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GM opens second plant in India

By ERIKA KINETZ

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TALEGAON, India

General Motors Corp. opened a second plant in India on Tuesday, boosting its production capacity in the country from 85,000 to 225,000 vehicles a year.

The factory is part of GM's aggressive push into emerging markets, which have helped cushion the beleaguered auto giant from falling sales in the developed world. It also furthers the Indian government's ambition to turn the country into a manufacturing hub for small vehicles.

"We believe India in three to four years will be a significant source of profit for us," said GM Asia Pacific President Nick Reilly.

The first car -- a pint-size red Chevrolet Spark draped with marigolds -- rolled off the production line at 11:25 a.m.

GM invested $300 million in the new plant in Talegaon near Pune, a fast-growing manufacturing hub about two hours outside Mumbai, the nation's financial capital. The factory will start by producing the Spark -- a mini-car introduced in 2007 that is GM's most popular local model -- for the domestic market.

Detroit-based GM is ranked fifth by sales in India and hopes to boost its share of the booming Indian auto market from 4 percent to 10 percent in the next few years. The company manufactures six Chevrolet brands at its factory in Halol, Gujarat -- the Captiva, the Optra, the Aveo, the SR-V, the Aveo U-VA, and the Tavera -- and plans to introduce another small car near the end of 2009.

GM said Tuesday the new Talegaon factory could also be used for export as early as 2010.

Last week, the automaker pledged to invest another $200 million in a powertrain facility adjacent to the Talegaon plant, which will eventually produce 300,000 diesel and gas engines a year for both domestic and export markets.

GM also plans to double the number of dealer and service centers in India to 400 this year and said it would rely increasingly on its technical center in Bangalore, which employs more than 200 research and development engineers and designers.

GM's investment in India, which now tops $1 billion, pales in comparison with China, where the company produces more than 1 million vehicles a year. GM has poured $5 billion into its China operations and plans to invest $1 billion a year going forward, company officials said.

About 30 percent of the 9.5 million vehicles GM manufactures each year are made in Asia, a ratio Reilly said would likely jump to nearly 40 percent in the next five years. Vehicle sales in Asia, he said, would likely follow a similar trajectory, but North America remains the company's largest market, accounting for nearly half of total sales last year.

GM President Fritz Henderson said Tuesday that no matter how robust their growth, emerging markets alone cannot carry the company, which reported a second quarter net loss of $15.5 billion.

"We need to turn around our North American business. There is no choice," he said.

India is suffering from headwinds of its own. High inflation, slowing growth and tightening credit have pinched auto sales growth, which is expected to slide into the single digits this year after several years of double-digit gains.

Meanwhile, the Indian government is keen to establish itself as a hub of small car manufacturing.

Local officials were at pains to flaunt their pro-business credentials as Tata Motors announced Tuesday it was suspending construction of its Nano factory in Singur, West Bengal, following farmer protests that have stopped work for five days.

Vilasrao Deshmukh, the chief minister of Maharashtra state where Pune is located, thanked farmers Tuesday for giving their land for the GM factory and reiterated his invitation to the Tata Group, saying he would "roll out the red carpet" for a Nano plant.

More than 80 percent of the more than 1,000 employees at GM's new factory are from the local area, company and government officials said.

Tata already has a factory near Pune, as do Daimler AG's Mercedes-Benz unit and Indian automaker Bajaj Auto, among others. Volkswagen AG and Indian auto giant Mahindra & Mahindra Ltd. are planning to open plants in the area.

V.K. Jairath, the former state secretary of industries, who inked the deal with GM for its new factory, said that's just the beginning.

"Detroit will call itself the Pune of the U.S.," he said.

Obama's anti-outsourcing rhetoric puts IT industry in wait-and-watch mode

Moumita Bakshi Chatterjee
K. Bharat Kumar

New Delhi/Chennai, Aug. 29 Stung by the apparent anti-outsourcing overtone of Senator Barack Obama's acceptance speech where the Democrats' Presidential nominee pledged to halt tax sops to companies that ship jobs outside the US, the Indian IT industry on Friday said that globalisation of services was "irreversible" and argued that outsourcing had enabled US firms to stay competitive. (Not in the United States).  The lack of employment has had huge effects of the US economy.

