WIPRO and MEGASOFT BANNED

WIPRO and MEGASOFT BANNED after SATYAM ASATYAM Bail Out Initiated! What NEXT? Demise of IT Industry ind INDIA relates to WORLD BANK and US Policy SHIFT. FUCKING Foreign Capital creates CONSUMER CULTURE and ANNIHILATES the ECONOMIES in the COLONY!

Troubled Galaxy Destroyed Dreams: Chapter 143

Palash Biswas

Obama Asks Bush to Notify Congress of Intent to Seek TARP Funds

http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aik5Wv_K3na8
By Holly Rosenkrantz

Jan. 12 (Bloomberg) -- President-elect Barack Obama asked the Bush administration this morning to notify Congress he plans to seek the remaining $350 billion in financial-rescue funds, White House spokeswoman Dana Perino said.

“President Bush agreed to the president-elect’s request,” Perino said.

To contact the reporter on this story: Holly Rosenkrantz in Washington at hrosenkrantz@bloomberg.net



Market Scan
Outsourcers On The Outs
Vidya Ram , 01.12.09, 11:10 AM EST
Sector faces a setback over another IT services firm embroiled in controversy.
India's blighted outsourcing sector suffered another setback Monday as Wipro, one of the country's biggest outsourcing firms, was blacklisted by the World Bank for "providing improper benefits to Bank staff." Also on the list was Satyam Computers, which faced controversy last week after Chairman Ramalinga Raju resigned and admitted to falsifying the company's earnings for several years.

Shares of Wipro Technologies (nyse: WIT - news - people ) had fallen 9.4%, to 227.40 Indian Rupees ($4.67), in late-afternoon trading in Mumbai on Monday, after the World Bank published a list of three companies which had been "debarred from receiving direct contracts" in the "interest of fairness and transparency."

Under the bank's "corporate procurement program," Wipro will be barred for four years, beginning last June. The other two on the list are also outsourcers: Satyam and a smaller rival called Megasoft Consultants. Satyam was accused of providing improper benefits and also "failing to maintain documentation to support fees charged for its subcontractors," while Megasoft was barred for "participating in a joint venture" with staff from the bank, while also conducing business with the bank.

A World Bank spokesman couldn't be reached for comment about specifics of the ban.

Wipro said Monday that it had offered stock, in accordance with America's Security and Exchange Commission rules, at the time of its initial public offering of American Depositary Receipts, which gave U.S. investors an opportunity to buy shares of the company. The offer was made through the bank's chief information officer, and a "senior staff" and $72,000 of shares were bought at the IPO price. "All participants in the program signed a conflict of interest statement that their purchase did not violate any ethics or conflict of interest policies of their company."

The company adds that its revenue from the World Bank is "insignificant" to date, while the ban would not "adversely affect our business and results of operations."

Timing-wise, the development is terrible for Wipro, after the troubles at Satyam Computers (nyse: SAY - news - people ) called into question the sector and their system for corporate governance. Satyam's Raju is now in custody in the south Indian city of Hyderabad, along with Chief Financial Officer Vadlamani Srinivas. Shares of Satyam soared 44.2% on Monday after three new members were appointed to the board.
http://www.forbes.com/markets/2009/01/12/wipro-satyam-india-markets-equity-cx_vr_0112markets11.html


WIPRO and MEGASOFT BANNED after SATYAM ASATYAM Bail Out Initiated! What NEXT? Demise of IT Industry ind INDIA relates to WORLD BANK and US Policy SHIFT. FUCKING Foreign Capital creates CONSUMER CULTURE and ANNIHILATES the ECONOMIES in the COLONY! IT Industry was the TOPMOST Priority of the BRAHAMINICAL Bastardised POLICY Makers, Economists and Politicians since eighties sidelining and killing Indian peasantry. British Colonial Rule dared not to kill agriculture despite full scale Exploitation of Indian Human and natural resources. But US Corporate Imperialism associated with Hindutva and Zionism BRED all the types of REAL BASTARDS who have KILLED Indian VILLAGES, Districts an Rural World covered with GREEN! GENERATION NEXT has been POISONED with IT XXXXX Venom under BLUE REVOLUTION Drive full scale! Not only COMPUTORS, ROBOTIX waits in the wings to appear anytime with FINAL FATAL KILLING INSTINCT. Ten to Fifteen Lcs of our YOUNG Generation have been destined to lose JOB and ironically, most of them belong to High Caste Hindu families. The BRAHMIN Bastard leadership created MUSHROOM SCHOOLING of IT discarding TEXT, higher studies, Expertise, knowledge, research and investigation! Information replaced Knoldge. Memory was replaced by COMMAND. News have been replaced by BITES and SCROLLING!

Electronics and Information Technology is the fastest growing segment of Indian industry both in terms of production and exports. Today, the electronics industry is completely delicensed with the exception of aerospace and defence electronics, and alongwith the liberalization in foreign investment and export-import policies of the entire economy, this sector is attracting considerable interest not only as a vast market but also as potential production base by international companies. In recent times, ‘software development and IT enabled services’ have emerged as a niche opportunity for India in the global context. The Government is taking all necessary steps to make India, a Global Information Technology Superpower and a front-runner in the age of Information Revolution. The Government has announced promotion of Information Technology as one of the five top priorities of the country and constituted a National Task Force on Information Technology and Software Development.

Mission

To cater to information needs in the field of electronics of the Industry, Entrepreneurs, Planners and Decision-Makers; Data Bank and Information Division (DBID) of Department of Information Technology has developed and maintains a large integrated information base called "LIPS Information System". It covers production, exports, foreign collaborations, manufacturers, other macro level statistics relating to Indian Electronics Industry.

DBID has also brought out a comprehensive book - "Guide to Electronics Industry in India". This Guide covers a wide range of information such as manufacturers directory, product directory, export product directory, time series data on production and exports, production trends, electronics units in states, etc.





Global software major Wipro Technologies Monday admitted that the World Bank had barred it from securing its contracts from 2007 to 2011.


“The World Bank determined in June 2007 that Wipro would be ineligible to contest direct contracts from 2007-2011,” the IT bellwether said in a notification to the stock exchanges.

As part of its revised disclosure policies, the company said that its inability to get business from the Washington-based bank would not adversely affect its business and results of its operations, as revenue from the development bank was insignificant.

“In 2000, as part of our initial public offering (IPO) of American Depository Shares (ADS) to our employees and clients in the US, our representatives made an offer to World Bank employees to purchase the shares at market price under the Securities and Exchange Commission approved directed share programme (DSP).

"The World Bank, however, directed the offer to the family members and friends of its employees. Though they purchased 1,750 shares for about $72,000 at the IPO price ($52.48), they signed a conflict of interest statement that purchasing the shares did not violate any ethics or conflict of interest policies,” Wipro said in the notification.

“The programme objective was to involve employees and customers with the public offering to expand our recognition and brand. A majority of the shares sold under the DSP were allotted to our employees,” the notification added.

Who would save our CHILDREN from WINTER Blues, DEPRESSION, Suicides, drug Addiction, Rave parties, Divorce and Personality disorder? The Colonial Government is engaged to bail out the ILLUMINITI, India Incs, Corporates, MNCs, Builders, Promoters and Burueacrates! The Bombay Stock Exchange benchmark Sensex on Monday tumbled nearly 300 points, the third time in a row, on aggressive selling by funds, weak opening in European stock markets, and the World Bank debarring more software companies, including Wipro, till 2011. The Sensex, which had been falling in the last two trading sessions after the Satyam Computer fraud came to light, fell further by 296.42 points at 9,110.05. It touched the day's low of 9,024.45 and a high of 9,331.13 points. The 50-share National Stock Exchange index Nifty fell 99.90 points at 2,773.10, after touching a low of 2,748.55.

How may we hope for a CHANGE with ANNIHILATION of CASTE and CLASS? Our marxist friends are now committed to Capitalism and Corporate Imperialism discarding ideology and Mass Movement, Resistance and Land Reforms! On the other hand, all the SC, ST and Minority leaders have been TAMED thsi way or that way. Leaders like MULAYAM and LALU Yadav have been TRAPPED in SEVERAL CASES subjudice. So has been MAYAWATI. Adopting brahaminical culture, entire SUBALTERN Leadership as well as Intelligentsia have opted to adust and bear with the Brahaminical hegemony and enjoying their CREAMY Status. Hence, MS Mayawati promising change without Enlightenment, without empowerment, without internal Autonomy, decentralisation and democracy, sits so comfortably in the Lap of BRAHMINS that a DALIT Ruled state has to witness so many cases of ATROCITIES against dalits! As we see that the CHANGE by the Marxist in West Bengal has been transformed into GENOCIDE Culture in last thirty years. Shame it is that Mayawati using Kanshiram and BAMCEF to rise over the TIDE allies with the CORRUPT Brahaminical system calling it caseology Equation and ironically, the most prominent dalit Crusader like VTR glorifies it! It is true that Mulayam, Maya, Ram Vilas, Lalu yadav and nitish kumar changed the Political TOPOGRAPHY in North India. The SC and OBC got the so much hyped SHARE in Power. What next? Did they try to annihilate caste and class? NEVER. They followed Indian Marxists. The only difference may be quoted as that the MARXISTS may not be personally and politically that corrupt as the selfstyled SUBALTERN forces of Change! How many days have we to bear with the Charan Singh, Jagjivan Ram and the SPECTRUM of ADJUSTED subaltern Mass movement diversion in favour of the ROTTEN Hegemony ruling India?

SO much so HYPED Foriegn Capital Investment by LPG KILLER MAFIA meant only Consumption and Marketing. This bloody BASTARD CAPITAL never had any FUNCTION in Production system. It was all about FREE All Time FUCKING and FUCKING! So the BASTARDS have united themselves as a RACE of RAKTABEEJ, which may not be killed by any REINCARNATION OF GODDESS MAHAKALI in DUS MAHAVIDYA Appearances! THe Brahmins, ironically killed their Indian brahaminical Philosophy of KARMA, which meant determination of livelihood in accordance of caste system and Absolute Rule OF MANUSMRITI. Ironically Post Modern Global Manusmriti KILLS their own OFFSPRING most as institutions like Satyam, Infosis, Wipro, IIT, IIM and higher jobs had been monoplised by CASE HINDUS only! They killed Public sector jobs to avoid Constitutional RESERCVATION and QUOTA! Now this TECHNOLOGY of Indigenous Aboriginal SACRIFICE in accordance with Ancient HOLY Aryan Scripts MODIFIED as White and ZIONIST has BACKFIRED to kill the CASTE HINDU CHILDREN most. What a PITY! What a PRISTINE TURNAROUND! More Over BARRACK OBAMA Policy of JOB Creation facing intence Unemployment in United states of America discareds OUTSOURCING. The BASE of REINCARNATION vanishes. How long the HEAVEN of FOOLs could bera it without feeling anypain! World bank , IMF, GATT, WTO, EC, ADC and all types of NGOS are the hands of SAHASRA BAHU US ILLUMINITI of WARFARE. Since US decides to discontinue outsourcing WORLDNBANK has nothing to do but exposing and bannining Indian IT SECTOR so the WASHINGTON PLANTED Colonial Leadership COMRADOR may sustain creating LOGIC of FRAUD and FORGERY! Now, Satyam Computer Services CFO Srinivas Vadlamani on Monday blamed the firm's statutory auditors Pricewaterhouse Coopers and the disgraced founder of Satyam B Ramalinga Raju for perpetrating the Rs 7000 crore financial fraud.


All this BASTARDISE is possible that the majority Aboriginal , Indigenous and Minority Communities forming the Great indian masses are not Enlightened , empowered enough as we see the Citizens empowerment and enlightenment in the DEVELOPED Countries including United states of America! Hence, the NATIONAL Grassroot Level Genuine mass MOVEMENT for ANNIHILATION of caste and Class is ABSENT even after all these SIXTY Turbulant years and Even after the RULING HEGEMONY Making Killing Fields in every part of the country. false Movements do divert us most!

ECONOMICTIMES.COM reports:The World Bank Group on Monday morning made public the names of all companies that have been debarred from receiving direct contracts from the Bank under its corporate procurement program. This change was made in the interest of fairness and transparency, it said. It’s just not Wipro. From an announcement on the World Bank website, there is one more Indian company (other than Satyam and now Wipro) that has been deemed ineligible to receive contracts from the World Bank. US based IT service provider, Megasoft Consultants Ltd, which is an associate company of BSE listed Megasoft Ltd, have also been barred for four years since 2007. Megasoft became the third Indian software vendor to have attracted the bank’s ire, while Nestor Pharmaceuticals and Gap International were non-IT entities. An individual Surendra Singh was barred from doing business with the Bank for violating guidelines.

The CORRUPTION SCANDALS of SUBALTERN leaders have HALTED the VIJAY Rath of change in India. Thus, the Marxists had to disassociate with the VENTURE to project MS Mayayati the THIRD Alternative Prime Minister FACE. Why a DALIT leader should pose as an ABSOLUTE Queen. The nation rejected a leader Like MRS Indira gandhi while she opted for EMERGENCY! How Would the nation deal with a DALIT QUEEN. it is rathe CLEAR CUT Sabotage in the ORIGINAL caste annihilation Movement launched by Dr BR Ambed kar and it is also against the IDEOLOGY of BAMCEF, the organisation which produced a leader like Mayawati!Just see, how terrifying is this information involving the most potential leader of CHANGE! Uttar Pradesh Chief Minister Mayawati on Monday got four weeks' time from the Supreme Court to respond to the CBI claim that there was
ample evidence to prosecute her in a disproportionate assets case registered against her five years ago. Mayawati has filed a petition seeking quashing of the criminal proceedings against her in the case alleging it was registered against her due to political reasons.

Uttar Pradesh's Additional Advocate General Shail Kumar Dwivedi told a Bench headed by Chief Justice K G Balakrishnan that the matter should be deferred for hearing for four weeks so that he could file a counter to the affidavit filed by the CBI. The investigating agency in July last had responded to the apex court notice stating that there was sufficient evidence to show that Mayawati amassed wealth disproportionate to her known sources of income. The CBI, which had registered a DA case against the BSP chief in 2003, alleged the assets shown by her in the Akbarpur parliamentary constituency were worth over Rs one crore whereas the assets increased to over Rs 50 crore in her declaration papers submitted during the 2007 assembly polls. The agency had said the she had been questioned about the wealth over a period of three years to which she has said that it was due to the party worker's donations, which included meagre sums of Rs five and Rs 10, on her birthday. However, it contended that the reasoning by Mayawati was not plausible and that it was likely to file a chargesheet against her in the disproportionate assets case soon. The agency refuted Mayawati's allegation that the UPA government was using the probe to serve its political interests and it was aimed at "character assassination."

