This news has been doing rounds for some time , though Captain Gopinath Plainly rejected that there is no deal in offering to Kingfisher , but the newspapes does make us believe otherwise .
Though i would say a stratergic merger between the two would be an good thing to happen for either of them! Mainly because although they are there in the same industry but the market segment they target are different. And that makes sure that they don't eat upon each others customer base in the aviation industry ..
It would be good Air deccan from the perspective that it would help them cut even their losses , they supposedly recorded a loss in the last quarter , and that makes them vunerable for such an venture .As for Vijay Mallaya the king of mergers and acquisitions this would make him the largest market share holder in India.So , i would say it could be a win win situtation.
But yes the sad thing could be if Air Deccan sheds its so called low cost flights. As its only because of air deccan that lots of people who used to earlier travel by trains , now think twice as to whether they should book a flight ticket and save some time !And i was pretty impressed to read about the business model/plan that Air deccan followed to cut its cost , though it didn't help them cut even their losses , but as Captain Gopinath said it takes time for plans to succeed .
Thursday, May 31, 2007
Wednesday, May 9, 2007
IT Cos Shiftng from People Centric Model
Today morning i read an article in the ET . As an IT professional myself it wasn't an great news to read . It mentioned about the plans of the various IT cos to change the linear relationship which they have between no. of employees and revenues . So the companies intend to increase their revenues per employee. Basically to an Software engineer like me all it means is that my managers will get the hell out of me ;-) ..
Jokes apart ,from an industry perspective i was really glad that the IT companies are thinking in this direction , such an thought process will go a long way in improving our work culture . In India like Narayan Murthy had mentioned in one of his speech long time back, there is ample talent but the talent needs to be nurtured and trained to bring them to the industry standards and that basically means huge training costs as reflected in Infosys's Training budget !
The increasing salaries and talent crunch are few of the major factors which have made the IT cos to think in the direction of de-linking profits and employee numbers .
I find this concept really interesting and challenging , as in a service oriented economy like that of ours (India's) how can we do away with the human power and still make huge profits ..
I am looking forward to read more on this , as in near future this is an concept which all most all the IT companies in India will have to implement as otherwise it would be really difficult for them to bear the rising salaries of their employees.
One way to achieve this goal would ofcourse be by automtaing the various processes involved and implementing end-to-end workflows, so that the manpower needed for a particular activity gets reduced considerably . The article mentions an initiative by Zensar in this direction they call it as "Solution BluePrint" (SBP is a collection of work flows, design models and protocols that automates software engineering process).
Jokes apart ,from an industry perspective i was really glad that the IT companies are thinking in this direction , such an thought process will go a long way in improving our work culture . In India like Narayan Murthy had mentioned in one of his speech long time back, there is ample talent but the talent needs to be nurtured and trained to bring them to the industry standards and that basically means huge training costs as reflected in Infosys's Training budget !
The increasing salaries and talent crunch are few of the major factors which have made the IT cos to think in the direction of de-linking profits and employee numbers .
I find this concept really interesting and challenging , as in a service oriented economy like that of ours (India's) how can we do away with the human power and still make huge profits ..
I am looking forward to read more on this , as in near future this is an concept which all most all the IT companies in India will have to implement as otherwise it would be really difficult for them to bear the rising salaries of their employees.
One way to achieve this goal would ofcourse be by automtaing the various processes involved and implementing end-to-end workflows, so that the manpower needed for a particular activity gets reduced considerably . The article mentions an initiative by Zensar in this direction they call it as "Solution BluePrint" (SBP is a collection of work flows, design models and protocols that automates software engineering process).
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