HR Buzz – June 25, 2012

MNCs in India employ 2.2 lakh in R&D roles

The Hindu Business Line

India is becoming an R&D hub for corporate names such as IBM, SAP and Oracle, The Hindu Business Line reports. Currently, 30 percent of the top 1,000 R&D spenders have a presence in the country. A study by Zinnov says subsidiaries of multinational companies (MNCs) in India have a total talent pool of 2.2 lakh. They spent $7 billion to $7.5 billion in all on the workforce in fiscal 2011. Of the top 1,000 global spenders, the industrial sector was in the lead, attracting 6 percent of the total R&D expenditure, followed by software/Internet and automotive at 9.4 percent each, semiconductors and electrical/electronic equipment at 8.6 percent and 8.3 percent, respectively. The sentiment continues to remain positive across geographies, Sidhant Rastogi, director globalisation advisory, Zinnov, said. Global R&D investments grew 8.2 percent in FY11 compared to the previous fiscal.

Click here for the story from The Hindu Business Line.

Wells Fargo may shift jobs to India, Philippines

Economic Times

Wells Fargo is moving jobs outside the U.S. as it seeks to cut costs, Economic Times reports, citing the Charlotte Observer. The bank aims to reduce quarterly expenses by about $1.7 billion by the end of this year. Wells Fargo is planning to offshore work in its retirement division, technology areas and other business lines to India and the Philippines, spokeswoman Bridget Braxton said. A global workforce could also help it meet the demands of clients worldwide who want service round the clock. The bank could use less expensive workers overseas, mostly for back-office processing tasks, David Carroll, head of wealth management, brokerage and retirement services, had said in February. The majority of the employees will continue to be based in the U.S. Wells Fargo had about 265,000 full-time employees at the end of the first quarter.

Click here for the story from Economic Times.

Recruiters, candidates tread warily on top spots

Economic Times

CXO hiring is dipping in the country, with companies not being able to fill top-level positions easily, Economic Times reports. Arjun Srivastava, head consumer practice, at Egon Zehnder International, says people in leadership positions are being cautious and do not want to invite instability in difficult times. The hiring period is getting stretched to seven to eight months, as opposed to the usual four to five months, he adds. CXOs feel they are better off where they are and do not want to take a chance, says Ajay Singh Shekhawat, director at Stanton Chase. It is not just about designations and titles and compensation. Senior-level candidates are evaluating factors such as where the market is headed, according to Sangeeta Sabharwal, senior partner at Transearch India. Sectors such as financial services, IT, technology, consumer goods and telecom are finding it the hardest to fill CXO roles.

Click here for the story from Economic Times.

Barclays India looking to cull 600 jobs by March

Financial Express

Barclays India will cut up to 600 jobs by March as it scales down lending activities, Financial Express reports. Around 400 of these positions are likely to be in consumer banking, while job losses in its non-banking finance arm could amount to 220. The bank had announced a restructuring of its operations in India in December as part of its global cost-cutting measure. Barclays is withdrawing from retail lending in the country, a process that is expected to be completed in a year. June will see 30 jobs being culled in the banking division, which will add up to around 350 job losses out of the 400 roles identified to be trimmed by the year-end. Executives on the lending side, for instance, sales force, collection and support functions such as risk officers, are likely to be affected the most.

Click here for the story from Financial Express.

Takeovers abroad may entail high staff liabilities

Economic Times

As Indian companies go global, they will have to pay heed to how they design their benefits portfolio, say Towers Watson’s Gene Wickes, global benefits director, and Andrew Heard, managing director, Asia-Pacific benefits, in an Economic Times report. Emulating the U.S. or European parent firm is not a good idea. The benefits design should be specific to the country in which they are operating. There is an increased need for better governance, particularly with Indian companies. They might end up buying liabilities around retirement or health promises offered by their predecessors that the companies cannot afford. Research shows Indian companies have expanded into mature markets in the U.S. and Europe, where a lot of these liabilities exist. Effective communication programmes should tell employees what you are offering them, and how that related to your employee value proposition and business strategy.

Click here for the story from Economic Times.