BACK to WIPRO. I snapped the discussion because all these REALITY SHOWS go on without any public reaction simply because they never understand EITHER POLITICS or ECONOMICS! LPG MAFIA has taken INDIAN STATE HOSTAGE for SACRIFICE just because all the forces of CHANGE including Jagjivan Ram, Charan singh, Lalu Yadav, Mayawati, Mulayam Singh, Ram Vilas PASWAN, Nitish Kumar, Sharad yadav, George FERNANDESE, DRAMUK, AIDMK, TELEGU DESHAM, JMM led by SHIBU SOREN and the MUSLIM leaders BETRAYED the Indigenous Aboriginal and Minorities most not mentioning the Socialist and Mraxist BETRAYALS. POST AMBEDKAR DALIT Movement turned out to be the B TEAM most Corrupt and SUICIDAL!Thus, we could never initiate a National ANTI Imperialist Anti Fascist movement to resist Neo Liberal Washington Colonised ECONOMIC reforms resultant in MASS DESTRUCTION. And now the LPG MAFIA KILLS the CASTE HINDU CHILDREN opting for IT XXXXX technology non producive!

The MYTH says that PARSURAM killed the KSHATRIYAS no less than Twenty One times. But the Rajput and Kshatriyas remained LOYAL and Faithful to the CUNNING Most Brahmins, the DEFACTO rulers for thousands and thousands yers in TOTAL subordination! The Brahamins never allowed the Rajput or the Kshatriyas being UNITED . They enjoyed their status as FEUDAL lords and remained the most useful TOOL of Exploitation and Repression Brahaminical.Being jsut SECOND after Brahamins in Manusmriti, the Kshatriyas and Rajputs never wanted any CHANGE in Brahaminical hegemony . Rather they fough amongst themselves benefiting Brahmins only and harming themselves. Thus, the KSHATRIYAS could never RULE Independent India or whenever they got into the helms as far as the STATES like UP, MP and Bihar concerned , they had been BETRAYED and STABBED into the Back!

But whatever Change we witnessed during last SIXTY years after Dr Ambedkar, it is just becuase of two THAKUR KSHATRIYA leaders. Vishwanath Pratap Singh and Arjun singh . They proved better leaders of Indigenous and aboriginal communities in every means! But the RULING BRAHAMINICAL Hegemony and the CASTE HINDUS destroyed the Political career of both of them and our people never supported them in RETURN!

I was lucky to witness and involve myself with JHARKHAND Nationality movement. I had befriended Jharkhandi leaders as well as ICONS like Comrade AK Roy and Binod bihari Mahato in early eighties while I based in Dhanbad, the coal Fields for four years. While I landed in Dhanbad, Shibu Soren known as ROBINHOOd landed in Indian Parliament. Since then I had rare chance to witness the DEGENARITION of the TRIBAL Icon. I knew how Suraj Mandal diverted SHIBu and succeeded to disintegrate Jharkhand movement. I was also present in the JMM convention while despite stiff Opposition from Binod Bihari Mahato, SHIBU and Suraj Disassociated JMM with Marxist coordation committee! I knew well the GRASSROOT level bases of shibu soren. I also visited his underground Base camps in Tundi and elsewhere. I also worked with his DUPLICATES who worked for Shibu in tribal belt. I am shocked to know his discredibility resultatnt in his TRAGIC defeat in TAMAD. I believe SHIBU had the ability to lead Aboriginal and Indigenous People in Insurrection. But parliamentary power POLITICS defected our man top to bottom.

I mourn for the DEMISE of a most POTENTIAL Leader in Our Aboriginal Indigenous base. It is quite a CELEBRATION time for the BRAHAMINICAL Hegemony resultant in the great FALL of our Leadership! Thus, Bowing to mounting pressure by the allies following his defeat in the Tamar assembly bypoll, Jharkhand Chief Minister Shibu Soren on Monday resigned from his post, shortly after his deputy Stephen Marandi put in his papers. Ending the five-day long speculation on his continuance in the top post, Soren drove to the Raj Bhavan in Ranchi to submit his resignation to Governor Syed Sibte Razi. However, before Soren could make it to the Governor's house, Marandi, who had been most vocal on the issue of the Chief Minister's resignation after his defeat to Jharkhand Party nominee Gopal Kirshna Patar at Tamar, arrived in the Raj Bhavan and put in his papers. The Governor said he would look into the possibilities for an alternative after going into the Constitutional and legal norms and conventions.He, however, did not spell out as to what options were open in the aftermath of the Chief Minister's resignation!

come again into the IN DEPTH WIPRO Scandal which have been UNDERPLAYED by our mainstream Vernacular media! As we know that right informations had been defected by FDI fed TOILT Media always harping for US leadership and Risilient FREEsenSEX Economic Reforms leading to LPG Rule in Indian US COLONY under Post Modern Global MANUSMRITI APARTHEID Order of Zionist ILLUMINITI! Our VERNACULAR media is also FDI fed. Multi EDITION vernacular media halts all attempts of enlightenment and empowerment. The TOILET English Media GLORIFIED Globalisation and vernacular media followed suit. Realliance with ZIONIST ISRAEL and US plus European community, WORLDBANK SLAVES and gangstras, Hatred Indigenous and Muslim, War Against Terrorism and War Hype against Pakistan not mentioning anti reseravation Mobilisation had been the most popular themes in mainstream media along with fashion, retail Market, Consumer Durable products, REALTY, Reality Shows, Mythical Brainwashing, IT centred Development, Urbanisation, Indiscriminate land Acquisition, Destructive Industrialisation, exploitation of Natural resources, Disinvest ment and privatisation, so called Development, Infrastructure, Hinglish banglish, Package FOLK and culture, cat Walk and overwhemling SEX and nacked skin! The TOILET media created every situation to sustain the HEGEMONY as well as US Colonisation, Castesystem as well as Classes withAPARTHEID. But the Toilet Media never tried to expose the Policy Making, the Illuminity in Making, the Political betrayal, The WAR and Civil War Machinery and the TERROR NEXUS as well. It kept the WAR Industry and DEFENCE Deal under Cover. So, Satyam Astaym has never to be EXPOSED. And WIPRO as well as DOWS and ENRON would remain under cover. Rather the Mainstream media seems to over ENGAGED to expose indigenous leaders like Mayawati, Jay Lalita, Karunanidhi, Mulayam, Lalu and Rmvilas paswan sparing PRANAB, BUDDHA, JYOTI BASU, KARAT, ADWANI, MANMOHAN, VASUNDHARA, MODI and so on. The TOILET media exposes the CORPORATE scandals of targeted companies but never dare to touch the BLUE EYED IT, India INCs, Reliance, Zindal, Hinduza, Mittal or TATAs!

Come back to IT Industry!

The World Bank has barred three companies along with their affiliates under the Bank Group's corporate procurement program. The ineligible firms are Wipro technologies for 4 years (2007-2011) for providing improper benefits to Bank staff, Megasoft Consultants Ltd. for 4 years (2007-2011) for participating in a joint venture with bank staff while also conducting business with the Bank and Satyam Computer Services, Ltd. for 8 years (2008-2016) for giving improper benefits to bank staff and failing to maintain documentation to support fees charged for its subcontractors. This change aligns the disclosure practice for companies that provide goods and services directly to the Bank with the current policy governing procurement on Bank financed projects in developing countries. As per reports the Bank has changed disclosure norms late 2006 which placed all the aforementioned companies under tech scanner in 2007. The bank has also said it will publicly list the names of companies debarred from its corporate procurement on a regular basis henceforth.


Only the FOOLs would not understand the ECONOMICS of FUEL helping Indian Illuminiti in making! Petrol and diesel prices were cut only in December by Rs 5 a litre and Rs 2 per litre, respectively, as global crude prices fell to four-year lows.
But Retail fuel prices are likely to be cut in the next 10 days, but the quantum of reduction would be decided after consultations with the finance ministry, Minister of State for Petroleum Dinsha Patel said on Monday.

We have to reduce the prices and we will do it. It will happen in 10 days as some consultations with finance ministry are needed. Middle-class and farmers have to be given relief... how much is to be decided at the appropriate level of the Cabinet," he told reporters on the sidelines of the Petrotech conference here.

In their first joint press conference after being appointed on board the beleaguered Satyam, the three independent board members Deepak Parekh, K Karnik and C Achutan said that the board will try to its best to help the company tide over the crisis.Board member Deepak Parekh informed media that government may provide temporary liquidity to Satyam to overcome crisis.

Parekh said, “Government will appoint new board members soon and chairman will elected by the full board. A new independent accounting firm will also be appointed.” Calling Satyam fiasco “a big challenge”, Parekh said board will try its best to retain prized clients of Satyam. According to PTI, after taking preliminary stock of the company that has been hit hard by the Rs 7,800-crore scam, the reconstituted board met for the first time on Monday and discussed various options to handle the immediate issues, including liquidity. Parekh said that the working capital issue needed an immediate attention, but it has not yet determined in the amount of the liquidity needed. An independent auditing firm would be appointed within 48 hours, he said, while talking to reporters along with two other board members Kiran Karnik and C Ahuthan. Parekh said that there was a need to appoint new CEO and Chief Financial Officer for the company, while adding that "we have no candidates in mind" and no one was willing to join within 24 hours.


The ECONOMY is on the VERGE of TOTAL DESTRUCTION but the Ruling Hegemony is ENGAGED with Hindu super Power Ambition just after Indo US NUKE Deal Auto operationalised and Strategic Realliance in US lead. Thus, India's manned moon mission by 2020, ISRO claims notwithstanding with Global Meltdown and CRISIS at home! The ISRO proposed to undertake the country's first manned moon mission by 2020 following the success of Chandrayaan-I, project director of Chandrayaan-I M Annadurai has said. The successful launch of Chandrayaan-I in October last year has given space scientists the confidence to undertake manned mission to moon, Annadurai told reporters in Tamil Nadu on Sunday. The Chandrayaan-II mission is expected to be undertaken within a couple of years followed by Chandrayaan-III, he said. The Chandrayaan-I mission has been sending considerable amount of data and scientists are busy analysing it, he said.

The Government is looking at all aspects to help troubled outsourcer Satyam Computer Services Ltd, Commerce and Industry Minister Kamal Nath said.

The Government is looking at all aspects to help troubled outsourcer Satyam Computer Services Ltd, Commerce and Industry Minister Kamal Nath said.
"The Government is looking at all aspects... Once the board comes up with its proposals, Government will consider," Nath told reporters. He did not elaborate what steps the government might take to help Satyam. Calling it a unique case Nath added that Govt will consider all assistance for Satyam board.

Rupee falls 26 paise against dollar!The Indian rupee on Monday by 26 paise against the US dollar in early trade owing to heavy capital outflow by foreign funds amid expectations of weak opening of the Indian bourses due to the Satyam fiasco. At the Interbank Foreign Exchange (Forex) market, the domestic unit, which closed at 48.28/29 on Friday, plunged by 26 paise to 48.54 a dollar as weak Asian markets put pressure on rupee.

Concerned over the financial fraud in Satyam, Prime Minister Manmohan Singh on Monday reviewed the situation with the Sebi and senior
Finance Ministry officials on the "further steps" needed to be taken.

"The Prime Minister is closely following the developments," PMO sources said.

During the day, he held discussions with Sebi Chairman C B Bhave and senior officials of the Finance Ministry on the further steps required to be taken.

Following the meeting, the Prime Minister directed Cabinet Secretary K M Chandrasekhar to "coordinate the approach of the government" on the issue, the sources said.

And then, here comes the LATEST NEWS BREAK!

Even before the dust settled on the controversy involving Satyam's debarment, the World Bank on Monday revealed that action has been taken against a total of five entities in India, including Wipro Technologies, and an individual. The action was initiated against these entities and individual as they were found to have "violated the fraud and corruption provisions of the Procurement Guidelines or the Consultant Guidelines," besides offering improper benefits to Bank staff.

Megasoft became the third Indian software vendor to have attracted the Bank's ire, while Nestor Pharmaceuticals and Gap International were non-IT entities. An individual Surendra Singh was barred from doing business with the Bank for violating guidelines.

While Wipro was barred for four years beginning June 2007 for "providing improper benefits to Bank staff", Megasoft barred for an identical period beginning December 2007 for "participating in a joint venture with Bank staff while also conducting business with the Bank."

In a statement late last night, the World Bank said that it decided to "make public the names of all the companies that have been debarred from receiving direct contracts from the Bank group under its corporate procurement programme.

"This change was made in the interest of fairness and transparency... From now on the Bank group would publicly list names of companies debarred from its corporate procurement."

Commenting on the World Bank action, Wipro said in a statement this morning: "Our inability to get future business from World Bank will not adversely affect our business and results of operations."

Megasoft officials too said that the debarment will not have no revenue implication for the company.

Earlier, Satyam, which was debarred for eight years beginning September 2008, had demanded an apology for making public its name and withdrawal of what it called "inappropriate" statement by the Bank. The Bank had refused to apologise.


Earlier Indian shares fell 3.15 per cent to their lowest close in more than five weeks on Monday as investors braced for tough quarterly earnings, but scandal-scarred Satyam jumped 44 per cent on hopes a government-appointed board will rescue the company.

-- Traders said the broader market was also weighed down by concerns about tighter regulations and more negative disclosures by companies.

Shares in Satyam Computer Services Ltd jumped 44.2 per cent to 34.40 rupees on hopes a newly constituted three-member board, appointed by the government, would help salvage the company's clients and staff.

Deepak Parekh, chairman of Housing Development Finance Corp and a new director of Satyam, is expected to address a news conference at 5 pm.

Satyam's market value had slumped to $330 million last week from more than $7 billion just six months ago following revelations of an accounting fraud.

Wipro Ltd shed 9.3 per cent to 227.35 rupees after the No. 3 outsourcer said the World Bank had barred the company in June 2007 from direct contracts until 2011, citing a conflict of interest.

The 30-share BSE Index dropped 296.42 points to 9,110.05, its lowest close since Dec. 5. It briefly pared losses to 0.8 per cent after industrial output unexpectedly rose in November, but then fell 4.1 per cent before pulling back.

Ved Prakash Chaturvedi, managing director at Tata Mutual Fund, said the market was reacting to negative news in India and globally.

"Funds, both domestic and foreign, are not buying and that is a cause for concern. People are also scared that corporate earnings may not be as good as previous quarters or maybe worse," he said.

Mid-sized software services firm Megasoft Ltd fell to an all-time low of 13.80 rupees after the World Bank said it had barred the firm for four years in December 2007 for participating in a joint venture with bank staff while conducting business with the bank. The stock closed down 0.6 per cent at 15.75 rupees.

"People are apprehensive there might be more such disclosures and there are wild rumours doing the rounds," said Gaurang Shah, chief manager at Geojit Financial Services.

Twenty-eight of the BSE index components fell, while in the broader market losers overwhelmed gainers in the ratio of 1.96:1 on above average volume of 283.7 million shares.

No. 2 outsourcer Infosys Technologies, which announces quarterly results and gives its outlook on Tuesday, closed down 3.2 per cent at 1,156.60 rupees.

