IT Job Market Buzzing again

Headhunters looking out for 30,000 lateral entries in top firms
IT majors are back to hiring experienced hands after an eight-month hiatus beginning January. Counting for the early signals from headhunters in Bangalore, Hyderabad and Chennai, tech shops may be looking out for up to 30,000 lateral entries, if not more, before this calendar runs out. Recruitment agencies say they have started getting mandates for hiring in small batches.

At least two recruitment firms that FC spoke to confirmed that IT companies had mandated lateral hiring of between 20,000 and 30,000 employees in the past one month alone, though they were unwilling to hazard a guess on how the numbers might stack up by the end of 2009. They said there were still uncertainties about hiring intentions of their clients.

In the boom years of 2006, 2007 and 2008, the IT/ITeS industry created up to 400,000 new jobs every year of which about 150,000 were lateral entries. And while the global recession set in September 2008, hiring continued right through December. It was only in January-August this year that hiring trickled down to just a few hundred.

Headhunters confide that most large Indian and foreign firms, including the likes of IBM and Accenture, are back to hiring. Infosys and TCS have about more lateral hirings from the October-December quarter. So are some of the mid-sized body shops Sotware engineers with 4-8 years experience are mostly in demand.

Kris Lakshmikanth, CEO of The Head Hunters India said even tier-II IT companies were scouting for experienced personnel. “Depending on the size of the companies, the number of vacancies is generally between 50-100.”

Infosys board member T V Mohandas Pai told Financial Chronicle that his company had increased the forecast of additional headcount for financial year 2010 to 20,000 from 18,000 because it wanted to recruit more experienced people. This was needed to balance out the company’s staff pyramid, 70 per cent of which rests on freshers.

A HR industry tracker, who did not want to be named, said Infosys and TCS were also looking for business and vertical heads with over 12 years experience.

Sudhakar Balakrishnan, CEO of Adecco India, said, “There is some buoyancy now in the lateral hiring market for IT companies. Companies, though keeping the final numbers under wraps, are definitely looking to hire laterally. With revenues going up and the environment stabilising, they feel that a lot of requirements would be coming up.’’

While declining to give definite growth numbers, T Muralidharan, CMD of Hyderabad-based TMI Group said, the mandates received by his agency for filling up vacancies at top software firms in the past month was equal to what he had got in the preceding five months.

E Balaji, CEO of Chennai-based Ma Foi Management Consultants, said while the signs were good, firms were basically opening up positions that they had frozen earlier. “We have to wait and see how this scenario will pan out in the future,” he added. His opinion was shared by Gautam Sinha, CEO of TVA Allegis, a specialty IT/ITeS

hiring firm. He said, “The situation has improved but we are still 3-6 months away from lateral hiring going up to the pre-economic crisis numbers. The pipeline is good but big hirings will depend on the market condition in the US in coming months.”

He also explained that right now the companies were looking for professionals with 4-8 years experience. The big numbers would come when firms start looking out for professionals with 2-4 years experience, he said.

Party Time at Infosys

Say cheers to this! IT behemoth Infosys has reintroduced binge benefit to its 100,000 employees, entitling them to a fixed quarterly allowance to take time out for recreation.

The company had withdrawn this perk six months ago in the wake of the economic meltdown and stagnation of its business.

There is now buzz in the campus that Infy may soon reintroduce other incentives such as interest-free home loans to needy employees, car loans and other giveaways.

The news comes close on the heels of the IT bellwether revising its full-year revenue guidance upwards and is aimed at boosting staff morale.

Nandita Gurjar, senior VP and group head of HR at Infosys, confirmed the news.

“Yes, we have reintroduced this particular scheme. This was put on hold due to economic downturn. Under this scheme, the company pays Rs 300 per person every quarter as party incentive. All employees will get this benefit,” Gurjar said.

Infoscians say the sop marks a return to good times both for the company and for the employees located at around 50 offices across the globe.

The party incentive comes as the icing on top of an across-the-board salary hike and promotions announced earlier this month. Offshore salaries have risen by 8 per cent while onsite remunerations have gone up 2 per cent.

For quarter ending September 30, Infosys reported a rise in net profit by 7.5 per cent on a year-on-year basis at Rs 1,540 crore and 3 per cent revenues growth at Rs 5,418 crore, beating street expectations.

Deloitte to Hire 15000 In India

Global business consultancy Deloitte is planning to hire 15,000 people in the country over the next two to three years, the company's top official said here Tuesday.

"We are very upbeat about the Indian economy and have major expansion plans in India," said Deloitte's global chief executive Jim Quigley.

"At present, we are employing about 11,000 people in India. To increase our business, we are planning increase it by 15,000 people over the next two to three years," Quigley told reporters.

"The (global economic) crisis is also an opportunity to expand and acquire assets at attractive valuations. We believe that India and China will be leading the global economic recovery. Europe will very slow to recover. So it makes sense to invest here," he added.

"Even during the time of economic slowdown we saw a (business) growth of 30 percent in India. We are going for active acquisition and expansion plans here."

Capgemini to Up Head Count in India

Outsourcing firm Capgemini is all set to increase its India headcount with the opening of a new business information centre in Bangalore, according to a report in a business daily.

The Bangalore centre will take the company's India headcount beyond 21,000, an increase from its employee strength of 20,000 in home country France.

According to the company, the new centre in Bangalore would start with a workforce of 1,000, which would scale up to 3,000 in about 18 months.

Paul Nannetti, general manager of Capgemini's global business information service line, said, "Bangalore provides plenty of application and technical skills in information management." He added, "The company can scale-up there much more quickly than in onshore locations."

India is among the most attractive outsourcing destination for global MNCs including IBM, Accenture and Microsoft, giving tough competition to domestic players TCS, Wipro and Infosys. The country offers large pool of skilled and low-cost talent for business information management services that help companies improve their collection, use and analysis of data.

Entry Level Salaries Down by 20% in IT

Entry-level salaries down by 20% for software pros

Dhannanjay Kumar, a 25-year-old computer science graduate from a top engineering college in Bangalore, considers himself lucky to have found job in a year when India’s over $50-billion software outsourcing industry had to cope with falling demand and trim payroll by up to 10%.

“Not only I had to work twice as much for getting an interview, the annual salary of around Rs 1.7 lakh is much lower compared to my seniors who got Rs 3.5 lakh two years ago,” said Kumar who got hired by a Bangalore-based mid-tier software company last month.

Every year, around 3,00,000 computer science and engineering graduates seek employment with hundreds of tech firms, including big names such as TCS, Infosys and Wipro. This year, more than half of them were left unemployed because tech firms were already finding it tough to manage resources sitting on the bench.

A worsening economic crisis, increased availability of skilled workers and lower demand for software services have brought down the entry-level salaries for IT professionals in the country by up to 20%, according to experts tracking the sector.

“The entry-level salaries are down by at least 10-16%,” said GC Jayaprakash, principal consultant of Stanton Chase International.

Until two years ago, almost all computer and engineering graduates were absorbed by India’s outsourcing industry, comprising top tech firms such as TCS, Infosys, Wipro and many others. However, as customers delayed and shelved outsourcing projects, these tech firms also postponed campus hirings.

“Last year, a number of companies gave away offer letters but did not recruit. On top of that, there is a new pool of qualified professionals being churned out this year -- all this has created an oversupply in the entry-level IT job market where salaries typically sway between Rs 3 lakh per annum and Rs 5 lakh on the higher side,” Mr Jayaprakash added.

Many students had to approach potential employers directly, since companies did not visit their campuses for placements.

“We formed groups and toured companies, and agreed to settle at lower salaries because it’s better to be employed at lower salary than having no job at all,” said Srilekha Varma, who recently accepted a job offer from a Chennai-based IT firm specialising in banking software.

Recruitment firms such as GlobalHunt said the entry-level salaries may have dipped by up to 30% because of increased availability of skilled professionals.

“Earlier, companies were building bench strength and doing skill development, as they were expecting large business and didn’t want to run out of manpower. Fresh graduates used to have multiple offers and they were in a position to negotiate,” said Sunil Goel, director of GlobulHunt’s Indian operations.

In a normal year, computer science graduates were offered entry-level salaries of Rs 3.5-5 lakh. However, companies are now hiring freshers at Rs 1.7 to Rs 3.5 lakh.

Meanwhile, HR heads at tech firms, including Wipro, India’s third-largest software exporter, say professionals have become more realistic about what they want from their employers.

“I don’t think salaries have come down, but the environment has indeed helped us in containing salary hikes,” Pratik Kumar, head of human resources at Wipro said.

What has also changed this year is the manner in which salary offers are being structured.

“Due to an oversupply of qualified talent there is rationalisation at entry-level salary, which is based more on performance and are variable by nature. Cost-to-company is not necessarily a comparison of the past-drawn salary,” said Ashok Reddy, managing director and co-founder of staffing company TeamLease.

Indeed, professionals who lost their jobs during the past few months, are now being offered entry-level salaries by companies who can get experienced talent at lower salary levels.

“I was working as a software testing engineer and lost my job in February. Now I have a job, but the salary is similar to what is being offered to new recruits,” said Neelesh, who has around six-month experience.

“Companies are now preferring to hire professionals who missed jobs due to slowdown, were on the bench or were laid off, because they have some kind of training and are experience compared to freshers,” said Mr Goel.

