Analysts see HCL's Rs 1,780 crore deal with Reader's Digest and another half-a-dozen big deals signed in the past three months by Indian IT firms, encompassing both global and domestic markets, as evidence that the outsourcing story continues to progress as the best option for companies to cut costs in the current difficult economic environment.
Insurance advisors suggest you read the fine print first, as there are a host of exclusions which will enable insurers to turn down claims. But the money lost will not be covered. Insurance will be restricted to the replacement cost of a lost or stolen wallet, personal papers and the credit and debit cards in the wallet. There will be no cover for cheques, tickets or fraudulent charges on the lost or stolen cards and any other identity theft-related costs.
For the first time since the sector was opened up in 2000, the life insurance industry is expected to see a drop in premiums from the sale of new policies. Companies are, however, seeing a growth in overall premium income as policyholders are paying their premium to keep policies active before the current financial year concludes.
Dell has announced the launch in India of its Global Small Business Excellence Award. India will be participating in these awards for the first time. The global competition will see entries from 13 countries, including China, Japan, Australia and New Zealand. The winner will get $50,000 (around Rs 2.5 million) in Dell solutions and a meeting with Chairman Michael Dell. For the India leg of the competition, Dell expects 300-400 entries.
Despite the uncertainty surrounding the Indian Premier League (IPL) dates, public sector insurer Oriental Insurance Company (OIC) is close to finalising a Rs 400 crore 9Rs 4 billion) for the mega event.
In what may reduce the underwriting capacity of the general insurance industry, General Insurance Corporation has withdrawn the market surplus treaty with effect from April 1.
Indian information technology vendors may be missing an unfolding opportunity in the current American recession, Gartner India, the research firm, has warned.
India's largest software exporter, Tata Consultancy Services (TCS), says it will see more deals in its infrastructure services (IS) business in the $5-10 million range this year than in the $15-100 million one.
GIC has increased its reinsurance business in Dubai from Rs 369 crore in 2007-08 to Rs 517 crore in 2008-09. Similarly, the company's fully underwritten cover amounted to Rs 326 crore this year in London, where it started operating in 2008. "Global insurers are showing faith in GIC. It has got some psychological support in view of its sovereign rating," a senior GIC executive said.
While the exact number of employees being asked to quit could not be confirmed, sources said close to 1,000 employees were tipped to go. Syntel has around 11,000 employees in India. The shifting of employees to the KPO operations is part of increasing its utilisation and reducing the bench strength.
Indian reinsurer General Insurance Corporation has hardened its stance while negotiating reinsurance arrangements for the next financial year. During the first round of talks with non-life insurers, GIC said that it would pay at least 5 per cent lower commission on business that is reinsured with it. Further, it has sought a share in underwriting profits, which could be as high as 50 per cent, sources involved with the negotiations said.
No change in the maximum cover of Rs 750 crore.
For TCS, the retail business has been growing at 10-12 per cent over the last three quarters. On a year-on-year basis, the growth rate of the retail business has been impacted due to currency fluctuation and the general slowdown. In dollar terms, the retail business grew 51.6 per cent for the company last financial year.
Capgemini has gone back on its previous expectations of modest growth in the first half of 2009, following a significant deterioration in the wider economic environment since the third quarter, said John O'Brien, senior analyst at advisory and consulting firm Ovum. Capgemini now expects to see a modest decline in the first-half sales, while maintaining an operating margin of 6.5 per cent.
Tata Consultancy Services, the country's largest IT company, has changed its hiring strategy and will focus on just-in-time hiring or real-time talent management."TCS has decided to adopt the policy of real-time management whereby we will hire in the last three months of the final year of graduation rather than a year before," said S Ramadorai, managing director and chief executive officer, TCS.
Premium rates for fire, engineering and motor policies may rise in the coming months as non-life insurance companies are anticipating reinsurance commission rates to fall when they come up for renewal in March.
Meanwhile, 117 Pan-Asian private equity players - with India as focus -- aim to raise funds worth $59 billion, says UK-based Preqin, an alternative assets research and consultancy group. On a global platform, he said, majority of investors remain positive towards private equity. Aditya Birla Private Equity is an example.
With the rising cost of health cover, insurance companies are looking at innovative products to attract customers. The latest offering is top-up insurance that comes at almost half the premium.
Satyam Computer's $75 million Directors and Officers insurance is unlikely to provide a cover against claims arising out of irregularities committed by the company's founder B Ramalinga Raju.
According to the action plan finalised by the General Insurance Council, the industry lobby for non-life insurers, the portable health cover will be available for a period of three years initially. Depending on the feedback in terms of claims ratio, the insurance companies will take a call on whether to extend the cover. Also, the scheme will be open to only those in the age group of 18-40.
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