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http://www.nasscom.in/nasscom-newsletter/nasscom-newsline NEWSLINE VOL. 3 ISSUE 7 JULY 2013 The HR Story in 2013-14 09 BPM Council to Spur Industry Growth 11 NCSP: Step in the Right Direction 13 Think. Innovate. Change.

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Page 1: newsline - Fujitsu · service management firm, agrees that despite a volatile economy, 2013 will end on a positive note for job seekers. onProcess “We are going through a growth

http://www.nasscom.in/nasscom-newsletter/nasscom-newsline

newsline

Vol. 3

issue 7

July 2013

The HR Story in 2013-14

09 BPM Council to spur industry Growth

11 nCsP: step in the Right Direction

13 Think. innovate. Change.

Page 2: newsline - Fujitsu · service management firm, agrees that despite a volatile economy, 2013 will end on a positive note for job seekers. onProcess “We are going through a growth

Register now to join the 1,200 other doers in gathering valuable insights.To know more, log on to http://productconclave.nasscom.in

*start-ups –This exclusive offer is only being extended to firms that have been set up in the last three years. **early Bird –The offer is valid only if you register and pay within 15 days of your registration or by the closing date of the offer, whichever comes earlier.

sales and marketing Global market Going mobile

Platforms & international

Do iT

Registration fee as follows:

early Bird** (till August 31, 2013) limited seats

Regular Group Discount

start-ups*(<3 years of existence) `1,500 `3,500 10% group discount (for four or more

delegates) Applicable on regular fee only

Member `4,000 `5,500

non-Member `4,500 `6,000

Some of the key tracks this year are focused on

early stage

RiGHTENGAGE.INSPIRE AMAZE.ENTERTAIN.

The 10th NASSCOM Product Conclave 2013 – The Community Meet-up of Doers Who Share! brings forth a unique opportunity to interact with serial entrepreneurs, CXos, VCs, angel investors and customers who can help a start-up or business at any stage in its lifecycle.

NPC is a platform where product firms come together to:• Shareachievements• Findsolutionstocommonissues• Shareprinciplesofbuildingsolidproductbusinesses

• Share practical tactics for the fast-changingtechnology landscape

• Networkwithyourproductpeers

BiG

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3 Newsline July 2013

What’s Inside Editorial

Copyright © 2013, nAssCoM, international youth Centre, Teen Murti Marg, Chanakyapuri, new Delhi - 110 021Phone: 91 11 2301 0199. To contact newsline editorial team, write to [email protected]

Design and production: CReATiVe inC. (011 4163 4301)

Friends,

Here’s yet another update from nAssCoM on the past few weeks and the activities that were driven by the chamber.

our ‘10,000 start-ups’ initiative gained momentum with the launch of ‘start-up Konnect’, aimed at bringing together large organisations and start-ups within the iT-BPM ecosystem for the purpose of win-win partnerships and even mergers and acquisitions. A unique move, it will enable smaller players to connect with bigger contemporaries and ‘sell’ to them their ideas, innovations and niche products. 10,000 start-ups also gained ground with pitch sessions taking place, where these young organisations reached out to VCs for funding at live events.

in this issue, we give you a view of the hiring scenario in FY2013-14 and what CEOs, HR heads and othersenior executives of iT-BPM organisations feel about employment opportunities within the sector this year and going forward.

The newsletter also acquaints you with the fresh developments taking place at nAssCoM, including the setting up of the BPM Council. The Council is expected to play a key role in helping the industry cross the usD 50 billion mark in 2020.

in the Policy section, meanwhile, we review some of the recent changes that the government has introduced in the PsM, PMA and service tax laws and their implications for the iT-BPM industry.

Do share with us your views on these nAssCoM initiatives and how these can be further streamlined and made more relevant for member organisations.

Sangeeta Gupta Senior Vice President, NASSCOM

Opportunities Galore

4 The HR Story in 2013-14

7 Entrepreneurship

9 BPM Council to Spur Industry Towards USD 50 Billion Goal by 2020

10 Global Outlook Improves Alongside Prospects for IT-BPM Sector

11 NCSP: Step in the Right Direction

12 Policy

13 Think. Innovate. Change.

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4 Newsline July 2013

Cover Story

The HR Story in 2013-14Industry looks at just-in-time hiring and more domain specialists

The hiring landscape of the indian iT-BPM industry looks positive with recruitment to be skill-based during 2013-14. industries would continue to be net hirers, most firms to grow hiring but at a slower rate. Also, the focus will be on non-linear growth and domain specialists.