TCS said it would do new campus hiring in January 2010 and will honour all 24,000 offers made for FY09. “Around 1,800 graduates have joined us in Q2 and another 8,000 will join in Q3, rest of the graduates will join based on the demand,” a TCS spokeswoman said.

Infosys said for FY10, it has made 20,000 campus offers and expects an 80% conversion rate i.e. 16,000 of these offers to join the company. “We are honouring all our hiring commitments,” an Infosys spokeswoman said.

India to Need 5 Lakh Project Managers

According to a research by Project Management Institute (PMI), India will need about five lakh project managers in the future to complete 591 projects being carried out in the country.

About 591 projects each worth more than Rs. 100 crore were being executed in the country and it required a great number of project managers in order to finish them on time, said Raj Kalady, Managing Director (MD), PMI.

"The initial estimates of Rs. 5.25 lakh crore for the total projects have aroused to Rs. 5.85 lakh crore due to lack of proper project management," said Kaladi.

PMI will organize an all India conference starting from November 13, former MD of Maruti Udyog will be the key note speaker in the conference and NASSCOMM President Som Mittal and ISRO Chairman Dr. K Radha Krishnan are among others to attend the conference.

Kalady stated that PMI has developed 12 applications of project management on the lines of world's best practices. The institute was also negotiating with some of educational institutions to offer scholarships to students pursuing project management course.

Indian Engineers backbone of Japanese IT

Indian system engineers have emerged as the backbone of Japan's IT industry and more are flocking to the country which is witnessing a steep decline in its work force.

Indian system engineers are making their presence felt in Japan's information technology industry. Around 22,000 Indians are living in Japan at the end of 2008, nearly double the number a decade ago.

"India is already the international standard in the IT world," said Kenichi Yoshida, a director of Softbridge Solutions Japan Co., a staffing company. Its founder is an Indian-American, who set up the Japanese company in 2002.

Indian engineers are sent out to Japan after studying Japanese language for five months. In addition to operation and maintenance of financial information systems, they are in charge of systems development for computers and mobile phones, Kyodo news agency reported.

"While the number of working people is decreasing in Japan, in India the number will continue to increase until 2040. Education levels are also high. It's important for Japanese industry to work together with India," Yoshida said.

His company is also providing opportunities for Japanese engineers to undergo training in India for two to four months, and major Japanese enterprises are taking advantage of the service.

"Everything is in English there. They eat curry from same bowl and return home a lot tougher," he said.

Tokyo's Edogawa Ward has the highest number of Indian residents, at about 2,200. After visa requirements for engineers working in Japan were eased in 2001, Indians flocked to the ward because it is close to the centre of Tokyo and prices are lower than in other wards.

"Until several years ago, there were only men in their 20s whose families were back home, but recently, the number of Indians accompanied by their families is increasing," said Jagmohan Chandrani, 57, a company president who came to Japan about 30 years ago.

Chandrani imports and sells black tea, runs a guest house and also serves as leader of the Indian society in the ward, assisting his countrymen in their day-to-day lives.

Many new residents are from Bangalore, known as India's Silicon Valley. Given that tandoori chicken and nan, which are popular in Japan, are northern Indian dishes, Chandrani has opened a southern Indian restaurant and a food store for engineers yearning for the taste of home.

He also participates in local events and holds an Indian festival twice a year, inviting Japanese from neighboring areas.

Chandrani says he hopes the ward will become not an 'India town' but a place serving as bridge between the two countries.

H1B Applications Lowest since 2003

More than six months after the federal government began accepting petitions for work visas popular with Silicon Valley companies, thousands of spots remain open, a reflection of the nation's high unemployment and the political pressure to hire citizens, experts say.

As of last week, 46,700 H-1B visa applications had been submitted, thousands less than the 65,000 allocated for fiscal year 2010 and the lowest number since 2003. The cap for 20,000 additional H-1B visas reserved for foreign graduates of U.S. colleges with at least a master's degree was met, though applications are still being accepted.

Tech industry insiders say the recession is primarily responsible for the dearth of applications. "There is definitely a sense that there is a growing hostility toward some of the (visa) programs, but I don't think that is related to the downturn" in petitions, said Jenifer Verdery, Intel's director of work force policy. "You are not going to see big ramp-ups in hiring during the downturn."

But political pressure did affect hiring in other industries. The federal stimulus law includes provisions making it difficult for financial companies receiving money from the Troubled Asset Relief Program, or TARP, to hire H-1B workers. The requirement forced companies
like Bank of America to rescind job offers to foreign professionals.

Julie Pearl, a San Francisco-based corporate immigration lawyer who works with valley companies, says her firm's caseload for visa work has been cut in half. "In the financial industry, H-1B (applications) are down almost 75 percent," she added.

Sen. Charles Grassley has criticized tech companies for not protecting jobs of U.S. citizens over those of foreigners as they lay off thousands of employees at a clip. The Iowa Republican and Sen. Richard Durbin, an Illinois Democrat, in April reintroduced a bill that would require companies to do everything they can to hire Americans before seeking H-1B visas.

One technology corporate client of Pearl's declined to file petitions out of a sense of patriotism. "They felt, 'How do you hire a foreigner' " with 12 percent unemployment in California, she said.

Samta Kapoor, who will complete her master's degree in engineering management at Duke University in December, said she and other foreign-born classmates have been told by prospective employers that they are not hiring international students this year. "There are times when we are not even looked at. They say, 'We are not hiring international students this year. It's a companywide policy. Sorry,' " she said.

Silicon Valley companies, where immigrants have played prominent roles in creating startups and new technology inventions, view the H-1B visa program as a way to grab the best talent from around the world. "For most of our clients, their mantra is: Hire the best person you can," Pearl added.

Companies can spend thousands of dollars per applicant. "It's such a hard process," Verdery of Intel said. "It's a laborious, difficult, expensive endeavor to bring someone on board."

Despite the challenges, Intel has continued about the same level of H-1B hiring as in the past, she said.

In recent years, there has been some support from both parties in Congress for more H-1B visas and green cards for foreign professionals, a major goal of tech companies that has been caught up in the highly charged debate over immigration.

During the dot-com boom a decade ago, the H-1B visa cap was 195,000 a year, a reflection of the frenzied hiring of tech workers in Silicon Valley and elsewhere around the nation. That number dropped dramatically during the recession that followed.

Les French, president of WashTech, a Seattle-based union for tech professionals, which is critical of the visa program, predicts application levels will eventually rise again. "Once the economy picks up, you'll see a pickup in the applications," he said. "I think it will be lock-step with the economy."

Others, though, say the difficulties faced by foreign-born potential workers as well as the recession will deter some overseas professionals from pursuing careers here.
"The problem is, you lose the cream-of-the-crop," said Vivek Wadhwa, a researcher on immigration and labor issues at the University of California-Berkeley. "The cream of the crop can get jobs elsewhere. Before, they had to come here."

Nonetheless, students such as Kapoor say the United States is still their first choice.

"There are a lot of things happening back home," said Kapoor, who is from Mumbai, India. "There would be no lack of opportunity for me if I went back. But I've been educated here. I want to give back to the United States."

Infosys opens second development center in Mexico

Infosys Technologies has opened its second development centre in Monterrey, Mexico, serving as a near shore unit to serve the regions of North America, Latin American and Europe.

The development centre will provide technology services for clients in all industries including banking, financial services, manufacturing, retail, distribution, insurance and many others, Infosys said in a notice to the stock exchanges.

“From our first development centre opening with a few clients and a dozen employees, we now have some 30 clients and 330 professionals,” said Ashok Vemuri, senior vice president, Infosys. After examining several countries in the region, Infosys chose to establish its presence in Mexico due to the broad language skills available in the region, its geographical proximity to Canada, the US and the Europe, the notice said.

Tech Firms on headhunting drive

Technology firms Accenture and Infosys BPO were on Monday upbeat about hiring plans for next year, an indicator of brightening business prospects, although Microsoft India said it would go easy on new recruitments.

Information technology and consultancy were among the sectors hit by last year's global economic crisis, ripples of which are still being felt by businesses across continents.

Consultant Accenture said it would shore up its staff strength by 8,000 by next year, mainly in the analytics space. "We are 42,000 right now and we imagine we will be about 50,000 by the end of 2010," Accenture Chairman and Chief Executive Officer William D Green said on the sidelines of the India Economic Summit here.

Green added, "We believe that analytics is going to be an important trend that our customers are going to demand from us. We think India is going to be a great place for us."

Infosys BPO, the back-office unit of IT firm Infosys Technologies, said that it would hire 1,500-2,000 people by the end of the current fiscal. "We plan to hire 2,000 people in the next four-five months or by the end of this fiscal. Currently we are 16,000 people in India," Infosys BPO CEO Amitabh Chaudhry said.

Another BPO company Genpact has already hired 6,000-7,000 so far this year for its global operations. Microsoft India Chairman and Corporate Vice-President Ravi Venkatesan, however, said that "there will be no significant hiring. Microsoft has a headcount of 5,300 people in the country and had hired "a few hundreds" last year.

Most of the top domestic and transnational companies go for campus placements from the engineering and management schools around October-December.

