Lissabon worth a total of 10,042 euros or nearly Rs 6.2 lakh per month, according to media reports.

President of Russia Dmitry Medvedev
Pay cheque: Medvedev reportedly earns $9,493 or Rs 4.3 lakh a month

Sources - rediff.com

Yeaaaaaaah. good time is back now Big IT companies are hiring

2010-02-10T22:56:00.000-08:00

There is News on rediff dated - 11-02-2010
"TCS to hire 30,000 employees in 2010-11"
Signalling a return of good times in the information technology (IT) sector, India's largest IT services provider, Tata Consultancy Services (TCS), plans to hire 30,000 employees in the next financial year.
The additional recruitment will represent an increase of 20.55 per cent over the 24,855 employees it has hired for 2009-10. The company will maintain its freshers to lateral ratio at 70:30 respectively.
"These are our global numbers. We have already made 14,000 offers to students across campuses. They will join the company from the second quarter of 2010-11," Vice-President and Head (Global HR) Ajoy Mukherjee said.
Meanwhile, the company's Chief Executive Officer and Managing Director, N Chandrasekaran said: "We see large deals coming back to the table. The situation has improved over the last two-three quarters. While it may still be too early for an economic recovery, we do see a business recovery underway."
On the regulatory climate in the domestic market, Chandrasekaran said: "Extension of STPI (Software Technology Parks of India) will be good, otherwise the government may as well extend the same treatment to STPIs that are given to SEZs."

Continental 2Q Loss Widens On Low Demand, To Cut 1,700 Jobs

2009-07-21T06:32:00.000-07:00

Now Continental Airline is impacted by this recession and have come in position to cut 1700 jobs.

Please find the detail news on http://money.cnn.com/news/newsfeeds/articles/djf500/200907210645DOWJONESDJONLINE000251_FORTUNE5.htm

Continental Airlines Inc. (CAL) reported Tuesday that its second-quarter loss widened on charges and a continuing drop-off in business travel as the company said it would cut 1,700 jobs in a move to reduce costs.
The job cuts, which represent about 4.2% of the company's work force, will include management and clerical positions and are in addition to its previously announced reduction of 500 reservation-agent positions. The company has also in recent months offered leaves of absence to 700 flight attendants.
The results make the company the latest U.S. carrier to report red ink this month on sharply weaker demand. Despite lower fuel prices from a year earlier, airlines have been struggling with a big drop in both leisure and business travel.

Recession: 1.5 lakh Indians return from UAE

2009-07-08T06:13:00.001-07:00

An estimated 1.5 lakh Indian workers have come back home from the United Arab Emirates due to economic crisis and recession, the Lok Sabha was informed on Wednesday.
Replying to a question, Overseas Indian Affairs Minister Vayalar Ravi informed the House that an estimated 50,000 to 1,50,000 workers have returned to India as result of the delay in execution of projects due to economic slowdown and recession in the UAE.
He said most of the workers have returned to India on leave without pay with the expectation that they would be able to go back to the Gulf country once the situation improves.
Ravi said while Indian Missions in Saudi Arabia, Oman, Kuwait, Bahrain and Qatar have informed that there has been some job losses in these countries, some Indians have also returned from Malaysia due to economic slowdown.
"The information received from Indian Missions in Afghanistan, Syria, Sudan, Brunei, Libya, Jordan and Lebanon indicate that there is no report of Indians affected by the recession," the Minister said.
Noting that slowdown has affected almost all sections of people in the US, Ravi said, "Indians working in the US are mostly professionals and the extent of job losses by Indians is, therefore, slightly mitigated by their indispensability to their organisation."
Source - rediff.com

Satyam to set up virtual bench

2009-06-12T03:26:00.000-07:00

Satyam will be setting up a virtual bench for surplus employees who have not been assigned any work. The number of non-revenue earning employees on the virtual bench is likely to total 7,000-10,000, out of which around 7,000-8,000 may come from the technical side. The rest would be from the support staff.NDTV broke the virtual bench story last month.Tech Mahindra Chief Executive and Satyam board member Vineet Nayyar said Satyam does not wish to fire employees, but work has contracted in last few months, so they are being put on virtual bench. Satyam will take a call after six months on employees put on virtual bench, he said.