Talking specifically about the BPM industry, Dipti nandoskar of serco says the hiring scenario has evolved as the sector has gravitated towards high-end services. The focus today is on hiring more domain specialists and post graduates, along with the standard graduate intake, signalling a shift in the value-addition capabilities of the sector. The use of technology in recruiting relevant people, including the use of online hiring tools and platforms such as crowdsourcing, has also increased.

Besides drawing good talent, most iT-BPM players are additionally focusing on

retaining existing expertise and resources, going all out to woo them with excellent people’s policies. From innovative rewardsand recognition programmes, to financial incentives, to well-defined career paths, to training for skills improvement — organisations are doing all they can to improve employee morale as well as their work environments, making them more conducive to career development.

Rising recruitment

According to Anjoo navalkar, HR and QA Director, Rave Technologies, hiring requirements will increase by at least 30 per cent this year. “This will be due to anticipated growth and the backfill due to attrition. while numerically there is adequate supply, the quality of the output expected will remain a questionable factor”, she says.

Rave, a growing organisation expects to improve its people intake during 2014 and is exploring new avenues to decrease hiring turnaround times.

lalita sinha, Vice President, HR of Kolkata-based onProcess Technology, a complete service management firm, agrees that despite a volatile economy, 2013 will end on a positive note for job seekers. onProcess

“We are going through a growth phase and expect to hire a larger number of laterals with payment domain knowledge as well as fresh graduates to keep costs under control. The trend will continue in the foreseeable future.”

Ashok Gaur Vice President, R. S. Software

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5 Newsline July 2013

The HR Story in 2013-14

has a strong hiring outlook based on increasing demands of business.

in the opinion of Ashok Gaur, Vice President, R. s. software, a well-known services provider in the payment domain, owing to low growth and protectionist approach of the us, indian organisations will be cautious rather than active about hiring, in order to avoid creating a huge bench.

As an organisation addressing the niche payment market, which grew even during the recession years, R. s. software is looking to hire in larger numbers than last year. “we are going through a growth phase and expect to hire a larger number of laterals with payment domain knowledge as well as fresh graduates to keep costs under control. The trend will continue in the foreseeable future”, Gaur says.

For Dipankar Chakraborty, of SunKnowledge Pvt. ltd., hiring in the iT-BPM industry will gain impetus in 2013, keeping in view the growth ahead. sun intends to hire freshers and domain experts in the healthcare vertical — around 25 to 30 Full-time Equivalents (FTEs) in 2013and possibly more in 2014, depending on its requirements.

C. V. Aiyar, Head, Corporate Communications of ontrack systems ltd. and Bipin Pandey, Ceo, web Access, however, believe that since hiring is related to the overall business scenario which is not very bright, there will not be a big shift from the current lukewarm state of onboarding.

According to Bipin Pandey, hiring will remain sluggish, with a probable marginal improvement by october 2013.

while ontrack says it will remain cautious in its hiring approach, web Access is expected to hire every month and double the number of its new hires in 2014.

sanjiv Agarwala of oxygen Consulting services Pvt. ltd. too, is of the view that the hiring landscape will remain unchanged from the last year, with organisations adding people only when there are significant

projects in the pipeline that require additional resources. oxygen is not looking at hiring for the time being, though it may increase its roster in 2014, based on expansion plans in india.

Challenges facing HR

lalita sinha of onProcess sums up the challenges facing HR in 2013-14 as issues arising out of an ageing workforce in organisations, low leadership capabilities and potential, poor employee motivation, few talent development initiatives, varied demographic profiles, integrating old and new employees into teams and poor management of succession planning.

Ashok Gaur of R. s. software meanwhile sees the supply of competent resources,

“With newer technologies such as big data, analytics, etc. entering the core of an organisation, companies will need to gear up their people on these new age methodologies.”