Venkatesan said "(Steve) Ballmer (global CEO) has gone on record saying this is a period of consolidation," rather than adding to the headcount. The USD 58-billion global software leader has six business units in India, which include research centre, development centres and sales and marketing divisions.

The company, which boasts of running most of the personal computers worldwide on its operating system, has three centres in Hyderabad. The other units are in Bangaluru and Gurgaon.

Yesterday, global banking behemoth Standard Chartered said it plans to hire 3,000 employees in India by the end of 2010.

Wipro to hire sacked employees

If you are a pink slip recipient from Wipro, here’s a piece of good news. Wipro plans to rehire some of the employees it fired a year ago.

"Non-performance was the reason for these separations. However, we are open to rehire some of these people who were fired by us a year ago, if they come back to us with additional skill sets. A one-year window would have been enough for them to acquire some additional skills," said Joseph John, vice-president (HR) in Wipro Infotech, the business that looks at the India and Middle-East markets.

The tech major's involuntary attrition rate has gone up by 2 percentage points in the last 16 months. Wipro Infotech said it would also resume campus hiring from January. "We are looking at hiring over 1,000 laterals during the fiscal and 1,000 freshers from campuses in January," said John.

The division, which recruited 1,000 people in the first six months of the fiscal, expects hiring numbers in the second half of the year to be more than double of that.

The additional people requirement comes with Wipro winning a slew of large projects in India and the Middle-East, and also to cater to the growing requirements of existing accounts. The company hired 200 people in Saudi Arabia and Egypt recently.

Wipro is also hiring for its Global Service Management Centre in Mysore with almost 5% jobs earmarked for differently-abled people.

Wipro Infotech is planning to raise the ratio of its women employees from 13% now to 20% in the next two years. On salary hikes, John said the company had not budgeted a hike at the start of the fiscal. "But we have decided to raise salaries in the fourth quarter across the board."

Infy to up sales staff

Infosys, the country’s second-largest information technology services exporter, plans to increase its sales and client services headcount by almost 50 per cent by the end of this financial year, most of which will happen in Europe.

“We are going to add another 100-200 people worldwide in sales and client services by the end of this fiscal on a base of 500. This doubling is in line with our interest in Europe,” said Subhash Dhar, senior vice-president, Infosys Technologies. The headcount increase could happen for sales people in infrastructure and applications services.

Moreover, the company sees its communication, media and entertainment segment to be a cash flow driver. It currently gets around 18 per cent of its overall revenues from this area, up from single-digit in 2002-03. Infosys is bullish about this segment, as many of its customers are restarting their capital expenditure on networks, which usually accounts for half of a company’s total expenditure.

“The spend had slowed down in the last one year. But handheld devices are now driving more traffic. In the media and entertainment space, we are seeing greater activity in digital media and not conventional media,” added Dhar.

He expects budgets to be better next year, too, compared with this year. “We are servicing almost 25 clients in this space and are always in talks with 10-15 more. Usually, we sign one big client per quarter and two or three small clients,” he said.

The non-US revenue is greater than the US revenue for Infosys’ communication, media and entertainment vertical. And, though India does not figure in the top countries’ list, the IT major is seeing new business coming from within India.

Adobe Layoffs

Adobe Systems, known for its Photoshop editing programme and Acrobat document software, announced that it was cutting some 680 jobs worldwide, about nine percent of its workforce.

Adobe, in a filing with the US Securities and Exchange Commission (SEC), said it would incur between $65 million and $71 million in restructuring charges because of the layoffs.

Adobe said the jobs being cut only involve employees who were with the San Jose, California-based company ahead of its October acquisition of Web analytics firm Omniture Inc.

Adobe, which employed 7,564 people worldwide at the end of August, also produces the Flash and Shockwave software used in many games and Internet applications.

Adobe shares were trading 0.14 percent higher at 36.65 dollars in after-hours electronic trading in New York.

 

Infosys BPO to acquire US co McCamish for initial $38 mn

IT bellwether Infosys Technologies on Thursday said its subsidiary Infosys BPO will acquire US-based McCamish Systems for an initial payment of $38 million (about Rs 176.6 crore).

Infosys BPO has signed a definitive agreement to acquire all the outstanding interests of McCamish Systems LLC, Infosys Tech said in a filing to the Bombay Stock Exchange.

"The upfront consideration for the deal is $38 million, with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future," the company added.

The acquisition is expected to be completed later this year.

"We look forward to this combination with McCamish, and welcome an exceptional group of professionals with strong skill sets to the Infosys family who will enrich our service capabilities in the USA," Infosys BPO CEO & MD Amitabh Chaudhry said.

The acquisitions is expected to enhance Infosys' capability to provide complete business solutions for insurance and financial industries.

"Infosys BPO has in-depth knowledge of the insurance and financial services sector, and this deal reinforces our relationship position in providing business platform services," Chaudhry said.

The combination is likely to enable McCamish to serve larger portfolio of transactions for clients and expand into global markets.

Shares of Infosys Technologies were trading at Rs 2,336 on the BSE, up 1.18 per cent from its previous close.

Google New Look for Orkut

Social networking site Orkut has revamped its look and added a host of new features as it tries to regain ground from one of its toughest competitor Facebook.

Google, which owns Orkut, said the new look has a user interface, or homepage, which is faster and easier to use.

"With the new user interface (UI), the user does not have to visit each page for viewing videos, or say posting scraps. He gets to see all updates and respond to his friends from the homepage itself," Google India Head (Products) Vinay Goel today said.

It also allows faster uploading of photos and has features like video chat, automatic face detection and a scroll down menu for viewing all friends on the same page.

"We have about 80-100 million users globally and India is the second leading market for Orkut after Brazil. India is a crucial market and we would continue to drive innovation for all our products," Goel said.

The new version would be initially available through invitation only but after a few weeks would be made available to all users. Companies, mainly in the FMCG, automobile, consumer durables and telecom space, are actively using social networking sites to connect with the youth.

Google to Buy Admob for $750 Million

Google is to pay $750 million to buy AdMob, a provider of advertising on mobile phones, the internet search leader announced Monday.

The deal is the third largest ever undertaken by Google and underscores the company's strategy of extending its online advertising dominance to the mobile web, where its Android smartphone operating system is becoming increasingly popular. Google said it expected antitrust regulatory review in the U.S. but not in Europe.

AdMob has a system that serves display ads on mobile phones and its purchase could give the still nascent market a powerful boost, analysts said.

"Google could have built this itself, but this gives them a head start," says mobile analyst Greg Sterling of Sterling Market Intelligence. "It will thrust Google into the forefront of mobile display ads."

"AdMob is a great Silicon Valley story," said Google in a blog posting to announce the deal. "We are looking forward to having them join the Google team and work with us on the future of mobile advertising."

Wipro to hire Experienced Resources

With an increase in business, India’s third-largest IT services company Wipro is holding recruitment drives to hire experienced IT professionals (termed lateral hiring) across the country. The company said in a statement today that it plans to organise two-day walk-in interviews for experienced IT professionals in Bangalore, Chennai, Mumbai, Pune, Hyderabad, Noida and Kolkata, starting November 14.

The drive is a part of its regular hiring in line with business demands, the company said. Vice-President (Talent Acquisition) Pradeep Bahirwani said the company would hold recruitments simultaneously across the country to provide applicants a quick process to allow them to consider opportunities in other cities.

“We are looking to meet applicants across skill requirements in all business divisions with experience levels ranging from 2-14 years,” he said.

He added the company had released recruitment advertisements to inform applicants of the drive.

“We encourage applicants to apply directly to us and not fall prey to fraudsters misusing company names and duping candidates,” he added.

Wipro has also announced plans to hire BSc, BCM and BCA students graduating in 2010 for its Wipro Academy of Software Excellence.

TCS to hire local talent in US

To expand its U.S. operation, TCS (Tata Consultancy Services) plans to hire 1,000 local workers at its new facility near Cincinnati, Ohio, by the end of 2010, reports DNA.

The company opened a $20 million delivery and software development centre in Milford, Cincinnati in Ohio, in March last year - in a bid to win federal contracts and be closer to the headquarters of its U.S. clients. Suryakant, President of TCS North America said, "The Cincinnati region is a great place for U.S. to recruit local talent to meet the demands of our customers as they grow out of the downturn."

The ohio facility is also aimed at securing what some major Indian service providrs are chasing - defence and avionics work. TCS is reportedly in talks with Boeing and Lockheed Martin for defence and aerospace contracts. This work can only be done by American citizens or green card holders.

Recently, the company bagged projects related to unemployment insurance for the states of Nebraska, New Mexico and Mississippi. "The U.S. by far our largest market and the seven hills park facility in Ohio plays an integral role in our strategy of putting our customers first," said Suryakant.

Currently, TCS employs 15,000 people in the U.S. The company has been shipping quite a bit of work to U.S, ignoring India's popular IT hubs.

AOL Layoffs

There are almost certainly large layoffs coming at AOL.

in connection with the company’s pending spinoff from Time Warner , AOL said it expects to take $200 million to cover “additional restructuring activities,” with all of the hit coming from from the date of the spin through the first half of 2010.

