Came in ET today. (http://economictimes.indiatimes.com/articleshow/2657001.cms)
Flash Dance
With over five lakh engineers qualifying from the 1500-plus engineering colleges in the country, there seems to be no dearth of qualified engineers. If there is still some resource gap, you can look at the approximately 2.6 million graduates produced annually in this country.
The few Indian IT companies that have come out detailing the impact of the subprime crisis have put the fall in the revenue numbers at a few million dollars. Inflation? It seems to be down to the lower single digits (unless you want to buy vegetables in Mumbai ). And on the flights to Bengaluru, you need to search for the elusive middle class Indian who doesn’t have a laptop.
The threat from China doesn’t exist — its evident that the Chinese will never learn English. No IT major in India has an attrition that is more than 15%. There is no question of a profit warning because of the appreciating rupee — it will be counter-acted by raising the utilisation by few percentage points. So it seems a great growth picture. NASSCOM itself indicates that the IT offshoring support from India will grow at 17% annually, touching 60 billion dollars by 2010. The party just seems to have begun.
Well, one of my childhood friends once told me that the eyes cannot see what the mind does not know. One needs to look beyond : at the ‘real’ number of people on the bench, the last-minute postponements in the joining dates of campus offers, the endless interviews before one gets accepted onto a project, the larger number of hours one is expected to work, the lower variable pay doled out to a wet-behind-the-ears programmer, the opening of a sales office in a remote country, and the Da Vinci-esque creativity shown in inventing reasons for letting go excessive capacity created in anticipation of business. And then these speak of a different reality.
You can continue to have a 15% impact on payroll to retain the best of talent and attack the problem of profitability by increasing the intake of fresh graduates. But, by definition, these young minds need to go through at least three months of training. Remember, the bulk of the talent that comes into industry is from engineering colleges that have faculty that passed out from the same college the previous year and wasn’t employed in IT. Putting them onto a job by cutting corners on training can lead to severe quality issues and hence loss of customers. You can still avoid margin pressures by placing them onto so-called ‘non-critical’ engagements that do not need years of experience. But all you would have done is solved the margin problem for the next quarter.
That, in essence, is my fear. In the quest to meet high margin expectations and market images, the IT industry may continue to spend too much on direct costs and avoid any serious investments in R&D that could yield breakthroughs in productivity. This in turn could lead to a spiral of a high-volume-low-end-mediocre-work . For those who think it is far-fetched , just turn the clock back by two decades. The brightest graduates (including engineers) joined the most glamorised job of 1970s — a Probationary Officer in a nationalised bank. With the wave of nationalisation euphoria wearing-off , and successive administrations reducing the job to the most mundane set of activities, a job in a nationalised bank has significantly eroded its appeal to an ambitious individual today.
So what is the conclusion? First, get some reality into the lives of ‘any college any engineer with three years experience’ . Prepare him for a single digit increment. Second, take money out and invest in a real product; or a true productivity framework, preferably both. Third, stop floating the maintenance programmer of retail banking system as a banking domain expert and start investing a little more money in building and gaining real domain experience.
Most important, for a country that has excelled on its labour cost arbitrage and has not seen a real bad market in its life cycle, this almost habitual, unguarded optimism is dangerous. Do not get me wrong — I find the outlook reasonably bright in the long run but, we need to remember it is certainly not a given. The winners are likely to be the prudent investors in the mutual funds, not the flyby-night day traders. Greed is one thing, but the industry and its investors need to realise that a 15 to 20% operating margin in a service industry is not bad either.
29 December 2007
19 December 2007
Save IT People from Debts
Nice one :) Forward to your friends and just we will do a try for the given period only. Shall we?
No Sathyam Cinemas, No coffee day, No Barista, No Anjepar hotel, No Ponnusamy hotel, No Mayajaal... (You know where to go and where not to go after reading this mail...) between 16-Dec-2007 and 15-Jan-2008.
Its not just a forward. How many of you are ready to follow this?
-------------
(Below email "Save the IT People from Debts" was wonderful and we should go through it and also forward to all our friends)
Real Estate price hike is known open robbery from IT guys by brokers / whoever it is and it's not only Flats / Real Estate, IT guys undergo open robbery from all rich shop owners / a person who wanted to become rich as fast as possible...
