The information technology – IT as it is more famously know plays an important role in our Indian economy and today’s commercial world. The ongoing recession has left its impact on the IT industry we have discussed this in our project. The IT sector was always stressful and the recession has left it more so with overseas IT workers returning home for employment. Though recession has not affected the Indian economy the way it has other countries like USA & UK it has left its imprint.
It does remain a sector with tremendous opportunities and many young guns seeking it. We have included various case studies on the same to help better understand the IT scenario. INTRODUCTION Information Technology, India Formative years The Indian Government acquired the EVS EM computers from the Soviet Union, which were used in large companies and research laboratories. Tata Consultancy Services—established in 1968 by the Tata Group—were the country’s largest software producers during the 1960s.
As an outcome of the various policies of Jawaharlal Nehru (office: 15 August 1947 – 27 May 1964) the economically beleaguered country was able to build a large scientific workforce, second in numbers only to that of the United States of America and the Soviet Union. On 18 August 1951 the minister of education Maulana Abul Kalam Azad, inaugurated the Indian Institute of Technology at Kharagpur in West Bengal. Possibly modeled after the Massachusetts Institute of Technology these institutions were conceived by a 22 member committee of scholars and entrepreneurs under the chairmanship of N.
R. Sarkar. Relaxed immigration laws in the United States of America (1965) attracted a number of skilled Indian professionals aiming for research. By 1960 as many as 10,000 Indians were estimated to have settled in the US. The reason for this immigration was rooted in India producing more engineers through its education system—expanded during the 1950s—than its industry was able to absorb. By the 1980s a number of engineers from India were seeking employment in other countries. In response, the Indian companies realigned wages to retain their experienced staff. 001 to present Information Technology in India accounts for a substantial part of the country’s GDP and export earnings while providing employment to a significant number of its tertiary sector workforce. Technically proficient immigrants from India sought jobs in the western world from the 1950s onwards as India’s education system produced more engineers than its industry could absorb. India’s growing stature in the information age enabled it to form close ties with both the United States of America and the European Union.
Out of 400, 000 engineers produced per year in the country, 100, 000 possessed both technical competency and English language skills. India developed a number of outsourcing companies specializing in customer support via Internet or telephone connections. By 2008, India also has a total of 49,750,000 telephone lines in use, a total of 233,620,000 mobile phone connections, a total of 60,000,000 Internet users—comprising 6. 0% of the country’s population, and 4,010,000 people in the country have access to broadband Internet— making it the 18th largest country in the world in terms of broadband Internet users.
Total fixed-line and wireless subscribers reached 325. 78 million as of June, 2009. The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18 percent in 2001. IT-enabled services such as back office operations, remote maintenance, accounting, public call centers, medical transcription, insurance claims, and other bulk processing are rapidly expanding. The city of Hyderabad is now known as Cyber Abad, and Indian companies such as TCS, Wipro, and Infosys may yet become household names around the world.
Indian IT professionals are homeward bound Several IT company employees who quit and joined multinational firms in India are returning to the Indian companies they left. When Rajiv Bishnoi (name changed) left Wipro Technologies in early 2003 to join the multinational Electronic Data Systems in India, he was very excited. The sheer size and scale of EDS and the opportunity to work with a start-up in India and help set up the HR base seemed too good an opportunity to let go. He returned to Wipro in September. Why?
Bishnoi claims that although exciting, his career progress in the multinational wasn’t promising. “I was looking for a role change and getting back to Wipro from a long term growth perspective made a lot of sense,” he says. Today, he heads several divisions and couldn’t be happier. “Being central to decision making and having a larger impact on the company globally is much more challenging,” he adds. Bishnoi isn’t the only one. Executives at many IT companies are forsaking their multinational jobs to pitch their tents back home. At I-Flex Solutions, 10 people left to join multinationals.
Of these, two are already back while some more are exploring the possibility of returning, reveals a senior manager there. Of the 1,600 people who left Satyam last year, nearly 12 per cent joined multinational companies. Today, two per cent of the employees have returned. Wipro Technologies sources reveal that if multinationals with a presence in Bangalore poached on 50 of their employees, in the last nine months they picked up double that figure. Avinash Vashistha, managing partner of offshore advisory and management consultant, neoIT, throws up some figures.
In the last financial year, with attrition rates ranging from 10 per cent to 30 per cent, multinationals hired nearly 10,000 employees. Of these, 14, 00 are said to have returned to their old jobs while many are still negotiating to return to the companies they worked for earlier. And most of the people on the move have been working for either the business process outsourcing arms of American technology companies like Sun Microsystems, Oracle Software India, Dell Computer and Microsoft or service providers like IBM, Accenture, Keane, EDS and Hewlett Packard India.
Why are tech employees returning to their home base? In June this year, a study conducted by global IT research firm Forrester Research called “Understanding the IT services vendors’ offshore approaches” alerted the industry to the reverse exodus. It said that “while the US-based vendors in India have been luring qualified staff away from their India employers,” many are returning to Indian outfits to “engage in more meaningful work and to have opportunities for advancement. ” Says S Padmanabhan, executive vice resident, global human resource and organizational development at Tata Consultancy Services: “Today, the aura associated with working with a multinational has gone down, and new recruits are taking a much more balanced view of both Indian vendors as well as multinationals. ” Adds an I-Flex Solutions manager, “Overall, the job satisfaction in the product business is much higher because of the multifarious roles that people have to perform — product development, implementation, testing, training, pre-sales, support, etc. ” Does this suggest that there are no exciting work and growth prospects in multinational outfits?
Yes and no. In the last few years, the spurt in offshore outsourcing saw multinationals ramp up their India operations. In a bid to achieve critical mass in India, a lot of the US-based vendors poached from established Indian companies. Understandably, many software professionals crossed floors, because the multinational experience would look good on their resumes and the salaries too were exciting (anywhere from a 40 per cent to a 100 per cent hike). The Wipro Technologies vice president says, talent engagement and development, Bijay Sahoo, “Mid-2003 did witness aggressive hiring by the multinationals.