PSUs outclass private cos in terms of revenue


12 Jan 2009, 1454 hrs IST, Shailesh Menon, ET Bureau


Detractors of PSU companies, here's something to chew on and change your mindset. The aggregated revenues of the 31 PSUs are more or less equal to
the aggregated revenues of the 216 private sector companies, according to a report by business consultancy firm Dun & Bradstreet.

Indian Oil Corporation, Life Insurance Corporation and Bharat Petroleum Corporation (in that order) have been adjudged India's top PSU companies in term of income by business consultancy firm Dun & Bradstreet. The oil refiner-cum-marketer, India Oil Corp logged revenues to the tune of Rs 23,09,540 million in 2008 while LIC and BPCL posted Rs 20,63,785 million and Rs 11,19,422 million respectively as turnover sales during the considered period.

At 1.53 PM, almost all major PSU companies were trading lower in the range of 1 and 6%. IOC (down 3% at Rs 422), BPCL (down 4.1% at Rs 365), HPCL (down 2.1% at Rs 261), SBI (down 1.8% at Rs 1193), SAIL (down 6% at Rs 74.45), NTPC (down 4.5% at Rs 170), Mangalore Refinery (down 0.5% at Rs 39), MMTC (down 5% at Rs 17,256), BHEL (down 5.1% at Rs 1,344), GAIL (down over 1% at Rs 200.25) and Canara Bank (down 0.9% at Rs 204) are being sold heavily by investors. Chennai Petroleum, BEML, NMDC and RCF are trading higher in the range of 0.3 and 2%.

"With the government already in election mode, investors are expecting several popular sops which could be detrimental to public sector companies. The reduction in oil prices is one such move, which is not so positive for oil refining and marketing companies. All said, investors should buy PSU stocks at every opportunity.

The market is expecting government to announce dividend in several closely-held companies," Ventura Securities' institutional sales head Bharat Shah said.

According to Dun & Bradstreet, the aggregate total income of the profiled CPSUs (Central Public Sector Undertakings) stood at a little over Rs 14,675 billion during FY08, which represented a y-o-y growth of 16.8%, and is approximately 31.1% of the country's Gross Domestic Product at current prices for FY08.

The aggregate Net Profit reported by the profiled 121 CPSUs in FY08 sums up to Rs 1,221.36 billion. Further, the y-o-y growth in aggregate net profit for all 121 companies stood at around 10%. Together, these companies reported an aggregate net worth of Rs 7,690.84 billion for FY08, a Net Profit Margin of 8.3% and a return on net worth of 15.9%. which is equivalent to 31.1% of the country's GDP at current market prices.

In 2008, the public sector companies paid over 33.5% of their net profits as dividends, whereas their private sector counterparts paid 20.6% of their profits as dividends.

"The cash ratio for the listed public sector enterprises rose sharply from 24% in 2004 to around 42% in 2008, whereas for the private sector companies, the ratio improved from 19.18% in 2004 to 21% in the year 2008. However, for private sector companies, 2008 marks a decline from the peak levels of around 30% seen in 2005, 2006 and 2007," the D&B report said.

Over the last 5 years, put together the 31 PSUs have had consistently lower debt-equity ratios than their private sector counterparts. In FY08, the aggregate Debt to Equity ratio for the 31 PSUs stood at 0.45, while the corresponding debt to equity ratio for the private sector companies stood at 0.68.
http://economictimes.indiatimes.com/Economy/PSUs_beat_cos_in_terms_of_revenue/articleshow/3967558.cms


Small investors to file PIL for independent probe into Satyam
MUMBAI: The Small Investors Grievances Forum, headed by former MP Kirit Somaya, on Monday said it would file a public interest litigation in the
Bombay High Court on Tuesday demanding an independent investigation into Satyam scam.

"The regulatory mechanism has failed entirely (in Satyam scam). We are demanding an independent investigation in the case," Small Investors Grievances Forum's President and a former member of Parliament Kirit Somaya told media here.

The respondents of the PIL would be market regulator SEBI, auditor PriceWaterhouseCoopers, the Union Government, the ICAI amongst others.

Other demands of the investors include inspection of Satyam share transactions in the past three months, blacklisting of PwC and immediate steps to compensate retail investors.

India's fourth largest IT company Satyam Computers plunged into a crisis following the revelations of its former Chairman B Ramalinga Raju that the company's accounts were manipulated for seven years, resulting in a scam of Rs 7,800 crore.

The Government scrapped Satyam's board and appointed three new members in the reconstituted board to salvage the company.

Information Technology Faqs
Q1.What is the future of IT industry in India ?
Q2.What are the Educational Courses and List of Institutes?
Q3.What is the Nature of Jobs ?
Q4 What is the remuneration in each field?
Q5.What are the Emerging Technologies ?
Q6.What is the Future Scenario ?



Q1.What is the future of IT industry in India ?
A1.According to leading reports, Indian software industry is set to achieve a turnover of 10 billion dollars by the year 2005. The projected demand for trained I.T. professionals is estimated at over 400,000 per year. There is a clear imbalance between the demand and supply of IT professionals with the result that this sector offers one of the highest remuneration packages. The Internet is a new revolution that is sweeping the world. It promises to change the way we work, live, shop, communicate and entertain ourselves.

Q2.What are the Educational Courses and List of Institutes?
A2. Most engineering colleges offer a B.E. / B.tech in computer engineering. For more information on Computer Engineering, please refer to the section under engineering. Other computer courses offered by universities include: B.Sc. (Computer) also known as B.C.S (Bachelor of Computer Science) M.C.A. (Master of Computer Applications) M.C.M. (Master of Computer Management) D.C.A. (Diploma in Computer Applications) D.C.E. (Diploma in Computer Engineering) D.C.S. (Diploma in Computer Science)

With the infotech boom, hundreds of private computer institutes have opened up across the country. The courses conducted by these institutions range from computer fundamentals to advanced computer languages. However there are no standards of teaching and course content and the quality of students differs considerably from institute to institute. Department of Electronics Accreditation of Computer Courses (DOEACC) Under this scheme there are four level of courses. These are : "O" Level - Foundation Level This would certify the candidate's competence as a programmer assistant or equivalent level. It is visualised as the lowest rung and the course, and should be at least a full-time one-year course. Students from accredited institutes can apply for this examination after completing their 101 Level course if they have 10+2 or I.T.I. certificate equivalent qualification.

Direct applicants need one year relevant experience (which signifies job experience in information Technology (IT) including teaching in a recognised institution) or a pass in the NCVT-DP & CS (Data Preparation and Computer software) Examination, besides 10+2 or equivalent qualification. 'A' level (advanced diploma level) This will give proof of the candidate's skills as a programmer. It should be equivalent to full-time studies of an average student for a year. Those who have done 'O' level and graduation followed by an accredited "A" level course are eligible. In the case of direct applicants, candidates with 'O' level and graduation and with one year relevant experience are eligible. A Government recognised polytechnic engineering diploma + A level course fulfils the eligibility. 'B' level (Graduate level) This will give certification to the candidate for proficiency as a systems analyst or software designer or engineer as the case may be. The course duration at the approved institute should be equivalent to a three year, full-time course. Graduates and government recognised polytechnic diploma holders. 'B' Level candidates who have completed the accredited 'B' Level course are eligible. In case of direct applicants, students with Level 'A' followed by two years) relevant experience and graduates with three years relevant experience are eligible.

Governments recognised PPDCA / PGDCA accords exemption from some courses. 'C' Ievel (master degree level) This will recognise the candidates proficiency as a systems manager. The course duration at the recognised institute should be equivalent to a full-time 18 months course. Candidates with Level 'B' or B.Tech./B.E./M.C.A./M.Sc./Master's degree (in maths/statistics/operations re-search)/M.B.A. (after B.Sc./B.A. with Maths) followed by an accredited 'C' Level course are eligible. In case of direct applicants, candidate with Level 'B'/B.Tech/ B.E' /M.C.A./Master's degree (in Maths/ GATE (computer) Statistics/ Operation Research)/M.B.A. (after B.SC., B.A. with Maths) followed by 18 months relevant experience in each case are eligible. Registration is a prerequisite for taking the examination. At any point of time, a candidate can register only at one level. The registration is valid for five years.

Contact Address- DOEACC Control Centre, c/o Manpower Development Division, Department of Electronics, Electronics Niketan (2nd Floor), 6 Lodhi Road, CGO Complex, New Delhi.

Industry Certified Courses Global infotech majors including Microsoft, Oracle, Cisco, IBM etc have come out with their own certification programs which provide an indicator of the proficiency levels of candidates with those certifications and are recognised world wide. The certifications from Microsoft include MCSE - Microsoft Certified Systems Engineer MCP - Microsoft Certified Professionals MCSD - Microsoft Certified Solutions Developer. Microsoft has authorised several computer institutes to provide training for these certifications and the examination is conducted by Microsoft itself. Candidates who are successful in the test are globally recognised as proficient in the corresponding Microsoft technologies. Similar certifications are also offered by other companies.

Q3.What is the Nature of Jobs ?
A3. Introduction With the advent of the PC the information technology industry underwent a quantum change. Suddenly computers were all pervasive and work automation took off in a big way. The software revolution totally changed the way we work. Availability of cheap and easy to use software packages increased productivity levels manifold. Probably no sector is untouched by information technology. Manufacturing, Finance, Banking, Marketing, Entertainment, Education and several other fields are reaping the benefits of I.T. As a result the I.T industry employs not only staff trained in computers but also professionals from all other fields which could also be non-technical in nature. The rapid development of technologies such as networking, multimedia and the Internet have created totally new job categories where none existed a few years ago. This sector is also the one that is witnessing the fastest growth and change rate. New software and techniques come out every month and professionals have to keep pace with the rapid advancements. The hardcore technical jobs in the IT industry can broadly be classified as hardware jobs and software jobs. Non technical jobs include functional expert consultants, web designers, data entry professionals etc. Hardware Jobs Software Jobs Specialised Jobs Internet Related Jobs Multimedia Jobs

Q4 What is the remuneration in each field?
A4. Hardware Jobs Remuneration - Rs. (per annum) VLSI Design Engineers 1,20,000 upwards Production 60,000 – 3,00,000 Maintenance 36,000 – 96,000 Networking 72,000 upwards (entry level) Software Jobs Programmers 84,000 – 3,00,000 (entry level) Project Leaders 2,00,000 – 6,00,000 System Analysts 3,00,000 upwards Senior Managers 4,00,000 upwards Specialised Applications CAD/CAM 72,000 – 2,40,000 ERP 2,40,000 upwards Internet Related Webmasters 1,20,000 upwards (entry level) Web Designers 84,000 upwards (entry level) Web Application Developers 1,20,000 upwards (entry level) Multimedia DTP operators 30,000 upwards (entry level) Computer Animators 60,000 upwards (entry level) CD-ROM developers 96,000 upwards (entry level) Video/Audio Editors 84,000 upwards (entry level)

Q5.What are the Emerging Technologies ?
A5.E-commerce The Internet revolution is sweeping the world and is changing the way companies traditionally dealt with customers. Now customers can compare and shop without moving out of their homes by using the Internet. Electronic commerce relates to all commercial transactions that take place through the Internet. It is estimated that the quantum of e-commerce will jump to 400 billion US dollars by the year 2001. In order to enter this field, in addition to a basic degree in computer science/engineering one must have sound knowledge of software used in the front end such as Java, DHTML, Visual basic etc, the backend which is generally databases such as Oracle and SQL server as well as networking and web server maintenance. In addition an understanding of business transactions is also essential.

Supply Chain Management In any industry there are lot of vendors providing various material inputs used in final production. On the distribution side there are channels comprising of wholesalers, distributors and retailers. Supply chain management software cuts down the time taken for the supplies to arrive from the vendor and reduces the inventory levels thus cutting cost. On the marketing side, it ensures that products reach the end customers in time to fulfill their demand.

Customer Relationship Management Companies offering products and services have to deal with a number of customers. Customer relationship management software provides a record of all previous dealings with customers so that the company personnel can take the right decision while dealing with them.

Q6.What is the Future Scenario ?
A6.According to leading reports, Indian software industry is set to achieve a turnover of 10 billion dollars by the year 2005. The projected demand for trained I.T. professionals is estimated at over 400,000 per year. There is a clear imbalance between the demand and supply of IT professionals with the result that this sector offers one of the highest remuneration packages. With the Internet rapidly changing the way we live, shop, entertain and work there is a tremendous scope for entrepreneurs with radical new in this field.

India’s Information Technology Industry
Overview | News Reports | Related Links
--------------------------------------------------------------------------------
The Indian software industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5.7 billion (including over $4 billion worth of software exports) in 1999-2000. No other Indian industry has performed so well against the global competition.
The annual growth rate of India’s software exports has been consistently over 50 percent since 1991. As per the projections made by the National Association of Software and Services Companies (NASSCOM) for 2000-2001 (April 1, 2000 - March 31, 2001), India’s software exports would be around $ 6.3 billion, in addition to $ 2.5 billion in domestic sale.
Indian Software Industry 1995-2000
(US $ million)

1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01*

Domestic software Market
490
670
920
1250
1700
2450

Software Exports
734
1085
1750
2650
4000
6300

Indian Software Industry
1224
1755
2670
3900
5700
8750

(* Source: NASSCOM Report)
Today, India exports software and services to nearly 95 countries around the world. The share of North America (U.S. & Canada) in India’s software exports is about 61 per cent. In 1999-2000, more than a third of Fortune 500 companies outsourced their software requirements to India.
NASSCOM’s survey during 1999-2000 indicates a reversal in the mode of services offered by India. In 1991-92, offshore services accounted 5 per cent and on-site services 95 % of the total exports. However, during 1999-2000 offshore services contributed over 40 percent of the total exports.
The NASSCOM - McKinsey report on India's IT industry
According to a NASSCOM-McKinsey report, annual revenue projections for India’s IT industry in 2008 are US $ 87 billion and market openings are emerging across four broad sectors, IT services, software products, IT enabled services, and e-businesses thus creating a number of opportunities for Indian companies. In addition to the export market, all of these segments have a domestic market component as well.
Other key findings of this report are:
Software & Services will contribute over 7.5 % of the overall GDP growth of India
IT Exports will account for 35% of the total exports from India
Potential for 2.2 million jobs in IT by 2008
IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion
Market capitalization of IT shares will be around U.S. $ 225 billion
Projected Revenues - 2008
($ US billion)
India Based India Centric Sub total
(International) Domestic Total 1998
IT Services 23 7* 30 8.5 38.5 2.1
Software Products 8 2 10 9.5** 19.5 0.6
IT-enabled
Service 15 2 17 2 19 0.4
E-business 4 1 5 5 10 0.2
Total 50 12 62 25 87 3.3
Exports of $50 billion in 2008
* Legacy/client server, ERP and package work and Internet all have different proportions of work outside India where revenues are not export revenues.
** Resale of imported products included.
Promotion of IT - governmental incentives:
With the formation of a new ministry for IT, Government of India (GOI) has taken a major step towards promoting the domestic industry and achieving the full potential of the Indian IT entrepreneurs. Constraints have been comprehensively identified and steps taken to overcome them and also to provide incentives. Thus for example, venture capital has been the main source of finance for software industry around the world. However, majority of the software units in India is in the small and medium enterprise sector and there is a critical shortage of venture capital kind of support. In order to alleviate this situation and to promote Indian IT industry, the Government of India has set up a National Task Force on IT and Software Development to examine the feasibility of strengthening the industry. The Task Force has already submitted its recommendations, which are under active consideration. Norms for the operations of venture capital funds have also been liberalized to boost the industry. The Government of India is also actively providing fiscal incentives and liberalizing norms for FDI and raising capital abroad.
Recently, an IT committee was set up by the Ministry of Information Technology, Government of India, comprising Non Resident Indian (NRI) professionals from the United States to seek expertise and advice and also to step up U.S. investments in India's IT sector. The committee is chaired by Minister of Information Technology, Government of India, and the members include Secretary, Ministry of Information Technology and a large number of important Indian American IT entrepreneurs.
The group will:
Monitor global IT developments and refine Indian IT policy to meet global requirements. Specifically, this will help angel investors, venture creators and incubation;
Promote the growth of human resource development in the IT sector with the aim of creating quality-based education;
Promote R&D in the sector by identifying thrust areas and drawing up a blueprint for action.
India’s most prized resource in in today’s knowledge economy is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the U.S. It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. Government of India is stepping up the number and quality of training facilities in the country to capitalize on this extraordinary human resource. It is the knowledge industry that will help take the Indian economy to a sustained higher rate of growth and the policy makers are fully aware of this.