Here’s the key paragraph from the filing, which suggests that the restructuring moves the company has made so far pale compared to whatever it has in mind in the months ahead:


We undertook various restructuring activities in the first nine months of 2009 in an effort to better align our cost structure with our revenues. As a result, for the three and nine months ended September 30, 2009, we incurred restructuring charges of $10.2 million and $82.9 million, respectively, related to involuntary employee terminations and facility closures. We currently expect to incur up to $20 million of additional restructuring charges through the spin-off, which is anticipated to occur in the fourth quarter of 2009. Shortly after the spin-off, we plan to undertake additional restructuring activities to more effectively align our organizational structure and costs to our strategy. We are also evaluating the countries in which we operate as part of the effort to align our cost structure, and we may decide to cease or reduce operations in certain countries. In connection with these additional restructuring activities, we expect to incur additional restructuring charges of up to $200 million, substantially all of which is expected to be incurred from the date of the spin-off through the first half of 2010.

AOL recently cut 100 jobs, and that 1,000 or more additional cuts could lie ahead.

Why Delay AOL Layoff

Everyone knows Tim Armstrong is planning more layoffs at AOL once the company is spun off from Time Warner. So why let them hang over the company's return to the markets as an independently-traded stock?
Armstrong, the former Google advertising chief (pictured), jettisoned some top lieutenants from AOL, the internet conglomerate, last month. Beyond that, he's believed to be planning major job cuts as part of a sweeping reorganization of the company. "AOL is not going to change itself by incremental movements," Armstrong recently told PaidContent. Asked if this meant "large cuts," he talked about going "deep into the employee organization... to come up with ways to structure the company... I would expect announcements about that by early next year."
Early next year would mean just after the spinoff from Time Warner, assuming it goes forward as expected late this year. An AOLer who attended a recent internal "Town Hall" meeting on the restructuring, dubbed Project Everest, confirmed the layoffs are planned for post-spinoff.
One explanation we've heard for that timing is that Time Warner CEO Jeff Bewkes didn't want layoffs taking place while AOL was part of his company. That makes some sense — layoffs typically carry a price tag, and Time Warner presumably doesn't want to take the hit for a move that will benefit another company over the long term. Time Warner isn't taking on debt as part of the transaction, our AOL tipster said, which jibes with the media conglomerate's statements that it is AOL that might load up on debt as part of the spinoff.
But a delayed deep restructuring means uncertainty for investors considering what to do with AOL shares in the earliest days of tradubg, which in turn means a potentially depressed price. A weak re-debut for AOL shares would not bode well for a company that has already had more than its share of struggles. Then again, if anyone can sell uncertainty, it's a consummate salesman like Armstrong.

Electronic Arts to layoff 1500

Electronic Arts announced today it lost $391 million last quarter and will lay off 1,500 employees -- or 17% of its work force -- by April of 2010.
Net sales for the quarter were $788 million, a drop of 12% from the previous year.
Electronic Arts expects the fiscal year to close with a net loss.
People are Twittering the layoffs across the Electronic Art empire:

Nominal Spending US GDP

QA with Laid off Employee

A friend of mine got laid off just as a new report found 467,000 people got pink slips last month. That puts our national unemployment rate at 9.5 percent, a 26-year high. I talked to my friend Leah, an engineer in Los Angeles, about filing for unemployment, coping with unexpected emotions, and visiting Yosemite. Disclosure: I changed her name to protect her privacy.

What was your initial reaction when your boss told you you were getting laid off?

I sat there for a full minute, quiet, with all these things going through my head…I felt shocked and angry and betrayed and then just confused. I think I finally said “I don’t understand.”

What didn’t you understand?

I didn’t understand why because to everyone’s knowledge in the office we were safe. We had plenty of work. But I found out (in my bosses office) that a big project or two had just recently gone on hold indefinitely. Which totally messed up everything. So they had to make some changes.

Have you ever been laid off before?

No.

How are you coping, two weeks after?

Now I feel fine, comfortable. The first three days were tough. I felt sad but I felt relieved.

Why were you relieved?

In a way I had been somewhat frustrated with the way things were going at the office, personnel-wise, project-wise, and I had had some thoughts about doing something different. But no specific thoughts. I wasn’t searching for anything. The relief was now I can think about these other things in more detail.

Did you see it coming?

I remember about two or three weeks before I got laid off that 25 people in a company in San Francisco that was one of our clients got laid off. I remember being surprised, thinking “Wow I really can’t take this all for granted anymore. I don’t think it really sank in because one of those emotions that went through my head, that still does, is that I felt really foolish thinking that my history with the company and the fact that my project was strong was keeping me safe. My project still is going. It has a source of funding. I felt foolish for linking those things. I took it for granted even after telling myself that I shouldn’t.

How prepared financially were you for something like this?
I have some savings that could probably get me through a couple months so I’m not panicking yet.

Financially, have you done anything different since getting laid off?
I’ve been eating out less, drinking less, making choices that I don’t have to spend as much money. Looking back on my expenses, at least 50 percent were eating out.

Are you cutting out a few things entirely or making reductions across the board?

I will probably cut down across the board and not on anyone thing. I’ll put off big purchases that I otherwise would have gone ahead and done. For example I want a new pair of running shoes. But that’s like $100 give or take so when I got laid off, I said I can live without a new pair of running shoes.

Has your attitude about the recession changed since getting laid off?

I’m definitely more interested in unemployment benefits news and economic stimulus package news because now it actually does affect me or could affect me. I never really paid attention to that before, not for lack of interest but for lack of time.

What are you most concerned about?
To be honest I haven’t started to think very far in the future yet because I am really relived to just be able to live in the moment and relax. It’s summer and I know that I have a little bit of a cushion to take a month to just breathe.

What are you least concerned about?
I’m actually not real concerned about not ever being able to get another job because I feel the market will improve, it may just be a matter of time. I have certain knowledge and strengths and excellent referrals. My bosses have said they would be more than happy to help me out with any references. We left on very good friendly terms.

Do you still have health care?
Yes I got a severance package through the end of July and then I have to figure out COBRA.

What is your plan for the next 6 months?

I haven’t thought more than a month and a half out. I’ve got two weeks until a triathlon race and then I’m going to take about 2 weeks to travel through California, visit friends, go through Yosemite, go through Mammoth. I’ll fly back to New York, go see my parents.

Anything else you want to add?
I did file for unemployment. Haven’t heard anything back. It was easy to file online but I haven’t heard anything. It takes a while.

Questions You should ask an interviewer

Trust me: it’s different now. In this economy, where unemployment is high and you have many more job seekers than jobs, you can’t afford to improvise on the interview. So yes, if you got called in to talk about a position, be psyched. But then knuckle down and do some prep work.

Find out as much as you can about the position you’re interviewing for, how the process will go, and who will be interviewing you. Research the people you’ll be talking to (use Google, LinkedIn, Facebook and real-life contacts) so you have common ground to discuss, and check out the company and the competition.

Wait, you’re not done yet. You still have to ace the interview. These five questions will pull you ahead of the pack:

1. “In the first 30, 60, and 90 days what projects would you like to have completed and taken off your list?” When candidates go on interviews very rarely do they know for sure what the hiring manager is specifically looking for. This one question will give you valuable insight as to what is most important to them. If you can ask this one question very early on in the interview you have the blueprint as to specifically what is most important to them.
2. “What one skill if mastered would add the most value to your department?” All companies now want to hire the best or someone that has the drive to be the best. By asking the question above, you show that you are driven to be the best. You will distinguish yourself as someone that is willing to go the extra mile, work hard and become a valuable asset to the company.
3. “What challenges and opportunities is the company and the department facing?” Show your possible employer that you are interested in the company and that you are up for the challenge. This also gives you the chance to differentiate yourself from the competition. You can provide valuable insight on how you would handle the situation.laid off 101 on notebook paper
4. “What are your company goals for the year and what are the department goals?” Everybody likes someone that is goal focused, so if you ask this question, you will standout.
5. “What more can I tell you about myself to let you know that I am the right person for this job?” This one question can make or break your chances with the company. Why? Because you show sincere interest in the company and that you want the job. This also shows that you care and want to make sure all questions were answered thoroughly.

How not to look desperate

Desperate times can lead you to show how desperate really are to land that job. But no matter how tough a time you’ve been having—dwindling savings, unemployment running out, bills overdue—that’s the last impression you want to give a prospective employer.

Job hunting is like dating. People are attracted to confidence and turned off by the hard-up. So how can you seem self-assured while looking for work and land that job as the market heats up? Keep in mind these dos and don’ts.

DO
Remember that the more you have going on, the less desperate you will feel. So keep your pipeline full. Have a job search plan to follow. Set a goal of meeting five new people a week, whether it’s for coffee, lunch or an informational interview.

Follow up with the people you’ve met—and when you call or email, make sure to have a noteworthy topic to discuss. Stay on top of industry and company news easily with Google Alerts—go to the alerts tab in Google and set it up to send you relevant company information. When you see something interesting, forward it along with a comment. Also another way to reach out is to invite the person to connect on linkedin.com

Once you get an interview, be prepared to be asked about your down time. Don’t let the question faze you. Practice your response at home if it helps. Explain how productive you’ve been. Discuss what you’ve learned. “I’ve been strategically aligning myself with contacts that would give me access to organizations XYZ, ABC, and DEF.” “I’ve been keeping on top of the industry, and based on my research on your organization, here’s why I could add tremendous value to your team.”