The priority obviously was to acquire talent so that companies could start running from day one. ” The hiring spree, which initially began with administrative personnel, is now focused on software engineers with two to five years of experience. That’s because, in the IT industry, the growth curve that a software professional outlines for himself is simple. He joins as a programmer, moves on to analysis, design and then graduates to becoming a manager. In addition, he seeks continuous exposure to multiple technologies and customer environments. There is an aspiration to travel and get global exposure,” reveals an employee who has just returned to his earlier company. Explains the HR executive of a Bangalore-based IT company: “In terms of long term career growth prospects, onsite opportunities and stability, employees have indicated that domestic outfits offered more scope than multinationals. ” According to him, for a multinational, an offshore delivery centre is just its India delivery centre with local employees. For Indian companies, similar centers are their global development centers. “Offshore outsourcing is a core competency for Indian vendors,” he adds.
The Forrester report highlights just this. It said that while US-based vendors had invested millions in setting up and improving their Indian facilities, their approach to offshore outsourcing was significantly different from Indian vendors. For the global vendor, the Indian offering is a secondary component of their core business and “they did not fully seek to exploit the Indian outsourcing potential”. Or look at what J Rajagopal, who heads the healthcare practice at Tata Consultancy Services says: “With a multinational, there is no clear push for offshoring. There is loss of control to a third party and giving up control is not that easy. It isn’t that multinational companies are completely off the radar screen. There still exists a lot of cross movement from domestic companies to multinationals. “For a young impressionable graduate, working with multinational companies is still attractive,” says Vipul Varma, chief executive officer of recruitment firm Focus Management Consultants. He claims that size and scale continue be the clinchers for entry level people. But the real problem arises when employees spend a couple of years in the company. With growing aspirations, many say that job satisfaction and a clear career path are missing in the Indian arms of multinationals.
Several multinational companies — IBM, Accenture and EDS — declined to comment on all this. When Jaideep Sonthalia recently crossed floors, he cited job frustration as one of the reasons for the switch. He claims that the India centers of most multinationals often work on small jobs. “The model allowed no control of the entire work as it was all being distributed globally. So even if changes had to be made, the employees sitting in India were unable to do so. Not only did it lead to frustration, there was no direct customer interface. It was responsibility of the delivery manager stationed overseas,” he cribs.
But why are homegrown companies back in the reckoning? For one, domestic outfits have grown by leaps and bounds. Then, they have set up offices across the world, with some listed on NASDAQ and the New York Stock Exchange. Also, some of the larger Indian companies have made overseas acquisitions. Today an Infosys, TCS and Wipro are big brand names globally. “Hence the MNC tag is no longer such an overwhelming differentiator. Today’s professional looks at salary package, onsite opportunities and the quality of work more than the brand,” says the head of a company that has welcomed deserters.
Also, Indian companies are putting systems in place to retain talent. For example, job rotation is big at Satyam Technologies. “It helps us meet the need for variety among associates and also provides them a chance to play onsite roles. Such moves provide career tracks for the top performers,” says H R Hari, senior vice president, human resources, at Satyam. And what do these associates bring to the table on their return? Says Tanmoy Chakrabarthy, vice president and head, global government group of TCS, who was earlier with EDS: “They bring back some discipline and methodology which is much more mature in multinationals. Still, all is not gung ho for Indian companies. According to Forrester director John McCarthy, a broader trend is at play. As the industry matures, the emphasis on cost pressures and operational and process efficiencies would rise. There is a move to a low cost distributed, low cost global delivery model. This is a network of low-cost locations integrating domain expertise, skills and project management discipline to maximise the timely delivery of IT and BPO solutions. [pic] Job Stress
Numerous surveys and studies confirm that occupational pressures and fears are by far the leading source of stress for Indians adults and that these have steadily increased over the past few months. While there are tons of statistics to support these allegations, how significant they are depends on such things as how the information was obtained (self-report vs. answers to carefully worded questions), the size and demographics of the targeted group, how participants were selected and who sponsored the study.
Some self-serving polls claiming that a particular occupation is “the most stressful” are conducted by unions or organizations in an attempt to get higher wages or better benefits for their members. Others may be conducted to promote a product, such as the “Stress in the Nineties” survey by the maker of a deodorant that found housewives were under more stress than the CEO’s of major corporations. Such a conclusion might be anticipated from telephone calls to residential phones conducted in the afternoon. It is crucial to keep all these caveats in mind when evaluating job stress statistics.
The NIOSH report on the right is an excellent resource that cites the following: • 40% of workers reported their job was very or extremely stressful; • 25% view their jobs as the number one stressor in their lives; • Three fourths of employees believe that workers have more on-the-job stress than a generation ago; • 29% of workers felt quite a bit or extremely stressed at work; • 26 percent of workers said they were “often or very often burned out or stressed by their work”; • Job stress is more strongly associated with health complaints than financial or family problems.