Dipti Nandoskar Serco

Industry to continue to be net hirer; most firms to grow hiring, but at slower rate

Global hiring to constitute 5-7 per cent of total hiring

2013 expected to see higher just-in-time (JIT) hiring

Attrition under control – firms also indicated a decline

Key Trends

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6 Newsline July 2013

Rankings Organisation Rankings Organisation

1 Tata Consultancy services ltd. 11 Aegis ltd.

2 infosys ltd. 12 iGATe Global solutions ltd.

3Cognizant Technology solutions india Pvt. ltd.

13 CsC, india

4 wipro ltd. 14 FirstsourceSolutionsLtd.*

5 HCl Technologies ltd. 15 wns Global services (P) ltd.*

6 Tech Mahindra ltd.1 16 syntel ltd.

7 Genpact ltd. 17 eXl*

8 serco, Global services* 18 l&T infotech

9 Capgemini india Pvt. ltd. 19 Hinduja Global solutions ltd.*

10 Mphasis ltd. 20 Aditya Birla Minacs worldwide ltd.

Cover Story

NAS

SCO

M T

op 2

0 IT

-BPM

Em

ploy

ers

in

Indi

a FY

2012

-13

1 includes Mahindra satyam and Tech Mahindra as they are now a combined entity*indicate pure play BPM firmssource: nAssCoM

and timing issues will bog down the industry, Bipin Pandey of web Access is of the view that optimising the workforce size (downsizing the workforce) will be a problem.

Dipti nandoskar adds that getting the right kind of talent will remain a key challenge. “However, one has to understand that the ‘one size fits all’ view of work will soon be dispensed with, and employers will have to provide opportunities to their people to learn and grow diagonally as well as laterally. with newer technologies such as big data, analytics, etc. entering the core of an organisation, companies will need to gear up their people on these new age methodologies.”

especially people with excellent domain knowledge, as the most critical challenge in people management. in his view, attracting the right resources and retaining them will be another difficulty facing the industry.

while sun’s Dipankar Chakraborty believes lack of skills, poaching and shift

From innovative rewards and recognition programmes, to financial incentives, to well-defined career paths, to training for skills improvement — organisations are doing all they can to improve employee morale as well as their work environments, making them more conducive to career development.

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7 Newsline July 2013

Entrepreneurship

10,000 Start-ups InitiativeStart-up Konnect fosters collaboration between big and small players

nAssCoM’s 10,000 start-ups initiative is being driven by several goals, key among them, fostering collaboration between the larger industry players and young software product firms.

while larger organisations have a breadth of offerings on the services side, several are keen to expand their product portfolios. start-ups, typically software product firms with highly innovative, niche-oriented creations, can bring to the table their innovative ideas and expertise in new-tech to the bigger players.

To build such win-win partnerships and encourage mergers and even buy-outs, nAssCoM has launched ‘start-up Konnect’, a two-hour programme that ‘connects’ the veterans and emerging organisations.

The programme, a closed door session, provides 10 innovative start-ups a platform to showcase their products to a select group of larger organisations, with specific requirements.

The first start-up Konnect session rolled out on June 24, 2013, in Bengaluru, drawing senior leaders from leading iT-BPM organisations including TCs, Mindtree, infosys, wipro and Cognizant and 12 start-ups.

The event enabled smaller organisations to engage with the iT megacorps, which were otherwise very difficult to approach.

Going forward, the initiative will drive deeper engagement between large organisations and relevant start-ups, building a more collaborative ecosystem.

“It’s tough to reach larger companies directly.”

Manjunath Gowda CEO, i7Networks

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8 Newsline July 2013

Pitch Sessions Roll Out

The pitch sessions being rolled out under the 10,000 start-ups programme is now underway, with young organisations getting the opportunity to reach out to VCs for funding.

in the pitch sessions, 332 of the best early stage tech start-ups (selected after a comprehensive evaluation process), are ‘pitching’ their organisations to more than

332 of the best early stage tech start-ups selected

Pitch sessions provide start-ups with:

A larger canvas

The unprecedented opportunity to pitch to multiple angel investors and accelerators on a single platform

Infrastructure, incubation and access to industry connections

Hitting the Right Note

20 angel investors and accelerators gathered under one roof.

The pitch sessions have begun, with Delhi, Mumbai, Hyderabad and Bengaluru hosting these events on their turfs. over 70 start-ups gathered at the welingkar institute in Mumbai on July 4 for instance, for a day-long session of ‘speed dating with investors’.

in Hyderabad, around 40 start-ups met at the isB Campus on July 5, 2013, where they addressed investors and funding firms.

