Industry News 22 Feb 2008

Industry News 22 Feb 2008

Bihar's first step in software export

In the news for many a positive change, Bihar is set to add another feather to its cap in the form of its first software technology park (STP). Located in Patna, the park 49th of its kind in the country will have facilities to accommodate around ten small and medium level software firms. Chief minister Nitish Kumar will inaugurate the park on Feb 22 at a function which will also be attended by Union minister of state for communication and information technology Shakeel Ahmed. A team of senior officials of the Software Technology Park of India (STPI), including director (east) P K Das and New Delhi-based senior director Omkar Rai reached Patna on Feb 21 to supervise the preparations for the inauguration. Earlier the state had just one regulatory office of the STPI and software exported from Bihar were routed through the STP located in Bhubaneswar.

The building of the park has already been completed and additional facilities would be in place within a month's time. "Though this park can accommodate only small and medium level software firms, it can provide a launching pad to entrepreneurs for setting up larger firms," Patnaik added. He hoped the park would not face much problem as far as optimum utilisation of the facilities is concerned since Bihar has as many as 11 registered software export firms.

Bank of Baroda cuts prime lending rate by 50 bps

State-run Bank of Baroda said on Friday it had cut its prime lending rate by 50 basis points to 12.75 per cent.

The reduction, to be effective from February 27, is aimed to stimulate demand for consumer and investment credit in a slowing economy, it said in a statement.

SBI and Canara Bank cut their rates by 25 basis points each while Bank of India and Union Bank of India cut rates by 50 basis points each. Ahead of the news, shares in Bank of Baroda ended 0.71 per cent down at Rs 377.50 in a weak Mumbai market.

No hike in power tariff in capital this year

With an eye on the forthcoming assembly polls, Delhi government today decided not to hike power tariff this year.

The government also decided to enforce the proposed subsidy on power to domestic electricity consumers from April one.

The Minister said the proposed subsidy for all domestic consumers of electricity up to 200 units per month during peak winter and summer months declared last year would be enforced from April one.

Fake CVs: Firms increase check points

With candidates of questionable background swamping the job market, enterprises are now beefing up their security thresholds by adding more layers to the hiring process.

A number of players, including big ones like KPMG and Hong Kong-based Quest Research, have stepped in to make the recruitment procedure for companies more stringent with compulsory pre-employment screening, background checks, including criminal record checks and credential validation and verification.

Fed's rate cuts force Asia back to control regime

Ben S Bernanke, the champion of free markets, is driving Asia’s governments back to controlled economies. Under Bernanke’s chairmanship, the Federal Reserve’s steepest interest-rate cuts since 1990 are limiting his Asian counterparts’ options to curb inflation. Instead of raising their own borrowing costs or letting their currencies appreciate faster, governments are resorting to regulating meat and egg prices in China, stockpiling cooking oil in Malaysia and subsidising utility bills in Indonesia and the Philippines.

Such measures may backfire. Artificial price curbs and subsidies only feed more demand for oil and other commodities, and ultimately will make it harder to contain inflationary pressures worldwide, officials from the Group of Seven nations warned at their February 9 meeting in Tokyo.

Read More

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)

 

Read More

Industry News- 20th Feb 2008

Industry News- 20^th Feb 2008

Buy Mutual fund Online Buy Mutual Funds Offline

Insurance workers' association demand

Coimbatore: The Coimbatore Region unit of the General Insurance Employees' Association has demanded the merger of four public sector general insurance companies and condemned the move of the Central Government to increase foreign direct investment in the insurance sector. These were among the resolutions passed at the 14th conference of the women's sub-committee of the regional unit of the association held in the city. The association wanted the Bill for 33 per cent reservation for women passed in Parliament immediately. It also called for the restoration of appointments on compassionate grounds.

India's IT sector confident can ride out global slowdown

India's top technology and outsourcing body said it is confident it can ride out the challenge of a stronger rupee and a global economic slowdown as it wrapped up its annual meeting here. India's flagship outsourcing industry is grappling with a rupee that rose 12 percent last year lowering the local equivalent of every dollar earned and a potential recession in its main market, the United States. The sector expects to meet or even exceed its software export target of 60 billion dollars and overall software and services revenue goal of 73-75 billion dollars by 2010, Mittal said in an interview.

India's IT sector with its skilled, low-cost work force that has planted the country on the global business map, is keeping its fingers crossed that the international slowdown will turn out to be a blessing. It is hoping the financial turmoil in the US and elsewhere could drive businesses to farm out more work to cheaper Indian firms even as they pare overall technology budgets.

IT industry a Public Utility Service only on paper, finds survey

According to a recent survey, an overwhelming majority of IT professionals in West Bengal believe that the 'Public Utility Service' status, accorded to the IT sector by the state government, has not benefited the industry owing to frequent bandhs. The survey was conducted by the Indian Chamber of Commerce (ICC) on the IT and ITeS industry in West Bengal. Almost 75 per cent of the respondents said no when urged whether the sector really enjoys the status of a Public Utility Service, which means that it can operate on a 24x7 model and could not be disrupted by strikes/bandhs. Another interesting finding of the survey was that 78.2 per cent of the respondents felt that having a trade union and the right to strike in the IT and ITeS sector was inappropriate.

Read monthly Equity Report for Feb 2008

Read More