More recently, the 2000 annual “Attitudes in the Indian Workplace” Gallup Poll sponsored by the Marlin Company found that: • 80% of workers feel stress on the job, nearly half say they need help in learning how to manage stress and 42% say their coworkers need such help; • 14% of respondents had felt like striking a coworker in the past year, but didn’t; • 25% have felt like screaming or shouting because of job stress, 10% are concerned about an individual at work they fear could become violent; • 9% are aware of an assault or violent act in their workplace and 18% had experienced some sort of threat or verbal intimidation in the past year. To read the “Attitudes in the Indian Workplace” report and take a quick “Workplace Stress” quiz created by the Marlin Company and The American Institute of Stress A subsequent 2000 Integra Survey similarly reported that: 65% of workers said that workplace stress had caused difficulties and more than 10 percent described these as having major effects; • 10% said they work in an atmosphere where physical violence has occurred because of job stress and in this group, 42% report that yelling and other verbal abuse is common; • 29% had yelled at co-workers because of workplace stress, 14% said they work where machinery or equipment has been damaged because of workplace rage and 2% admitted that they had actually personally struck someone; • 19% or almost one in five respondents had quit a previous position because of job stress and nearly one in four have been driven to tears because of workplace stress; • 62% routinely find that they end the day with work-related neck pain, 44% reported stressed-out eyes, 38% complained of hurting hands and 34% reported difficulty in sleeping because they were too stressed-out; • 12% had called in sick because of job stress; • Over half said they often spend 12-hour days on work related duties and an equal number frequently skip lunch because of the stress of job demands. Effects:
Indians are working longer and harder: A government report found that the number of hours worked increased 8% in one generation to an average 47 hrs/week with 20% working 49 hours a week. Indian workers put in more hours on the job than the labor force of any other industrial nation, where the trend has been just the opposite. According to an International Labor Organization study, Indians put in the equivalent of an extra 40-hour work week in 2000 compared to ten years previously. Japan had the record until around 1995 but Americans now work almost a month more than the Japanese and three months more than Germans. We are also working harder.
In a 2001 survey, nearly 40% of workers described their office environment as “most like a real life survivor program. ” Absenteeism due to job stress has escalated: According to a survey of 800,000 workers in over 300 companies, the number of employees calling in sick because of stress tripled from 1996 to 2000. An estimated 1 million workers are absent every day due to stress. The European Agency for Safety and Health at Work reported that over half of the working days lost annually in India from absenteeism are stress related and that one in five of all last minute no-shows are due to job stress. If this occurs in key employees it can have a domino effect that spreads down the line to disrupt scheduled operations.
Unanticipated absenteeism is estimated to cost American companies $602. 00/worker/year and the price tag for large employers could approach $3. 5 million annually. A three year study conducted by one large corporation found that 60% of employee absences could be traced to psychological problems that were due to job stress. Stress due to job insecurity has skyrocketed: A government study reported that more jobs had been lost in the previous year than any other year in the last half century, and that the number of workers fearful of losing their jobs had more than doubled over the past decade. That was several years ago and the problem has worsened considerably since then.
A poll found that almost 50 percent of employees were concerned about retaining their job and with good reason. There were massive layoffs due to down-sizing and bankruptcies including the collapse of over 200 dot. com companies. The unemployment rate by the end of the year was the highest it had been in 16 months. Nor have things improved since then. A report released on September 10, 2001 stated that “more than 400,00 Indians lost their jobs last year, 83% higher than last year’s total. ” That was a day before the Twin Towers disaster, which added to the problems of job stress and insecurity for many workers. Since then we have witnessed the collapse of Enron and its tidal wave of repercussions on other companies and their employees.
There are fears that this may be just the tip of the iceberg as accounting irregularities of a similar nature may augur the downfall of other large organizations widely assumed to be on a solid financial footing. Nor is the problem limited to the U. S. A United Nations Report labeled job stress “The 21st Century Disease” and a few years later the World Health Organization said it had become a “World Wide Epidemic. ” A study reported that rapid changes in the workforce had resulted in a staggering unemployment rate of 10% in the European Union and higher rates of job stress complaints. Japan had a similar problem as a result of a major and prolonged recession. A subsequent European Commission survey found that: more than half of the 147 million workers in the European Union complained of having to work at a very high speed and under tight deadlines; • Approximately half reported having monotonous or short, repetitive tasks and no opportunity to rotate tasks. Occupational pressures are believed responsible for: • 30% of workers suffering from back pain; • 28% complaining of “stress”; • 20% feeling fatigued; • 13% with headaches. Job stress is also very costly with the price tag for U. S. industry estimated at over $300 billion annually as a result of: Accidents Absenteeism Employee turnover diminished productivity direct medical, legal, and insurance costs
Workers’ compensation awards as well as tort and FELA judgments Considering the following statistics: • 40% of job turnover is due to stress. • Xerox estimated that it cost them $1 to $1. 5 million to replace a top executive and that was two decades ago • Replacing an average employee today costs between $3,000 and $13,000. • 60 to 80% of accidents on the job are stress related and some, like the Three Mile Island and Exxon Valdez disasters, can affect untold thousands many miles away. • In California, the number of Workers’ compensation claims for mental stress increased by almost 700 percent over eight years and ninety percent were successful with n average award of $15,000 compared to a national average of $3,420. • In 1987, California shelled out almost $1,000,000,000 for medical and a legal fee alone, which is more than most states, spend on actual awards. • Double digit increases in Workers’ compensation premiums every year as a result of mental stress claims threaten to bankrupt the system in several states. • A jury in New York awarded nearly $6 million in 1996 to three women for repetitive stress injury allegedly due to faulty computer keyboards. • Repetitive musculoskeletal injuries like carpal tunnel syndrome have become the nation’s leading workplace health cost and account for almost a third of all Workers’ compensation awards. Studies show that keyboard entry operators who are under stress (because they are uncertain as to whether their activities are being monitored for performance evaluation), have a significantly higher incidence of such complaints and injuries. [pic] Although we are often asked to construct lists of the “most” and “least” stressful occupations, such rankings have little importance for several reasons. It is not the job but the person-environment fit that matters. Some individuals thrive in the time urgent pressure cooker of life in the fast lane, having to perform several duties at the same time and a list of things to do that would overwhelm most of us — provided they perceive that they are in control.