Leverage a positive response. If, after a first interview you’re told you are a strong candidate, don’t act overjoyed—or to take the opportunity for granted. Follow up on the other resumes you have sent out, and send out emails to contacts and employers. Explain that you would like to make sure you’ve explored all your options before you wrap up your job search. Employers hate losing out on a good candidate.

DON’T
Call daily to follow up on a resume or an interview. Just like in relationships, that reeks of desperation.

Act non-committal or over confident—it will come back to haunt you. Any follow up conversations should be pleasant and your enthusiasm to join their organization should be transparent.

Don’t tell an employer that you took to time to find yourself, and that’s why you have been out of work so long. You will come off as lazy and not serious about your career.

Don’t try to engage a recruiter to help get you feedback at a company you already interviewed with. A recruiter only receives a commission for a candidate that has not already applied to a company.

When working with a recruiter, don’t contact the hiring manager directly. Always let the recruiter do the follow up.

Are you on the Layoff List

So many people report that being laid off came as a total surprise. One morning they show up for work as usual. An hour later they’re sitting behind their steering wheel stunned, with a box of pictures and books in the backseat.

It’s bad enough to lose your job. But to have it take you by surprise is just unfathomable. How can you read the tea leaves on something like this so that it doesn’t happen to you? Or so that it doesn’t happen to you again?

Here are some signs that you might be on a list of people to be laid off:

* Your company has hit hard times and has publicly announced that it will institute “cost-cutting measures.”
* Your industry sector has taken a dive on Wall Street.
* Your company has been acquired, and there’s someone just like you already ensconced in the acquiring company.
* Your company just bought your competitor, and there’s someone just like you in the newly acquired company.
* You work for a closely held family business—and you’re not family.
* You work for a publicly traded business that prides itself on being “one big happy family.”
* You’ve been asked to research ways the business can reduce expenses.
* Your otherwise congenial boss starts avoiding you.
* Your otherwise congenial boss starts snapping at you.
* Your boss starts looking at you strangely.
* Your boss starts looking right through you.
* You inexplicably feel compelled to ask your boss if there’s about to be a layoff.
* You are one of the highest paid people in the organization.
* You are one of the lowest paid people in the organization.
* You’re somewhere in the middle.
* You wonder how your long-time coworker could be taking such a lengthy leave of absence without saying good-bye.
* There is an unusually bulky FedEx package from headquarters that’s addressed to your local HR department.
* There is absolutely nothing out of the ordinary going on in the company whatsoever.
* You have a job.

The best thing you can do:

Recognize that everyone is subject to being laid off.

The worst thing you can do:

Think it won’t happen to you.

The first thing you should do:

Keep in mind that getting laid off has nothing to do with your performance.

Love in the Recessionary times

Timing-wise, it wasn’t the most promising beginning.

He was headed to the opposite coast. But the thousands of miles of separation was the least of our potential problems.

We started dating in the midst of one of the most stressful periods in both of our lives. I had just been laid off from a job I loved, and my industry seemed to be imploding. He would be gone for an unspecified period of time to reorganize his company and — he hoped — keep it from going under.

We were worried about money and questioning our careers. One of us had been stripped of title and paycheck, and was adjusting to a new identity. The other was wondering whether the enterprise he had built from scratch could survive the year.

I’m pretty certain that I would still be carrying on my relationship if I hadn’t lost my job. But it probably would have progressed more slowly.

I know people whose budding romances have sunk in similar circumstances. One friend who lost her job at a big law firm has spent months on the hunt, and her anxiety has spilled into her love life. Earlier this year she started seeing a nice, cute, bright guy — who soon suggested they put the dating on hold until she was in a better place. He didn’t want her to be the one bright spot in her life.

It’s entirely possible that they would have hit a roadblock in better times. The recession may have throw a lot of things out of whack, but romantic chemistry isn’t about the eonomy, stupid. I’m pretty certain that I would still be carrying on my relationship if I hadn’t lost my job. But it probably would have progressed more slowly. The downturn not only gave us more time and flexibility, it forced us to refocus our values and allowed us to see each other more clearly.

In the boom years, there was unrelenting competition for my time and attention. My days endurance races from breakfasts meetings to work to lunches to work to evenings full of dinners, parties, benefits and dates. My refrigerator was empty but for a stick of butter, a few bottles of Champagne and (usually) some chocolate. There was room for someone else, but not a lot of room.

So was learning more about each other. We couldn’t hide behind work or clothes or status symbols, or distract ourselves wth exciting events and activities. He got to see how I defined myself without a job, and whether I could handle not being able to buy new clothes or vacations. Early on, I made myself contemplate the possibility that he both might have to start over financially. And I realized that the recession had already shown him to be optimistic and resourceful, so that was okay with me.

I did have some worrisome moments. I panicked one evening when he said that if his company went under he would move in so I could support us both. “Please tell me you’re joking,” I begged.

Now that I am back at a full-time job, I suppose I could keep us afloat. But ironically, employment has put more stress on my relationship than unemployment did. I work long hours, am adjusting to new demands. It seems there’s a downside to the upturn.

Laid off Twice

What do these three people have in common?

Susan Guldenschuh, an HR supervisor in Kentucky

Russ Singletary, a researcher now working for an Atlanta company

Attorney Inna Efimchik

Laid off? Close.

All three are victims of a phenomenon that seems particular to this downturn: The double layoff. (I should actually be on this list too—read to the bottom.)

With the recession in its terrible twos and the unemployment rate expected to rise above 10 percent, it should be little surprise that some people have taken an extra job hit from the downturn. There are probably even some triple layoffs out there.

Organizations that have managed to stay afloat are going under. Companies that weathered earlier phases of the economic storm are now running out of resources and having to downsize—maybe yet again, as my former employer did this week. And as a new hire you’re likely to be the first to go.

It can be a tremendous blow to feel like you’ve landed on your feet, only to be knocked right back on your ass. Today, the Wall Street Journal offered some advice for those laid off twice. I don’t think there’s anything in the story that specifically helps the double-laid-off, but the tips are useful for anyone seeking a job. (Check out additional advice on our Laid Off 101 page.) For example:

* Don’t let stigma get you—be up front about what’s happened. “I have been laid off twice in the worst economy in 50 years.”
* Don’t let yourself feel like a loser. It will come through in your job interviews and keep you from finding a new position. (Read How Not to Look Desperate.)
* Do take advantage of social networking. Complete your LinkedIn profile, and use Twitter to communicate your knowledge about your industry. Put the links to your profiles in your email signatures.
* Do volunteer somewhere that has a connection with a company you want to work for.

I’d add one more: Come up with a name for your situation. At the end of 2008, I was laid off from my job at magazine publisher Conde Nast. A few weeks later the company rehired me to work at Domino magazine. The beloved pub folded that very day. And voila—pre-fired enters the lexicon! And yes, I now have a job.

Could Blogging Cost You Your Unemployment Check?

A laid-off lawyer’s personal blog, which brought her a total of $238.75 over the course of several months, prompted the geniuses at the New York State Department of Labor to cut off her benefits.

Seems the DOL had conflicting opinions over whether the money she “made” from her blog about meal deals constituted residual income (money made from past work, like royalties from a book) or self-employment income. So they put her checks on hold while they investigate her “business,” according to a story at Forbes.com.

Blogging isn’t the only hazard the unemployed face. A friend of mine who was laid off in November is fighting the DOL over her charity work. This enterprising woman started the New York branch of a national organization that helps teenage girls. She’s is paid not a penny for the hours she spends on the organization, but the DOL wants to withhold her benefits because she’s on the board of the chapter–a “corporation.”

Are we really going to penalize unemployed people for volunteering?

Need we elaborate on how wasteful, counter-productive and just plain stupid this is? Many employment experts are advising laid-off Americans to blog and tweet in order to stay on top of industry news, learn new skills and keep their name in circulation. If they throw some Google ads up on the site to cover costs and make $1 a day (which is often the resulting payoff), they risk losing their safety net.

The country’s non-profits have been hit hard by the downturn, but at least they’ve benefited from the high unemployment, as bright, motivated professionals offer up their free time. Are we really going to penalize unemployed people for volunteering, which could also help them find new jobs as they make connections and expand their skills?

Meanwhile, a cash-strapped state is spending precious tax dollars to investigate sums like $240–which the lawyer wasn’t even hiding. She felt obliged to declare it to the state, and got punished for her candor.

Kingfisher lays off 100 Pilots

Mumbai, Nov 4 (PTI) Vijay Mallya-led Kingfisher Airlines is understood to have put close to 100 pilots, mostly trainees, on the chopping block on grounds of huge losses and capacity reduction.

These pilots have completed their probation and all endorsements, but the company has decided not to renew their service contracts in view of the huge losses and capacity reduction, sources told PTI here today.

Their contracts would not be renewed as and when they expire and hence the job cuts would be carried out in a phased manner, they said.

The pilots, who are planned to be phased out, belong to both Kingfisher and the erstwhile Air Deccan, the sources said, adding that they were grounded last year after the merger.

When contacted, a Kingfisher spokesperson denied "sacking" of any pilot. Such measures are "however inevitable due to the market conditions," a company official said.

