JULY 4, 2004
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Q&A: Jim Spohrer
One-time venture capital man and currently Director, Services Research, IBM Almaden Research Lab, Jim Spohrer is betting big on the future of 'services sciences'. And while at it, he's also busy working with anthropologists and other social scientists who look quite out of place in a company of geeks. So what exactly is the man—and IBM's lab—up to?


NBIC Ambitions
NBIC? Well, Nanotech, Biotech, Infotech and Cognitive Sciences. They could pack quite some power, together.

More Net Specials
Business Today,  June 20, 2004
 
 
The Face Of Indian Communism
It has to be Sitaram Yechury, and being telegenic has little to do with it.
Yechury with AAI workers: Viva la solidaridad

Harkishan Singh Surjeet, the General Secretary of the Communist Party of India (Marxist) CPI(M), may be the most powerful communist leader in India, but circa 2004, it is Sitaram Yechury, a member of the party's politburo, its highest decision-making body, who is, at once, the most articulate voice and telegenic face of the movement. At a time when the party holds 52 seats in the Lok Sabha, its highest ever, and supports the ruling United Progressive Alliance, that makes Yechury one of the most important and visible politicians in the country.

Just how important became evident on June 2, a mere six days after the UPA's common minimum programme (CMP), supposedly vetted by Yechury was released. Minister for Civil Aviation, Praful Patel had just announced that the new government would go ahead with the previous regime's proposal to modernise and privatise the New Delhi and Mumbai airports with one change; private sector participation would be capped at 49 per cent, not 74 per cent as planned earlier. The employees of the Airports Authority of India protested the move and joining them, for a few hours at Rajiv Gandhi Bhawan, Safdarjung Airport in New Delhi was Yechury, an act that belied Patel's insistence that the communist parties knew about his proposal. Most newspapers carried a photograph of Yechury with the protesting employees signaling to the world at large just where the CPI(M) stood on the issue.

Buy In or Sell Out?
Cars & AP
Red Menace? Not Really
Plasma Or LCD?

Many of these beliefs may fly in the face of the logic behind the economics of a free market, but with a government receptive to inputs from the CPI(M) in power, they will no doubt influence India's economic agenda. There is also a quirky happenstance in Yechury's finest hour-that is what this is-coinciding with the rise of the Telengana Rashtra Samithi, which has five seats in the Lok Sabha and is part of the UPA. In 1969, it was violence surrounding the demand for a separate Telengana state that forced his family to shift to Delhi. Had he not moved to Delhi, who knows what the head of the CPI(M)'s international department and editor of People's Democracy would be up to now?


Buy In or Sell Out?
A Philippines-based BPO outfit eyes the Indian market.

Alfredo I. Ayala: Advantage Philippines

When IBM recently bought out Daksh eServices, one of the many surprises about that deal was that Daksh itself was apparently scouting for takeovers (and planning an IPO). A few months prior to getting snapped up by Big Blue, the Daksh founders were reportedly scrambling to buy out a Philippines-based call centre company, eTelecare International. Those plans, if at all concrete, didn't of course pan out, but what is promising to play out is eTelecare's entry into the Indian market, any which way, by the year-end. ''We have multiple options for entry. It could be via acquisitions, a greenfield venture or a partnership,'' points out Alfredo I. Ayala, Chairman & CEO, eTelecare, which was founded in late 1999, by two alumni of McKinsey's call centre consultancy.

As Ayala, who visited Delhi, Mumbai and Bangalore last fortnight, sees it, India and the Philippines have complementary strengths: the Philippines is perceived to be more attuned to US culture, excels at complex communication and interactions and boasts excellent telecom infrastructure, whilst India brings along with it intense technical and analytical skills. And now, with many of eTelecare's clients-the list includes Fortune 100 financial services providers and electronics manufacturers-indicating they're more comfortable with a presence in two locations, it makes immense sense for Ayala to look at India. What's more, the outsourcing market in the Philippines, estimated at $350 million (Rs 1,575 crore) last year, is much smaller than India's which stood at over $2.3 billion (Rs 10,350 crore).