Eye on growth, tech firms boost hiring in India

The Hindu Business Line / Economic Times

Tech companies are on a hiring spree in India. Leading videogame developer Electronic Arts (EA) employs 9,000 people globally and is looking to hire 5,000 software engineers over the next few years, The Hindu Business Line reports. Rajat Taneja, EA’s chief technology officer, said the company currently has 400 people in India, a majority located in Hyderabad. It plans to double that number in two years. Xerox, too, has hired about a hundred professionals in India to shake things up, adds Economic Times. The company is developing India-specific products to enter newer segments including consumers and small businesses. It also wants to focus on services, a big revenue earner for the parent. Xerox named Rajat Jain managing director for India in February to accelerate growth. Local professionals have also replaced expats in four senior positions.



Click here for the story from The Hindu Business Line.

Click here for additional coverage from Economic Times.

Own mobile devices pose network security hazard

The Hindu Business Line

BYOD (bring your own device) is gaining popularity at work. However, security firm Fortinet found in a survey that the policy poses serious security risks, The Hindu Business Line reports. The survey covered 3,800 employees in the age bracket 21 years to 31 years in 15 countries, including 209 from India. It found that 84 percent of Indians bring their own devices and 65 percent consider it a right and not a privilege. Users want and expect to use their own devices for work due to convenience, but they do not want to hand over responsibility for security on their own devices to the organisation, said Patrice Perche, senior vice-president of international sales and support for Fortinet. Companies need to protect their IT infrastructure by strongly securing both inbound and outbound access to the corporate network, instead of just managing mobile devices.

Click here for the story from The Hindu Business Line.

What to do when a job switch misfires

Economic Times

A job switch may not always work in your favour. There are a number of steps you could take if your move does not go as planned, says an Economic Times report. Get clarity about what you want in a job. Many people are not sure whether they want money or the thrill of a role. Once they are clear, they should go for it. A skill-gap test can help decide what drives candidates and the kind of roles that will fulfill their ambitions. If the new job description is different from the work one ends up doing, a meeting with the manager can help ease differences in perception. Kamal Karanth, managing director, Kelly Services, suggests giving the new job at least a year. A quick move is acceptable if the candidate has stayed on for four years or more in previous jobs.

Click here for the story from Economic Times.

Addressing quality in online higher education

Mint

The problem of quality online education may finally be put to rest, with the Massachusetts Institute of Technology (MIT) and Harvard University announcing the launch of their online platform edX last month, Mint reports. Quality education is a problem the world over. While India faces the dilemma of providing greater access to youth, governments in the U.S. and the U.K have to deal with making their top-class education affordable. The platform will offer courses from both universities and include lessons, quizzes, complete with immediate feedback and student-ranked questions and answers. The online education space has so far been relegated to the sidelines with participants such as the Khan Academy, MIT and a handful of Indian universities. But the concept of interaction, grading and evaluation is relatively new. If edX can crack this, the implications for online learning are huge.

Click here for the story from Mint.

People Moves & Recruitments

Natco Pharma names Vice Chairman & CEO

The Hindu Business Line

Natco Pharma has appointed Rajeev Nannapaneni vice chairman and CEO, The Hindu Business Line reports. He was previously COO.

Click here for the story from The Hindu Business Line.

Tata Motors India MD retires

Economic Times

Tata Motors’ India Operations Managing Director PM Telang has retired, Economic Times reports. Meanwhile, Ravindra Pisharody, president, commercial vehicles, has been elevated as executive director, commercial vehicles.

Click here for the story from Economic Times.

Ashok Leyland names Exec Director HR

Economic Times

Hinduja Group company Ashok Leyland has recruited NV Balachandar executive director HR, Economic Times reports. He has previously worked with the Taj Group of Hotels and Aditya Birla Group.

Click here for the story from Economic Times.

Carlyle taps India MD from Accel Partners

Financial Chronicle

Carlyle Group has hired Neeraj Bharadwaj as managing director of its India investment team, Financial Chronicle reports. He was previously with Accel Partners.

Click here for the story from Financial Chronicle.

 

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