Nelson: Bad Economy Means We Should Wreck Economy, Destroy Planet, Let Health Care Languish

I suspect we’re going to be hearing a lot more of this sort of thing in the weeks to come:

Democrat Ben Nelson, a Senator from Nebraska, said the slumping economy and rising joblessness will be factors as Congress considers climate change and health care legislation. They are also driving concerns about the budget deficit, which widened to a record $1.42 trillion in the fiscal year that ended on Sept. 30, he said.

“When the economy’s not strong there’s a lot of interest in controlling spending,” Nelson said.

This really makes no sense. If Nelson thinks the health care and climate legislation before congress would have a ruinous economic impact or something, then of course he shouldn’t vote for either bill. But that’s independent of the current state of the labor market. In reality, neither bill will have much of any impact on a 12-18 month time horizon since their provisions take time to phase-in. Both are aimed at long-term problems—the economic devastation wreaked by an out-of-control health care system and the environmental devastation wreaked by out-of-control greenhouse gas pollution. There’s never a perfect day to tackle a long-run problem, but delaying action doesn’t help the economy in the short-run and only makes it harder to tackle the problem.

On controlling spending, this is nuts. With the economy weak Nelson wants to do . . . what? Lay off teachers? Halt infrastructure projects? Make sure that kids whose parents are unemployed end up malnourished? The economy is suffering from a catastrophic collapse in overall spending with households, businesses, states, and municipalities all pulling back. If the federal government pulls back too we’re going to go down the drain.

November : Unemplyment rate in US at highest 10.2 percen

Nov. 6 (Bloomberg) -- The unemployment rate in the U.S. jumped to 10.2 percent in October, the highest level since 1983, casting a pall over the prospects for a sustained recovery and risking further erosion of President Barack Obama’s popularity.

Payrolls fell by 190,000 last month, more than forecast by economists, a Labor Department report showed today in Washington. The jobless rate rose from 9.8 percent in September. Factory payrolls dropped by the most in four months, and the average workweek held at a record low.

Treasury two-year notes rose on bets the Federal Reserve is more likely to maintain its pledge to keep interest rates near zero. The figures prompted Obama, who signed a bill today extending jobless benefits, to promise fresh measures to help put some of the 15.7 million unemployed Americans back to work.

“We will certainly have very bad payroll numbers in November and December,” said Harm Bandholz, an economist at UniCredit Global Research in New York, whose forecast for a 10.1 percent unemployment rate matched the highest among economists surveyed by Bloomberg. “We don’t foresee businesses going on a hiring spree anytime soon.”

Two-year note yields fell four basis points, or 0.03 percentage point, to 0.84 percent at 4:45 p.m. in New York. The yield touched 0.83 percent, the lowest since Oct. 2. The Standard & Poor’s 500 Stock Index closed up 0.3% to 1069.30 after falling as much as 0.7 percent.

Steeper Drop

Payrolls were forecast to drop 175,000 after an initially reported 263,000 decline for September, according to the median estimate of 84 economists surveyed by Bloomberg News. The jobless rate was projected to rise to 9.9 percent.

Obama signed into law a measure extending a tax credit of up to $8,000 for homebuyers and benefits for unemployed workers, and he promised to pursue further measures to create jobs.

“My economic team is looking at ideas such as additional investments in our aging roads and bridges, incentives to encourage families and business to make buildings more energy efficient,” additional tax cuts, and more steps to ease the flow of credit to small business and promote exports, he said today at the White House.

Jason McKinnon, 34, a San Francisco resident, is among those who could benefit from the measure Obama signed today to add up to 20 additional weeks of unemployment insurance.

Expired Benefits

McKinnon lost his $18-an-hour job in April as a video-game software analyst, and last month his benefits ran out. He said he has sent out hundreds of resumes to companies such as Facebook Inc. and Sony Corp., received about 50 responses and no offers. “I’m feeling like there’s less jobs out there and more qualified people,” he said in a telephone interview. Now he plans to take night classes at City College of San Francisco to improve his chances.

For congressional Democrats facing challengers in midterm elections next year, the continuing erosion in the job market puts them at political risk. Voters on Nov. 3 overwhelmingly cited unease with the economy and worries about jobs as they ousted the Democratic governor of New Jersey and installed a Republican governor in Virginia after eight years of Democratic rule there. Obama carried both states in 2008.

The entire House of Representatives, 34 senators and 37 governors are up for re-election in 2010.

Since Obama took office in January, the economy has lost 3.49 million jobs. The U.S. economy has lost 7.3 million jobs since the recession began in December 2007, when the unemployment rate stood at 4.9 percent.

The administration said last week that the $787 billion stimulus package plan signed into law in February was directly responsible for saving or creating about 640,000 jobs.

Under-Employment Record

The so-called underemployment rate -- which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking -- reached a record 17.5 percent from 17 percent in September, today’s report showed.

“We’ve got lots of people just giving up and leaving the labor force,” said Julia Coronado, a former Fed economist who now works at BNP Paribas in New York. “Consumer incomes are under pressure, and that raises questions about the sustainability of the improvement we’ve seen in consumer spending.”

Some people are pulling up stakes and moving to where they think the job prospects may be brighter. Beth Rubin, 41, lost her position as a receptionist at the law firm Goldstein Bershad & Fried, PC in Southfield, Michigan, in October. The resident of Ferndale, a Detroit suburb, is now selling her furniture and moving to Georgia. “I’m looking to get a job in Georgia, and I don’t know about the job market there, but I can tell you Michigan is horrible,” Rubin said in a telephone interview.

Average Work Week

The average work week held at a record low of 33 hours in October, while average weekly earnings rose to $617.76 from $616.11 a month earlier. Workers’ average hourly earnings were 2.4 percent higher than October 2008, the smallest gain since 2004.

Some companies are cutting payrolls amid concern spending will cool as government-assistance programs wane. The New Brunswick, New Jersey-based Johnson & Johnson, the world’s largest health-products company, said Nov. 3 it will shrink its workforce by as much as 7,000 workers.

Factory payrolls dropped 61,000 after decreasing 45,000 in the prior month, today’s report showed. The median forecast by economists called for a drop of 42,000. The decline included a gain of 4,600 jobs in auto manufacturing and parts industries.

Auto Sales

Sales of cars and light trucks rebounded last month after plunging in the wake of the government’s so-called cash-for- clunkers incentive plan. Vehicles sold at a 10.5 million annual pace in October, up from a 9.2 million rate in September.

Inventories at U.S. wholesalers dropped in September for a 13th consecutive month, a separate report today from the Commerce Department showed, clearing the way for a pickup in orders as sales improve.

Today’s report contained some bright spots. Revisions added 91,000 to payroll figures previously reported for September and August, and the number of temporary workers rose by 34,000, the third consecutive gain.

Payrolls at temporary-help agencies often turn up before total employment because companies are not certain increases in demand will be sustainable enough to warrant the expense of taking on permanent staff.

‘Very Ugly’

“The rise in the unemployment rate is very ugly,” Ethan Harris, head of North America economic research at BofA Merrill Lynch Global Research, said in an interview with Bloomberg Television in New York.

The U.S. economy expanded last quarter for the first time in a year, growing at a 3.5 percent pace as government incentives spurred consumers to spend more on homes and automobiles.

Some companies are gaining confidence. Deere & Co., the world’s largest maker of agricultural equipment, said last week it’s recalling 452 workers, the majority of manufacturing employees dismissed earlier this year at a factory in Iowa.

Fed officials met in Washington this week and signaled that a return to economic growth alone won’t result in higher interest rates. Economist Joseph LaVorgna of Deutsche Bank Securities Inc. in New York said in a note to clients that the central bank “has never raised rates with unemployment rising.”

Productivity gains may be bad news for job seekers

Productivity gains may be bad news for job seekers

WASHINGTON — Companies across the economy are finding ways to do more with fewer workers, dimming hopes that hiring will take off anytime soon.

Employers became leaner and more efficient in the third quarter. Wages, meantime, remain flat or falling. The result is that productivity — output per hour of work — jumped at the fastest pace in six years.

The good news for companies, though, may be bad news for the jobless. As long as companies can get their workers to produce more, they have little reason to hire — at least until consumer spending picks up. And the squeeze on incomes could depress consumer spending, putting the economic recovery at risk.

Still, some economists were encouraged by the productivity report. They say that eventually, employers won’t be able to squeeze more from their staffs. They will then have to ramp up hiring — something that could happen next year, even though the jobless rate is expected to hit double digits.

Productivity rose at an annual rate of 9.5 percent in the July-September quarter, the Labor Department said Thursday. That was much better than the 6.4 percent gain economists had expected. Unit labor costs fell at a 5.2 percent rate.

While companies aren’t doing much hiring, they’re not cutting as many workers, either. The number of newly laid-off workers filing claims for unemployment benefits last week fell to the lowest level in 10 months.

On Wall Street, the better-than-expected jobless claims report and an upbeat forecast from Cisco Systems Inc. buoyed investors. The Dow Jones industrial average added nearly 204 points to 10,005.96, and broader indexes also gained.

The 9.5 percent productivity rise followed a 6.9 percent surge in the second quarter and was the fastest since a 9.7 percent increase in the third quarter of 2003.

The gain reflected that the overall economy, as measured by the gross domestic product, grew for the first time in a year — at an annual rate of 3.5 percent. The higher output came as companies continued to lay off workers. That meant employers produced more with fewer workers.