The salary whatever we get, it's our hard-earned money, most of the times sitting in the night, away from family functions, friends, etc...but all our money or most of the money are going to someone who just takes advantage of our stressful life (both mentally and physically) and our new western life style.
I do not find anything wrong in having a US / UK life style, but many open thieves (starting from Ministers to our local Restaurant owner) just swindling all our "legal money" and as we do not have any other choice becoming poor / debtor day by day.
Well most of the price hikes are just unbelievable and there is absolutely no justification (few examples given below).
Chicken Biriyani (Karaikudi 3 weeks back) - Rs. 65
Today (since last 2 weeks) same Karaikudi Chicken Biriyani (believe me, there is absolutely no change) - Rs. 78, there is no justification for such a big increase.
Pop Corn (Sathyam Complex) previously (month and half back) - Rs. 20
Today (almost the same quantity) - Rs. 30 (again, i do not find any justification)
Corn in Garuda Mall previously (month back) - Rs20 Small, Rs 30 Medium and Rs 40 High
Now, No "actual" small and real small has become 35 now and 45 for high... [Are they the farmers who have given their blood to grow this ]
(In Sathyam complex, many price hikes are really too much for no reason...)
Chips packet (Gangotree) previously (three months back) - Rs. 15
Since last two Months the same packet costs - Rs. 20 (again, I do not find any justification)
Room Clean (just once) - Rs. 200, that's bcos they cleaned IT guys room.
(The moment you say that you are from Software company, the price automatically increases...)
We guys already pays big taxes from our salaries and goes on paying other taxes too (starting from Hotel Sangeetha "Vadai" to Scotch in a bar), it's time to think and pledge ourselves that we stop spending just for one month...
Reason(s) why we should stop spending alteast for a month:
1. 70% of the IT guys occupies the restaurants.
2. 80-90% of the IT guys goes to coffee shop, hang around places, bakeries, etc.
3. Most of the IT guys goes to Sathyam complex, Movies
If we stop going / spending just for a month, their business automatically goes down and they would have no other choice except to bring down the price, that's what happened when IT industry was down three years back.
Somehow directly or indirectly we are responsible for this unjust price hike and now, only we could prevent this open robberies, please add your comments or experiences and keep forwarding this email to all your known people, I am sure even if 25% of us realizes and acts accordingly, it could and would make lot of difference to us.
(let's try and prevent unjust price hike)
Save the IT People from Debts
* Property market in Year 2001 -2004 was quiet Ok , People were able to buy Flats in reasonable rates ..
*Year 2005 -2006 , Some of the well known builders started the rates boom , flat which was at the cost of Rs.900 Sq Ft now became 2200 to 2800
Q: Are there any additional facilities ?
--> No Same Scheme/Area , Flat sold at 10 Lacks Now selling at 25 Lacks .
Q: Why Property increased so High ?
--> IT people competition to buy sweet home ..
Q: Who is going to Benfit from this Property Boom ?
--> Only Builders and some of the Politicians
Q: How is the Bank's support on Home Loans ?
--> Last Year , Bank gave the loan's at flexible mimimum rate,Now Banks has sufficient number of customers ,
(Trap) Slowly Banker's increasing interst at % 0.5 every month .
IT People Who bought house for 22 Lacks for 20 Yrs , Now became 23 Yrs with raise of 0.5 %
Q. How some IT people can face the problems in Future ?
--> Companies are Project Based , If Projects are not there then People will not be there .
Q. IT salaries are high in Market , How much actually IT-people getting in Hand ?
--> People, Who bought house of 22 Lacks to 40 Lacks They need to pay EMI
15,000 to 35,000 for 20 Yrs. If Bank keeps same interst rates .
Suppose Salary is 35- 40 K Per Month, 20K will be the EmI
Q. Is there any "Terms & Condition or Processes to increase rates" ?
--> No , Depends on Buiders Greediness . Every builder follows the different strategies
Builder sold one flat 1500 Per Sqft in Morning and 1800 Per Sqft in the Evening ,
There are no records maitained ..
Q. Who made builders smart & greedy ?
--> Greedy IT people ..