Source - NDTV

Writing a CV that stands out

2009-06-09T21:50:00.000-07:00

When you apply to a job opening there would be dozen other candidates applying for the same post. So, how do you ensure your resume stands out from the pile? What is it that companies look for while short-listing candidates? Here is a lowdown.
An entry- level resume
Highlight your non-academic achievements too: At entry-level when you have no industry experience, underscore your other achievements. "Highlight projects that you have done, awards you have bagged and companies you have interned with," says Rajesh AR, VP, temp staffing unit, TeamLease Services.
Companies also give high rating if they see you are a team person and enjoy good inter-personal relationships. So, if you are part of student's associations or an NGO, stress on these points. Of course, academics is the first thing that recruiters see, but extra curricular excellence does count.
Talk only about business interest: Trash the habit of mentioning interests like singing, dancing, music, swimming, painting or astrology. That's a complete passe. "Talk only about your business interest," says Sunil Kalra, consultant to a leading HR firm. And be well prepared. If you say your interest lies in reading, "Then know the book inside, out, upside, down," emphasises Kalra.
Gain proficiency in a professional area: While studying, gain competency in an area that will hold you in good stead in your professional career. Learn basic computer skills. Having done that, move on to adding other skills like Coral Draw if you want to get into computer graphics or learn accounting software Tally if you see your future in accounting.
A mid-level executive's resume
Flexibility and responsibility: When you have gained 3-4 years of experience, review your CV. For a person with 2-4 year's of experience and more, the thrust shifts on industry knowledge and his adaptability in the organisation, among other qualities. "At this stage, cultural fit is given more importance, flexible approach matters and the learning starts playing an important role", says Rajesh AR. The organisation sees if you have been flexible in previous roles and whether you are prepared for a new responsibility.
Personal initiatives: The companies also see the personal initiatives that you have taken to add on to your skill and knowledge base. While it hints your progressive mindset, "It also subtly, positively speaks of your career consciousness", says Kalra. Candidates should highlight those events where their ideas have been implemented; their analytical skills have been applauded.
Other must-dos
Be specific: If you are applying for a position in sales and marketing vertical, a requirement which is across industries, should you tailor your CV every time? Not really. Just be specific and highlight the best fit experiences.
Remain updated: Be aware of the news and current affairs. "Read newspapers", advises Rajesh AR. Read business writers. Focus more on your field
Communication skills: Work on your verbal communication skills and writing skills. Prior to the interview, prepare a list of questions that a recruiter might ask, write down the answers and read it aloud to yourself. Keep your answers to the point. Use these pointers and rest assured you will get an interview call no sooner your CV reaches the recruiter.