The 5.2 percent drop in unit labor costs marked the third straight decline and was larger than the 4 percent decrease economists were expecting.

Productivity is the key ingredient to rising living standards. It lets companies pay their workers higher wages. Those increases tend to be financed by increased output, rather than higher costs for products.

But as they struggled with the recession, companies boosted productivity while continuing to lay off workers. Many produced more goods; others kept their output down but slashed costs. Companies kept wages down by freezing pay or imposing unpaid furloughs.

“Survival meant cutting costs as rapidly as possible and fulfilling orders with the fewest number of workers,” said Joel Naroff, chief economist at Naroff Economic Advisors.

Some companies in hard-hit sectors have managed to boost productivity despite job cuts. They’ve had to find ways to stretch their remaining workers to keep up with demand.

Fein Tool North America, a Cincinnati company that supplies auto parts manufacturers, has cut about 100 workers, or 33 percent of its staff. But Fein president Ralph Hardt said the company can still fill its orders by using more overtime shifts and temporary workers.

“We are asking more of our people than ever before,” he said.

Fein also has made technical changes, including increasing their presses’ strokes per minute so they can stamp more metal.

Hardt said he plans to rehire once the economy picks up again. But he’s hesitant to do so quickly.

“If I see signs of recovery, I am going to hire back, but I am going to be very prudent,” he said.

Elsewhere, Union Pacific has found ways to reduce the number of crews it needs and is using more fuel-efficient locomotives. The rail company also rewarded train engineers who saved fuel on their routes with free gas cards for their personal vehicles, all while furloughing nearly 10 percent of its 45,000 workers.

Naroff said hiring could remain sluggish for months. But other analysts are more optimistic. They were encouraged by the productivity report, noting that companies are starting to reach the limits of how much they can produce with their shrunken work forces.

“We believe businesses will have to start to increase hours worked and payrolls around the turn of the year since they cannot expect their current work force to sustain such rapid productivity growth,” said Michelle Meyer, an economist at Barclays Capital.

The problem is that consumer demand could falter once the government removes the stimulus programs it has put in place, such as record-low interest rates and homebuyer tax credits. Companies could stop hiring if they think demand will slump again.

Temporary surges in labor productivity tend to follow the end of a downturn, said Cliff Waldman, an economist with trade group Manufacturers Alliance.

“You’re having a turn in output from negative to positive with a significantly depleted labor force,” he said. “It gives the illusion that productivity has increased. It’s really just arithmetic more than reality.”

In a separate report, the Labor Department said first-time claims for jobless benefits last week fell by 20,000 to a seasonally adjusted 512,000. That’s better than economists’ estimates of 523,000.

Economists closely watch initial claims, which are considered a gauge of the pace of layoffs and an indication of employers’ willingness to hire new workers.

The four-week average of jobless claims, which smooths fluctuations, dropped to 523,750, its ninth straight decline. That’s 135,000 below the peak for the recession, reached in early April.

Despite the improvement, initial claims remain well above the roughly 400,000 that economists say will signal job creation.

Another 4.1 million people claimed extended unemployment benefits in the week ended Oct. 17, the latest data available, an increase of about 100,000 from the previous week. Congress has added 53 weeks of emergency aid on top of the 26 weeks typically provided by states.

Still, as roughly 7,000 Americans run out of extended benefits every day, Congress has approved legislation that would add another 14 to 20 weeks. President Barack Obama is expected to sign the bill.

The National Employment Law Project, an advocacy group, estimates that up to 1.3 million people would exhaust their benefits without the extension.

Economists expect the nation lost a net total of 175,000 jobs last month, adding to the 7.2 million lost since the recession began in December 2007. And many expect the jobless rate could rise as high as 10.5 percent before the recovery gains enough steam to start pushing it down next summer.

what happens to your emails after you die?

Melbourne, Nov 4 (ANI): Saving that parting e-mail from your first love in your inbox? Well, chances are, after you pass away, your spouse and the entire family will know about the long held secret.

This is because web email services like Hotmail and Gmail do not let users specify what should happen to their messages when they die.

In fact, email services owned by Internet giants like Google and Microsoft have a policy of keeping your data after you die and letting your next of kin or the executor of your estate access it. These services can hold tens of thousands of messages.

Accounts with Google's Gmail can hold up to 7GB - or roughly 70,000 emails with a small to medium picture attached to each and they archive the messages you've written as well as received.

When it comes to deleting the data, Microsoft's Hotmail will remove an account if it is inactive for 270 days, while Gmail leaves the responsibility to the next of kin.

Of the top three providers, only Yahoo! refuses to supply emails to anyone after the user has died. The user's next of kin can ask for the account to be closed, but cannot gain access to it.

A Yahoo! spokesperson said the only exception to this rule would be if the user specified otherwise in their will.

Meanwhile, social-networking site Facebook has recently publicised a feature called memorialisation that lets the family of deceased users keep their profile page online as a virtual tribute.

MySpace, on the other hand, says it addresses the issue of family access to sensitive data on a "case by case basis".

A spokesperson for MySpace could not rule out letting a user's next of kin log into their profile - potentially giving them access to private messages. (ANI)

infosys ahead of the world sonia gandi

Software major Infosys is a "stunning reminder" of what Indian talent, ingenuity and hard work can accomplish, UPA Chairperson Sonia Gandhi said today.

"You have shown to India and the world that an Indian company Cannot just be world class, but be ahead of the rest of the world", the Congress President said after inaugurating the company's Global Education Centre-II here.

She said the success of Infosys, India's second largest software exporter, should not be measured in Dollars alone, but in the difference it makes in transforming a society for the better.

Praising the Indian IT industry, Gandhi said the success of Infosys, Wipro, Tata Consultancy Services and other companies had changed the lives of millions of Indians and propelled the country's economy to a record-breaking growth.

Gandhi also spoke of the enabling environment created by the state government for the growth of Indian IT companies.

She recalled the "temples of modern India" established by former Prime Minister Pandit Jawaharlal Nehru and the groundwork laid down by her husband Rajiv Gandhi for the "revolution" in Communication and Information Technology.

Rajiv Gandhi faced "bitter political opposition" to his vision, not just in introduction of computers, but his greater challenge was on the "mindshift" of people in terms of accepting new ideas, she said.

Infosys Wipro in race for deals

Infosys Technologies, Wipro and HCL Technologies are among the software service providers that are laying foundation for the next round of multi-million dollar orders from the big US corporations, by pitching for low-value, but politically important US state governments’ orders.

Infosys, which counts JP Morgan and Morgan Stanley as clients for its services, bids for Arizona Public Service’s (APS) 400 positions, who work in its information-services department, and another 400 or so contractors to raise the staff strength for undisclosed amount.

Nine other US states, some from where politicians opposed offshoring work, are looking to outsource their healthcare operations worth over $2 billion, said Wipro chief strategy officer KR Lakshminarayana, and the company hopes to get a slice of these.

“The discussions are not about offshore outsourcing, but more about working with newer outsourcing vendors, who can deliver locally and keep the jobs here at lower rates,” said a senior executive at one of the Bangalore-based tech firms exploring this opportunity. Many US states such as Missouri, Virginia and Arizona, which are battling falling revenues amid the worst economic slump in their country since the 1930s, are attempting to reduce costs and at the same time want to increase employment opportunities for their citizens. So, they are including clauses such as recruitment of minimum number of staff from their states.

Indian companies, which were used to contracts of hundreds of million-dollars at one go, are bidding for these low-value orders since their traditional clients are cutting down on technology spending and at the same time provides visibility, which would be helpful in getting big orders when tech spending recovers.

“The marketing muscle that comes from such contracts is huge and working with the US state governments send out a signal of importance to other customers,” said Siddharth Pai, managing director of outsourcing advisory firm TPI’s India unit. “For the Indian IT companies this is not a core business, but it creates a halo effect,” he added.

While the global government IT outsourcing market is estimated to be around $100 billion, experts tracking the sector said the US state governments could outsource projects worth up to $5-6 billion this year. States, which in the past opposed the outsourcing of work to Indian companies by the likes of Microsoft and Citigroup, are now turning to the same Indian companies, as their mission now is in line with that of the companies cut costs.


Rodney Nelsestuen of US-based research firm TowerGroup, said state governments in the US are suffering from a reduction in tax revenue due to high unemployment and lower spending on taxable items by the US consumers. “Significant budget cuts are making it difficult for states to maintain the level of services that residents expect. Outsourcing has become an option that governments are looking at,” he added.

The orders from these state governments are for maintenance of records, accounts, healthcare and other administrative jobs, said a consulting firm engaged with a few governments.

Indian companies are not worried about the fact that they may be at a disadvantage to their US peers such as IBM and Hewlett-Packard, which are more familiar with the functioning of the local governments. “As long as you have the competency and ability to deliver what they want and from where they want, you are as competitive as your local peer,” said Wipro’s Mr Lakshminarayana. Wipro already has a $407-million deal from the state of Missouri for application, maintenance and development (AMD) and BPO work for the state’s healthcare division, which it bagged in December 2007.

“They always ask us how many local jobs will we create and that sometimes is an important factor,” he added. TCS, Wipro, Infosys and Cognizant are among a few vendors, who have already hired local citizens. TCS has hired 120 people for its centre in Cincinnati.