While industry captains reacted with caution trying to decipher the underlying implications, some sought to play down the reference to outsourcing terming it as an "election rhetoric."

"Most of the tech companies have large number of open jobs today that are not being filled due to lack of technical resources. Moreover, US companies have realised that outsourcing improves competitiveness….US companies have to decide what is the most effective model to do business," Nasscom President, Mr Som Mittal, told Business Line.

He pointed out that the problems were more glaring in manufacturing sector than in IT. "The US is actually trying to ramp up its science, technology, engineering and math (STEM) capabilities and so I do not think the Senator was referring to IT industry in particular," he added.

Senator Obama, in his address to the Democratic National Convention in Denver, had said that unlike his Republican rival Mr John McCain, he would stop giving tax breaks to corporations that ship jobs overseas, and will start giving them to companies that create good jobs in America.

When contacted, Mr Phaneesh Murthy, CEO, iGate Corporation, quipped, "I don't know of a single company that gets tax breaks for sending jobs overseas."

Mr Shailesh Shah, Chief Strategy Officer, Satyam Computer Services, pointed out that it was difficult to attempt to stem the flow of jobs or act on tax cuts, as it would require Congressional and Senate approval.

The Senator's comments assume significance as India's software and services exports stood at about $40 billion during the financial year 2008, a growth of 29 per cent, with US as its largest market.

Could India be in a state of denial?

BPO industry unfazed by Obama's remarks

Rati Ramdas Sunday, August 31, 2008 (Bangalore)

Democratic Presidential nominee Barack Obama may have made his stand on outsourcing clear. He had said if elected he would stop tax breaks to companies that indulge in outsourcing. However, has that statement actually had any impact on the BPO industry in India? In Denver, Barack Obama may have been applauded for his views against outsourcing but this statement hasn't scared BPOs in India. People like Pushpender who has worked in the BPO firm for almost five years said, all this is just election gimmick and the industry is here to stay. "Talks about it just being a prelude to elections, too valuable an industry to actually let go off people," said Pushpender Singh Yadav, BPO employee. A view echoed by Naascom that's keeping a close watch on the American elections though. "We are definitely watching closely but we really don't think our jobs or the industry is at any risk. We are confident of our skills and technological expertise and know we will always be an asset for the American market as well," said Sucharita Eashwar, Regional Director, Naascom. But what if Obama wins the election? It's not that simple, even if he gets to the White House there is a long procedure, there will definitely be no impact and it will fizzle out," said Lathika Pai, CEO, Fides Global Consultant. While Obama's anti-outsourcing speech has definitely made it to conversations in the city, most people say it will not shut down the BPO industry. Experts feel that this is Obama playing to the gallery before the elections.

Can you compete in the global market place?

Five outsourcing websites: You too can telecommute.

Outsourcing often gets a bad rap, but if your business needs to build a new website or have a brochure designed, for instance, and lacks the expertise in-house, outsourcing your project at home or abroad is often the most viable and cost-effective solution.

So where can you find qualified contractors to complete your projects? Thanks to the internet, it's never been easier to not only locate talented contractors but to get them competing for your business.

Here are five websites that help businesses find contracts to outsource their projects to.

• ELance
  One of the original outsourcing websites, I've hired a number of web developers and graphic designers using eLance. ELance allows you to post your project, receive bids from contractors, offers a system for managing projects and also provides a payments service with an escrow option.
  
   
• ScriptLance
  With a focus on web-oriented projects, I've observed that ScriptLance tends to be a hub for lower dollar value "gigs."
  
   
• oDesk
  When outsourcing on an hourly rate payment schedule, there is always concern that a contractor won't put in the time her or she is supposed to put in. oDesk takes a novel approach and keeps track of the time contractors are putting in. It can even take screenshots every 10 minutes so that you can see what your contractors are doing.
  
   
• Guru
  Guru bills itself as "the world's largest online service marketplace" and works in a fashion similar to ELance.
  
   
• RentACoder
  Like ScriptLance, RentACoder is primarily oriented to web projects, as its name implies. It claims over 220,000 "registered coders."

