Feb 22, 2008

Industry News 21 Feb 2008

Industry News 21 Feb 2008

  • West Bengal, fastest growing IT hub in India
  • Bangladesh to issue call centre licences
  • State Govt plans IT SEZ for SMEs
  • Deutsche Bank to hire over 1,000 in India
  • Centurion Bank of Punjab to merge with HDFC Bank
  • Securities Appellate Tribunal upholds Sebi penalty on HSBC Securities

 

West Bengal, fastest growing IT hub in India

With West Bengal aiming to become one of the top three IT states by 2010, contributing 15-20 per cent of the country's total IT revenue, a number of IT majors are today doing significant business in Kolkata. Announcing the results of a survey report on the state's IT and ITeS sector in Kolkata on Monday, Indian Chamber of Commerce president Harsh K Jha said, "Between 2002-05, West Bengal has been recognised as the fastest growing IT destination in the country with more than double the national average growth rate." "The ICC carried out the survey by gathering feedback from prominent IT companies operating in the state, including TCS [Get Quote], Cognizant, IBM, Wipro [Get Quote], on issues like infrastructure, investment scenario and future business prospects," he said.

 

Bangladesh to issue call centre licences

India may not have a great relationship with her neighbours, but her leadership in the outsourcing space has made them look up. Now they are trying hard to grab a share of the multi billion dollar outsourcing pie. While Pakistan and Sri Lanka have already set up BPOs, Bangladesh is gearing up to join the bandwagon. Licences for the country's first-ever telephone-based call centres are soon to be issued. The Bangladesh Telecommunication Regulatory Commission (BTRC), which is the licensing authority has invited individuals and firms to apply. Meanwhile, BTRC has posted its draft call centre policy on the website so that prospective operators can share their views and help finalise the policy. Licences will be issued for 10 years on an annual renewable basis.

Experts say BTRC's move will make the country an attractive low-cost call centre destination. Also, a speedy development of the information communications and telecommunications (ICT) sector will help them earn revenues. The country which launched its ICT policy in 2002, is still in the nascent stages of development. As Nikhil Rajpal, VP, global services practice, Everest Group who tracks the market explains, 'The total size of the ITeS sector in Bangladesh which includes both export and domestic BPOs, is only $150 million as of now. But its expected to double or triple in the next three to five years.'

 

State Govt plans IT SEZ for SMEs

For the first time ever in the country, an Information Technology (IT) Special Economic Zone (SEZ) is being planned in the State exclusively for the Small and Medium Entrepreneurs (SMEs). The State Government's decision comes in the wake of the realisation that there's no level-playing field for all IT companies, especially for the SMEs, which are capable of generating more employment and thus help build social infrastructure.

This initiative, the IT department hopes, will deliver the desired results. Though a red carpet has been rolled out for IT giants like the Microsoft and the Infosys, they are generally seen as doing not much to employ local talent. By encouraging the SMEs, this gap can be filled, an IT department official said. To set the ball rolling, the department has invited expressions of interest (EoI) from companies willing to set up their facilities at the SEZ.

 

Deutsche Bank to hire over 1,000 in India

Bank plans to hire more than 1,000 people for its back-office operations in India and open front-end offices in the UK and US to facilitate offshoring, a senior official said, reports Ritwik Donde in Mumbai.

Simon Fanning, the bank's head for strategic sourcing programme, said staff strength at DB Operations International (DBOI) will reach 5,000 by the year end compared with 3,900 now. The move comes at a time, when a few other multinationals are actually trying to sell off their captive units and outsource operations.

 

Centurion Bank of Punjab to merge with HDFC Bank

The biggest merger in Indian banking is about to happen. HDFC Bank will take over Centurion Bank of Punjab (CBoP) in an all-stock deal. The respective bank boards are likely to meet on Saturday to consider the merger proposal. The share-swap deal, worth over Rs 10,000 crore, may be worked around the current market price of Rs 57 a share of CBoP.

In the pecking order, the merged entity will still be way below India's biggest private sector bank ICICI in terms of assets, but it will be significantly bigger than Axis Bank.On Wednesday, officials of both the banks held marathon meetings with a leading investment banker to discuss the finer points. (Full Story)

 

Securities Appellate Tribunal upholds Sebi penalty on HSBC Securities

The Securities Appellate Tribunal (SAT), Mumbai, has upheld a penalty imposed by the capital market regulator on HSBC Securities and Capital Markets.

Sebi had slapped a penalty on the investment bank for stating in a letter of offer that all shares involved in a particular transaction were listed on stock exchanges of Chennai, Mumbai, Delhi and Ahmedabad. However, in reality, while some of the shares were not listed in any stock exchange, some were listed on other bourses and not on the Bombay Stock Exchange. The disclosure was relating to an open offer for which HSBC was the merchant banker. (Full Story)

 

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