No body is asking , Flat was sold at 12 Lacks , Why now 24 Lacks ?
Q. Is Corporation water & MESB available to all schemes ?
--> Some of the area don't have the Corporation water at all , People surviving on Water Tankers.
** MESB .. Under Table ,can be managed easily .
Q. What will be the condition If We are not able to Clear the Loan ?
--> Depends on individual capabilities
Q. What wiil be the actual 'area of living' or carpet area if the builder proposes 1000 sft?
....> The actual carpet area will be 800-850 sft only. The common area is also included in the proposal.
If two flats are in the same floor, then the builder cheats both the residents by collecting
How do Builders cheat buyers? ... Let us see with a simple example
Builder XXXX proposes a flat in a decent residential area.
Rate ( Unit Price ) - Rs. 3500 sft.
Registration - Rs. 40 per sft.
EB and drainage - Rs. 50,000
Covered Car park - Rs. 1,25,000
Corpus fund - Rs. 50000.
For a 1000 sft flat ( 850 sft carpet area ), the approximate cost will be Rs.37,65,000. In the same plot area ( measuring 2 grounds) the builder would have constructed 8 or 10 flats.
Let us see how a builder earns his profit
Total sales for the builder - 37, 65,000 *10 = 3, 76, 50000 ( 3.76 crores)
Cost of the land - Rs. 40 laks per ground
1) Total cost of the land - 80 lakhs for two ground ------- A
Total builtup area for 10 flats - 10*1000 sft = 10,000 sft
Construction cost per sft ( for normal specification) = Rs. 900 per sft
2) Total construction cost - 10,000 * 900 = Rs. 90,00,000 -------------- B
3) Other expenses for the builder - Rs. 20 per sft = Rs. 2,00,000 .................C
Total expenses for the builder = A+ B+C
= Rs. 80,00,000 + Rs.90,00,000 + Rs. 2,00,00
= Rs. 1,72,00,000 ( 1.72 crores approx)
Total Sales = Rs. 3.76 crores - Rs. 1.72 crores
Total profit of the builder = Rs. 2.04 crores.
Let us see the share of each resident
1. Cost of land = Divided share among the other 10 residents
= Rs. 80,00,000 / 10
= Rs. 8,00,000
2. Construction cost = Rs. 900 * 1000
= Rs. 9,00,000
3. Other expenses = Rs. 2,00,000 ( approx)
Total = Rs. 19,00,000 ( Nineteen lakhs)
The total share for each resident is Rs. 19,00,000 ( Nineteen lakhs only )
but he pays Rs. 37.5 laks for the flat.
Q. How We can stop Builders -Property Boom ?
1) IT People should not think about buying flats for atleast next 1-2 Yrs .
2) Onces rates are reasonable , With some legal process get the Booking .
3) Check Facilities, Convince, Road Approach, schools & Mainly co-operation water
4) Ask Questions If I buy 1/2 BHK at 12 to 30 Lacks , Do I get reasale value in future?
5) Today you are capable for paying 1000 -3000 maintains per month ? Will it be the same case
after 20-30yrs after retirement .
6) In All, Don't stretch more to get the more & more loans other wise it will create unnecessary
pressure and tension.
7) Read the above mentioned calculation carefully, when you are about to buy a flat pls keep this in mind.
* Please read this carefully * Send it to all you know * Act quickly * Save them from debts.
* We can stop the inflation.
No Sathyam Cinemas, No coffee day, No Barista, No Anjepar hotel, No Ponnusamy hotel, No Mayajaal... (You know where to go and where not to go after reading this mail...) between 16-Dec-2007 and 15-Jan-2008.
Its not just a forward. How many of you are ready to follow this?
-------------
(Below email "Save the IT People from Debts" was wonderful and we should go through it and also forward to all our friends)
Real Estate price hike is known open robbery from IT guys by brokers / whoever it is and it's not only Flats / Real Estate, IT guys undergo open robbery from all rich shop owners / a person who wanted to become rich as fast as possible...
The salary whatever we get, it's our hard-earned money, most of the times sitting in the night, away from family functions, friends, etc...but all our money or most of the money are going to someone who just takes advantage of our stressful life (both mentally and physically) and our new western life style.