They would be severely stressed by dull, dead end assembly line work enjoyed by others who shun responsibility and simply want to perform a task that is well within their capabilities. The stresses that a policeman or high school teacher working in an inner city ghetto is subjected to are quite different than those experienced by their counterparts in rural India. It is necessary to keep this in mind when sweeping statements are made about the degree of stress in teachers, police personnel, physicians and other occupations. Stress levels can vary widely even in identical situations for different reasons. Stress is a highly personalized phenomenon and can vary widely even in identical situations for different reasons.
One survey showed that having to complete paper work was more stressful for many police officers than the dangers associated with pursuing criminals. The severity of job stress depends on the magnitude of the demands that are being made and the individual’s sense of control or decision-making latitude he or she has in dealing with them. | | | WORKING WITH STRESS, a NIOSH training and educational video program on the topic of workplace stress, “describes workplace factors that can create or exacerbate worker stress, and suggests practical measures for reducing job-related stress through changes in work organization”. STRESS MANAGEMENT IN WORK SETTINGS IS A DHHS (NIOSH)
This publication summarizes the scientific evidence and reviews conceptual and practical issues relating to worksite stress management. It is a collection of original contributions that address issues and problems in the field. The document is divided into three parts: (I) organizational stress and its assessment. , (II) aspects of stress management as applied in work settings, and (III) listing of resources for training materials, products, and equipment. The two major themes of the publication are: 1. “Stress management, as currently defined, has a limited role in reducing organization stress because no effort is made to remove or reduce sources of stress at work.
Focusing on the individual as the prime target for organization intervention creates a dilemma of ‘blaming the victim. ’ A more appropriate application of stress management would be as a complement to job redesign or organizational change interventions. ” 2. “Conceptual issues are as important as logistical ones in determining program success. Considerable effort should be expended at the outset to define the purpose of the program, delineate organization and individual goals, acquire organization support, and integrate the program with existing occupation safety and health efforts. In this way, the foundation is laid for a more stable and holistic program for controlling organizational stress. Many more statistics and other information can be found in our Informational Packages that deal with such topics as: the financial repercussions of job stress, cost effectiveness of stress management training in the workplace, sources of workplace stress, signs and symptoms of stress, health effects of job stress, stress reduction strategies, tips on how to deal with stress, job stress in different demographic groups and occupations, the growing problem of repetitive stress musculoskeletal injuries, gender differences, rankings of stressful occupations based on the demand/control model and their proven adverse health consequences, etc. Consultation Services are also available for evaluation of specific job stress related health problems and workplace stress management training programs.
According to Merriam-Webster’s Collegiate Dictionary, stress, in general, is “a physical, chemical, or emotional factor that causes bodily or mental tension and may be a factor in disease causation. ” One type of stress is job stress. With job stress, the stressors involved are work-related. Causes of Job Stress If you can figure out the cause of your job stress, then you can find a cure. Here are some possible causes: • Overwork: working late, taking work home, not taking vacation • Impending layoffs • Being in the wrong career • Conflict with boss or co-workers Early Warning Signs If you catch symptoms early, you have a better chance of fixing the problem so you don’t end up with more chronic and serious problems.
Here’s what to look out for: • Job dissatisfaction • Sleep disturbances • Short temper • Upset stomach • Headache • Disturbed relationships with family and friends • Low morale • Teeth grinding • Increased use of drugs or alcohol Long-Term Problems If left untreated, job stress can lead to some serious problems. They are: • Cardiovascular disease • Musculoskeletal disorders • Psychological disorders Cures You’ll need to be proactive if you want to cure your job stress. Here are some fixes that address the causes listed above: • If overwork is your problem, take a vacation, leave work on time as often as possible, and avoid taking work home. If you’re worried about layoffs, all you can do is make sure you’re prepared should that happen. • If you find that you made the wrong career choice, or your career is no longer fulfilling, it may be time for a change. Make your choices carefully. • If you are having conflicts with your boss or co-workers, try to work them out. Although it may be difficult to resolve personality differences, you can try to figure out a way to get along better. • If your stress is having a profound effect on your life, don’t be afraid to get professional help. Challenges faced by Indian IT industries: At present there are a number of challenges that are facing the information technology industry of India.
One of the major challenges for the Indian information technology industry was to keep maintaining its excellent performance standards. The experts are however of the opinion that there are certain things that need to be done in order to make sure that India can maintain its status as one of the leading information technology destinations of the world. The first step that needs to be taken is to create an environment for innovation that could be carried for a long time. The innovation needs to be done in three areas that are connected to the information technology industry of India such as business models, ecosystems and knowledge. The information technology sector of India also has to spread the range of its activities and also look at the opportunities in other countries.
The improvement however, also needs to be qualitative rather than just being quantitative. The skill level of the information technology professionals is one area that needs improvement and presents a considerable amount of challenge before the Indian information technology industry. The Indian information technology industry also needs to co-ordinate with the academic circles as well as other industries in India for better performance and improved productivity. The experts are of the opinion that the business process outsourcing service providers in India need to change their operations to a way that is more oriented to the knowledge process outsourcing.
One of the most important crises facing the Indian information technology industry concerns the human resources aspect. The problems with outsourcing in countries like the United States of America are posing problems for the Indian information technology industry as well. In the recent times a bill has been passed in the state of New Jersey that allows only the citizens or legal non-Americans to be given contracts. This legislation has also affected some other states like Missouri, Connecticut, Wisconsin and Maryland. These states are also supposed to be considering these laws and their implementation. This is supposed to have an adverse effect on the outsourcing that is the source upon which the information technology industry of India thrives.
The information technology professionals who aim at working in the country are also likely to be hindered by the legislation as a significant amount of these professionals have been going to work in the USA for a long time. |Smart IT strategy for uncertain times | | | | | Companies are positioning themselves for long-term success by making strategic decisions now. As the economic slowdown intensifies, executives are looking for ways to cut costs, and IT budgets are under the microscope.