5 interview mistakes to avoid

2009-06-09T21:46:00.000-07:00

So, you've decided that you want a job. You've made a high-impact resume highlighting your skills, applied for multiple jobs of your choice and got a few interview calls. The next step -- and most important -- is the interview. You will not have too much time to create an impact and show that you are the best candidate for this position. So how do you ace your interview?
That's a difficult question to answer. It depends on so many factors beyond the scope of this article. However, it is much easier to identify common mistakes and make a conscious effort to avoid them during the interview.
If you can avoid some of these mistakes, you can improve you chances of a favourable outcome:
Dressing and hygiene - Most hiring managers make the decision in first few minutes of the interview. The rest of the time is spent in validating and justifying the decision. It means that basic hygiene factors become far more important than most people think. It includes dressing appropriately, reaching the venue on time, a firm handshake, positive eye contact, etc. Err on the side of caution and dress up professionally even if the company encourages casual dressing.
It doesn't take a lot of effort to be able to do most of these things effectively. There is no upside in not getting these things right. It's just a matter of discipline and must be enforced during the interview.
Badmouthing previous employer - This is one of the most common mistakes people commit in a job interview. While justifying job switches, a vast majority of candidates say negative things about their previous managers or employers. This shows the negative attitude of the candidate and could also imply that he/she doesn't work well with colleagues and seniors.
Everybody faces issues with a bad manager/employer at some stage in their careers. Make sure you don't mention that in a job interview. The reason for job switches should always be positive -- talk about growth or better opportunities you got elsewhere.
Not preparing enough - It is your responsibility to read about the company's business -- products, competitors, opportunities, challenges, etc and make sure that you bring it up during the interview. These discussions will give the interviewer the confidence that you can hit the ground running and will start contributing much before some of the other candidates. Nothing communicates your interest in the job more than your preparation.
Not listening - Don't make it a one-way street. Your success doesn't depend upon how much you speak. A short and crisp response can show confidence and the depth of your kowledge. Try to engage the interviewer with questions based on your understanding of their business. Listen and then respond appropriately. Try not to ask too many questions either. Never interrupt an interviewer while he is speaking.
Talking money too soon - A lot of candidates start asking questions about salary and benefits during the first interview. It's never a good idea to discuss salary before intent of hiring has been communicated to you. Do not do it unless you are specifically asked your salary details. The more you delay these discussions, the easier it'll be for you to negotiate a higher salary.
The writer is the founder of iimjobs.com -- an exclusive job portal for MBAs from IIMs and other premier business schools in India. He holds a BTech in Computer Science & Engineering from Institute of Technology, Banaras Hindu University and MBA from Indian Institute of Management Indore.

The writer is the founder of iimjobs.com -- an exclusive job portal for MBAs from IIMs and other premier business schools in India. He holds a BTech in Computer Science & Engineering from Institute of Technology, Banaras Hindu University and MBA from Indian Institute of Management Indore.

Satyam puts 5000 employees on virtual bench

2009-05-20T21:48:00.000-07:00

Satyam has put almost 5000 employees on virtual. Those on the virtual bench will not get full salaries, 50-60 per cent of salaries may be cut and the number of working days reduced. Also, some people may be put on training with only 25 per cent of the salary paid. Besides, sabbaticals of over a year's time will be encouraged and employees will also be given a choice to leave with severance package.Raju Kapur, business head at Ikya Human Capital, said, "Virtual bench is a partial lay off. It is a cost cutting method. Employees are the biggest cost for an IT company and the result of cutting the amount of salary out flow, will immediately reflect in the company’s books."
Tech Mahindra in its due diligence process of Satyam had estimated over 15,000 employees as excess on base of 45,000 employees eating heavily into Satyam's margins.But a straightforward layoff in Satyam is not an option for Tech Mahindra, especially with the government involved in the process.
Meanwhile, apart from creating a virtual bench, Tech Mahindra is also absorbing about 2000 Satyam employees in its fold and has opened recruitments in Pune, Mumbai and Noida. But these employee-trimming plans are still on paper and margins will still bleed some more. It’s time for Tech Mahindra to see through some tough decisions.