--------------------------------------------------------------------------------
News Reports:
Virtual India At Your Service - Interactive Week - August 28, 2001
A new kind of software company for India - New York Times - March 26, 2001
Ericsson to set up software platform in India - ZDNet India - March 23, 2001
Intel group company sets up $3.5m development centre - ZDNet India - March 22, 2001
Nasscom signs MoU with US infotech body - ZDNet India - March 14, 2001
Sun doubles Indian investment to $ 50 million - ZDNet India - March 12, 2001
Network Solutions plans Indian arm - ZDNet India - March 07, 2001
AOL to Open Netscape Office In India's Tech Center - Washington Post, March 06, 2001
High-Tech Passage to India - March 05, 2001
Cisco to hike India investment to $200 million - January 18, 2001
Passage to India - Forbes, October 30, 2000
India to be the fastest growing IT market in 2001 - CNET, September 11, 2000
South Asian Entrepreneurs and Mentors Form a Tie That Binds - Los Angeles Times, July 03, 2000
--------------------------------------------------------------------------------
Related Links:
Ministry of Information Technology
National Association of Software & Services company
Software Technology Parks of India
Information technology in India
From Wikipedia, the free encyclopedia
(Redirected from Indian IT industry)
Jump to: navigation, search
This article is about information technology in India. For an overview of modern science and technology in India, see Science and technology in the Republic of India.

During the 1980s Prime Minister of India and Indian National Congress leader Indira Gandhi (office: 15 January 1980 – 31 October 1984) supported various policies to modernize India's information technology.
Aerial view of IIT Guwahati—one of the seven Indian Institutes of Technology declared as Institutes of National Importance by the Government of India.
Manmohan Singh—Governor of the Reserve Bank of India (1982 - 1985), hand picked as finance minister in cabinet of then Prime Minister Narasimha Rao—spearheaded the Indian economic reforms of 1991.
The policies of N. Chandrababu Naidu—the chief minister of Andhra Pradesh (1995 - 2004)—helped transform Hyderabad into one of the Information Technology hubs of India.
Prime Minster Atal Bihari Vajpayee (office: March 19, 1998 – May 22, 2004) placed the development of Information Technology among his top five priorities and formed the Indian National Task Force on Information Technology and Software Development.
National Institute of Technology Calicut—one of the twenty National Institutes of Technology of India.
IT Park in Hyderabad.
Infosys Media Centre in Bangalore.
Office Complex in Gurgaon, Haryana.
Kamal Nath at the World Economic Forum in Davos, Switzerland, 2008.
Tidel Park—one of the largest software park in Asia—was set up on the July 4, 2000 to aid the growth of Information Technology in Tamil Nadu.Information Technology in India accounts for a substantial part of the country's GDP and export earnings while providing employment to a significant number of its tertiary sector workforce.[1] Technically proficient immigrants from India sought jobs in the western world from the 1950s onwards as India's education system produced more engineers than its industry could absorb.[2] India's growing stature in the information age enabled it to form close ties with both the United States of America and the European Union.[3][4]
Out of 400, 000 engineers produced per year in India, 100, 000 possessed both technical competency and English language skills.[5] India developed a number of outsourcing companies specializing in customer support via Internet or telephone connections.[5]
By 2008, India also has a total of 49,750,000 telephone lines in use,[6] a total of 233,620,000 mobile phone connections,[7] a total of 60,000,000 Internet users—comprising 6.0% of the country's population,[8] and 4,010,000 people in India have access to broadband Internet— making it the 18th largest country in the world in terms of broadband Internet users.[9] Total fixed-line and wireless subscribers reached 325.78 million as of June, 2008.[10]
Contents [hide]
1 Formative years (till 1991)
2 1991–2001
3 2001–present
4 Notes
5 References
6 External links
7 See also


[edit] Formative years (till 1991)
The Indian Government acquired the EVS EM computers from the Soviet Union, which were used in large companies and research laboratories.[2] Tata Consultancy Services established in 1968 by the Tata Group—were the country's largest software producers during the 1960s.[2] As an outcome of the various policies of Jawaharlal Nehru (office: 15 August 1947 – 27 May 1964) the economically beleaguered country was able to build a large scientific workforce, second in numbers only to that of the United States of America and the Soviet Union.[11]
On 18 August 1951 the minister of education Maulana Abul Kalam Azad, inaugurated the Indian Institute of Technology at Kharagpur in West Bengal.[12] Possibly modeled after the Massachusetts Institute of Technology these institutions were conceived by a 22 member committee of scholars and entrepreneurs under the chairmanship of N. R. Sarkar.[12]
Relaxed immigration laws in the United States of America (1965) attracted a number of skilled Indian professionals aiming for research.[13] By 1960 as many as 10,000 Indians were estimated to have settled in the US.[13] The reason for this immigration was rooted in India producing more engineers through its education system—expanded during the 1950s—than its industry was able to absorb.[2] By the 1980s a number of engineers from India were seeking employment in other countries.[2] In response, the Indian companies realigned wages to retain their experienced staff.[2]
The National Informatics Centre was established in March 1975.[14] The inception of The Computer Maintenance Company (CMC) followed in October 1976.[14] Between 1977-1980 India's Information Technology companies Tata Infotech, Patni Computer Systems, and Wipro, had become visible.[2]
In the Encyclopedia of India, Kamdar (2006) reports on the role of Indian immigrants (1980 - early 1990s) in promoting technology-driven growth:
The United States’ technological lead was driven in no small part by the brain power of brilliant immigrants, many of whom came from India. The inestimable contributions of thousands of highly trained Indian migrants in every area of American scientific and technological achievement culminated with the information technology revolution most associated with California’s Silicon Valley in the 1980s and 1990s.[15]

The 'microchip revolution' of the 1980s had convinced both Indira Gandhi and her successor Rajiv Gandhi that electronics and telecommunications were vital to India's growth and development.[16] MTNL underwent technological improvements.[16] Between 1986-1987, the Indian government embarked upon the creation of three wide-area computer networking schemes: INDONET (intended to serve the IBM mainframes in India), NICNET (the network for India's National Informatics Centre), and the academic research oriented Education and Research Network (ERNET).[17]

[edit] 1991–2001
Regulated VSAT links became visible in 1985.[2] Desai (2006) describes the steps taken to relax regulations on linking in 1991:[2]
In 1991 the Department of Electronics broke this impasse, creating a corporation called Software Technology Parks of India (STPI) that, being owned by the government, could provide VSAT communications without breaching its monopoly. STPI set up software technology parks in different cities, each of which provided satellite links to be used by firms; the local link was a wireless radio link. In 1993 the government began to allow individual companies their own dedicated links, which allowed work done in India to be transmitted abroad directly. Indian firms soon convinced their American customers that a satellite link was as reliable as a team of programmers working in the clients’ office.

Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Service in 1991, the 64 kbit/s leased line service in 1992, and commercial Internet access on a visible scale in 1992.[14] Election results were displayed via National Informatics Centre's NICNET.[14]
The Indian economy underwent economic reforms in 1991, leading to a new era of globalization and international economic integration.[1] Economic growth of over 6% annually was seen between 1993-2002.[1] The economic reforms were driven in part by significant the internet usage in India.[18] The new administration under Atal Bihari Vajpayee—which placed the development of Information Technology among its top five priorities— formed the Indian National Task Force on Information Technology and Software Development.[19]
Wolcott & Goodman (2003) report on the role of the Indian National Task Force on Information Technology and Software Development:[20]
Within 90 days of its establishment, the Task Force produced an extensive background report on the state of technology in India and an IT Action Plan with 108 recommendations. The Task Force could act quickly because it built upon the experience and frustrations of state governments, central government agencies, universities, and the software industry. Much of what it proposed was also consistent with the thinking and recommendations of international bodies like the World Trade Organization (WTO), International Telecommunications Union (ITU), and World Bank. In addition, the Task Force incorporated the experiences of Singapore and other nations, which implemented similar programs. It was less a task of invention than of sparking action on a consensus that had already evolved within the networking community and government.

The New Telecommunications Policy, 1999 (NTP 1999) helped further liberalize India's telecommunications sector.[20] The Information Technology Act 2000 created legal procedures for electronic transactions and e-commerce.[20]
Throughout the 1990s, another wave of Indian professionals entered the United States.[13] The number of Indian Americans reached 1.7 million by 2000.[13] This immigration consisted largely of highly educated technologically proficient workers.[13] Within the United States, Indians fared well in science, engineering, and management.[3] Graduates from the Indian Institutes of Technology (IIT) became known for their technical skills.[3]
The success of Information Technology in India not only had economic repercussions but also had far-reaching political consequences.[13] India's reputation both as a source and a destination for skilled workforce helped it improve its relations with a number of world economies.[13] The relationship between economy and technology—valued in the western world—facilitated the growth of an entrepreneurial class of immigrant Indians, which further helped aid in promoting technology-driven growth. [3]

[edit] 2001–present
The economic effect of the technologically inclined services sector in India—accounting for 40% of India's GDP and 30% of export earnings as of 2006, while employing only 25% of its workforce—is summarized by Sharma (2006):[1]
The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18 percent in 2001. IT-enabled services such as backoffice operations, remote maintenance, accounting, public call centers, medical transcription, insurance claims, and other bulk processing are rapidly expanding. The city of Hyderabad is now known as Cyberabad, and Indian companies such as Infosys, Wipro, and Satyam may yet become household names around the world.

N. Chandrababu Naidu—chief minister of Andhra Pradesh (1995–2004)—integrated information technology into state governance.[21] Naidu's 'e-governance' policies attracted the attention of then Microsoft CEO Bill Gates.[21] Information Technology also helped develop nuclear power in India and advancements made by India contributed to its own economy.[3]
On 25 June 2002 India and the European Union agreed to bilateral cooperation in the field of science and technology.[4] A joint EU-India group of scholars was formed on 23 November, 2001 to further promote joint research and development.[4] India holds observer status at CERN while a joint India-EU Software Education and Development Center is due at Bangalore.[4]
India's IT industry (USD bn) [Source:NASSCOM] Particulars FY 2004 FY 2005 FY 2006 FY 2007E
[edit] References
Alexander, Steve. E-Commerce. (2006: from Computers and Information Systems). Encyclopedia Britannica 2008.
Chand, Vikram K. (2006). Reinventing public service delivery in India: Selected Case Studies. ISBN 0761934898.
Desai, Ashok V. (2006). "Information and other Technology Development" in Encyclopedia of India (vol. 2), edited by Stanley Wolpert. 269-273. Thomson Gale: ISBN 0-684-31351-0.
Kamdar, Mira (2006). "Indo -U.S. Relations, Cultural Exchanges in" in Encyclopedia of India (vol. 2), edited by Stanley Wolpert. 236-239. Thomson Gale: ISBN 0-684-31351-0.
Kapur, Devesh (2006). "Diaspora" in Encyclopedia of India (vol. 1), edited by Stanley Wolpert. 328-331. Thomson Gale: ISBN 0-684-31350-2.
Ketkar, Prafulla (2006). "European Union, Relations with (Science and technology)" in Encyclopedia of India (vol. 2), edited by Stanley Wolpert. 48-51. Thomson Gale: ISBN 0-684-31351-0.
Nanda, B. R. (2006). "Nehru, Jawaharlal" in Encyclopedia of India (vol. 3), edited by Stanley Wolpert. 222-227. Thomson Gale: ISBN 0-684-31352-9.
Rothermund, Dietmar (2006). "Andhra Pradesh" in Encyclopedia of India (vol. 1), edited by Stanley Wolpert. 43-44. Thomson Gale: ISBN 0-684-31350-2.
Sharma, Jagdish (2006). "Diaspora: History of and Global Distribution" in Encyclopedia of India (vol. 1), edited by Stanley Wolpert. 331-336. Thomson Gale: ISBN 0-684-31350-2.
Sharma, Shalendra D. (2006). "Globalization" in Encyclopedia of India (vol. 2), edited by Stanley Wolpert. 146-149. Thomson Gale: ISBN 0-684-31351-0
Vrat, Prem (2006). "Indian Institutes of Technology" in Encyclopedia of India (vol. 2), edited by Stanley Wolpert. 229-231. Thomson Gale: ISBN 0-684-31351-0
Wolcott, P. & Goodman, S. E. (2003). Global Diffusion of the Internet – I India: Is the Elephant Learning to Dance?. Communications of the Association for Information Systems, Volume 11, 560-646.
[edit] External links
India's Top IT Companies 2007. D&B Industry Research Service.
Kanellos, Michael (2005). India's renaissance . CNET News.com.
India’s Information Technology Industry. Indian Embassy to the United States of America, Government of India.
Indian IT Forum. Discussion Forum related to Indian IT Industry.