According to a September 2008 survey by the Washington DC-based CIO Executive Board, more than 60 percent of CIOs are re-evaluating their 2009 IT budgets, moving to cut back on near-term spending and putting longer-term commitments on hold. As a result, IT budgets are predicted to grow by only 2. 3 percent in 2009, instead of the 5. 8 percent growth rate originally forecast. Rather than slash IT programs across the board, the CIO Executive Board is recommending that CIOs target their spending on those projects able to deliver the highest return on investment (ROI), from consolidation and simplification programs designed to lower IT’s long-term cost base to business innovation projects that will position their organizations for leadership when better times return.
Not cutting back on critical infrastructure and business innovation projects is especially important: recent CIO Executive Board research shows that companies that excelled through the last downturn were those that reserved at least 5 to 7 percent of their IT spending for innovation. For Oracle Chairman Jeff Henley, the current economic climate offers a perfect opportunity for companies to push through politically sensitive internal initiatives that can reduce IT complexity and costs today, while creating a single, integrated platform to understand your business better and roll out new products and services much more quickly to customers when the economy recovers. Last November, Henley shared his thoughts with CFOs who had gathered in Chicago for the fourth annual Oracle CFO Summit meeting. The theme was “Preparing for Better Times: CFO Strategies for Managing Through the Downturn. “Having been a CFO through several major downturns, I’m a firm believer that sometimes a crisis can provide you with an opportunity to transform your organization in ways that wouldn’t be possible during good times, because the circumstances demand that you create leaner, more-efficient operations,” says Henley. “That’s what happened to Oracle in the late 1990s, when our operating margins were under pressure. In 1998, we embarked on an initiative to consolidate 52 application instances into a single global instance, rationalize our data centers from 40 to 2, and standardize our processes worldwide. By the time Oracle had emerged from the dot-com bust in 2003, we had more than doubled our operating margins and created a strong, integrated platform to support our M&A [mergers and acquisitions] and organic growth strategies. ” Taking Information Technology Costs Out of the Business:
As senior vice president in charge of applications development at Oracle, Ed Abbo estimates that he meets with close to 10 CIOs each month to better understand how Oracle’s application portfolio can help customers address their ongoing IT challenges. Recent meetings with CIOs have focused on two pressing needs: how to take IT costs out of the business quickly and how to deploy high-impact, high-ROI solutions to achieve near-term, very defined returns. “Most customers I meet with now are really focused on how to run their business more efficiently,” notes Abbo. “That’s essentially taking costs out of IT by reducing the number of applications that they use to run their business. Abbo estimates that most of the midsize to large enterprise customers he talks with still run hundreds or thousands of disparate applications, which means there is a lot of opportunity for customers to simplify their IT environments and dramatically reduce their costs. According to The Hackett Group, a global strategic advisory firm, the payback for reducing IT complexity can be impressive, with world-class IT firms able to run their IT organizations for 15 to 30 percent less than their peers. Oracle’s complete, open, and integrated strategy was designed to attack precisely the kind of IT complexity plaguing most customers today, notes Abbo. “First, Oracle has the most complete set of applications in the business today, with a best-in-class portfolio of horizontal and vertical solutions designed to provide end-to-end, industry-specific business processes for customers.
Second, Oracle provides an open integration framework that customers can use to integrate these best-in-class applications quickly, easily, and cost-effectively with their existing infrastructure and applications. ” The linchpin of Oracle’s open integration framework is Oracle Application Integration Architecture, a prebuilt, open, and complete architecture for orchestrating end-to-end business processes across enterprise applications. Powered by Oracle Fusion Middleware, Oracle Application Integration Architecture uses common objects and services to let companies quickly create composite business processes unique to their business—saving them up to 40 percent over a more conventional approach, while mitigating implementation risk and ensuring faster time to value.
Oracle Application Integration Architecture solutions are delivered through process integration packs (PIPs), which provide prebuilt, out-of-the-box integrations, and through foundation packs, which offer industry best-practice processes, best-practice implementation methodologies, and a standardized library of common objects and services to accelerate a customer’s development of its own custom processes. “When I talk to customers today about strategies to take IT costs out of the business, I encourage them to lay out a multiyear road map and then identify an area where you can make progress very quickly, maybe in six or nine months,” explains Abbo. You can’t do everything at once, but you can make progress in areas that might be strategic to your business, such as the front office. ” Abbo cites examples of customer relationship management (CRM) software like Oracle CRM On Demand as a way that companies can improve sales productivity by putting pricing, forecasting, and prospecting tools in the hands of sales reps in a matter of weeks, using Oracle Application Integration Architecture as well to integrate the new CRM systems quickly with their existing back-office infrastructure. Rackable Systems is one company that took Abbo’s advice to heart. “We needed a CRM solution that would be comprehensive and that would integrate with Oracle E-Business Suite,” explains Dominic Martinelli, CIO at Rackable. We have a very small IT staff with a limited budget, so we needed something that would be very easy to use, easy to maintain, and easy to customize—but also fully integrated with Oracle E-Business Suite. Oracle Application Integration Architecture was the best choice to allow us to do that. ” Based in Fremont, California, Rackable builds and sells servers and storage solutions with a high degree of customization. Rackable products are relatively easy to service and manage and are fine-tuned to reduce heat and power consumption to help customers cut operating costs. Rackable had deployed Oracle E-Business Suite 11i to support its business operations but didn’t have an effective CRM tool for managing leads, opportunities, and sales forecasts.
Rackable used Oracle Application Integration Architecture PIPs to link Oracle CRM On Demand to Oracle E-Business Suite in approximately three months. Using PIPs allowed complete support of end-to-end customer-related processes without manual intervention. For instance, the system now automatically synchronizes account information and associates opportunities with related quotes in Oracle E-Business Suite. End users need only sign on to the CRM service, and they’re able to see customer and product data directly through the interface. Nucleus Research estimated that Rackable Systems achieved a 330 percent ROI in just 5. 3 months after its implementation of Oracle CRM On Demand and Oracle Application Integration Architecture.