“The level of success that India-based outsourcers will have in the future rests on their ability to add local talent, their ability to be viewed as global service companies and not just India-centric, and how quickly they assimilate government requirements – something India-based companies should be good at given their outsourcing history on a global and multi-industry scale,” said Mr Nelsestuen.

Infosys Overhired

Infosys Technologies Ltd, India's second-ranked software exporter, said the business environment is challenging and clients are cautious in spending, although pressure for price cuts has eased.

The company, which employs more than 100,000 people, is not seeing any reason to accelerate hiring at this point of time due to the uncertain business environment, Chief Operating Officer Shibulal said.

" We are very honestly over-hired ," he said. "There is a very slight blip of activity, but there is nothing to tell me it (a recovery) is secular in nature."

Hopes of a pick-up in demand for outsourcing, which had been hit by the global downturn, increased after major Indian IT firms including Infosys beat street estimates in their April-June earnings and announced some large deals in the recent months.

But Infosys officials said that decision making by clients continued to be slow. "The situation is still quite challenging," S D Shibulal said. "If you look at our customers, they are not really seeing any increase on their revenue side. And because they are not seeing any increase on their revenue side, they will continue to be concerned."

The head of Nasscom, India's leading IT industry lobby, said signs of recovery in the United States were yet to translate into real business growth for outsourcing firms, though a pick-up was expected in the second half of the year.

Infosys Chief Executive S Gopalakrishnan said he expected technology spending by the company's clients to be flat in 2010 from the previous year. Ahead of the news, shares in the company valued at about $27 billion, closed up 0.9 per cent, underperforming a 1.5 per cent rise in the benchmark index. The company's shares have doubled so far in 2009, outperforming a 70 per cent rise in the broader market.

Large deals yet to come
Infosys has forecast its first annual revenue fall for the year to March 2010 on demand for fee cuts by its overseas clients. Most negotiations with clients on price cuts was over and the company was not seeing a second round of such talks, Shibulal said, but large deal flows were yet to resume.

"Overall, deals above $500 million which used to be there before the downturn, they have not reappeared in significant manner," he said. Infosys and local rivals Tata Consultancy Services and Wipro last month won IT services contracts from oil and gas major BP Plc.

Shibulal said Infosys' share of the contract was worth $116 million over five years.

Indian Outsourcing Workers stressed to the limit

The outsourcing industry has brought jobs and prosperity to India - but, asks Saritha Rai, at what cost to workers' well being?

The cheery, chatty voice at the other end of your customer care helpline may be a stressed-out, sleep-deprived and depressed twenty-something in Bangalore.

As many young people in India's outsourcing industry are beginning to discover, underneath the heady promise of an exciting job, a good paycheck and attractive career prospects lie long spells of night shifts, ruthless targets and the dreadful monotony of writing code or pacifying angry customers.

The outsourcing industry has long been hailed as a key driver to India's rise as a global economic power. Now, that growth is beginning to take its toll on its workers who labour for long hours in stressful work environments to meet tight deadlines for customers thousands of miles away.

Workers are suffering from obesity, sleep disorders, depression and broken relationships - problems which can lead to more serious conditions such as diabetes or heart disease. In a country where a public healthcare system is virtually non-existent, overworked outsourcing employees could present a health crisis in the making.

The troubles have worsened since the start of the global economic downturn last year. Employees are now particularly worried about job security. They watch anxiously as colleagues get axed from their jobs and their own salaries get slashed.

Karuna Baskar, director at 1to1help.net, a Bangalore-based counseling firm, says there is a recent rise in the number of workers coming in with mental issues like depression, bi-polar disorder and suicidal tendencies.

Many workers struggle to make the transition from the college campus to the office environment and find they cannot cope with the stress, says Aashu Calapa, executive vice president of human resources for outsourcing firm Firstsource Solutions. The industry loses a slice of its workers solely to work stress, he says.

Ash (not his real name), an employee with a multinational firm's captive outsourced unit in Bangalore, has just been discharged from a week's stay in the hospital. Ironically, he prides himself for being near-religious about eating correctly and getting adequate sleep and exercise.

But in the end, all it took was a schedule that went out-of-whack for a week for him to land up in the hospital with acute gastric problems. The doctors advised him to ease off alcohol and better manage work stress.

Ash, who has worked night shifts during his entire four-year career at the back office firm, believes he got away lightly.

His friends suffer from migraines, backaches, insomnia and anxiety attacks. The causes are a combination of long work hours, disrupted eating and sleeping schedules, a fondness for junk food and deadline pressure, he says.

Many outsourcing workers are in their early 20s, just out of college and in their first jobs, and often feel they are invincible. But partying, shopping and living a reckless life on new found economic freedom soon begin to take their toll.

During the weekends, to relieve a week's pressure at work and to keep up with peers, they often indulge in chain smoking and binge drinking.

Not everybody is tough enough to handle the pressure and the lifestyle. Along with health, the invariable casualty is family and relationships, says Baskar whose confidential counseling service sees a surfeit of 19- to 29-year-olds with issues like loneliness, relationship problems and marriage breakdowns.

Globalization and the outsourcing industry in particular have brought rapid and enormous changes in the culture of India cities such as Bangalore, Hyderabad and Pune. In the homes of outsourcing workers, clashes over the traditional system of arranged marriages and the working woman's domestic role are common.

The industry is concerned, says Firstsource's Calapa. Firstsource provides on-call counselors and quality checks on food served to workers - and is currently considering a proposal to offer workers options for their work hours and workdays.

Other companies are doing their bit too, providing counselors, doctors and nutritionists, as well as gym facilities and medical insurance. However, many young workers simply ignore the help available to them.

Outsourcing worker Ash looks back and rues that he entered the job market so young. He now thinks he would have liked to pursue graduate studies. But now he is in, he feels there is no quick exit from the outsourcing industry and wants to stay healthy and get ahead.

Foreign Banks Cut Workforce in India

Foreign and private banks have been cutting down on their workforce in India, according to the profile of banks that Reserve Bank of India released on Wednesday.

The report on the key financial indicators of the bank shows how banks those were on a hiring spree until 2007-08, sacked people to contain costs and improve profitability.

In the case of foreign banks, some such as Standard Chartered, HSBC and ABN Amro have cut their workforce by a few hundred numbers, while private banks, such as ICICI Bank, reduced its workforce by almost 5,500 from 40,686 employees in 2007-08 to 34,597 in 2008-09.

The economic downturn that hit major financial institutions in the country in the past year also affected banks. With the rise in non-performing assets and reducing loan growth, banks were forced to implement a series of cost cutting measures, including trimming of workforce.

According to the report, banks like HDFC and Axis have, however, been recruiting people as their total number of employees has gone up year-on-year. The report that highlights business figures of all the scheduled commercial banks showed a rise in the employee force of all the nationalised banks. Reduced workforce reflected in higher number of business and profit per employee for all the major scheduled commercial banks.

Some Hiring Some Firing

The economic downturn may have led to heavy job losses in many sectors, but the situation perhaps isn't that gloomy when looking at all the industries together as an average of five companies expanded their workforce for every four cutting down on their staff size.

An analysis of regulatory disclosures about workforces made by companies in India shows that more than half of them hired employees- some in thousands and many in hundreds- even as many others pruned their employee-strength last fiscal.

Out of close to 450 companies for whom employee figures are available for the past two fiscals, the workforce grew for nearly 250 firms, according to an analysis of workforce details compiled by financial data provider Capitalline, which tracks these details from annual reports and other regulatory filings by the companies for their financials.

Together, these companies added more than 1.5 lakh employees during the latest financial year to their workforce, representing a growth of about 7 per cent from about 19.7 lakh in the previous fiscal.

However, this analysis does not take into account the changes in workforce in the current fiscal year which began in April 2009 for a majority of the companies and in January this year for some. There have been reports that many job losses have occurred in the current fiscal year also and these are not reflected in this analysis.

Hiring tools for Firing

With a dip in recruitments in the face of economic slowdown, skill assessment tools have now assumed a new and more ‘structured’ role — to help companies internally gauge the capabilities of an existing employee and decide whether he should be trained further, promoted or sacked.

Though the use of these tools for recruitment purposes has taken a back seat now, their demand for internal assessment tests has gone up, said Madan Padaki, CEO of MeriTrac Services. “The ball is now in the employer’s court. He has more choices as the availability of talent in the marketplace is more,” he said.

Skill assessment solution providers are witnessing a 20 to 25 per cent increase in demand from employers for assessing their workforce despite the fact that many of them have become leaner during the downturn, said R Kannan, CEO of Assess People.

“MertiTrac has been handling 90,000-125,000 assessments a month for the past two years. The firm has noticed a sharp rise in enquiries from IT/ITeS, BFSI and retail companies during the past six months. From around 10 enquiries in a quarter, a year ago, MeritTrac has received 25 enquiries for internal assessments each during the last two quarters,” said Padaki.

“Looking at the nature of questions framed for assessment tests, it is evident that at least 25 per cent of them were used to find non-performers, which could be used for downsizing purposes. This trend started only post-October last year,” said Padaki.

Almost 60 per cent of the demand is from IT and ITeS companies.

Organisations are focusing on three areas — effectiveness of training, a framework to determine employee retention and promotion and mapping their career path.