New travel rules to US take effect from Monday
LONDON: New rules went into effect from Monday requiring people traveling to the United States under the visa waiver program to register online in
advance, instead of filling out paper forms in flight or at the airport.
The new program, designed to improve US security, has been voluntary since August but became mandatory Monday. Travelers are being asked to fill out the forms at least 72 hours in advance of travel.
There were no signs of confusion Monday as the new system was implemented at London Heathrow's sprawling Terminal 5, departure point for many US-bound flights.
``I knew about it because my travel agent told me, so I had already taken care of it online,'' said Jo English as she checked in for a business trip to Miami.
The rules cover the citizens of 35 countries who don't require a visa to enter the United States.
Derwood Staeben, US consul general in London, said nearly all applications would be approved in less than 10 seconds. He said travelers would not be required to give any more information than is already requested on the paper immigration forms, which are being replaced.
``The important change is that we're automating the existing process and requiring it to be done in advance,'' he said. ``The response time is generally about four seconds.''
Travelers filling out the online form will be told whether their request is authorized, denied or pending, he said. Those who are marked ``pending'' must check back in 72 hours to see if they have been approved, he said.
People whose application is denied must apply to the US consulate for a visa, he said.
He said the U.S. Congress mandated the change. There is no fee for the service, he said, and the travel authorization is valid for two years. He warned that operators of some unscrupulous Web sites are charging fees for this service, which is designed to be free of charge.
People can apply for travel authorization at any time, and Staeben said about 14,000 applications per day are being received.
Tech firms brace for painful '09
12 Jan 2009, 2218 hrs IST, REUTERS
LAS VEGAS: Top technology companies came to Las Vegas to show off their latest innovations in consumer electronics, but despite the plethora of TVs,
computers, phones, cameras and other gadgets on display, it was clear the industry is bracing for a very tough year.
While there were a few bright spots at this year's subdued Consumer Electronics Show -- such as low-cost mini-laptops known as netbooks -- what emerged was a picture of scaled-back investment plans, more job cuts and stagnant growth with no signs of improvement.
The global economic slump hit at a time when the growth momentum of flat-screen TVs and digital cameras, which drove the sector's expansion in recent years, had already started to lose steam amid high penetration rates in developed countries. That left tech firms with no star products to fall back on.
Asked when the electronics industry was likely to recover from the downturn, Shutoku Watanabe, executive vice president of Hitachi Ltd's consumer business group, said: "I wish you could tell me."
"We'd probably better mentally prepare ourselves for two more years of this," he told Reuters in an interview, in which he said Hitachi was likely to miss its annual LCD TV sales target by as much as 10 percent.
According to estimates from industry watchers IDC, Gartner and DisplaySearch, the global PC, microchip and flat-TV markets will all contract in 2009 in value terms as the protracted economic downturn dampens consumer and corporate spending.
"I don't think there is any one product that is going to help everybody pull out of the situation," said DisplaySearch analyst Chris Crotty, who attended the show ending on Sunday, where high-tech companies from Microsoft Corp to Palm Inc unveiled their latest products and strategies.
"Unfortunately, when you have an economic downturn coupled with slowing demand, it's a combination that weakens the industry," Crotty said.
Before CES, a slew of technology companies had already announced sweeping job cuts: chip maker Micron Technology Inc said in October it would cut 15 percent of its global workforce of about 19,000 people, while Sony Corp plans to eliminate 16,000 jobs and reduce its network of 57 manufacturing sites by five or six.
At CES, a senior executive at Seagate Technology told Reuters the world's largest hard-disk drive maker plans to cut around 10 percent of its U.S. workforce, amid sluggish demand for PCs and other electronic products.
"We are preparing for a pretty tough environment here over the next 12 months" said Brian Dexheimer, president of Seagate's consumer division, joining a growing list of high-tech companies that are reducing headcount to save costs.
DRASTIC STEPS
The steep slowdown in tech demand hit manufacturers just when they were accelerating output expansion, and now they are scrambling to cancel or downscale aggressive investment plans.
While some companies such as LG Electronics Inc said it was important to continue to innovate and invest in research and development during a downturn, analysts do not expect any large-scale spending by tech companies this year.
Citi, Morgan Stanley near deal on brokerage: Report

12 Jan 2009, 2045 hrs IST, AGENCIES
WASHINGTON: Ailing US banking giants Citigroup and Morgan Stanley are near a deal for a joint venture to create the world's biggest brokerage,
newspapers reported on Monday.
Such a deal would merge Citi's Smith Barney unit with the brokerage operations of Morgan Stanley.
Citing people familiar with the matter, reports said that cash-starved Citigroup and Morgan Stanley, which wants to reduce its exposure to volatile trading businesses, "seem ready to roll the dice."
Morgan Stanley, a Wall Street investment bank icon that converted to a bank holding company in September to have easier access to credit to survive the global financial crisis, has received $10 billion from the US Treasury's 700-billion-dollar Troubled Asset Relief Program (TARP).
Citigroup, also badly hurt in the credit meltdown, received a $25 billion taxpayer bailout under the TARP program initially aimed at supporting the financial system.
The Treasury later agreed to invest 20 billion dollars in Citigroup, giving US taxpayers an eight percent stake in the company.
Papers noted that putting together a deal on the proposed joint venture faces challenges "from clashing egos to divided loyalties, especially since Smith Barney brokers will likely report to bosses from Morgan Stanley, under the terms being discussed."
The terms of the current talks call for Morgan Stanley to control 51 percent of the two companies' brokerage units, with Morgan Stanley paying Citigroup about 2.5 billion dollars.
That essentially represents a premium, the newspaper said, since Morgan Stanley's brokerage operation has about 8,400 brokers compared with more than 11,000 working at Smith Barney.
The deal would topple the former Merrill Lynch & Co., now owned by Bank of America Corp., from its years-long perch as the world's leading brokerage, it noted.
114 MoUs signed in Energy and Petrochemicals sector
AHMEDABAD: Energy and Petrochemicals sector received huge response during the Vibrant Gujarat Global Investors' Summit (VGGIS)-2009 which began here
on Monday, with inking of 114 MoUs on day one.
According to state energy & petrochemical department, 114 MoUs were today inked while 11 new announcements have been made entailing proposed capital investments of over 3.82 lakh crore.
Gujarat Principal Secretary Energy and Petrochemical Department S Jagdeesan said that the power sector saw the signing of 30 MoUs at an investment of Rs. 2,03,595 crore.
The total power generation capacity in the state would increase three folds once these new projects are commissioned, he added.
Those who have inked MoUs for setting up new power projects in the state include Singapore-based Universal Success Enterprise, which will set up a 10,000 MW thermal power plant with investment of Rs 50,000 crore, OPG Power 2400 MW with investment of Rs 12000 crore, Shapporji Pallonji Energy (Gujarat) Pvt Ltd, 2000 MW with investment of Rs 10,000 crore.
Besides this, India Power Corporation has signed an MoU for setting up a 1320 MW power plant with investment of Rs 6600 crore, Rachna Global Excavation Pvt Ltd has signed an MoU for 2000 MW power plant with investment of Rs 9200 crore.
India may sign oil and gas sector MoU with Canada

12 Jan 2009, 1730 hrs IST, ET Bureau
NEW DELHI: India may sign memorandum of understanding (MoUs) with Canada for cooperation in oil and gas sectors. The MoU may also enable Indian exploration firms to explore oil sands in the country. New Delhi may also sign similar agreements with Syria and Mozambique, according to an oil ministry official.
RP to benefit from 1-billion dollar Indian BPO fraud scandal solon says
India requires Rs.1.5 lakh crore for meeting nuclear power targets
NEW DELHI: India will have to invest Rs.1.5 trillion in nuclear power plants if it is to meet an ambitious target of generating 63,000 mega watts
(MW) from nuclear power by the year 2020, a leading parliamentarian said Monday.
"India would require Rs.1.5 lakh crore (Rs.1.5 trillion) if we are to meet the target of generating 63,000 MW using nuclear power. This is possible only through the public private partnership route," said Abhishek M. Singhvi, member of parliament and chairman, India-US Forum of Parliamentarians.
"This requires amendment to the Atomic Energy Act and new legislation like the Liability Act," he said while addressing a US delegation of civil nuclear power companies which is here to expedite talks with the government and understand policy issues.
India's nuclear programme is worth $160 billion in nuclear technology and components.
"The Indian government needs to operationalise many protocols expeditiously, so that private companies from the two countries can step in," said Steve Hucik, general manager of GE-Hitachi Nuclear and leader of the US delegation.
West Bengal's industrial projects face TMC hurdles

12 Jan 2009, 2000 hrs IST, Tamal Sengupta, ET Bureau
KOLKATA: Two big-bang industrial projects in West Bengal - Apeejay Group's shipyard project in Geokhali and Bengal Aerotropolis project at Andal -
are likely to face hurdles after Trinamool Congress on Monday threatened to thwart any moves at forcible land acquisition at project sites.
For starters, Apeejay Group's proposed shipyard project at Geokhali in East Midnapore district is likely to take a hit as the Trinamool Congress leadership on Monday emphasised that it would oppose forcible acquisition of land by the state government or any government agency from unwilling land owners at Geokhali.
In Andal, more than 900 families too have refused to give up their plots for the Aerotropolis project. Most of these families are supporters of Trinamool Congress.
Two Trinamool Congress MLAs from East Midnapore district which is under the party's control, Sisir Adhikary and Subhendu Adhikary announced that they would not allow the state government to apply force in acquiring land for the project.
"A notice was served long ago to acquire 450 acres in the Bhangabera, Deulpota, Babupur and Hariballavpur mouzas for the proposed project. About 50 per cent of the population living in these mouzas have refused to give up their land. The rmaining population have demanded Rs 15 lakh per acre for farmland and Rs 28 lakh per acre for residential land as compensations for their land," said Subhendu Adhikary.
"We have no objection to the Group's initiative to set up their shipyard project. But we will not allow any forcible land acquisition," said Mr Adhikary. Another Trinamool Congress MLA from the district, Sisir Adhikary also said that about 350 villagers had refused to hand over their plots for the project. "Naturally, we will have to protect their interests and we will oppose any move to acquire land from these families forcibly," said Sisir Adhikary.
The two MLAs also suggested that instead of establishing the shipyard project at Geokhali, the promoters should set up the same at Jellingham in the same district. "Long ago, about 300 acres were acquired at Jellingham and the land is under the possession of the closed Burn Standard Company. The case of Burn Standard is under BIFR consideration and the government can easily utilise the 300 acres land for the proposed shipyard project," said Sisir Adhikary.
The two Trinamool Congress MLAs are well aware about the problems involved in utilising land belong to any sick industrial unit, particularly if the sick unit is under BIFR consideration. Still, they are making such demand allegedly to politicise the issue and extract mileage before the coming parliamentary elections.
Subhendu Adhikary also made it clear that they would not mind if the company purchase the land they will require to set up their project directly from the owners. "But we will not allow any move either by the West Bengal Industrial Development Corporation (WBIDC) or Haldia Development Authority (HDA) to acquire land forcibly from the unwilling owners. In that case, the Singur scenario will re-occur," warned Subhendu.
A warning issued by the two prominent Trinamool Congress MLAs from East Midnapore district is significant after their party won the Nandigram by-elections by a huge margin. The East Midnapore zilla parishad is also under the control of Trinamool Congress as the party won the panchayat elections in the district during May, 2008.
http://economictimes.indiatimes.com/News/Economy/Infrastructure/West_Bengals_industrial_projects_face_TMC_hurdles/articleshow/3969415.cms
Industrial production to slow considerably in H2: Goldman
12 Jan 2009, 1510 hrs IST, ECONOMICTIMES.COM
MUMBAI: Notwithstanding the positive industrial production reading for November, activity continues to weaken sharply. The IP series has been very
volatile lately, but the trend is clearly downwards, says Goldman Sachs Global ECS Research of India’s IIP data which was released earlier on Monday.
India’s November Industrial Production Index rose by 2.4% year on year from a revised 0.3% YoY fall in October, significantly higher than the market’s expectation of a 0.8% YoY fall and Goldman Sachs’ expectation of a 2% YoY decline.
The monthly momentum (seasonally-adjusted) rose 1.7% month on month in November versus a 3% MoM fall in October. For the April-November months, IIP grew 3.9% YoY versus 9.3% YoY in the same period last year.
Growth in consumer non-durable goods drove IIP. Growth in consumer goods improved to 4.4% YoY compared to a 2.2% YoY decrease in October, mostly due to strong growth in consumer non-durables (7.3% YoY). However, growth in the consumer segment was lower than the average 6.2% YoY increase in the April-October months. The capital goods component fell by 2.3% YoY vs. 9.3% YoY growth in the first seven months of the year. However, monthly momentum in capital goods rose 3.5% mom versus a 9.3% mom fall in October.
The Infrastructure Index, released on December 11, showed a growth of 2.2%. In terms of industries, 10 out of 17 industry groups showed positive growth.
According to Goldman Sachs Global ECS Research, part of the uptick in November can be explained by a low base (in November 2007, IP had grown by only 4.9% compared to the average of 8.6% in FY08).
It is positively surprised by the strong number given that other coincident indicators point towards very weak activity in November. Exports and motor vehicle sales each fell by 10% YoY in November.
Tourism revenue and direct and excise tax collection also slumped. The Purchasing Managers Index contracted for the first time in 3.5 years to 45.8 in November from 52.2 in October.
Goldman Sachs continues to expect activity to slow considerably in the second half of FY09, after growing by 7.8% in the first half. Its estimate for GDP growth remains unchanged at 6.7% YoY for FY09, and 5.8% for FY10.
Goldman Sachs Global ECS Research expects the Reserve Bank of India to ease both the repo and reverse repo rates by 50 basis points each in the January 27 meeting, and also expects the RBI to ease the cash reserve ratio by 150 bps by mid-2009.
http://economictimes.indiatimes.com/News/Economy/Infrastructure/Industrial_production_to_slow_considerably_in_H2_Goldman/articleshow/3967634.cms
As Indian Outsourcing Changed, Satyam Hesitated
MANILA, Jan. 11 (PNA) -- Catanduanes Rep. Joseph Santiago on Sunday said he sees the disclosure of massive fraud at one of Indian's largest information technology (IT) companies to drive more Western firms to do more business with Philippine-based business process outsourcing (BPO) solution providers.
"Revelations of anomalies at Satyam Computer Services Ltd., coming on the heels of the terrorist attacks on Mumbai that targetted American and British citizens, will force many Western firms to rethink their plans to do new business with, or contract out additional back office work to BPO providers based in India," Santiago said.
"The Philippines is in a superb position to capture whatever outsourcing business that India stands to lose on account of Satyam's troubles," said Santiago, chairman of the House information and communications technology committee.
Santiago was referring to the highly publicized accounting scandal at Satyam, whose founder and chairman of the board admitted last week that the company had doctored its books and inflated profits in a big way over several years.
In effect, Satyam made it appear it was doing more business with more clients than it actually did.
"Fortunately for us here in the Philippines, we've never had any fraud at a BPO provider of a scale comparable to what happened at Satyam. This could be due to higher corporate governance standards and more rigorous controls here," Santiago said.
"Our BPO providers here are mostly run by reputable entities," added Santiago, former chief of the National Telecommunications Commission and a key congressional backer of the local BPO and IT-enabled service industries.
He cited the case of the Philippines' largest essentially homegrown BPO provider, eTelecare Global Solutions Inc. (2007 revenues of P7.1 billion), which is now owned and controlled by the Ayala Corp.
Satyam chairman B. Ramalinga Raju said he had no choice but to reveal the fraud because the doctoring of the company’s balance sheet -- loaded with fictitious assets and imaginary cash -- had created a $ 1-billion hole that could no longer be concealed.
The disclosure of fraud sent Satyam's shares of stock, which are publicly traded in India and New York, plunging almost 80 percent.
Raju and two other Satyam executive have since been arrested by the Indian police and charged with criminal conspiracy, forgery, criminal breach of trust and falsifying documents.
Satyam provides IT and BPO services globally. It has marketing operations in 45 countries on six continents, and has development hubs in India, the United States, the United Kingdom, Japan, Australia, Singapore, Malaysia and Dubai. The company has a staff of more than 53,000 worldwide.
Satyam reported revenues of $ 2.138 billion in the fiscal year ending Mar. 31, 2008, up 47 percent from $ 1.461 billion in 2007. (PNA)
V3/PR/rsm
http://www.pna.gov.ph/index.php?idn=&nid=3&rid=180139
IT biggies to bag $4-bn projects
12 Jan 2009, 0939 hrs IST, Pankaj Mishra, ET Bureau
BANGALORE: Top outsourcing customers, including BT, Citi, GE and Bank of America will award around $4 billion worth of new outsourcing contracts to
Indian tech biggies such as TCS, Infosys, Wipro and HCL this year, as these companies seek to cope with their tightened information technology budgets by sending work to offshore locations such as India.
Among some of the top outsourcing deals coming to India this year, Australian phone firm Telstra is considering a $250-million outsourcing contract which is expected to be finalised by this month end, followed by several $50-100 million and above contracts from Citi, BT, GE and other customers. Outsourcing expert Sabyasachi S Sathyaparasad of Mindplex Consulting said that new contracts worth almost $4 billion will include long-term application maintenance contracts. However, even as these customers seek to award new projects by renewing existing contracts, Indian vendors could lose over $300 million because of lower billing rates, he added.
“Many large customers have reduced their IT budgets by up to 10%, and they plan to seek more cost and business output-based deliverables from the service providers in these difficult times,” he said.
Telstra plans to reduce the number of vendors it works with in order to have one supplier for each domain across the product lines, and bring down the cost of managing IT systems. “The company wants to move more than half of this contract to an offshore location such as India, and that is why pure Indian offshore vendors including Infosys, Satyam and EDS-Mphasis are being seriously considered,” said a senior executive at one of the top tech firms bidding for the Telstra contract. He requested anonymity.
Telstra plans to bring down the number of IT systems from around 1,350 to almost 300 by 2010. Reducing the number of IT vendors from four to two is part of Telstra’s overall transformation strategy. On the procurement side, Telstra has already reduced the number of suppliers by almost 20%, translating into saving of $226 million this year. At a time when companies are seeking different ways to cut costs, renegotiation and renewal of contracts by Best Buy, Visa and Nisaan is aimed at achieving significant savings. Last year, when BT renegotiated its contract with Xansa, the company aimed to save around $123 million over next six years. However , BT’s restructured deal also witnessed more work for Xansa, estimated to be almost 80% of BT’s overall back-office projects.
Customers such as Citibank are also seeking to send more IT projects to offshore locations such as India. “As we face these (economic ) challenges, there will be greater demand for moving more work to offshore locations,” Jagdish Rao, global technology head for Citi said during his visit to India last month. Mr Rao was in the country to announce a six-year and over $500 million, master services agreement with Wipro for delivery of infrastructure services and application development. As part of the deal, Wipro acquired Citi Technology Services for around $127 million, which came with Citigroup’s commitment to outsource all future infrastructure management contracts to the company. For phone firms such as Telstra offshore outsourcing is about consolidation their IT needs and leverage India-based vendors for bringing down the costs.
Meanwhile, companies such as Tesco, the world’s third biggest retailer , are already seeing their offshore outsourcing initiatives fetching rich dividends. Mike Mc-Namara , director operations and information technology at Tesco told ET last week that his company would continue to outsource more work to India at its captive centre and to top Indian software vendors such as TCS and Infosys. Tesco saves around $60 million every year by outsourcing to India , which was a compelling enough reason to funnel more work to the country, he said.
http://economictimes.indiatimes.com/News_by_Industry/IT_biggies_to_bag_4-bn_projects/articleshow/3966143.cms
25 lawyers to defend Ramalinga Raju
12 Jan 2009, 1830 hrs IST, IANS
HYDERABAD: A battalion of 25 lawyers will defend disgraced former chairman of Satyam Computer Services B. Ramalinga Raju and two other accused in New Satyam board members |
Rise and fall of Raju |
Satyam's Development Centres