I do not find anything wrong in having a US / UK life style, but many open thieves (starting from Ministers to our local Restaurant owner) just swindling all our "legal money" and as we do not have any other choice becoming poor / debtor day by day.
Well most of the price hikes are just unbelievable and there is absolutely no justification (few examples given below).
Chicken Biriyani (Karaikudi 3 weeks back) - Rs. 65
Today (since last 2 weeks) same Karaikudi Chicken Biriyani (believe me, there is absolutely no change) - Rs. 78, there is no justification for such a big increase.
Pop Corn (Sathyam Complex) previously (month and half back) - Rs. 20
Today (almost the same quantity) - Rs. 30 (again, i do not find any justification)
Corn in Garuda Mall previously (month back) - Rs20 Small, Rs 30 Medium and Rs 40 High
Now, No "actual" small and real small has become 35 now and 45 for high... [Are they the farmers who have given their blood to grow this ]
(In Sathyam complex, many price hikes are really too much for no reason...)
Chips packet (Gangotree) previously (three months back) - Rs. 15
Since last two Months the same packet costs - Rs. 20 (again, I do not find any justification)
Room Clean (just once) - Rs. 200, that's bcos they cleaned IT guys room.
(The moment you say that you are from Software company, the price automatically increases...)
We guys already pays big taxes from our salaries and goes on paying other taxes too (starting from Hotel Sangeetha "Vadai" to Scotch in a bar), it's time to think and pledge ourselves that we stop spending just for one month...
Reason(s) why we should stop spending alteast for a month:
1. 70% of the IT guys occupies the restaurants.
2. 80-90% of the IT guys goes to coffee shop, hang around places, bakeries, etc.
3. Most of the IT guys goes to Sathyam complex, Movies
If we stop going / spending just for a month, their business automatically goes down and they would have no other choice except to bring down the price, that's what happened when IT industry was down three years back.
Somehow directly or indirectly we are responsible for this unjust price hike and now, only we could prevent this open robberies, please add your comments or experiences and keep forwarding this email to all your known people, I am sure even if 25% of us realizes and acts accordingly, it could and would make lot of difference to us.
(let's try and prevent unjust price hike)
Save the IT People from Debts
* Property market in Year 2001 -2004 was quiet Ok , People were able to buy Flats in reasonable rates ..
*Year 2005 -2006 , Some of the well known builders started the rates boom , flat which was at the cost of Rs.900 Sq Ft now became 2200 to 2800
Q: Are there any additional facilities ?
--> No Same Scheme/Area , Flat sold at 10 Lacks Now selling at 25 Lacks .
Q: Why Property increased so High ?
--> IT people competition to buy sweet home ..
Q: Who is going to Benfit from this Property Boom ?
--> Only Builders and some of the Politicians
Q: How is the Bank's support on Home Loans ?
--> Last Year , Bank gave the loan's at flexible mimimum rate,Now Banks has sufficient number of customers ,
(Trap) Slowly Banker's increasing interst at % 0.5 every month .
IT People Who bought house for 22 Lacks for 20 Yrs , Now became 23 Yrs with raise of 0.5 %
Q. How some IT people can face the problems in Future ?
--> Companies are Project Based , If Projects are not there then People will not be there .
Q. IT salaries are high in Market , How much actually IT-people getting in Hand ?
--> People, Who bought house of 22 Lacks to 40 Lacks They need to pay EMI
15,000 to 35,000 for 20 Yrs. If Bank keeps same interst rates .
Suppose Salary is 35- 40 K Per Month, 20K will be the EmI
Q. Is there any "Terms & Condition or Processes to increase rates" ?
--> No , Depends on Buiders Greediness . Every builder follows the different strategies
Builder sold one flat 1500 Per Sqft in Morning and 1800 Per Sqft in the Evening ,
There are no records maitained ..
Q. Who made builders smart & greedy ?
--> Greedy IT people ..
No body is asking , Flat was sold at 12 Lacks , Why now 24 Lacks ?
Q. Is Corporation water & MESB available to all schemes ?
--> Some of the area don't have the Corporation water at all , People surviving on Water Tankers.