Having successfully used some of the services above, here are a few tips:

• Spec out your requests in as great a detail as possible. Even if you're not capable of describing what you need in technical terms, take the time to explain what you need in depth. If you don't, expect delays, additional costs and poor results.
  
   
• Set sensible milestones. Quite honestly, outsourcing can be crapshoot - especially when working with a new contractor. You have to be prepared for complications. Thus, give thought to milestones so that you can get a project back on track (or cancel it) early if it goes astray.
  
  
• Communication is key. If you have a hard time communicating with a contractor during the sales phase, you're probably going to have a hard time communicating with them during the project phase.
  
   
• Look local. Certain types of projects are almost always best completed locally. If you have a complex or long-term project, give some real thought to selecting a local contractor that you can meet with in person.
  
  
• You usually get what you pay for. Even if you decide to outsource your project to a country in which contractors charge far less, be weary of quotes that seem too good to be true. They usually are.
  
   
• Look closely at portfolios, read feedback, request references and ask questions. Treat the hiring of a contractor the same as you would the hiring of an employee. Do your due diligence!

R E G I O N: Hindu mobs attack churches as India violence continues

* Hundreds flee homes
* Peace committees set up to initiate talks among community leaders

BHUBANESWAR: Hindu mobs ransacked a church and clashed with Christian villagers in eastern India on Thursday, as hundreds fled their homes.

Rampaging Hindu mobs ransacked a church and clashed with Christian villagers, police said, as authorities struggled to control spiralling religious violence in the region. Police deployed more than 3,000 personnel in the streets but they could not stop the ransacking of at least one church. Local media said as many as four churches were attacked. "Police are marching in several areas now," Orissa police chief Gopal Chandra Nanda told Reuters.

Television pictures showed mobs armed with rods putting up roadblocks on Thursday and others attacking churches. Other mobs armed with bows and arrows and axes have attacked Christian homes, dragging out women and children. Hundreds have fled to forests and nearby hills, officials said.

"Moments after we passed by a Christian village, people set it on fire and everything was over within minutes," a senior police officer, speaking on condition of anonymity, said from Kandhamal, the worst-hit district.

Peace committees: On Thursday, peace committees were set up in villages to bring community leaders together for talks, but Christians in many villages said attacks were worse than what the government has said.

Police said more than 100 people had been arrested after rioters torched nearly 500 houses as well as Christian prayer halls and vehicles in eastern Orissa state. "Over 300 people fled our village and have taken shelter in the forest," Kanu Chandra Nayek told the Indian Express newspaper after his village was attacked by a Hindu mob. "Here we have almost nothing to eat, there's a constant downpour, our children are sick," Nayek was quoted saying.

Indian police have been ordered to shoot on sight after the killing of a popular Hindu holy leader on Saturday sparked the riots, which have drawn the condemnation of the pope. Orissa authorities say nine people have died, but government officials speaking on condition of anonymity have put the toll at 16. "The situation is certainly tense but under control," local civil administrator Satyabrata Sahu told AFP.

Residents waited in a mile-long queue to buy essential supplies when the curfew was relaxed for a few hours in the worst-hit Kandhmal district. Pope Benedict XVI on Wednesday "firmly condemned" the violence in Orissa, where Australian missionary Graham Staines and his two young sons were burnt alive in 1999 - a crime for which a Hindu man is serving life in jail. agencies

IT workers hit hardest by offshore outsourcing, survey finds

Jobs most at risk for offshore outsourcing are computer programming, development

Patrick Thibodeau

 

August 28, 2008 (Computerworld) As many as 8% of IT workers have been displaced by offshore outsourcing, either through job loss or an involuntary transfer to a new job by their employer, which is twice the rate of workers in other occupations, according to a study based on data collected from some 10,000 people, which may be the largest survey of its kind.

The survey, conducted by researchers at the New York University Stern School of Business and the Wharton School of the University of Pennsylvania, also backs up the long-standing view that IT employees in purely technical jobs -- computer programmers and software developers who have little customer interaction -- are at the most risk from offshore outsourcing.

