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Infosys cuts variable pay of employees to save costs

Infosys Technologies had cut the variable pay of its employees for the second time during the last few months. As per the sources, 70 per cent of the variable salary is guaranteed for employees. Earlier, the same had been reduced to 80 per cent from 90 per cent.

The variable pay of the employee is determined by a combination of various factors including the company performance, performance of the business unit and the individual''s personal performance.

Moreover, Infosys has also asked the department heads to identify five per cent of workforce, whose performance has been at the bottom rung of the appraisal process in the last two years. Earlier the company asked 2100 employees to go after their performance was found to be below par.

Tata Consultancy Services Drives Transformation at Volkswagen Group UK Ltd

Tata Consultancy Services, a leading IT services, business solutions and outsourcing firm, announced that it has been selected to deliver TT transformation and support services to Volkswagen Group UK Ltd in a five year contract.

TCS will leverage its Global Network Delivery Model™ to provide onshore and offshore IT support and transformation services for the Volkswagen Group''s operations throughout the UK, and across the brands Audi, SEAT, Skoda, Volkswagen Passenger Cars and Volkswagen Commercial Vehicles, TCS will support the Volkswagen Group In its business transformation programme to meet its aim to ''sell more cars, sell more parts, drive down costs'', TCS will support all brands within the Group as they move to a consolidated, standardized business platform, enabling geographic mobility of Volkswagen Group UK employees, increased flexibility, and cost reduction. This is the first time Volkswagen has implemented an onshore-offshore model for its H" systems.

TCS has already started working with Volkswagen Group UK, and was tested within the first week on the project when a major power outage at the UK head office in Milton Keynes caused many of the Group''s systems to fall on a Friday evening. From Milton Keynes, the company controls sourcing, marketing and distribution of all vehicles and parts in the UK, therefore the health of its IT systems is critical to the company''s operations across the country. TCS, already intimately acquainted with every corner of the system and piece of equipment, mobilized a global team to work overnight onsite and from India, successfully recovering all of the Group''s rt services in time for Saturday''s trading.

"We couldn''t have better proof that we''re in safe hands with TCS/'' said Nick Gaines, Group IS director, Volkswagen Group UK. "We have been deeply impressed by the dedication and collaborative approach taken both by the local and India-based teams. This gives me great confidence In the future relationship between our businesses."

"Understandably, we''re seeing an increasing focus on consolidation and cost optimization In the current economic climate," said Duncan Aitchisan, partner & president, TPI, "Companies with global operations and disparate brands need to think about streamlining their operations, in the way Volkswagen is doing, to survive and thrive in the future."

"In this challenging environment, organizations are looking to Increase efficiency and flexibility in order to stay competitive," said A. S, Lakshminarayanan, Vice-President and Head of Europe, TCS. "By helping Volkswagen Group UK consolidate their IT systems onto a single platform, and harness the power of our Global Network Delivery Model™, we are not only streamlining their infrastructure, but also their wider businesses processes. In the current economic climate, ensuring a business is fit, well and lean, in this way, is the key to success,"

ICICI Pru Life to increase headcount in next two months

ICICI Prudential Life said that it will recruit 3,000 people in the next two months. "We are a growing organization, and we have already started hiring the next round of 3,000 people over the next two months, the process for which is in full swing," said Sujit Ganguli, senior vice president and head-marketing of the company.

The insurance company already has rationalized its branch network for optimal utilisation of resources. "We have combined some of our branches. We have not vacated from any location (cities, towns and tehsils/taluqas) where we were present and have ensured to remain in close proximity to all our customers," he said.

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Strong market breadth

The key benchmark indices were firm in the mid-morning trade, extending Friday's gains. All the sectoral indices on BSE were positive. Buying was mainly witnessed in the real estate, capital goods and power sector counters. Mid-caps and small-caps too were in momentum indicated by strong market breadth. Asian markets which opened before Indian market, logged gains.

At 11:20 IST, the 30-share BSE Sensex was up 321.97 points or 2.38% at 13773.95. At the day’s high of 13,789.70 hit in early trade, the Sensex gained 335.70 points.