** MESB .. Under Table ,can be managed easily .
Q. What will be the condition If We are not able to Clear the Loan ?
--> Depends on individual capabilities
Q. What wiil be the actual 'area of living' or carpet area if the builder proposes 1000 sft?
....> The actual carpet area will be 800-850 sft only. The common area is also included in the proposal.
If two flats are in the same floor, then the builder cheats both the residents by collecting
How do Builders cheat buyers? ... Let us see with a simple example
Builder XXXX proposes a flat in a decent residential area.
Rate ( Unit Price ) - Rs. 3500 sft.
Registration - Rs. 40 per sft.
EB and drainage - Rs. 50,000
Covered Car park - Rs. 1,25,000
Corpus fund - Rs. 50000.
For a 1000 sft flat ( 850 sft carpet area ), the approximate cost will be Rs.37,65,000. In the same plot area ( measuring 2 grounds) the builder would have constructed 8 or 10 flats.
Let us see how a builder earns his profit
Total sales for the builder - 37, 65,000 *10 = 3, 76, 50000 ( 3.76 crores)
Cost of the land - Rs. 40 laks per ground
1) Total cost of the land - 80 lakhs for two ground ------- A
Total builtup area for 10 flats - 10*1000 sft = 10,000 sft
Construction cost per sft ( for normal specification) = Rs. 900 per sft
2) Total construction cost - 10,000 * 900 = Rs. 90,00,000 -------------- B
3) Other expenses for the builder - Rs. 20 per sft = Rs. 2,00,000 .................C
Total expenses for the builder = A+ B+C
= Rs. 80,00,000 + Rs.90,00,000 + Rs. 2,00,00
= Rs. 1,72,00,000 ( 1.72 crores approx)
Total Sales = Rs. 3.76 crores - Rs. 1.72 crores
Total profit of the builder = Rs. 2.04 crores.
Let us see the share of each resident
1. Cost of land = Divided share among the other 10 residents
= Rs. 80,00,000 / 10
= Rs. 8,00,000
2. Construction cost = Rs. 900 * 1000
= Rs. 9,00,000
3. Other expenses = Rs. 2,00,000 ( approx)
Total = Rs. 19,00,000 ( Nineteen lakhs)
The total share for each resident is Rs. 19,00,000 ( Nineteen lakhs only )
but he pays Rs. 37.5 laks for the flat.
Q. How We can stop Builders -Property Boom ?
1) IT People should not think about buying flats for atleast next 1-2 Yrs .
2) Onces rates are reasonable , With some legal process get the Booking .
3) Check Facilities, Convince, Road Approach, schools & Mainly co-operation water
4) Ask Questions If I buy 1/2 BHK at 12 to 30 Lacks , Do I get reasale value in future?
5) Today you are capable for paying 1000 -3000 maintains per month ? Will it be the same case
after 20-30yrs after retirement .
6) In All, Don't stretch more to get the more & more loans other wise it will create unnecessary
pressure and tension.
7) Read the above mentioned calculation carefully, when you are about to buy a flat pls keep this in mind.
* Please read this carefully * Send it to all you know * Act quickly * Save them from debts.
* We can stop the inflation.
13 December 2007
Top most IT companies in India-Updated
1) IBM --- Right now this is the most firing company for IT professionals. In the last 6 months, this company has fired nearly 20% of their employees because of BG check and performance issues. This is the most insecure company from an IT professional's point of view. They don't have any strategic plans at HR policies regarding employee security. No appraisals (maximum 10%).
2) Accenture --- This is second top most firing company. The firing rate is around 5%. This depends upon outsourced projects; they have a unique system where Accenture development centers around the world bid for a project coming into the company. Currently Philippines centre is taking the cake and the Indian centers are in a firing mode.
3) WIPRO --- Firing people with very frequent back ground checks and firing them with out even experience letters and relieving letters (will mention as terminated from services)but will promise the employees that they will retain them. After the project is over they will fire away. Will threaten of criminal cases against such employees if they oppose the move and has also filed against some.
4) Intel --- Recently joined the league. Running in heavy losses, hence firing 3000 employees in the Banglore center in a phased out manner.
5) CTS --- Has a steady firing policy (checking the Educational background and previous employment and also employee performance in work). In a Recent HCL walk-in, around 50% attendees were from this company. Sadly the I-pods have not helped them.
