Infosys to mark staff under new model   
May 22, 2008
Source: Google

IT major Infosys Technologies is reviewing the organisation’s existing role-based structure and is coming up with a new structure, the company’s human resources head Nandita Gurjar said. Ms Gurjar, who took over the responsibility of human resources for Infosys and all its subsidiaries in December, said the entire exercise would take about nine months. 

The company has worked with a few consultants on the new structure and process of restructuring has already started. “We are looking at whether the role-based structure is still valid, and if we need to change it dramatically. The exercise will impact company’s structure, performance management and compensation,” Ms Gurjar added. One of the issues it will address is greater flexibility and movement of people within the organisation. 

These changes are in addition to some of the initiatives the company has been already implementing over the last 12 months. Part of the transformation, Infosys is working towards, is identifying star performers or the top 15% of its employees. “We are seen as a company of star performers. We now want to tighten the star performance benchmarks and differentiate between star versus good versus average,” Ms Gurjar said. 

The company also intends to compensate star performers more aggressively than average or poor performers in a move that has more similarities with American culture than promotes and rewards 
individual merit. Employees will also be eligible for promotions only if they appear and pass certifying exams. 

After the success of Campus Connect, a programme that taps talent from engineering colleges in tier II and tier III towns, and trains them, this year the company plans to hire half of the freshers through 
campus connect, compared to 30% last year. Infosys spent approximately Rs 20 crore last year on the programme, and close to Rs 700 crore on training all thes employees. 

From this year, the concept of right skilling will also be introduced across all its businesses. The concept, first used last year in the BPO segment, identifies three levels of skills for a particular job to ensure clear career paths. Right-skilling has had a positive impact, almost halving attrition levels at the accounts department in Infosys BPO. 

Mastek eyes $20-30 mn acquisition in FY09         
May 22 , 2008 
SOURCE: Google

Software services firm Mastek Ltd is looking at an overseas acquisition of around $20-30 million during the current financial year, a senior official said on Wednesday. 

"We are mainly looking at the U.S. and the UK and it will be insurance or government vertical," Group CFO and Director (Finance), R.S. Desikan told reporters, refering to firms which have expertise in handling government jobs and insurance sector. 

In March, the company paid $29 million to acquire U.S.-based STG International, which offers business software services to the property and casualty insurance companies in North America. 

The insurance vertical currently contributes a quarter to the Mastek's total revenues and this share is expected to reach 40-45 percent in the next 2-3 years, he said. Mastek shares ended 1.25 per cent down at Rs 392.60 in the Mumbai market. 

Microsoft to reward Live Search shoppers with cash  
May 22, 2008 
SOURCE: AGENCIES

Microsoft said on Wednesday it will reward US Live Search shoppers with cash for purchases, essentially trying to buy market share it tried to win with its failed bid to take over Yahoo. 

Under the Live Search "cashback" program, shoppers using Microsoft's Internet search service will have percentages of purchases refunded. 

Rebate money comes from fees merchants agree to pay Microsoft if Live Search online ads result in sales. 

"We believe search can offer much more value to consumers and advertisers than it does today," Microsoft chairman Bill Gates said in a release. 

"Our goal is to make Live Search the most rewarding commercial search destination on the Web." 

The cash back program's more than 700 partners include online auction house eBay, bookstore chain Barnes & Noble and longtime retailer Sears, the technology colossus said. 

Rebate incentives are proven ways to gain market share, according to Silicon Valley analyst Rob Enderle. 

"Incentives, if done right, can change behavior," Enderle said. "People will switch over, but the product has to be compelling to hold them. I don't know if Live Search good enough yet. It needs to be clearly 
superior to Google." 

The rebate program appears to be part of a fallback strategy by Microsoft in the wake of a failed bid to buy pioneering Internet firm Yahoo for nearly 50 billion dollars (US). 

Microsoft wanted to combine online resources with Yahoo to better battle Google, which claims the lion's share of a fast-growing multi-billion-dollar online search advertising market. 

Microsoft could put pressure on Google by expanding the rebate program, say by sharing ad revenues with shoppers or letting money accrue for charities or prize pots that people could win, Enderle said. 

"I think it will evolve into something much more dangerous to Google over time," Enderle said. "Long term, I think this will create a price war. Up until now, Google has been taking swipes at Microsoft. Now, Microsoft can take a swipe at Google." 

US online retail sales are expected to reach $335 billion annually by 2012 and currently 68 per cent of Internet buys begin with search engine queries, according to statistics from eMarketer Inc.