The platform provides help in the form of four streams:
Sutras - authenticated knowledge base,
Applications - intelligent applications that help in career related decision making,
Wiki - User generated knowledge base,

Mentorship - real person help through mentor-mentee relationships and a concentrated community of BPO related people to reach out to.

Lifestyle support system applications like classifieds, finding accommodation and roommates, trading electronics, etc in an environment where both the buyer and the seller are BPO aware, said Sudhindra Mokhasi is the founder of BPO Sutra.

Typical Information shared is on:

Career enablement help: Understanding the industry and the various job roles available at the entry level, finding a job, settling into one, moving to a new city etc

Career enhancement help: Tips on IJP (Internal Job Posting), growth & growth options, managing the various relationships at work, improving professional performance for better growth, complete information about the departments and roles that a candidate can grow to along with information about how to crack the interview etc

Lifestyle improvement help: Achieving a healthy work-personal life balance, health tips, money management, weekend planning etc

Industry information for outsiders: Understanding the BPO industry, common fears allayed, common misconceptions and myths etc.

The company has outsourced the website to an international hosting provider. It has installed Captcha based human-robot detection and spammer deterrent for external inputs, a security process with evaluative, preventive and corrective measures built on open source technology is also in place.

The privacy features have been developed based on the feedback of the eight months of alpha of the website and are very mature. For example, the user decides what is visible to which constituency of profile visitors. The user can even choose not to appear in search results. All images uploaded to the site are reviewed by the moderation team. We are currently testing a site-wide bad word filter masker and expect to deploy it soon, said Mokhasi.

In an era, where there are other similar companies offering similar packages, what value add will BPO Sutra offer? Our platform is different from the social networking sites like Big Adda and Orkut, Linkedin and Xing as the structure, content and applications cater to the specific requirements of the BPO people, said he.

The portal is still in its beta stage. Users go through a screening process before we send them an invite code, or need to be invited by pre-screened members. While eventually the numbers will become important, we are currently building a quality user foundation. In the first month, we have admitted close to 1000 registered users. Our plan is to have registered user base of 30,000 to 50,000 at the end of the first year of the platform being available to public, said Mokhasi.

The subprime crisis and the subsequent meltdown have had a mind-boggling impact across the globe. In this article, I would like to focus on their impact on the Indian IT services industry and the opportunities it is likely to throw up for companies operating in the Third Wave.

Let’s first look at the Three Waves of Indian IT.

The Three Waves of the Indian IT Industry

When we look at globalization, specific industries in emerging economies typically go through three waves of evolution. The electronics industry, first in Japan, then in South-East Asia and now in China, are good examples of this. In the first wave, companies in emerging economies typically act as component suppliers to developed countries that manufacture the complete product. In the second wave, the local industry gains enough expertise to provide cost-effective contract manufacturing services - of either the entire product or major sub-assemblies. The third wave is when a set of firms start marketing these products under their own brand - initially within their own countries, and then going international.

We can trace the evolution of the software services industry in India using a similar paradigm.

Wave 1 (Proving Capability through People) started in the 70s and 80s and peaked in the mid-90s; it established the competence of the Indian software professional and the industry got results largely through staff augmentation.

Wave 2 (Offshore Development) established India as a destination for low-cost, high-quality programming services. The catalyst was the Y2K bug and Indian companies’ success in delivering these projects cost-effectively. Many Fortune 1000 companies discovered that moving their application maintenance and ongoing development activities to India was viable and attractive. The Second Wave of Indian IT started in the mid to the late 90s, and is at its mainstream phase today.

Wave 3 (Strategic Value Delivery), which is emerging, will be characterized by Indian companies moving to high-value, IP-led services that are strategic to the customer and hence command premium, value-based pricing. The industry is already facing a severe shortage of talent, rising attrition levels and increasing salary costs. All indications are that the linear relationship between growth and headcount will not be sustainable. The future is in creating strong brands out of India that command the respect and trust of large global customers and hence the appropriate value.

Orders of Short-Term Impact

The first order impact of the crisis is obviously related to the banks that have either been unable to survive as stand-alone entities (like Bear Sterns and Lehman) or have taken a deep hit and are trying to recover on their own. These institutions may cancel some contracts, and downsize others. This will have an immediate impact as most of them are large customers of Indian services firms.

The second order impact will be on firms with large investment portfolios that have been exposed to subprime lending. A prime example is AIG. In such cases, the firms may get more conservative on new initiatives and discretionary projects, thereby impacting the revenues of Indian firms that service them.

The third order impact is based on fears of recession and the general conservatism that it is likely to bring in discretionary spending.

Given that 30% or 40% of Indian IT services revenues come from the BFSI segment, NASSCOM has brought down its growth estimates from 30% to between 21% and 24% for the year.