the Rs.70 billion ($1.43 billion) fraud case.
This was announced by their lawyer S. Bharat Kumar Monday soon after a court adjourned the hearing on the bail petition of the disgraced former top brass of the company to Friday.
The court also adjourned the hearing on the petition of the Crime Investigation Department (CID) seeking their custody and another petition by market regulator Securities and Exchange Board of India (SEBI) seeking permission to question them for the massive fraud.
Additional Chief Metropolitan Magistrate D. Ramakrishna adjourned the hearing on all the three petitions to Friday.
Satyam's founder and former chairman B. Ramalinga Raju, his brother and former managing director B. Rama Raju and former chief financial officer Vadlamani Srinivas were remanded to judicial custody till Jan 23. They have been kept at Chanchalguda Central Jail here.
Bharat Kumar told reporters outside the Nampally Metropolitan Court Complex that the judge adjourned the hearing to allow Ramalinga Raju to file a counter to the SEBI petition.
Team gave me documents, I blindly signed: Satyam ex-CFO Vadlamani
11 Jan 2009, 2253 hrs IST, TNN
HYDERABAD: Satyam's chief financial officer (CFO) Vadlamani Srinivas on Sunday claimed that he had no knowledge of fudging of over Rs 7,000 crore by
former chairman B Ramalinga Raju.
According to sources, Vadlamani in his confession stated he wasn't aware of the fraud as his 80-member team provided him documents and he blindly signed on them.
Crime Investigation Department sleuths raided houses of the Raju brothers in Jubilee Hills and Vadlamani's residence at Habsiguda on Sunday.
Around 8am, five special teams of CID personnel reached the houses of the Rajus on Road Number 62, Jubilee Hills, and Vadlamani's house on Street Number 3, Habsiguda, armed with search warrants. During the searches, the special teams, comprising CID and city police personnel, seized several documents and copied data from computers on the three premises. The CID is also working with SEBI and Registrar of Companies in the searches at Satyam's offices in Hyderabad.
The CID sleuths said there were no raids on houses of the directors of the superseded board (the Centre named three new directors on Sunday) and none of them had been arrested. "As part of the investigation, all persons or organisations involved in the Satyam case will be questioned. But so far, Satyam's board of directors, independent directors and PwC personnel have not been questioned,'' additional DG (CID) A Sivanarayana said.

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? Satyam ex-CFO Vadlamani Srinivas sent to judicial custody till Jan 23

Vadlamani, who was questioned by CID officials for nearly 18 hours, was produced before VI additional chief metropolitan magistrate P Ramakrishna on Sunday evening. He was remanded in judicial custody till January 23 and was shifted to the Chanchalguda jail.
Police have sought custody of Vadlamani and their petition will come up for hearing on Monday. The CID officials were tightlipped on the revelation. "Vadlamani has to be questioned further. So, we have moved a petition seeking his custody,'' IG (CID) VSK Kaumudi said.
Liquidity crunch: Satyam may shut many facilities
12 Jan 2009, 0938 hrs IST, TNN
HYDERABAD: Even as the new Satyam board is set to meet for the first time on Monday, eyebrows are being raised in the real estate circles on New Satyam board members
Satyam's Development Centres
The Great Fall of Satyam
Five facts about Satyam
whether the company would continue to operate so many facilities across Chennai and Hyderabad.
"The liquidity situation is very tight. In fact the interim CEO Ram Mynampati did admit to tight cash position in the company. The new board should find ways and means of lining up credit lines to ensure continuity of operations. In such a scenario, I do not foresee the company operating so many fragmented centres," a senior Satyam official confided.
The problems are many. But, the main focus of the new board is to have a new management team which will take care of day-to-day operations.
"First priority is to build confidence among the employees. They are the brand ambassadors of the company. Simultaneously, address client issues and assure them of continued high class delivery. These two will take care of the third section, which is the investor community," he said.
Clearly the shoe is beginning to bite. With so many centres across Chennai, Vishakapatnam and Hyderabad, there is bound to be rationalisation of operations, going forward.
http://economictimes.indiatimes.com/Infotech/Software/Liquidity_crunch_Satyam_may_shut_many_facilities/articleshow/3965699.cms
By HEATHER TIMMONS and JEREMY KAHN
Published: January 11, 2009
NEW DELHI — The founder of Satyam Computer Services, B. Ramalinga Raju, made a risky proposition to win his first big client, the tractor maker John Deere: If you don’t like our service, you don’t pay.

With that pitch, which is now the stuff of legend in India, he persuaded John Deere in 1991 to allow his computer programmers to work near the client’s headquarters in Moline, Ill., in a house Mr. Raju called “Little India.” Working only overnight shifts, with no face-to-face contact with Deere executives, the programmers got the job done — supporting Mr. Raju’s theory that they could do their work from India. That trial helped give birth to the country’s outsourcing industry.
Mr. Raju’s iconoclastic moves became something of a trademark during Satyam’s rise. Satyam was one of the first outsourcing companies to move jobs outside of Indian urban centers, and one of the first Indian companies to qualify to trade on the Nasdaq and the New York Stock Exchange.
Now, Satyam’s demise has been as shocking for supporters in its hometown, Hyderabad, as it has been for investors and the 53,000 employees. The same single-mindedness that drove Mr. Raju to take a chance with his first big client may have laid the groundwork for the fraud at the center of this crisis.
Mr. Raju admitted last week to falsifying about $1 billion in cash on Satyam’s books and vastly inflating the company’s profit margins. Mr. Raju and his brother, B. Rama Raju, as well as the company’s chief financial officer, Srinivas Vadlamani, were in jail Sunday night. All three are being investigated on suspicion of cheating, forgery, criminal breach of trust and falsifying documents.
The Indian government ousted Satyam’s board members and began replacing them with its own choices. Satyam’s previous board did contain outsiders — including Krishna G. Palepu, a professor at the Harvard Business School who teaches classes on corporate governance.
But the board, and auditors, evidently did not pick up on the fraud at the company. Instead, Mr. Palepu and three other board members quietly quit a week before Mr. Raju’s admission.
Over the years, the company faced competition from outsourcers growing even faster. Satyam was like “the younger brother trying to keep up with the older brothers on the playground,” said John C. McCarthy, an analyst with Forrester Research.
While the biggest firms — Tata Consultancy Services, Infosys and Wipro — revamped their business practices to become more global, Satyam “still felt like a family-run company due to its ‘command and control’ style,” said Frances Karamouzis, research vice president with Gartner in New York, which advises information technology companies. “What Mr. Raju said was what trickled down” to the rest of the company, she said.
The Indian offshoring industry went through a painful transition in 2004 and 2005, as Western giants like I.B.M. and Accenture started to cut into their business.
But Satyam was slow to transform, in part perhaps because of Mr. Raju’s management style. “He was very old school,” Ms. Karamouzis said. The company’s management, she said, was “very parochial and didn’t embrace change or implement anything differently.”
Customers had complaints. “We are tired of being required to call up the top guy in India to get things resolved,” one Satyam client told Gartner in 2005.
Perhaps to make up for market share it might be losing, Satyam started to underbid its competitors, putting pressure on its own profit margins. If the other big outsourcers were charging $27 or $28 an hour, Satyam would charge $21 or $22, Ms. Karamouzis said.
Now, the struggles of Satyam are being acutely felt in the state of Andra Pradesh and its capital, Hyderabad, as Mr. Raju became an informal ambassador helping to lure other technology companies there. Microsoft decided to open a new product development center there in 1999. Many of Mr. Raju’s other business interests, including the construction companies managed by his sons, benefited from state contracts.
Those construction companies helped to set Satyam on its downward spiral. Late on Dec. 16, Satyam said it was planning to acquire two companies, Maytas Properties and Maytas Infra, for $1.6 billion. The two companies are run by Mr. Raju’s sons, and he and his brother Rama Raju had stakes in them.
But when Mr. Raju and his top executives met with shareholders that evening, they were faced with a full-scale revolt. The stock plummeted, leading to the margin calls that led him to admit the fraud, he said in his confession.
http://www.nytimes.com/2009/01/12/business/worldbusiness/12outsource.html?ref=worldbusiness
India moves to contain Satyam fraud fallout
The government has taken control, installing new board members at the outsourcing giant.
By Anuj Chopra | Correspondent of The Christian Science Monitor
from the January 12, 2009 edition
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Pune, India - The $1 billion fraud unearthed last week at a leading Indian outsourcing firm has spawned fears it could tarnish the image of India overseas as an outsourcing powerhouse, thus impeding business prospects.
Two days after B. Ramalinga Raju and his brother Rama Raju were taken into judicial custody for orchestrating the fraud, labeled widely as "India's Enron," the Indian government, in damage-control mode, swooped in to take control of Satyam, the beleaguered outsourcing company they cofounded. On Sunday, it appointed three leading businessmen to the board of Satyam Computer Services Ltd.
Last week, Mr. Ramalinga Raju admitted to concocting key financial results of Satyam Computer Services Ltd. "for years," while vastly overstating revenues and bank balances.
The magnitude of this fraud – the worst ever witnessed by corporate India – has sent shock waves across the country. Particularly unpalatable is the fact that Mr. Raju was no fly-by-night cash embezzler, but the chairman of India's fourth-largest outsourcing company. Satyam boasts of being the back office of more than 185 Fortune 500 companies, with a network spanning 66 countries. Many analysts fret this scam could impede the growth of the country's $40 billion outsourcing industry, long hailed as the engine of India's economic resurgence.
"For years, Raju was lionized as one of the whiz-kids of the IT [information technology] sector," says Paranjoy Guha Thakurta, a New Delhi-based commentator. "There is no doubt this is a heavy blow to India Inc.'s [squeaky-clean] reputation overseas."
It isn't clear if the Satyam scam will deter multinational companies from outsourcing business to India or entrusting Indian outsourcing firms – attractive for their cheap labor and efficiency – with sensitive confidential data.
The National Association of Software Services Companies, India's IT watchdog, emphasizes that Satyam's case is an exception.
"This is a stand-alone case of the failure of corporate governance, and it is critical that it be viewed in this light," it said in a statement.
But it is a blow to the outsourcing industry, reeling under a slowdown. "The timing could not have been worse," the Indian Express, a national daily, editorialized Thursday. "We are less than a fortnight away from the inauguration of the least globalization-friendly American president in decades. At the cusp of a possible attitudinal shift in US policy towards offshoring, the collapse of one of the biggest Indian outsourcing companies amid allegations of ethical breaches is simply catastrophic."
"This incident is a black eye," Nandan Nilekani, co-chairman of Infosys, India's second-largest software firm, told the media last week. "We have been promoting Indian entrepreneurs, [the] Indian [corporate sector] as the flagship of 'brand India.' When one of the lot has deplorable behavior, then obviously it affects us all."
Before he fell from grace, Ramalinga Raju was hailed by investors as a visionary who shepherded his company to post profit margins exceeding 20 percent every year. Buoyantly declaring a 28 percent year-over-year revenue growth in the second quarter last year, he said: "We achieved this despite a challenging global macroeconomic environment."
But last week, Raju conceded that Satyam's revenues had been overstated by 76 percent and profits by some 97 percent. The stated operating margin of 24 percent was actually 3 percent.
The chase of huge profits and the pressure to meet investor expectations may have been behind his actions, some analysts say.
That pressure affects every major outsourcing player, Mr. Nilekani emphasizes.
"All of us who run companies must really put ethics, corporate governance, and running a transparent company in the front," he says. "If results are bad we should declare that, if profits are low we should declare that, but we should not do anything which impairs the trust of our stakeholders."
Analysts say poor accounting standards that allow manipulation of figures without being detected by Indian regulators are a key problem.
"We were disappointed but not surprised by Satyam's revelations," says Saurabh Mukherjea, head of Indian Equities, at Noble, a London-based investment bank. "Our daily encounters with listed Indian companies suggest that there are more Satyams in the pipeline thanks to enfeebled regulation, weak accounting discipline, and aggressive promoter behavior."
In his regular encounters with Indian companies listed at the Bombay Stock Exchange (BSE 500 index), he has discovered several fraudulent and unethical corporate practices.
In recent years, he has found at least 10 companies in the BSE 500 that have manipulated finances, he says, by "shifting expenses away from the current period by significantly reducing depreciation rates." At least 15 companies have "disbursed the bulk of their loans and advances to companies in which directors have an interest."
But while investor confidence in the very near term might take a knock, Mr. Mukherjea is optimistic that India Inc. will emerge from the crisis.
"In the country where accounting scandals have been exposed most frequently – the US – such scandals do not appear to have a bearing on the overall direction of the market," he says.
A year after accounting irregularities in Cendant and Sunbeam (two of the biggest such cases before Enron) were discovered in April 1998, he notes, the S&P 500 rose 17 percent.
"With the Indian market almost unprecedentedly cheap, this [might be] a good time to look for attractively valued companies," he says, "provided investors are willing to use forensic accounting analysis and primary data checks to avoid the next Satyam."
http://www.csmonitor.com/2009/0112/p07s01-wosc.html
A lawmaker's bad call on another's misfortune
Posted in The Pinoy Post by Melvin G. Calimag on 2009/01/12 13:45:00
It's just the beginning of the new year, but the tech world is already buzzing with interesting stories, albeit negative ones.
The gloomy forecast for 2009, it seems, is off to an ominous start, although I'd like to believe that the Philippines is somehow not that vulnerable to this financial mess (as a friend of mine said, we can't lose what we don't have).
Of course, one of the biggest sad stories to come out this early is the Satyam fraud scandal. My fellow blogger, Swati Prasad, has posted a very good blog about this so I won't repeat the facts of the case, except to make a few comments.
Needless to say, the developments at Satyam will have tremendous effect on the Philippines since the country, just like India, is a prominent player in the global outsourcing business. Already, some quarters here are saying that this scandal involving one of India's outsourcing giants is good for the Philippines as it might divert outsourcing traffic to the country.
One such remark was made yesterday, via a press release, by Catanduanes Representative Joseph Santiago, a guy who never fails to comment on almost every IT issue so he make the headlines.
The ironic thing is that Santiago never made any significant IT policy as head of the National Telecommunications Commission during the term of the deposed president Joseph Estrada, nor did he pass any important IT legislation in his current role as chair of the ICT committee in Congress. Although he rarely grants interviews, his well-written press releases are often picked up by the media.
In his latest press statement, Santiago said revelations of massive anomalies by Satyam Chairman B. Ramalinga Raju will "force Western firms to rethink their plans to do new business with, or contract out additional back office work to BPO (business process outsourcing) providers based in India".
"The Philippines is in a superb position to capture whatever outsourcing business that India stands to lose on account of Satyam's troubles," he stated. "Fortunately for us here in the Philippines, we've never had any fraud at a BPO provider of a scale comparable to what happened at Satyam. This could be due to higher corporate governance standards and more rigorous controls here."
Granted that what Santiago said about the Philippines is true, his comment that Satyam's misfortune is beneficial to the Philippines, smacks of opportunism and lacks the class expected of him as a lawmaker. Has the congressman run out of good ideas to write about on a press release?
Proper manners dictate that one doesn't gloat on the misery of others. God forbid, but Santiago could end up eating his words if Satyam-type shenanigans, albeit on a smaller scale, will transpire here. This is not far-fetched possibility, after all, since the issue has been brought to light by this scandal.
In my years covering the IT beat, I've seen the shift of the global outsourcing industry from competition to co-opetition. This is the reason why Indian firms have established call centers here as a way to enhance the symbiotic relationship between India and the Philippines.
Simply put, whatever bad happens to India, the Philippines is sure to feel the negative fallout. If something good happens to India, the Philippines is expected to benefit as well. We're in the same boat.
What we need to do is to learn from this incident and fix whatever is necessary to avoid similar Satyam setbacks in the future.
http://www.zdnetasia.com/blogs/pinoypost/0,3800011232,63008326,00.htm