The broad conclusions are unlikely to surprise many high-tech workers, but what may make this offshore outsourcing study unique is its breadth: some 6,700 workers across a variety of occupations and more than 3,000 hiring managers and human resources professionals were surveyed.

There has been a dearth of data about the impact of offshore outsourcing on U.S. workers, and its authors, Prasanna Tambe of the Stern School and Lorin Hitt of Wharton, said their work is the first to pin down offshore outsourcing's impact by occupation.

The job site Careerbuilder.com funded the research, which looked at a spectrum of occupations, including technology, and published initial data from the survey in April. But the 44-page paper, posted this week on the Social Science Research Network (registration required) analyzes what the data is saying about the fate of high-tech workers who have been directly affected by offshore outsourcing.

Tambe, an assistant professor of information, operations and management sciences at NYU, said the data isn't a forecast of how extensive offshore outsourcing will be, but instead tries to fill in the gaps of the theoretical work on offshore outsourcing and address the dearth of data on this topic.

But the impact of offshore outsourcing on IT jobs may just be a sign of how this trend will unfold across a broad range of occupations. "I think [IT] is definitely ahead of the curve, but I think that gap will probably close in the future," Tambe said.

The base rate of offshoring across all industries is just over 15%, but some 40% of all tech and telecommunications companies are doing some type of offshore work, according to the research.

By occupation, more than 30% of the survey respondents said they are offshoring computer programming and software development jobs, but only about half, or 15.5%, reported offshoring systems analysts, who typically interact more with others in a business.

Among employees, across all occupations, slightly more than 4% of workers were displaced because of offshore outsourcing, half the rate of IT workers. The survey's 8% figure for IT displacement represents the percentage of workers who have ever been affected by offshore outsourcing, a rate that implies an annual offshoring-related displacement of 1% to 2% per year for IT workers, according to the study.

Of those displaced by offshore outsourcing, 70% lost their jobs, with older workers more likely to be displaced.

The researchers don't predict what future displacement rates may be, but they say that as offshoring grows, tech workers without jobs that don't require interpersonal skills, are being replaced more rapidly.

IT workers concerned about displacement "can focus on further developing these interpersonal skills, or may find more robust long-term careers in IT professions that involve significant face-to-face interaction such as those involving cross-organizational process change or hands-on support functions," the report's authors wrote.

Since IT workers have been more severely affected than other types of workers, Tambe and Hitt argue that policy-makers could focus on tech workers to provide help, including job training and government compensation to offset wage losses. Educational institutions will have to react as well, with "increased emphasis on the development of interpersonal and management skills within the IT curriculum."

Obama raises anti-outsourcing pitch, India Inc says, US cos need it

Agencies

Posted online: Friday, August 29, 2008 at 1749 hrs IST

Washington/New Delhi, August 29:
Making a strong anti-outsourcing pitch after getting the Democratic Presidential nomination, Barack Obama vowed to end tax breaks to companies that ship jobs overseas if he is elected to office.

Playing to the gallery on the hot button issue of outsourcing in his acceptance speech, Obama kept up with the rhetoric on the subject that has been a staple of Democratic campaigning and went on to spell out what he would do as President on the front.

"Unlike John McCain, I will stop giving tax breaks to companies that ship jobs overseas, and I will start giving them to companies that create good jobs right here in America," said Obama, who has been fiercely opposing outsourcing. The remarks drew a loud applause at the Denver Democratic National Convention.

Often played the anti-outsourcing card since he entered the Presidential race, Obama has said that while the US cannot 'shy away' from globalisation it would have to take measures to ensure that jobs are not shipped overseas.

Facing the heat from US Presidential hopefuls who blamed 'shipping jobs' to China and India for rising US unemployment, the India Inc had launched a counter-offensive telling Americans that the industry is in fact creating new work opportunities for them.

Reacting to the fresh offensive from Obama, NASSCOM Chairman Som Mittal feels American companies will themselves favour outsourcing.

"The US companies themselves will have to find the right balance of who they want to service themselves and MNCs who have set up their own houses in India have increased competitiveness in furthering their own company objectives," Mittal said.

Infosys' HR Director T V Mohandas Pai said the US industry has accepted India's outsourcing story but preferred to wait for what the US policy would be after the Bush Administration demits office.