The Longer-Term opportunities

While we can blame blind optimism and greed for the present crisis, at a more fundamental level it is a failure of systems.

The quality of underwriting at the point of loan origination has failed. Systemic controls that ensure uniform and consistent application of underwriting rules would have done much to avoid bad loans. Credit scoring that took into account not just the propensity to pay but also the quantum of debt that a person had any hope of repaying would have brought these issues to light much earlier.

Better transparency and visibility of the underlying asset portfolio, and a more balanced approach while packaging a set of mortgages into bonds, would have helped monitor the health of the assets and the loans in real-time.

Better controls and risk management systems governing individual firms as well as the entire financial system would have helped to track the quantum of leverage and the risks associated with it - both from the perspective of board governance and regulatory oversight.

For too long, large institutions have been trying to get away with spending 80% of IT dollars on maintenance and only 20% on new initiatives. In a recent Information Week article, Rob Preston, argues strongly against the 80-20 rule, and says that IT’s top priority is to release money for new projects.

Today’s financial institutions are large and complex, but their core enterprise systems are inadequate. To make matters worse, quant wizards have devised sophisticated financial products that are derivatives of derivates and far removed from the physical reality they try to hedge against. So much so that the underlying financial control and risk management systems are unable to provide adequate governance and oversight.

To top it all, the financial crisis is forcing mergers of huge, complex institutions that were individually ungovernable in the first place. The only possible way these institutions can be managed is with substantial investments in new IT applications that can track all the nuances of the underlying operations and provide meaningful online, real-time controls.

Implications for Indian IT

Clearly the need is to reduce maintenance budgets and increase transformation budgets. Reduction in maintenance budgets will force companies to send more work offshore - which is good news for the Wave 2 services players in India. However, customers will force the vendors to bring in new efficiencies, and expect aggressive cost improvements year on year.

There are tremendous opportunities for Wave 3 companies that have the expertise and intellectual property assets to bring better governability and manageability to these large enterprises. Indian companies will probably have to partner with local firms that have this expertise or hire these experts in-house (easier now). This is the time for these companies to make the investment - so that they will be able to reap the benefits in the years to come.

Author: Chief Managing Director of Mastek Ltd.

TheInfoPro.net, an independent research network has announced new findings on 2009 storage budgets among Fortune 1000 (F1000) enterprises.

The survey said that the financial services sector continues to be weak, with 68% of respondents expecting to decrease storage spending. However, 75% of technology organizations and 63% of manufacturers sited significant declines in 2009 spending levels.

1. 32% spent less in 2008 as compared with the amount that had originally been budgeted, bringing the average 2008 spend to $10.7 million.

2. 32% of clients expect to spend the same or more in 2009 vs. 2008 down from 81% in the 2008 vs. 2007 period.

3. The average 2009 budget cut vs. actual 2008 spending represents a 14% decrease.

The studies are conducted twice a year and include discussions about spending with storage suppliers such as EMC, NetApp, HDS, IBM, and HP.

We started to witness potential softness when we completed the initial 2008 Storage spending study in Q2, and as would be expected, the just-released Q4 update shows a material decline, said Ken Male, CEO of TheInfoPro. The macro economic environment has been a driver for the spending decrease in 2008 compared with 2007, along with the reduced planned spending for 2009. However, excess capacity and the procurement of lower-cost tiers of storage have also contributed to the considerably lower Q4 budget flush that we’re witnessing compared to previous years.

By Joan Gralla

NEW YORK, Dec 16 (Reuters) - New York Gov. David Paterson on Tuesday proposed a new $121.1 billion budget that increases spending by 1.1 percent and relies on cuts as well as higher taxes and fees to close a 15-month $15.4 billion deficit.

Saying the state faces its worst fiscal crisis since the Great Depression, the Democratic governor in a televised address said he was not proposing any “broad-based” tax increases. But he did recommend shutting tax loopholes for hedge funds and proposed an extra 5 percent sales tax on luxury items, including yachts and jets, jewels and furs.

Wall Street’s troubles cost the state dearly because it gets one-fifth of its tax revenues from the financial sector. Hedge funds have in the past avoided federal tax hikes proposed by Congress by arguing they would move overseas. New York City is home to a number of hedge funds, although lower-tax Connecticut has also attracted many firms.

Democrats in the Assembly have sought to raise personal income taxes for millionaires. Paterson’s strategy includes a number of fee increases that would hit residents of all income levels, from a new obesity-fighting tax on sugary soft drinks to higher motor vehicle fees.

Beer and wine drinkers may pay higher excise taxes, but consumers would be able to buy wine from groceries and drug stores. At present, beer is available in groceries and drug stores but wine can only be sold at specialist liquor stores.

A sales tax exemption for clothing and footwear that costs less than $115 would be abolished. Homeowners would lose rebates under a property tax relief plan, called STAR.