Disclaimer:
Views and opinions expressed in this blog are the author's, and do not necessarily represent those of ZDNet Asia.
Reflecting in a time of crisis
Posted in The Pinoy Post by Melvin G. Calimag on 2008/12/26 10:48:48
Although I'm a fierce Catholic, I don't consider myself a religious person. The financial crisis, however, has led me to reflect on my inner values and spiritual beliefs. And even if I feel incompetent to discuss these things, let me attempt to give a lousy elucidation.
The utter commercialism that has consumed most of us, especially in our desire for electronic gadgets, has given birth to a monster in which consumers continuously crave for various devices. Thus, the financial meltdown has somehow rendered us poorer, unable to afford our "essential" tools.
In a way, that's what I felt about a few days ago when I lost my cellular phone after a pickpocket pulled it out of the pouch bag tucked around my waist. At first, I was mad at myself for allowing that to happen and I vowed to get a newer, more powerful replacement. But, reality dawned on me that times are indeed hard and that I had to fight my urge to a buy a flashier unit.
The next morning, I chanced upon a spiritual column in a newspaper discussing Misa de Gallo, the midnight or dawn masses held during Christmas time here in the Philippines. In the article, the writer said the Christmas tradition, in which local folks attend early morning masses for nine days, serves as a reminder against materialism that has become so pervasive in this world.
Why do people go through the trouble of waking up at the break of dawn when they can hear mass during the day? It's because things that really matter, he said, require a certain form of sacrifice. It's always not easy to search for something higher, something loftier.
In hindsight, it's a waste of time for me poring over a personal concern. Heck, it's just a phone; it can be replaced. There are more important things in life than getting obsessed with gadgets that appear very often these days.
I hope you had a meaningful Christmas. And let's hope for the best in the coming New Year.

Disclaimer:
Views and opinions expressed in this blog are the author's, and do not necessarily represent those of ZDNet Asia.

World Bank action will have no impact on business: Wipro
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Bush: Obama hasn't asked for TARP funds
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Indian shares fall 3 pct; Satyam jumps, Wipro drops
Mon Jan 12, 2009 11:25am GMT
Satyam climbs 44 pct as rescue hopes grow * Wipro falls 9.3 pct on World Bank bar on direct contracts * Concerns about quarterly earnings keep investors wary
(Updates STOCKS THAT MOVED to include PBA Infrastructure's
correction of its order size) By Janaki Krishnan MUMBAI, Jan 12 (Reuters) - Indian shares fell 3.15 percent
to their lowest close in more than five weeks on Monday as
investors braced for tough quarterly earnings, but
scandal-scarred Satyam (SATY.BO) jumped 44 percent on hopes a
government-appointed board will rescue the company. Traders said the broader market was also weighed down by
concerns about tighter regulations and more negative
disclosures by companies. Shares in Satyam Computer Services Ltd jumped 44.2 percent
to 34.40 rupees on hopes a newly constituted three-member
board, appointed by the government, would help salvage the
company's clients and staff. [ID:nBOM370906] Deepak Parekh, chairman of Housing Development Finance Corp
(HDFC.BO) and a new director of Satyam, is expected to address
a news conference at 5 p.m. (1130 GMT). Satyam's market value had slumped to $330 million last week
from more than $7 billion just six months ago following
revelations of an accounting fraud. Wipro Ltd (WIPR.BO) shed 9.3 percent to 227.35 rupees after
the No. 3 outsourcer said the World Bank had barred the company
in June 2007 from direct contracts until 2011, citing a
conflict of interest. [ID:nBOM184642] The 30-share BSE Index dropped 296.42 points to
9,110.05, its lowest close since Dec. 5. It briefly pared
losses to 0.8 percent after industrial output unexpectedly rose
in November, but then fell 4.1 percent before pulling back. Ved Prakash Chaturvedi, managing director at Tata Mutual
Fund, said the market was reacting to negative news in India
and globally. "Funds, both domestic and foreign, are not buying and that
is a cause for concern. People are also scared that corporate
earnings may not be as good as previous quarters or maybe
worse," he said. Mid-sized software services firm Megasoft Ltd (MSFT.BO)
fell to an all-time low of 13.80 rupees after the World Bank
said it had barred the firm for four years in December 2007 for
participating in a joint venture with bank staff while
conducting business with the bank. The stock closed down 0.6
percent at 15.75 rupees. "People are apprehensive there might be more such
disclosures and there are wild rumours doing the rounds," said
Gaurang Shah, chief manager at Geojit Financial Services. Twenty-eight of the BSE index components fell, while in the
broader market losers overwhelmed gainers in the ratio of
1.96:1 on above average volume of 283.7 million shares. No. 2 outsourcer Infosys Technologies (INFY.BO), which
announces quarterly results and gives its outlook on Tuesday,
closed down 3.2 percent at 1,156.60 rupees. [ID:nBOM121491] The 50-share NSE Index closed down 3.5 percent at
2,773.10 points. STOCKS THAT MOVED * Top lender State Bank of India (SBI.BO) closed down 4.9
percent at 1,156.85 rupees after its chairman said on
television that bank had about 5 billion rupees exposure to
Maytas Infra (MAIL.BO), in which the founders of Satyam have a
stake. [ID:nBMA002158] * Construction firm PBA Infrastructure (PBAI.BO) closed up
15.8 percent at 30.35 rupees after the company said it had
received an order worth 4.59 billion rupees for building roads
and drains. After market hours, PBA corrected the size of the
order to 459 million rupees. [ID:nBMB004161] MAIN TOP 3 BY VOLUME * Satyam Computer on 53.2 million shares * Reliance Natural (RENR.BO) on 18.3 million shares * United Ltd (UNTE.BO) on 17.4 million shares. FACTORS TO WATCH
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* FOREX-Yen gains on global gloom; euro slides as ECB eyed
[FRX/]
* Oil falls $2 to below $39 as demand weakens
[O/R]
* GLOBAL MARKETS-Economy fears hit stocks and oil again [MKTS/GLOB]
* US STOCKS-U.S. stock futures mixed; Alcoa earnings eyed
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by Ranjit Gangadharan)
STORYVIDEOU.S. Stocks Retreat on Earnings Concern; Alcoa, Conoco Decline
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By Eric Martin
Jan. 12 (Bloomberg) -- U.S. stocks fell, extending losses from the market’s worst week since November, as a slump in oil prices dragged energy producers lower and investors speculated Alcoa Inc. will kick off another disappointing earnings season.
Alcoa, the aluminum producer that begins profit reports among Dow Jones Industrial Average companies today, dropped 6.6 percent as Deutsche Bank AG recommended selling the stock on a worsening earnings outlook. ConocoPhillips declined 2.9 percent after crude sank below $40 a barrel amid concern production cuts will fail to counter a slump in demand. Morgan Stanley gained 4.6 percent on plans to combine brokerage units with Citigroup Inc.
The Standard & Poor’s 500 Index slipped 1.1 percent to 880.16 at 11:03 a.m. in New York. The Dow average retreated 52.01 points, or 0.6 percent, to 8,547.17. The Russell 2000 Index slumped 0.8 percent.
“The market is in the process of factoring in a worst-case scenario for earnings,” said Dan Veru, chief investment officer at Palisade Capital Management in Fort Lee, New Jersey, which oversees about $2 billion. “The companies that are going to miss will miss by a wide margin.”
The S&P 500 slumped 4.5 percent last week as companies from Alcoa to Intel Corp. and Wal-Mart Stores Inc. spurred concern earnings will deteriorate, while the unemployment rate in the U.S. climbed to the highest level in almost 16 years.
Profits for companies in the S&P 500 probably fell 20 percent in the fourth quarter of 2008, according to analysts’ estimates compiled by Bloomberg. That would mark the sixth straight period of declining earnings, the longest stretch on record.
Valuations
The S&P 500 was valued at less than 15.9 times earnings at the start of trading, the lowest since February 1991, Bloomberg data show. The gauge may rise to 1,110 by the end of the year, a gain of 24 percent from the Jan. 9 close, as government measures revive the economy and investors move from cash into equities, according to Nomura Holdings Inc. strategist Ian Scott.
The index has rebounded 17 percent since Nov. 20 as investors speculated that President-elect Barack Obama will boost the world’s biggest economy with tax cuts, while the Federal Reserve slashed interest rates to as low as zero percent.
Obama said in an ABC interview yesterday that reviving the economy will require scaling back on campaign promises and personal sacrifice from all Americans.
Alcoa lost 68 cents to $10.13. The shares slumped 11 percent last week after the company said it will cut 13 percent of its 107,000 employees and reduce capital spending by half. Deutsche Bank downgraded Alcoa to “sell” from “hold” and reduced its price estimate on the shares 20 percent to $8.
Commodity Shares Slump
Raw-materials producers fell 2.4 percent, the most among 10 S&P 500 industries.
Energy shares declined as crude sank 6.4 percent to $38.20 a barrel in New York on concern production cuts by the Organization of Petroleum Exporting Countries will fail to counter a slump in demand. ConocoPhillips retreated $1.48, or 2.9 percent, to $50.51. Exxon Mobil Corp., the world’s largest oil company, slipped 0.9 percent to $76.86, while Chevron Corp. retreated 1.1 percent to $71.99.
Harley-Davidson Inc. dropped 11 percent to $14.82. The biggest U.S. motorcycle maker was cut to “sell” at Goldman Sachs Group Inc. and added to the brokerage’s “conviction sell” list. Goldman also slashed its price estimate on the stock to $11 from $30, citing slowing demand and the credit contraction.
Morgan Stanley Rallies
Morgan Stanley gained 4.8 percent to $19.98. The world’s second-biggest securities firm by market value may pay Citigroup Inc. as much as $3 billion for control of a venture that would combine their brokerage units and overtake Bank of America Corp. as the largest financial adviser to individuals, a person with knowledge of the discussions said.
Citigroup may book a gain of as much as $10 billion, helping to replenish capital depleted by the biggest losses in the bank’s history. Citigroup dropped 8 percent to $6.21, the steepest drop in the Dow.
Citigroup spokesman Michael Hanretta declined to comment. Jim Wiggins, a spokesman for Morgan Stanley, didn’t return calls seeking comment.
Bank of America Corp. lost 68 cents, or 5.2 percent, to $12.32. The lender that completed its purchase of Merrill Lynch & Co. earlier this month may post a $3.6 billion loss in the fourth quarter and slash its quarterly dividend, Citigroup analyst Keith Horowitz said.
JPMorgan Chase & Co. dropped 53 cents, or 2 percent, to $25.44.
Financial shares in the S&P 500 slumped for a fourth straight day, losing 1.9 percent as a group, even as a gauge of money-market stress favored by former Federal Reserve Chairman Alan Greenspan fell to the lowest level since the collapse of Lehman Brothers Holdings Inc.
The Libor-OIS spread, the difference between the three-month London interbank offered rate, or Libor, for dollars and the overnight indexed swap rate, dropped to 98 basis points. The last time it closed below 100 basis points was Sept. 12, the final working day before Lehman filed for bankruptcy, causing credit markets to freeze worldwide.
For Related News:
To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net.
Last Updated: January 12, 2009 11:04 EST
http://www.bloomberg.com/apps/news?pid=20601087&sid=aVlKP2Ze9GsQ&refer=home
Bush Holds Final News Conference
ABC News - 43 minutes ago
By JENNIFER DUCK and KATE BARRETT In his final news conference today, a candid President Bush reflected on the mistakes and milestones of his eight years in office and considered what lies ahead for President-elect Barack Obama.
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Gaza tunnels survived despite US, Israeli complaints
Reuters - 44 minutes ago
By Jonathan Wright CAIRO (Reuters) - Tunnels linking Egypt and the Gaza Strip are back in the spotlight as diplomats try to work out an agreement to end the fighting between Israel and Hamas in Gaza.
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DMK's money and goonda power won in Tirumangalam: Jayalalithaa
Hindu - 4 hours ago
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Jharkhand Advocate General resigns
Hindu - 1 hour ago
Ranchi (PTI): Jharkhand Advocate General PK Prasad on Monday resigned from his post after the stepping down of Shibu Soren from the Chief Minister's post.
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Gazan exiles aghast at Israeli assault
Reuters - 39 minutes ago - By Wafa Amr RAMALLAH, West Bank, Jan 12 (Reuters) - Gazans living in the occupied West Bank and around the world sit ...
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No exposure to Satyam, $103 mn to Maytas: SBI
Reuters
Mumbai State Bank of India's has no exposure to outsourcer Satyam Computer Services but has an exposure of about 5 billion ($103 million) to Maytas firms, the banks' chairman said on Monday. State Bank's share fell as much as 8.9 per cent on the news but recovered to trade 5.2 per cent lower at 1,153 rupees at 0939 GMT.
"We don't have any exposure in Satyam. In the other group companies with the Maytas tag total exposure is about 500 crores (5 billion) both fund and non fund," O.P. Bhatt told a TV channel.
Maytas Infra and Maytas Properties are controlled by the family of Satyam founder B. Ramalinga Raju.
"All of it (exposure) is collateralised. With these accounts, there is no problem as of now," Bhatt said adding the bank was reviewing the exposure.
Chhattisgarh forms special squad to tackle terrorism
RAIPUR: Chhattisgarh has set up an Anti-Terrorism Squad (ATS) to counter any Mumbai-like terrorist strike in the state.