The Philippines is also known for its lower (than India) attrition rates, and that's yet another reason for a number of global firms, from Accenture to Citibank to AIG to Amex, to set up delivery centres in that country. That's also why an Indian BPO like ICICI OneSource is reported to be planning a centre in the Philippines and Hinduja TMT an acquisition.

eTelecare, meantime has appointed Edelweiss Capital to assist in working out the right strategy for India. Ayala isn't willing to reveal too much, but being a part of a larger BPO major (read: getting acquired) isn't something you could rule out. A few months ago reports indicated that eTelecare was in talks with Wipro-Spectramind and Mphasis' BPO subsidiary MsourcE. Today, though, eTelecare is a much bigger player, having last fortnight acquired Phase 2 Solutions, a US call centre company. With Phase 2 in the bag, eTelecare expects revenues of $125 million (Rs 562.5 crore) in 2004, and Ayala claims he's the largest Asia-based call centre company in Asia. Any takers?


4-WHEELS
Cars & AP

Y.S.R. Reddy: Out of the race

We can consider such projects when the state's coffers are full and people get rich and fat and suffer from indigestion.'' With these evocative words, Andhra Pradesh Chief Minister Y.S. Rajashekhara Reddy effectively derailed Hyderabad's chances of hosting a Formula 1 race in 2007, something former cm Chandrababu Naidu had set his heart on (he had convinced F1's Bernie Ecclestone to agree to a race in the capital in 2007). However, keen to be seen as a destination for auto companies, the state is aggressively wooing German car major Volkswagen, which is considering investing around Rs 2,300 crore in a manufacturing facility in India. "Andhra's USP would be the location (the port city of Vizag) with a modern container terminal," says K.V. Rao, Principal Secretary of the state and Commissioner for Industrial Promotion. "But it is up to them to decide." The state has also initiated talks with another German major BMW. Will these make up for not having a Formula 1 race?


Red Menace? Not Really
Industry need not fear a revival of trade unionism.

Trade Unions: A shot in the arm

No one really knows the exact date, but sometime in the 1990s, the trade union lost its relevance in most parts of the country. However, with the Communist Part of India, and Communist Party of India, Marxist winning an unprecedented 53 seats in the elections to India's fourteenth Lok Sabha, and, better still, supporting the ruling United Progressive Alliance without really being part of the government, most unions seem suffused with renewed vigour. "Unless globalisation is changed (sic), trade unions will fight against the attacks let loose by managements and the government," thunders Chittabrata Majumdar, General Secretary, Centre of Indian Trade Unions, the apex body of Indian trade unions. Industry, however, isn't unduly perturbed. "We give full credit to trade unions for the maturity they have displayed in appreciating the pressures of competition," says N. Srinivasan, Director General designate, Confederation of Indian Industry. "We do not see any increased trade union activity that will negatively impact industry performance." Maturity seems to be the word of the moment with Raman Kumar, Executive Director, Personnel, sail, a public sector steel major that has just turned profitable claiming that the "maturity of the trade union has been a strong supporting factor in the implementation of our cost reduction programme." If a man who has seen the back of some 45,000 workers over the past five years has no cause for concern, nor do we.


Plasma Or LCD?
Here's how you can choose between the most contemporary television technologies.

Cost: Plasma TVs are expensive and cost between Rs 3.8 lakh and Rs 14 lakh. LCD TVs are cheaper and can be had for anything between Rs 65,000 and Rs 2.8 lakh.

Screen width: Plasma, with screen sizes ranging from 30 inches to 63 inches, beats LCD (15 to 32 inches) hollow.

Viewing angle: Plasma offers much better viewing angles compared to LCD, making it ideal for large-room viewing.

Colour: Plasma offer greater range of colours.

Brightness and contrast: LCD offers superior brightness and contrast.

Maintenance: Plasma screens can be damaged by static images, so if you're the kind that loves freeze-frame action, avoid them. And plasma screens may also not work well at high altitudes.

Power: Plasma TVs consume almost twice as much electric power as LCD TVs.

Longevity: LCD TVs have twice the lifespan of plasma TVs.

Handling: Plasma TVs are heavier, more fragile and more difficult to install than LCD TVs.

Last Word: Strangely enough, plasma TVs outsell LCD TVs 8:2 in India. Our call: go for LCDs.

 

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