The broader based S&P CNX Nifty was up 88.10 points or 2.19% at 4104.10.

The BSE Mid-Cap index was up 2.60% at 5,415.69, while the BSE Small-Cap index was up 2.82% at 6,631.45. Both these indices outperformed the Sensex.

The market breadth was strong on BSE, with 1746 gainers outpacing 432 losers. 47 stocks remained unchanged.

Among the 30-member Sensex pack, 27 advanced while the rest declined.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries fell 0.91% at Rs 2080 on 5.83 lakh shares. It was the top loser from Sensex pack.

Cipla (down 0.12% to Rs 207.70) and Tata Motors (down 0.12% to Rs 400.10), wete the other losers from Sensex pack.

India's second largest power generation company in tersm of net sales Reliance Infrastructure surged 7.30% at Rs 830. It was the top gainer from Sensex pack.

India's second largest software exporter by sales Infosys Technologies rose 1.69% at Rs 1785.

India’s largest private sector bank by market capitalization ICICI Bank rose 5.97% at Rs 637.

Realty stocks were in demand. Akruty City (up 10.28% at Rs 802.05), Indiabulls Real Estate (up 4.58% at Rs 292.10), Unitech (up 3.01% at Rs 171) and DLF (up 3.92% at Rs 430.80), moved higher. The BSE Realty index was up 4.17% at 4,823.29.

Capital goods stocks moved higher. Areva T&D (up 7.43% at Rs 1,525), Punj Lloyd (up 4.68% at Rs 239.10), Bharat Heavy Electricals (up 3.31% at Rs 1,550) and Larsen & Toubro (up 3.54% at Rs 2,464), rose. The BSE Capital Goods index rose 3.50% at 11,060.23.

Power sector stocks advanced. Power Grid Corporation of India (up 4.85% at Rs 78.90), GVK Power & Infrastructure (up 4.06% at Rs 33.35), and Torrent Power (up 3.97% at Rs 95.65), jumped. The BSE Power index rose 3.49% at 2,386.74.

Textile yarn maker Vyapar Industries advanced 3.56% to Rs 154 after the company said its board will meet on 14 July 2008 to consider buy back of equity shares.

Cinema chain operator Pyramid Saimira Theatre jumped 5.49% to Rs 185.40 on reports that the US-based Regal Entertainment Group, Bain Capital, Texas Pacific Group and Goldman Sachs are planning to pick up 14% stake in the company.

Automobile Corporation of Goa, which supplies auto parts and bus bodies to Tata, rose 1.25% to Rs 206.95 on reports that Tata Motors has raised its stake in the company by 3% to 40.6% in three months through open market purchases.

Anil Dhirubhai Ambani-controlled Reliance Power rose 2.53% at Rs 139.80 on reports the union coal ministry is considering a proposal to allow the firm to transport the excess coal from the three captive blocks of Sasan project to the group's proposed 4,000 megawatt plant at Chitrangi. Both Sasan and Chitrangi projects are located in Madhya Pradesh.

Construction firm Era Infra Engineering moved up 3.05% at Rs 567.90 after its board approved sub-division of equity Shares of the company from existing one equity share of Rs 10 each to five equity shares of Rs 2 each.

Asian markets which opened before Indian market, edged higher. The key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were up by 0.33% to 3.60%. US stock markets were closed for the Independence Day holiday on Friday, 4 July 2008.

US light crude for August delivery traded at $143.92 a barrel and London Brent crude rose 23 cents to $144.65 a barrel. Crude oil hit a record $145.85 hit on 3 July 2008.

As per provisional data, foreign funds bought shares worth a net Rs 372.35 crore while domestic mutual funds sold shares worth a net Rs 97.02 crore on Friday 4 July 2008.

Foreign institutional investors (FIIs) were net buyers of Rs 120.10 crore in the futures & options segment on Friday, 4 July 2008. They were net sellers of index futures to the tune of Rs 215.54 crore and bought index options worth Rs 99.23 crore. They were net buyers of stock futures to the tune of Rs 221.21 crore and purchased stock options worth Rs 15.20 crore.

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