Noting the credit crunch has driven interest rates on student loans as high as 18 percent, Budget Director Laura Anglin unveiled a new $350 million lending program for students that will only charge 8 percent rates. But students will have to pay higher tuition at state universities and colleges.

New York City is the only municipality to get less aid from the state, taking a $328 million reduction over last year’s budget. Paterson is planning to reduce funding for the state mass transit agency by $285 million, although the agency says it needs 23 percent more revenue.

Lame duck Senate Republicans last month rejected Paterson’s plan to slice $2 billion of spending, and since then, the Democrats, who won a two-seat majority in November, have failed to pick a new leader. That could imperil Paterson’s budget.

“I think the legislature has been sobered by the incredible downturn in the economy,” Paterson said. “It won’t be easy, it won’t happen overnight.”

Paterson is proposing to save more than $1 billion by enacting his budget by March 1, a month before the deadline.

He is also proposing to increase welfare grants for the first time in 18 years, increasing 10 percent per year for three years, a move that would benefit children most, said Anglin.

More than 500 workers will be laid off as at least 7 agencies are merged. The state workforce will lose a total of 3,108 positions. Workers, who on average earn $68,000 a year, will be asked to forego a planned pay increase, and benefits for new workers will be reduced while the retirement age is raised to 62 from 55.

Paterson is proposing $3.6 billion of cuts in healthcare, mostly in Medicaid, the state-federal health plan for the elderly, disabled and poor. Paterson noted New York’s Medicaid plan will still be the most generous in the nation.

Public schools will lose $2 billion of aid, though Paterson said a majority have sufficient reserves to offset the cut.

Other popular programs singled out for cuts include over $400 million of cuts in environmental protection and mental hygiene, and $300 to $400 million of reductions in human services, economic development, work force, and higher education. (Reporting by Joan Gralla; Editing by Chizu Nomiyama)

Source: Reuters

TOKYO (AFP) — The Japanese cabinet has approved a 4.8 trillion yen (54 billion dollar) second extra budget to finance a massive stimulus package, according to government officials.

Prime Minister Taro Aso’s cabinet plans to submit the budget, for the year to March 2009, to parliament early next year, the officials said.

The budget, exceeding the 1.81 trillion yen first supplementary budget, is intended to fund cash handouts, a job-creation scheme and other economic measures in the 26.9-trillion-yen stimulus package unveiled in October.

Separately, the finance ministry announced a draft state budget reaching an all-time high of 88.5 trillion yen for the year to March 2010, giving up its belt-tightening policy amid the global financial crisis.

“I would like to compile an audacious and practical budget aimed at recovering the economy and securing people’s life,” Aso said in a statement.

The total amount of national bonds issued in the 2009-2010 financial year will reach 33.3 trillion yen, marking the first rise in four years.

“The rapid deterioration of the economy is far beyond our projections,” Finance Minister Shoichi Nakagawa told a news conference. “It is our important task to take flexible measures for the people and the economy.”

The government plans to adopt the draft budget on Wednesday following minor revisions. It will then be submitted to parliament in January.

The Japanese government on Friday forecast zero growth for the year to March 2010, battling to stave off a prolonged contraction in the world’s second-largest economy.

It was Japan’s first zero growth forecast in real terms in seven years as Asia’s largest economy is battered by slowing demand overseas for its exports and a slump in domestic demand.

The global economic crisis has plunged Japan into recession in the current year to March 2009, despite earlier government projections of growth.

Yahoo has bought a 30 percent stake in Info Network Management Company (INMAC), a company in Chennai in south India that specializes in telephone directory search.

Users in India will now be able to access information about local businesses and services through Yahoo Web sites such as Yahoo Local — and also by phone through the Call Ezee service offered by INMAC, said Keith Nilsson, senior vice president and head of emerging markets at Yahoo.

Starting with data integration of the two companies’ lists, Yahoo also plans to look at other ways of integrating the business models of INMAC and Yahoo, Nilsson said.

Yahoo did not disclose how much it paid for the stake in INMAC. The deal gives Yahoo representation on the company’s board, the company said. Yahoo also has a revenue-sharing agreement with INMAC, Nilsson said.

The Call Ezee service currently covers 14 cites across India. Consumers can call the local Call Ezee number from any mobile or fixed line phone, and request contact details of a business, or a list of businesses that offer the product or service they are looking for.

Indian businesses can be listed on the directory without any charge, although sales leads are charged on a premium listing or ‘pay for performance’ basis.

INMAC expects the funding provided by Yahoo to enable it to continue to develop its team and technology as it seeks to triple its reach across India over the next two years.

The Indian local search market is seeing significant changes, as consumers are increasingly using mobile phones to search for and find local businesses, Nilsson said.