Bengaluru however, drew the largest start-up group — around 135 start-ups — that met on July 6-7 at the Google office. The start-up warehouse has also been announced in the silicon City, where workspace and amenities will be provided to entrepreneurs for easy working at affordable prices. The start-up warehouse in Bengaluru will be well-located and accessible by the start-ups.

Entrepreneurship

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9 Newsline July 2013

BPM Council to Spur Industry Towards USD 50 Billion Goal by 2020

in order to consolidate india’s pole position within the BPM sector and help it cross its usD 50 billion milestone in 2020, nAssCoM has set up a BPM Council for 2013-15.

The aim is to strengthen the industry’s value proposition, which has gone beyond mere cost and is today about providing end-to-end business transformation, supply chain management, analytics and platform-based solutions.

Chaired by Keshav Murugesh, Group Ceo, wns Global services, and representatives from organisations such as Accenture, Aegis, Convergys, eXl, Genpact, iBM, TCs and united lex, the Council will help:

• Continue the re-branding exerciserolled out last year to showcase the transition from BPo to BPM

• Demonstratethetruevalueandimpactfulbusiness outcomes of the BPM industry

• Ensure that the industry is recognisedfor what it is, dispel myths

• Create a world-class resource pool tofuel growth of the sector

There are over 500 BPM/Knowledge Services/LPO/Analytics firms in India

There are more than 150 Global Shared Services Centres in India

The BPM industry recorded export revenues of USD 18 billion in FY2012

The sector, as envisioned by NASSCOM, is expected to reach USD 50 billion by 2020

Corporations are now leveraging India centres to manage the end-to-end customer process and experience

Fast Facts

• Boost the current BPM landscape,strengthen the ecosystem and build centres of excellence

• Position India as a global andcompetitive BPM destination

• EstablishBPMas a part of the regularcourse curriculum at the academic level

The Council will also forge appropriate links with other agencies and work to develop the capability of the industry in spoken skills through high school/ undergraduate programmes.

“The world needs to know about the transformation that has occurred within the industry and recognise the far-reaching effects it has had on our country and other global economies.”

Keshav Murugesh Chairman, BPM Council

“In the past one year, the BPM Council undertook several initiatives, among which re-branding the industry was the most notable highlights. As we move forward, NASSCOM is confident that the BPM Council along with a large number of industry leaders at the helm will drive more such initiatives and bring success to the industry. We have also got a team of experiential entrepreneurs who along with Keshav are committed towards building a USD 45-50 billion BPM industry by 2020.”

Som Mittal President, NASSCOM

Council Announcement

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10 Newsline July 2013

while the us economy seems to be on a path of recovery, credit squeeze, concerns related to financial stability in China and a slowdown in major emerging markets could prove to be dampers.

emerging markets for instance, have not done too well in the first half of 2013 and are contributing to the decline in momentum of global economic activity. Many countries, including india, have seen significant currency depreciation in June, reflecting not just the likelihood of early Qe tapering but also a more fundamental and broader assessment of key vulnerabilities.

Despite this mixed scenario, it is becoming clear that the markets being addressed by the iT-BPM industry are accelerating their growth momentum.

Take a look at these developments:

• The prospects look good for the USwhere low inflation and recoveryin the housing market is spurring consumer spending and both the fiscal deficit and unemployment are coming down faster than expected. The much awaited increase in business capex

Global Outlook Improves Alongside Prospects for IT-BPM Sector

now appears in sight, with rising orders for capital goods. software and services should follow

• Economic recovery in the UK gainedmomentum in Q2 and is likely to be sustained through private expenditure

• Positive signals (e.g. improved currentbalances, particularly, in the periphery) have been detected even in the eurozone which remains in recession. Growth is expected to turn positive in Q4 based on deft management of political and economic risks

India’s emerging challenges

The indian economy meanwhile, is showing fewsignsofagrowthturnaround.Forecastsfor GDP growth over the next two years have been revised down, while financial markets continue to be volatile. what then should the industry do to manage its operations and finances effectively and predictably?