Microsoft lays off 1% of India staff

2009-05-10T22:48:00.000-07:00

Microsoft has laid off 1 per cent of its India workforce on May 5 as part of the global software maker's second wave of layoffs. Microsoft India has sent notices to its employees in Bangalore and Hyderabad that it would be eliminating their jobs, informed sources said.
It is not clear which groups of the Indian operations have been affected by the cuts which are learnt to have been carried out across diverse functions.
However, a company source said that a sizeable number of Microsoft's sales and support personnel in Hyderabad and a few in Bangalore were among those affected. The Response Windows team has also been dismantled completely, the source claimed.
The company's official spokesperson was unavailable for comment on the developments.
The job cuts are part of Microsoft's global initiative announced in January that it would reduce 5,000 jobs worldwide by June 2010. At that point of time, the company had laid off 1,350-1,400 people largely in the US.
In the second round of layoffs effected on May 5, another 3,000 jobs were eliminated.
With the second wave of layoff notifications, Microsoft has cut 4,500 jobs and is close to its 5,000 layoff target.
On whether more layoffs would be announced in the India operations, which have over 5,500 people on its rolls, sources said that such a possibility could arise under a new round of job cuts, though no hint or official announcement to the effect has come from CEO Steve Ballmer.
While announcing the second round of job cuts, Ballmer had said in a memo last week that the company would closely monitor the impact of the economic slowdown and take necessary action on its cost structure, including taking a decision on undertaking additional job eliminations "as required".
The company is known to be going ahead with plans to hire 2,000-3,000 workers worldwide this year in some of its growing areas of focus, including online services business and the enterprise server group.

Fewer jobs cuts in US signal weak recovery

2009-05-06T23:12:00.000-07:00

Job cut announcements by United States employers fell for the third consecutive month in April to 130,000, the lowest in six months, signalling that recovery in the strained job market may be underway, a report said on Thursday.
Planned job cuts announced by US employers totalled 132,590 in April, a 12 per cent drop from the 150,411 layoffs recorded the previous month. This is the third consecutive decline in monthly job cut announcements and the lowest total since 112,884 cuts were announced last October, a report by global outplacement consultancy firm Challenger, Gray & Christmas said.
However, the pace of job cuts is still well ahead of last year. The April total was 47 per cent higher than the 90,015 job cuts announced in the same month in 2008, the city-based firm said. Employers have announced 711,100 job cuts this year, 145 per cent more than in the first four months of 2008 (290,671).
"Job cuts are still at recession levels, but the fact that they are falling is certainly promising and may suggest that employers are starting to feel a little more confident about future business conditions. Hopefully, the next few months will bring further relief, as we tend to see downsizing activity slow during the summer months," Challenger, Gray & Christmas CEO John Challenger said.
During the month, the highest number of job cuts at 27,624 was announced in the government and non-profit sector.
"State and local governments, as well as school districts, are really feeling the impact of this downturn. They are losing revenue from property taxes as foreclosure rates increase, as well as from declining sales and income taxes. Meanwhile, their costs are growing as more people find themselves jobless and in need of public assistance," Challenger said.
The recession has taken a heavy toll on the automotive sector, which announced 24,172 layoffs, followed by industrial-goods companies, which cut 18,636 jobs through April. Economic conditions, cost-cutting, restructuring and demand downturn continued to be the main reasons for the layoffs, the report said.
However, some sectors also announced hiring plans during the month. The automotive sector announced plans to hire 11,500 people, followed by retail (7,000), financial sector (2,000) and entertainment/leisure (1,500).

Jet lays off 110 employees news on 1st May

2009-05-02T00:14:00.000-07:00

Now another Layoff news came on 1st May as Jet lays off 110 employees.
Faced with mounting costs and falling revenues, private airline Jet Airways has laid off 110 employees.Of these employees, 50 are contract employees who have 'superannuated,' and another 60 are probationary cabin-crew.
When asked about the pink slips being handed over to the 60 cabin-crew, a Jet Airways spokesperson said that "these cabin-crew were in their probation period and the airline has decided to terminate their contracts. However, the termination is in accordance with law and their service conditions."
On the decision of not renewing the contracts of its 50 employees, Jet said that these employees had superannuated.
"Jet Airways undertakes additional measures to streamline costs to improve the financial health of the company under the challenging global economic environment. The airline has issued notices of termination to identified employees on contract, who have superannuated," the spokesperson said.
Source - rediff

Economic crisis turning into calamity: World Bank

2009-04-27T04:31:00.000-07:00

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)

IT firms are pushing bench staff to find alternate option

2009-04-27T00:58:00.001-07:00

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

How serious we are on this recession ?

2009-04-25T03:15:00.000-07:00

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

News - TCS raises standards for staff performance

2009-04-24T01:55:00.000-07:00

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