"ATS came into existence Jan 10. The ATS commandos are now ready to respond to any terror challenge at very short notice," Director General of Police (DGP) Vishawa Ranjan said.
He said the commandos of the squad will not only tackle terror attacks, like those witnessed by Mumbai in November last year, but will also be employed for anti-Maoist insurgency operations during any emergency.
Ranjan said "tough training" will be provided by the state government to the commandos in a phased manner. Also, the central government will be requested to provide their "highly specialised commando training".
Commandos up to the age of 30 years will be employed in the state's ATS.
"Anti-terrorist control rooms have also been set up in all the 18 districts to deal with possible terror attacks and Maoists," said officials in the home department here.
Dawood's name may not figure in 26/11 chargesheet: Official
MUMBAI: Underworld don Dawood Ibrahim's name may not figure in the chargesheet being prepared for the November 26 terror strikes in the city, a top
official said on Monday.
"Dawood's name will not figure in the chargesheet," a senior Crime Branch official told PTI, refusing to divulge further details.
According to police, investigating officials strongly suspected the involvement of Dawood as the explosives used during the Mumbai attacks were similar to that of 1993 blasts in the city carried out by members of gang led by Dawood who allegedly lives in Pakistan. Police had said that at least 12 Pakistani nationals would be named as wanted accused in the chargesheet to be submitted by the Crime Branch by January 24.
However, it may not contain Dawood's name. The Crime Branch has set itself a deadline of 60 days within which it will file its chargesheet. According to the Crime Branch, Lashkar-e-Taiba founder Hafiz Saeed and the Pakistan-based outfit's top functionaries Zaki-ur Rehman Lakhvi, Yosuf Muzzamil, Abu Hamza and Kahfa allegedly played prominent role in hatching the conspiracy, training the terrorists and executing the attacks.
The police also suspect that top LeT commander Zarar Shah, reportedly captured in the crackdown on militants earlier this month in Pakistan-Occupied Kashmir, acted as Public Relations Officer for the banned outfit and basically dealt in communications. Saeed, founder of Jamaat-ud-Dawa, an LeT front proscribed by the United Nations, allegedly gave motivational and emotional speeches to the group of ten terrorists while they were getting training in Muridke near Lahore before striking the country's financial capital, they said.
US business delegation on a two-day visit to Mumbai
MUMBAI: Nuclear power corporation of India Limited (NPCIL) will hold a business meeting with a large official delegation of US nuclear industry on
January 15.
A 55-member delegation of US nuclear industry led by General Electric (GE) who are already in New Delhi today for interaction with the Union Ministers and Indian industrial houses, will have a meeting at the NPCIL on Thursday on various issues relating to setting up of nuclear power plants in India, NPCIL officials said on Monday.
It will be an half a day meeting where 20 representatives from 12 other Indian companies are also expected to join the interaction, said N K Kannan, Head Business Development group.
Such large business delegation from US will be coming to Mumbai after November 2006 just before the Hyde act was introduced.
The delegation is expected to be in Mumbai till January 16 and have discussions with Indian industries involved in manufacturing of equipment and components for NPCIL, one of the US delegation member said.
The delegation may not meet Chairman of the Atomic energy commission Anil Kakodkar as he would be out of station, chairman's office said.
Mumbai hotel receives threatening emails
MUMBAI: Security was beefed up at the hotel Leela located near the international airport terminal here after two emails were received in which the
sender threatened to blow up the hotel.
The emails were received by the hotel management on Friday and Saturday following which searches was carried out on both days by the bomb detection and disposal squad. However, nothing suspicious was found on both occasions.
“In both e-mails, the sender threatened to blow up the hotel unless a sum of USD 1.3 lakh was paid to him”, said DCP Nisar Tamboli .
"The identity of the sender was not revealed and neither the place where payment was to be made mentioned," he said. Despite the emails seeming like a hoax, police are not taking any chances and additional security has been provided at the hotel.
The cyber crime cell of the crime branch is also carrying out parallel inquiries into the matter and officials said the emails are suspected to have been sent from abroad.
80% WiFi networks in south Mumbai not secure
MUMBAI: Around 80% of the WiFi networks surveyed in parts of south Mumbai, including Colaba, Fort and Nariman Point, are not secure. This is what a
team from the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Sheriffs Brigade found on Sunday.
The team carried out a preliminary study a day before the Mumbai police will comb the city to survey the extent to which WiFi networks have been secured. FICCI and the Sheriffs brigade comprising students working with the sheriff have partnered with the police to train people on securing WiFi. On Friday, they held a seminar on it for 80 policemen in the city.
A few months ago, I helped a private company survey the WiFi connections in the city. We found that 50% of the networks were unprotected, says Vijay Mukhi, cyber exert and chairman of IT cell, FICCI.
Ruzbeh Raja, a law student who is part of the Sheriffs brigade, says they could access the internet on their laptops while walking down the street, thanks to a number of unprotected WiFi networks.

Guard assets from state, non-state actors: Pranab
New Delhi Describing the Mumbai terror attacks as a "direct strike" at India's economic development, External Affairs Minister Pranab Mukherjee on Monday warned the hydrocarbon sector to protect assets from the risks from "state or the so-called non-state actors".
"The recent terrorist attack in Mumbai was a direct strike at India's economic development. This unpardonable criminal attack only underscores the risk all countries face from economic sabotage, irrespective of whether these acts are authored by states or merely carried out by so-called non-state actors," Mukherjee said inaugurating the Petrotech Conference.
Cautioning that the global hydrocarbon sector would increasingly be even more vulnerable to such threats, he said, "Protecting these assets would not simply be a law and order problem for an individual country, whether an energy exporter or a consumer."
He asked the global community to cooperate to protect the supply routes and hydrocarbon assets to ensure stability of energy supplies.
"Stability of energy supplies, security of energy transportation and creation of new energy infrastructure and its protection has to be a common goal requiring coordination and cooperation of all countries," Mukherjee said.
He asked the global leaders present at the conference to pay attention to the safety and security of oil and gas installations and their transport infrastructure in their deliberations.
Allot 80% MHADA houses to Marathis: Thackeray
Mumbai As thousands queued up to apply for Mumbai Housing Area Development Authority (MHADA) houses in Mumbai, Shiv Sena chief Bal Thackeray on Monday said Marathi people should get ‘at least’ 80 per cent of these houses.
"There is nothing wrong in demanding houses built by MHADA for Marathi people," Thackeray said in an editorial comment in Sena mouthpiece 'Saamana'.
"The 863 MHADA houses belong to the government. At least 80 per cent of these should be given to Marathis," he said.
Stating that the number of applications for the 863 houses would be around five lakh, a record, Thackeray said, "Where are Marathi people in this record?"
"Just because those who have been staying here for the last 15-20 years can apply in this 'lottery' (draw to finalise house allotment), the number of applicants can be five lakh," he said.
No country should allow terrorism on its soil: India, Afghanistan
NEW DELHI: Against the backdrop of Mumbai attacks, Afghanistan today joined India in demanding that no country should allow terrorism to emanate PM Manmohan Singh shakes hands with Afghan President Hamid Karzai at the Hyderabad House in New Delhi. (Reuters)
More Pictures
from its territories, in an apparent reference to Pakistan.
Prime Minister Manmohan Singh and Afghan President Hamid Karzai, who discussed the Mumbai attacks here, said the incident shows that terrorism poses a threat to the entire humanity and all countries should fulfil their bilateral and multilateral obligations to prevent the scourge.
"The leaders called for full compliance with bilateral, multilateral and international obligations of states to prevent terrorism in any manner originating from territories under their control since terrorism emanates from the sanctuaries and training camps and the sustenance and support received by the terrorist groups," a joint statement issued after the talks said.
Though the statement did not name Pakistan, the reference was obviously to it as both India and Afghanistan are affected by terrorism emanating from the common neighbour's soil. Both India and Afghanistan have been complaining about terrorism in their countries getting sanctuary and support in Pakistan.
During the talks, the Indian side shared with Karzai details of probe into Mumbai attacks which clearly point to Pakistani linkages. Karzai, who undertook the two-day visit here to show solidarity with India in the wake of Mumbai attacks, discussed with Singh ways to forge greater cooperation to defeat terrorism.
EDITORIAL COMMENT | Silent Watchdogs
12 Jan 2009, 0010 hrs IST
Ramalinga Raju's arrest was only the start of a long process of dispensing retributive justice in the Satyam case. Things have got murkier since he
owned up to a Rs 7,000-crore swindle. His claim about Satyam's 3 per cent operating margin has raised eyebrows, given Indian IT majors have profit margins of 25-30 per cent.
Even if Satyam tried to undercut competitors with cheaper service rates, the figure seems suspect. Was Satyam more cash-rich than claimed? If so, where did the money go? Whether through active collusion or blinkered apathy, who else participated in the multi-layered scam? Corporate governance means recognition of the primacy of shareholder rights.
The company board's independent directors and Pricewaterhouse auditors who issued clean financial chits were to protect these rights by ensuring adherence to corporate ethics. Why did these keepers of corporate conscience fail?
An independent director has claimed that the non-executive directors weren't privy to any accounting fraud, having "trusted" Pricewaterhouse's audited results. The statutory auditors, on their part, say their audits were above board. These protestations are hard to accept.
The directors were already discredited by the aborted Maytas deal, which turned out to be a last-ditch attempt to replace Satyam's fictitious assets with "real assets". The transaction, botched by investor activism, was directly linked to the fraud perpetrated by Raju and was okayed by board members. Pricewaterhouse, auditing Satyam accounts since 1991, fumbled as a watchdog. Surely the most basic auditing standard mandated checking Satyam's balance sheet against bank statements, as Indian accounting regulations require.
There's a growing perception that independent company directors, engaged by the entities they're meant to watch, are far from independent. Many see board memberships as lucrative pastimes rather than corporate governance-related duties. The chances of whistle-blowing are low when arrangements, formal or informal, exist whereby they get a company's performance-related benefits.
Conflicts of interest also arise with audit firms. A mother firm's subsidiaries, which may be less rigorous or competent, are legally treated as separate entities. These offer different services auditing or consultancy to the same companies. Moreover, non-executive directors and external auditors develop long associations with firms. Familiarity breeds complacency, to say nothing of possible benefits.
Given the Satyam scam's enormity, former independent directors can't get away with buck-passing, their impeccable credentials notwithstanding. Pricewaterhouse, the Indian arm of an internationally reputed audit firm, too must explain its obvious lapses. If, in place of deliberate collusion, it merely rubber-stamped Satyam's internal audits, that would constitute a gross violation of auditing norms. Uncovering the truth and punishing the guilty should be a mission for all investigating authorities concerned. No less than India's image is on the line. http://timesofindia.indiatimes.com/Opinion/EDITORIAL_COMMENT__Silent_Watchdogs/articleshow/3964193.cms
Palash Biswas

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