• First, it should inform itself better.Rather than focusing only on the usD-Rupee valuation, a clear distinction is necessary between the Rupee’s performance against a suitable basket of other currencies

• Second,industrymanagersneedafirmgrip on the impact of exchange rates specific to the iT-BPM industry including impacts on profitability margins, FXlosses, foreign (including usD-indexed) costs, etc.

• This should be supplemented withan appreciation of economy-wide implications including cost of imports, increased inflationaswellasexternaldebt burdens, which will require certain critical decisions related to financial management

Latest consensus forecasts – Annual GDP growth (% p.a.)

Country 2009 2010 2011 2012 2013e 2014e

US -3.1 2.4 1.8 2.2 1.9 2.7

UK -4.0 1.8 1.0 0.3 0.9 1.7

Eurozone -4.3 1.9 1.5 -0.5 -0.6 0.8

Japan -5.5 4.7 -0.5 1.9 1.9 1.5

China 9.2 10.4 9.3 7.8 7.8 7.8

Indonesia 4.6 6.2 6.5 6.2 6.1 6.2

Philippines 1.1 7.6 3.6 6.8 6.6 6.1

India* 6.7 8.4 8.4 6.2 5.0 6.0

Source:ConsensusEconomics–June2013,*IndiaFiscalYearsendingMarch

The Indian economy meanwhile, is showing few signs of a growth turnaround. Forecasts for GDP growth over the next two years have been revised down, while financial markets continue to be volatile.

Economy Watch

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11 Newsline July 2013

Security

NCSP: Step in the Right Direction

The Data security Council of india (DsCi), a nAssCoM initiative, has welcomed the national Cyber security Policy (nCsP) 2013, as a step in the right direction.

According to nAssCoM, the policy will enable integration of ongoing and new activities and cyber security programmes under an umbrella framework. it will also help create a cohesive vision and set of sustained and coordinated strategies for implementation.

According to the DsCi, the policy points the way to creating a complete ecosystem that secures the computing environment in india and takes into account the trends shaping cyber security today.

DsCi is of the view that the comprehensive nCsP:

• Takes a holistic view of the risks andchallenges facing cyber security

• Details the strategies for addressingthese problems

• Makesprovisionsforoperationalisationthrough detailed guidelines and plans of action at various levels

• Suggests a prioritised approach forimplementation to address the most critical areas first

DsCi has expressed satisfaction over the fact that many of the recommendations of the nAssCoM-DsCi report ‘securing Our Cyber Frontiers’ and Joint WorkingGroup (JwG) report on ‘engagement with Private sector on Cyber security’ have been covered by the policy. The emphasis of these two reports was on formulation of public-private partnerships to address cyber security issues.

while complimenting the government for the nCsP, DsCi has also cautioned policymakers about government

DSCI is expected to support the government by helping implement strategies identified in the NCSP and execute specific responsibilities and projects under the PPP mode.

The policy is expected to:

Boost the cyber security products and services market in India

Provide significant opportunities to security products and services organisations and auditing firms

Create opportunities for start-ups offering niche and innovative security products

Create direct and indirect jobs through new infrastructures (training institutes, testing labs, centres of excellence, Sectoral CERTs)

The Up Side of the NCSP

intervention through regulations, which can undermine business innovation. nAssCoM-DsCi have recommended that the government incentivise the private sector to invest in security through appropriate instruments such as funding, tax reliefs, awards and recognition, liability protection, cyber insurance, etc. The policy already has such provisions, which is commendable.

Taking the nCsP off the drawing board into execution will of course be the critical next step in securing the cyber security ecosystem in the country. DsCi is expected to support the government in this task.

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12 Newsline July 2013

The Central Board of Direct Taxes (CBDT) has rescinded the circular relating to adoption of the Profit split Method (PsM) as a preferred mode for computation of tax liability and also modified the circular outlining conditions relevant to the development centres engaged in providing contract R&D services.

The CBDT has also assured that the safe Harbour rules are on priority and will be issued shortly, offering to bring in certainty in the assessment of development

Responding to industry feedback, the CBeC has clarified the provisions of the service Tax refunds for seZ developers and units under the new rules.

nAssCoM had raised certain issues related to the previous notifications, including upfront exemption of exclusively used services; anomalies in the refund formula; eligibility to claim CenVAT credit instead of the refund and consolidated filing of the refund claim for multiple seZs.