6) CSC --- Excellent package but fires folks in Background check and those on bench regularly. Recently fired 400+ employees from its subsidiary Covansys.
7) Satyam --- Currently stopped firing. The Attrition rate is very high. No firing from 2005 until now when 1000 employees were fired in Hyderabad.
8) Patni ---- They fired so many employees that currently they are facing understaffing and deficiency with number of employees. Very high attrition rate.
9) Keane India ---- This USA based company is always involved in firing employees. Although they proudly say that they dont have hire and fire policy. Recently they fired java and as400 professionals after which most of the employees have started to pack their bags. Employees change this company within 1 year.
So take care before accepting offers from these companies.
Secure IT companies in India
1) Microsoft --- Has projects till 2050.
2) EDS --- Most secure company in India. Not laid off any of its employees even during 2001. Has lots of projects in Defense and financial areas
3) HP --- Dream Company. In-house and outsourced projects
4) TCS --- A govt. Company.
5) AOL, Google and Yahoo - Best companies to work with, great job satisfaction as well as great salary and work environment. Rarely fires an employee. As they are internet based companies' they offer lots of opportunities to grow.
6) HCL -- A good company to be in. Called as a retirement company.
7) HSBC--- This is the most secure company. It has never fired any employee , even when they know that the employee is showing fake experience.
8) Aricent--- a communication based software company, has never fired any employee and gives great perks & incentives, lot of projects in kitty. Minimal level of attrition.
9) KPIT Cumminns Infosystems Limited ---- This is the most secure company not known to many. It has presently acquired CG Smith, Bangalore and has lots of projects in pipe line. Acquisitions plans will continue.
2) Accenture --- This is second top most firing company. The firing rate is around 5%. This depends upon outsourced projects; they have a unique system where Accenture development centers around the world bid for a project coming into the company. Currently Philippines centre is taking the cake and the Indian centers are in a firing mode.
3) WIPRO --- Firing people with very frequent back ground checks and firing them with out even experience letters and relieving letters (will mention as terminated from services)but will promise the employees that they will retain them. After the project is over they will fire away. Will threaten of criminal cases against such employees if they oppose the move and has also filed against some.
4) Intel --- Recently joined the league. Running in heavy losses, hence firing 3000 employees in the Banglore center in a phased out manner.
5) CTS --- Has a steady firing policy (checking the Educational background and previous employment and also employee performance in work). In a Recent HCL walk-in, around 50% attendees were from this company. Sadly the I-pods have not helped them.
6) CSC --- Excellent package but fires folks in Background check and those on bench regularly. Recently fired 400+ employees from its subsidiary Covansys.
7) Satyam --- Currently stopped firing. The Attrition rate is very high. No firing from 2005 until now when 1000 employees were fired in Hyderabad.
8) Patni ---- They fired so many employees that currently they are facing understaffing and deficiency with number of employees. Very high attrition rate.
9) Keane India ---- This USA based company is always involved in firing employees. Although they proudly say that they dont have hire and fire policy. Recently they fired java and as400 professionals after which most of the employees have started to pack their bags. Employees change this company within 1 year.
So take care before accepting offers from these companies.
Secure IT companies in India
1) Microsoft --- Has projects till 2050.
2) EDS --- Most secure company in India. Not laid off any of its employees even during 2001. Has lots of projects in Defense and financial areas
3) HP --- Dream Company. In-house and outsourced projects
4) TCS --- A govt. Company.
5) AOL, Google and Yahoo - Best companies to work with, great job satisfaction as well as great salary and work environment. Rarely fires an employee. As they are internet based companies' they offer lots of opportunities to grow.
6) HCL -- A good company to be in. Called as a retirement company.
7) HSBC--- This is the most secure company. It has never fired any employee , even when they know that the employee is showing fake experience.
8) Aricent--- a communication based software company, has never fired any employee and gives great perks & incentives, lot of projects in kitty. Minimal level of attrition.
9) KPIT Cumminns Infosystems Limited ---- This is the most secure company not known to many. It has presently acquired CG Smith, Bangalore and has lots of projects in pipe line. Acquisitions plans will continue.
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