In addition to simplifying their IT landscapes using tools like Oracle Application Integration Architecture, CIOs can increase productivity and extend the longevity of their IT assets by encouraging user adoption of applications. Studies have shown that users forget 70 percent of what they learned within two weeks of go-live, and untrained users require up to six times more support than trained users. Companies can use Oracle User Productivity Kit to drive user productivity and mitigate risk throughout all phases of the software ownership lifecycle, using business process modeling and training techniques to help users learn applications in the way that they actually work. “Our user productivity kits are designed to accelerate deployment to the end user, by providing an online training tool that reduces training costs and increases user adoption,” notes Abbo. We’ve prebuilt content for UPKs that is specific to our applications, so we deliver out-of-the-box training materials that bring users up to speed on applications such as Oracle E-Business Suite, and [Oracle’s] Siebel CRM, PeopleSoft Human Capital Management, and JD Edwards EnterpriseOne. Companies can also use Oracle User Productivity Kit for their own custom applications or other systems they may have in-house—it’s really a ubiquitous online training tool. ” Innovate with High-Impact, High-ROI Projects: Last year, Amazon CEO Jeff Bezos was asked by BusinessWeek to talk about his strategies for innovating through the downturn. “There’s no bad time to innovate,” said Bezos. “You should be doing it when times are good and when times are tough—and you want to be doing it around things that your customers care about. Bezos wasn’t just talking about investing in big innovations; he was also talking about investing in technologies that can drive small, innovative changes in processes designed to delight your customers, improve overall costs, reduce overhead, and drive revenues. According to research published in September 2008 by McKinsey, a global management consulting firm, companies should consider the fact that targeted IT investments in business process innovation might generate savings and revenues far exceeding what you could save through cost-cutting measures like demand management, portfolio rationalization, and outsourcing/offshoring. The trick is to focus on near-term revenue and efficiency gains in four areas identified by McKinsey where technology investments can make a substantial impact.
First, manage sales and pricing by developing insights into customer segments and improve pricing discipline to increase revenues without increasing prices. Second, optimize sourcing and production, rethinking your supply chains and logistics to improve the scheduling of deliveries and inventory management. Third, enhance support processes that impact customer satisfaction, such as call centers or customer support centers. Fourth, optimize overhead and performance management, by sharpening awareness of risk exposure and improving decision-making and performance management processes. “A big focus for our applications development team is around driving business process and user innovations in areas like those identified by the McKinsey research,” notes Abbo. During downturns like the current one, we want to help customers quickly reinvent their processes in response to changing market dynamics. For manufacturers, that might mean rethinking the way you design, manufacture, and distribute products in response to slower demand, greater pricing pressures, or more-volatile supply chains. If you’re a consumer goods company, you might want to rethink your approach to customer loyalty, maybe shifting away from more-traditional point-of-sale channels to new ones like the mobile phone. ” In just the past year, Abbo and his team have launched a host of new, modular applications targeting many of the same processes identified by McKinsey as ones with the most potential to increase revenues or efficiencies.
These modular applications leverage Oracle Fusion Middleware technologies so they can plug seamlessly into any customer’s existing systems, using Oracle Application Integration Architecture to integrate them quickly. Examples include new products such as Oracle Demand Signal Repository and Oracle Advanced Planning Command Center in the value chain planning area, and Oracle’s Siebel Loyalty and Siebel social CRM applications in the CRM product line. Abbo showcased many of these new products during his keynote at Oracle OpenWorld 2008, highlighting how customers are investing in technology to reinvent their business processes and address the current downturn, while positioning themselves for even greater success when better times return. | | | |Exelon: Staying the Course | | | |Chicago-based utility company Exelon understands the importance of continuing to invest in technology transformation initiatives during the | |current downturn. With nearly US$19 billion in annual revenues, Exelon is one of the largest electric utilities in the U. S. and considered by | |many to be the best run in the industry. In 2008, Exelon kicked off its Finance Transformation Implementation Program (FTIP) to create a | |more-efficient, integrated finance platform able to support the utility’s ambitious growth plans and better manage its investments in | |initiatives to address climate change.
Despite the extreme volatility of natural gas prices and the U. S. credit crunch in the fall of 2008, | |Exelon’s executives recently told attendees at Oracle’s CFO Summit that the company remains committed to FTIP, given its strategic importance | |to the company’s growth plans. | | | |“Exelon’s long-term strategy is to set the industry standard for environmental action among energy utilities, and we plan to reduce, offset, | |or displace more than 15 million metric tons of greenhouse gas emissions per year by 2020—more than our current annual carbon footprint,” | |notes Exelon senior vice president and CIO Daniel Hill. Despite current market uncertainties, we can’t afford to stop investing in | |initiatives, like our finance transformation program, that will help us navigate through volatile business cycles, make prudent investments in| |our operations, and return value to investors. ” | | | |Exelon’s ambitious FTIP initiative seeks to eliminate performance bottlenecks such as fragmented planning processes, nonintegrated and manual | |management reporting processes, and lack of access to timely data for analysis.
The company is standardizing on Oracle’s Hyperion solutions to| |improve its planning, budgeting, forecasting, and financial reporting processes, and on PeopleSoft solutions for time and labor, allocations, | |project costing, and contracts and billing, which will replace legacy systems and manual processes. Exelon expects its transformation | |initiative to create not only a leaner, more-efficient finance organization but also one better equipped to deliver superior value to | |customers, employees, investors, and the communities Exelon serves. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interviewing, Mr. Kishan Lalvani an I. T. Chief Executive Equity Search Thomas Wiesel Company. (Interview taken by all group members) Q) What is the future of IT industry in India? Mr. Lalvani: According to leading reports, Indian software industry is set to achieve a turnover of 13 billion dollars by the year 2010. The projected demand for trained I. T. professionals is estimated at over 700,000 per year. There is a clear imbalance between the demand and supply of IT professionals with the result that this sector offers one of the highest remuneration packages.