A high level group in the PMo has reviewed the PMA policy as notified by the Deity and advised its review and redrafting, taking into account concerns raised by several stakeholder communities on resultant market distortions.

The PMA policy aims to boost indigenous manufacturing of electronic products in the country. The industry has been voicing its concerns about the proposed implementation plan of the policy, specially relating to the procurement of electronic products by the private sector with security implications.

The PMo has reviewed the policy and has advised:

• DeitYtoprepareadraftpolicysuitablymodified

• The incorporation of a detailed provision

CBDT Withdraws R&D Circular on PSM

Clarification on Service Tax Refunds

PMA Policy Reviewed

centres. nAssCoM believes this is a positive move by the CBDT and demonstrates commitment to the iT sector.

Circular (2) which appeared to make PsM the default option for R&D service providers has been withdrawn by the board to ensure that there is no hierarchy among the six methods as described in the Act. Circular (3) meanwhile has been amended and a new set of guidelines have been issued for identifying the development centre as a contract R&D service provider.

nAssCoM has expressed satisfaction over the fact that the CBeC has taken into account industry inputs and addressed several issues.

The CBeC has provided suitable clarifications and made required modifications to the existing scheme. nAssCoM will continue to work with the CBeC on administrative and implementation issues related to seZ refunds, based on member feedback.

for project/product/sector-specific security standards, alternative modes of security certification and a roadmap for build-up of domestic testing capacity

• That there be a centralised clearing house forall notifications under the PMA Policy, unlike the existing approach, where individual ministries are free to notify their lists

• TheNationalSecurityCouncilSecretariatprovidesa definition of ‘security’ in the context of concerning products, projects or sectors

no notifications on PMA in the private sector on security related products will be issued till the policy is reviewed.

Policy

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13 Newsline July 2013

NASSCOM Foundation

while volunteering at a neighbourhood centre for children with learning disabilities, Devesh Kumar, a student at the Birla institute of Technology and science (BiTs), was deeply affected by their plight. Closer and deeper interaction with the children revealed that a root cause of their problems was the inability to diagnose dyslexia at an early age.

led by Devesh, a group of BiTs students took up the challenge and created a complete hardware and software solution that diagnoses dyslexia at an early stage. D labs as the tool is called, also provides special learning techniques to help children manage dyslexia.

innovators like this group of students have found unique ways of leveraging information and Communication Technology (iCT) to create solutions that go a long way in tackling pertinent social issues – whether in healthcare, education, or social ills like child trafficking and safety of women.

The nAssCoM social innovation Honours (nsiH) recognises this spirit of innovation among diverse stakeholders: entrepreneurs in social businesses, government departments, individuals and not-for profit organisations.

The 2013 edition of the Honours witnessed an interesting array of projects on the mobile and cloud platforms.

Take the instance of Zaya (which won a Certificate of Appreciation in the social enterprise category). The organisation works to bring elearning solutions to children in remote areas that are often devoid of internet connectivity. neil D’souza, the founder of Zaya, realised that children based in rural areas that have erratic power supplies, have no way of leveraging online content and elearning solutions.

neil and his team developed an education micro-cloud that combines the properties

Think. Innovate. Change.

The NASSCOM Social Innovation Honours (NSIH) recognises this spirit of innovation among diverse stakeholders: entrepreneurs in social businesses, government departments, individuals and not-for profit organisations.

of a storage device and a wireless router; once switched on, it can be connected to desktops, laptops and other devices over wi-fi to access content.

winners in the individual/Group category meanwhile were young professionals who had developed a mobile app to enhance commuter safety. Their mobile app, stipator, enhances the safety of travellers by tracking the route they are taking, posting it on social media networks and enabling family and friends to keep track of their progress.

over the years, iCT has gained wide acceptance as an efficient enabler of developmental programmes extending their reach and deepening their impact. The nAssCoM social innovation Honours platform brings these initiatives to the forefront, helping innovators like Devesh to link to the progressive iT-BPM industry.

we urge you to be a part of the ecosystem that is changing the landscape of the nation through social innovation! Apply for nsiH 2014 (registrations open in August 2013), support the innovator community and spread the word!

For more information, visit www.nasscomfoundation.org or contact smruti Das: [email protected]

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15 Newsline July 2013

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