Source:Financialexpress.com

The finance ministry may give in to demands by trade unions to exclude some activities from being outsourced by banks. According to government and trade union sources, the Indian Banks’ Association (IBA) and the finance ministry have now asked the unions to submit a report on outsourcing.The ministry and RBI had earlier stressed that core activities would not be outsourced. But trade union sources said the opening and closing of accounts, issuing chequebooks and identifying borrowers were categorised as non-core. Broadly, only accounting activities have been classified as core, they said.

This is a cause for concern and we strongly feel that most of these come under the main activities of any bank and, therefore, should be considered core,” said CH Venkatachalam, secretary, All-India Bank Employees’ Association. A report on outsourcing would soon be submitted to the IBA, he added.

The unions have said that the government should discuss the issue with their representatives. The unions had threatened a nationwide strike in April, but relented after the ministry asked them to submit a report to the IBA.

Official sources said state-owned banks had seen serious erosion in their customer base. Many had opted to bank with private banks, primarily because of reliable services.

Source: www.business-standard.com

Digital Group Infotech (Digital India), a subsidiary of the New Jersey-based IT Solutions firm, has announced its plans to scale up operations in Pune, from its current headcount of 250 to 600-employees by year-end.

Operating out of three locations in Pune, just recently the Digital Group opened its fourth 100-seater development centre in Pune. As well, it has also applied for 10-acres in Hinjewadi phase III, on which it plans to build its very own campus.

“We were awaiting clarifications on the sunset clause for 2009 on the Software Technology Park in the Budget. But, we have decided to go ahead with our plans either in phase III, which is a notified special economic zone, or Phase I, where we are interested in acquiring a building close to our facility there,” affirmed Aditya Sharma, Managing Director of the $16-million Digital Group.

A Microsoft certified Gold partner, the company will be expanding its service offerings to Java, including BPO. “We have set up a Java centre of excellence and expect to recruit 40-50 Java professionals and expand our BPO offerings from five people servicing JP Morgan Bank to 150-people,” confirms Sharma.

Whatever, the natter and the chatter, and Australia may have won the World Cup, however, it is India that is on a strong wicket where IT / ITes / BPO off-shoring / outsourcing is concerned! Only ten trillion-dollar economies world wide till yesterday, today it is official that India has joined the trillion-dollar club, upping the membership count to eleven. Bring on the chants, roar the huzzahs, salute the Tri-colour, it is the 21st century and India has laid claim to it! Unstoppable India, hurtling at break-neck speed to catch up with the brilliant destiny that is in store for it! Was it only a few years back that the western press likened India to the tortoise of Aesop’s Fables, dubbing China as the hare!

As for Aesop, most of his fables are nothing but a compilation of tales from various sources, many of which originated with authors who lived long before Aesop. However, the roots of fables go back all the way to India, where they were associated with Kasyapa, a mystical sage, and which were subsequently adopted by early Buddhists. Nearly three hundred years later, some of these fables made their way to Alexandria. This collection introduced the use of the moral to sum up the teaching of a fable, similar to the ‘gatha’ of the Buddhist Jatakas. As with other things, Aesop’s fables are just a small part of what India has given to the world.

And, well, while you can be sure the hare settles for a nap, even as the tortoise pips it to the winning post! Let’s hear it for India or should we say Bharat, now that Bombay is Mumbai, Madras is Chennai, Calcutta is Kolkata, and Banglore is Bengalaru!

Source: Economic Times

A strong showing by Infosys Technologies for the fourth quarter ending December 2006 has reaffirmed the optimistic outlook for the rest of the Indian technology firms slated to announce their results.

Much of the cheer comes from a confirmation of the healthy demand environment for technology firms and the trend towards higher off-shoring reflected by the sequential double-digit growth in dollar revenues that Infosys posted for the quarter.

Although, there were no huge positive surprises like in the second quarter, the company improved its operating margins by 60-basis points despite a 3.8% appreciation in the value of the rupee and fewer working days during the December quarter. “There are no negative surprises in the results. Fiscal 2008 should also be good, although guidance will be given only in the next quarter,” confirms an IT analyst with a brokerage firm.

“The results of other large companies will be in line with expectations. I see no reason to change them,” says Sandeep Shenoy, strategist, PINC Research. “Despite the swing in rupee, Infosys has been able to manage its margins and improve the billing rates. The improved billing rates coupled with more business volumes should see good growth in the coming quarters,” he said.

Based on the projected FY-07 earnings, top tier companies in the sector are trading at a price to earning multiple of 30. The industry is projected to grow at 30% annually and the P/E is in tune with this.

Involuntary attrition or attrition because of employees leaving for reasons other than moving to a different firm, was 1.3% for Infosys in the third quarter leading to a higher than expected 13.9% attrition for the company.