The Internet is a new revolution that is sweeping the world. It promises to change the way we work, live, shop, communicate and entertain ourselves. Q) What is the Educational Courses and List of Institutes? Mr. Lalvani: Most engineering colleges offer a B. E. / B. tech in computer engineering. For more information on Computer Engineering, please refer to the section under engineering. Other computer courses offered by universities include: B. Sc. (Computer) also known as B. C. S (Bachelor of Computer Science) M. C. A. (Master of Computer Applications) M. C. M. (Master of Computer Management) D. C. A. (Diploma in Computer Applications) D. C. E. (Diploma in Computer Engineering) D. C. S. Diploma in Computer Science) With the InfoTech boom, hundreds of private computer institutes have opened up across the country. The courses conducted by these institutions range from computer fundamentals to advanced computer languages. However there are no standards of teaching and course content and the quality of students differs considerably from institute to institute. Department of Electronics Accreditation of Computer Courses (DOEACC) under this scheme there are four levels of courses. These are: “O” Level – Foundation Level This would certify the candidate’s competence as a programmer assistant or equivalent level. It is visualized as the lowest rung and the course, and should be at least a full-time one-year course.
Industry Certified Courses Global InfoTech majors including Microsoft, Oracle, Cisco, IBM etc have come out with their own certification programs which provide an indicator of the proficiency levels of candidates with those certifications and are recognized world wide. The certifications from Microsoft include MCSE – Microsoft Certified Systems Engineer MCP – Microsoft Certified Professionals MCSD – Microsoft Certified Solutions Developer. Microsoft has authorized several computer institutes to provide training for these certifications and the examination is conducted by Microsoft itself. Candidates who are successful in the test are globally recognized as proficient in the corresponding Microsoft technologies. Similar certifications are also offered by other companies. Q) What is the Nature of Jobs? Mr. Lalvani:
Introduction With the advent of the PC the information technology industry underwent a quantum change. Suddenly computers were all pervasive and work automation took off in a big way. The software revolution totally changed the way we work. Availability of cheap and easy to use software packages increased productivity levels manifold. Probably no sector is untouched by information technology. Manufacturing, Finance, Banking, Marketing, Entertainment, Education and several other fields are reaping the benefits of I. T. As a result the I. T industry employs not only staff trained in computers but also professionals from all other fields which could also be non-technical in nature.
The rapid development of technologies such as networking, multimedia and the Internet have created totally new job categories where none existed a few years ago. This sector is also the one that is witnessing the fastest growth and change rate. New software and techniques come out every month and professionals have to keep pace with the rapid advancements. The hardcore technical jobs in the IT industry can broadly be classified as hardware jobs and software jobs. Non technical jobs include functional expert consultants, web designers, data entry professionals etc. Hardware Jobs Software Jobs Specialized Jobs Internet Related Jobs Multimedia Jobs Q) What is the remuneration in each field? Mr. Lalvani: Hardware Jobs Remuneration – Rs. per annum) VLSI Design Engineers 1,20,000 upwards Production 60,000 – 3,00,000 Maintenance 36,000 – 96,000 Networking 72,000 upwards (entry level) Software Jobs Programmers 84,000 – 3,00,000 (entry level) Project Leaders 2,00,000 – 6,00,000 System Analysts 3,00,000 upwards Senior Managers 4,00,000 upwards Specialized Applications CAD/CAM 72,000 – 2,40,000 ERP 2,40,000 upwards Internet Related Webmasters 1,20,000 upwards (entry level) Web Designers 84,000 upwards (entry level) Web Application Developers 1,20,000 upwards (entry level) Multimedia DTP operators 30,000 upwards (entry level) Computer Animators 60,000 upwards (entry level) CD-ROM developers 96,000 upwards (entry level) Video/Audio Editors 84,000 upwards (entry level) Q) What are the Emerging Technologies? Mr. Lalvani: E-commerce The Internet revolution is sweeping the world and is changing the way companies traditionally dealt with customers. Now customers can compare and shop without moving out of their homes by using the Internet. Electronic commerce relates to all commercial transactions that take place through the Internet.
It is estimated that the quantum of e-commerce will jump to 400 billion US dollars by the year 2001. In order to enter this field, in addition to a basic degree in computer science/engineering one must have sound knowledge of software used in the front end such as Java, DHTML, Visual basic etc, the backend which is generally databases such as Oracle and SQL server as well as networking and web server maintenance. In addition an understanding of business transactions is also essential. Supply Chain Management In any industry there are lot of vendors providing various material inputs used in final production. On the distribution side there are channels comprising of wholesalers, distributors and retailers.
Supply chain management software cuts down the time taken for the supplies to arrive from the vendor and reduces the inventory levels thus cutting cost. On the marketing side, it ensures that products reach the end customers in time to fulfill their demand. Customer Relationship Management Companies offering products and services have to deal with a number of customers. Customer relationship management software provides a record of all previous dealings with customers so that the company personnel can take the right decision while dealing with them. Q) Is there Role stress among women in the Indian information technology sector? Mr. Lalvani: Organisational stress originates in organizational demands that are experienced by the individual.
Stress is built up in the concept of role which is conceived as the position a person occupies in a system. This paper investigates the intensity of organizational role stress among women informational technology professionals in the Indian private sector. Organisational role stress scale is used on a sample of 264 to explore the level of role stress. Resource inadequacy has emerged as the most potent role stressor, followed by role overload and personal inadequacy. The research finds differences in the level of stress between married and unmarried employees on several role stressors. However, level of education does not emerge as a significant differentiator of stressors. Q) What is the Future Scenario? Mr. Lalvani:
According to leading reports, Indian software industry is set to achieve a turnover of 25 billion dollars by the year 2015. The projected demand for trained I. T. professionals is estimated at over 1,000,000 per year. There is a clear imbalance between the demand and supply of IT professionals with the result that this sector offers one of the highest remuneration packages. With the Internet rapidly changing the way we live, shop, entertain and work there is a tremendous scope for entrepreneurs with radical new in this field. Q) The Press has repeatedly exposed the job stress resisted by the Employees in the IT sectors. Is it true? Mr. Lalvani
Definitely it’s true. But it largely depends on how the public perceives those articles mentioned in the press. Due to the global meltdown in Europe and US, Hundreds and Thousands of Indian professionals have lost their jobs. When we talk about losing jobs, we talk about the prestige lost. We talk about the comfort level. We talk about numerous advantages lost. In the recent years IT professionals enjoyed a lavish lifestyle and work-life. They are namely; remunerations, the Incentives, accommodation, bonuses, least working hours etc. But ever Since US and the other western countries faced the global melt down the demand for our Indians was amputated.
Those Indians, who lived such a lifestyle overseas, have been forced to come back to their own country that cannot really offer them the same working privileges they enjoyed elsewhere. Q) What exactly are these I. T. Professionals suffering from? Mr. Lalvani You could say, they seem very uncomfortable back home. They somehow are not committed enough, although they know their jobs are at stake. They basically suffer anxiety. Though, none can blame them. You see, to get to their level earns a lot of hard work. And you could say, they have been traumatized by, 1. Job loss phobia. 2. Working for extra hours than they did overseas. 3. Lack of incentives and other and other HR related benefits. These are the main issues that are affecting our IT Sectors.
In fact we have IT professionals who are neglecting their own status and are classified under 2 different divisions. 1. They can’t care any lesser and are thus negligent in providing efficiency 2. They care so much about losing their job that they efficiency is reduced due to stress. Q) How would India cure this? Don’t you think if this has to continue, India could face some serious damage? Mr. Lalvani Ha ha… I wish India Cured this as soon as she can. Its not really India’s role, this issue is a global issue and Indian IT sectors have been victimized. The US and other western nations must see to their economy recovery and I personally feel it’s the Global economy recovery that will cure this.
When the economy booms like we witnessed in the recent years automatically the superpowers will demand Indian IT professionals. There is definitely a break through coming in the near future. We can do nothing but wait and see. Q) I am humbled to the precious time you spared me. Your Information was precious. I wish you and your IT Department all the success. Mr. Lalvani: Are you an IT student? Group members: At this point, sir! We are glad not to be. We are Business Students. Case study: Recession tolls : Infosys claims worst time ever S (Kris) Gopalakrishnan, MD and CEO of the Bangalore-headquartered company, talks of the road ahead for Infosys. Following are some important points. – Lot of uncertainty will prevails in currency rates First time it has given negative guidance for next quarter – It says clients are reducing there IT Budget – This is worst time ever for us but we are better place to fight the same. – No cancellation of deals with client but certainly delay – Added 37 new clients in last quarter but not seen growth accordingly. – Because of challenges and pressure in cutting costs in this environment, we cannot afford to continue poor performance. Infosys Technologies Limited would delay visiting the campuses for recruitment. Normally, it would start the recruitment processes during April or May. But with the slowdown in the businesses continuing, it temporarily has put off its plans for recruiting fresh talent.
It might consider taking more people towards the end of the second quarter of the financial year 2009-10, said its chief executive officer and managing director Kris Gopalakrishnan. [pic] Triggered by cost cutting, Infosys, the second largest IT service provider asked its employees to take a break and opt for voluntary work on fifty per cent salary. While the Infosys management will take a call on who can and who cannot take the offer, the employee has to be at least two years on rolls before he is eligible for the sabbatical. The management is still working out the finer details of the proposal. Infosys Technologies, the second leading outsourcing company says that it is going to have a major reduction in its revenue generation in the fourth quarter.
The blame for this prediction goes to the ongoing recession. The representatives of the company have informed that the revenue generation will reduce from 3. 1 per cent to 6. 7 per cent which means between US$4. 35 billion and $4. 52 billion in this financial year. As most of the companies are trying to shrink their prices and expenditure, the same pressure can be seen transparently with Infosys Technologies. This can be well understood from the net profit made by the company in the fourth quarter which is exactly is 2. 6 percent effecting $321 million and on the other hand, the full year net profit rose to 10 per cent effecting $1. 3 billion.
Siddharth Pai, a co-worker at outsourcing consultancy firm TPI stated that it is evident that the outsourcing industry is going through a stormy night as many customers are postponing new contracts. Unless the customers welcome their contracts, an outsourcing company will not be making money. Recession affects the company’s hiring figure as well. Last year Infosys Technologies took in 18, 946 employees whereas the hiring figure till March 31 is 13, 663 only. That’s a vast difference which is the resultant of hammering effect of the shrunken global economy. Q. 1) Do you have technology in place that is instrumental in helping you attract new customers and retain current ones? Q. 2) Do you think that problems can be solved by job-cuts? Q. 3) What is the major causes for IT to suffer during recession? Q. ) What strategies would you suggest for overcoming recession problems? Q. 5) Is your current method of technology and network support working for you? Conclusion: The study reveals that although the IT job market remained flat in 2002, a trend that is expected to continue, there are also some encouraging signs for job seekers in specific fields. Companies outside the IT industry have enjoyed the benefits of the economy’s slow recovery and are thus able to hire new employees. IT companies haven’t fared as well, and ironically, it’s in this area that you’ll find the fewest opportunities. Hiring in IT companies dropped even more dramatically than it did in companies outside the IT industry.
The big unanswered question, of course, is when recovery will come. Other industries have begun to bounce back, but IT still lags behind. The study ultimately offers the typical good