Tag: ASSOCHAM

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Tech

Coming soon: A digital explosion

The Internet is truly set to explode, with number of connections in India expected to surpass 380 million by 2017.
by The Editors | editor@themetrognome.in

Our country is truly a haven for Internet service providers. Not only do we have a staggering number of existing connections, we are set to have about 35 per cent more in four years.

As per a report compiled by YES Bank in association with ASSOCHAM (Associated Chambers of Commerce and Industry of India) titled Driving Growth in New Media, “Growing at a compounded annual growth rate of about 35 per cent, the total number of Internet connections in India is expected to surpass 380 million by year 2017, from the current level of 168 million.”

The report attributes this phenomenon to “the mobile revolution [that] is being spearheaded by increasing sales of mobile devices and smartphones, as well as the rapid adoption of Android and 3G services.  Soon to be launched technologies such as 4G will allow mobile phone users to surf the Internet, video conference, download music, video and other content at a rate several times faster than 3G services.  It will offer services such as high-definition mobile TV and video conferencing, super-fast access to high definition (HD) video streaming, multiple chatting, instant uploading of photos and much more – all of which should further fuel the growth of mobile adoption and media consumption.”

The study further reveals that wireless connections will comprise nearly 90 per cent of all connections added over 2012-17.  “There are over 1 billion users worldwide on sites like Facebook, Twitter, YouTube and Google+.  As per the data, the number of social media users in urban India reached 62 million by December 2012, and it is estimated to reach 66 million by June 2013,” the study says.

These audiences largely consist of the youth segment and it is no surprise then, that digital advertising is capturing a larger share of ad spends.  Given the cost effectiveness of this medium in reaching the target segment and the increased measurability offered – companies are allocating increasing amounts of their ad budgets for the digital medium, points out the study.

The recent explosion of social media platforms has been their gradual adoption by content creators. Social Media is fast being recognised as a powerful brand management tool for targeted engagements with the consumer and is an essential marketing tool which provides valuable feedback mechanisms.

With its low cost and increasing adoption by the youth, content creators can engage and develop relationships with the younger audience while marketing content more effectively. These innovative content delivery mechanisms enable content to generate incremental digital revenue streams.

Additionally, a lot of popular film songs and scenes are now released first over the Internet medium as a teaser campaign. “Content creators are leveraging upon the interest garnered from pre-release social media campaigns to not only generate word-of-mouth publicity but also to use the traction and hype generated as a bargaining tool for better realisations from music, satellite, distribution and other ancillary revenues streams,” adds the study.

(Picture courtesy crackingtipsntricks.blogspot.com) 

Categories
Trends

Your office could be checking you out

Companies have started verifying employees’ credentials in the wake of several crimes –  existing employees are included in the checks.
by The Editors | editor@themetrognome.in

The recent spurt of crimes, both economic offenses or otherwise, is spurring several companies to quietly check out the antecedents of those in their employment. And it’s not just the ones that companies are hoping to employ that are being given the once-over, a lot of companies are conducting background checks on those working for them already.

Details such as education, residence and personal information are being cross-verified to see if employees have given wrong data on any of these counts. Any misinformation is a potential red flag – companies then probe if the person has a past criminal record.

Employee verification is a routine practice among corporations in the West. Our country has only recently woken up to the threat that a ‘wrong’ employee can pose to the company, in the wake of several crimes being committed by supposedly ‘suitable’ individuals.

A recent survey by the Associated Chamber of Commerce (ASSOCHAM) found that nearly 52 per cent corporates in Mumbai, Delhi-NCR, Kolkata, Chennai, Bangalore, Ahmedabad, Pune, Dehradun and Hyderabad have been verifying their current and prospective employees at all levels. The verification was conducted by the Human Resource departments of small, medium and large businesses, the survey found. “Companies are fast realising the benefit of doing background checks of prospective employees or risk hurting their brand image in a fraud case. Screening of job candidates at all levels, and even vendors and contract staff is preferred. Previous employment details, academic and professional certificates, identity, criminal records, and credit risk, among other information, are checked thoroughly for authenticity and veracity,” the survey says.

Corporates are certainly becoming more careful and cautious when they are recruiting for the junior, middle and senior level positions, highlights the ASSOCHAM survey. “Many companies hadn’t done any background checks before hiring an employee, mainly at junior levels. The horrendous rape case in Delhi has certainly led to the need for carrying out a comprehensive scrutiny of employees at all levels.”

The survey majorly focused on broad sectors such as BPO, IT/ITes sector, financial and other services, construction, real estate, hospitality, tourism, FMCG and infrastructure, media and advertising, manufacturing and textiles, logistics, transport operators etc. Those companies that cannot conduct checks on their own are outsourcing the work – nearly 25 per cent of the companies surveyed had outsourced the verification work to specialised third party agencies. Under the most intense scanner were jobs that entailed working with children, or in healthcare.

(Picture courtesy www.eharmony.co.uk)

Categories
Trends

Summer cheer for yoghurt industry

Frozen yoghurt industry growing rapidly in metros and Tier II cities; is an alternative to ice cream and soft drinks.
by The Editors | editor@themetrognome.in

This is sweet news for the Indian frozen and flavoured yoghurt industry – as per a study conducted by premier commerce body Associated Chamber of Commerce (ASSOCHAM) and released yesterday, the frozen and flavoured yoghurt industry is tipped to grow by 40 to 45 per cent annually, and may touch Rs 1,200 crore by the end of year 2015, up from the current Rs 750 crore.

The study reveals that Indians are waking up to frozen yoghurt, especially its low-fat and no-fat variants, due to rising health consciousness, rising disposable incomes, quality dependence and more awareness about the product and its supposed benefits. Titled Yoghurt Market in India, the study says that the factors that have fuelled this industry’s growth are the wide availability of raw material (milk), a growing willingness among consumers to experiment and increasing disposable incomes.

While releasing the paper DS Rawat, Secretary General ASSOCHAM said, “In India, yoghurt has positioned itself as a healthy dessert option, so the increasing health and wellness awareness will help it gain popularity with some momentum. The branded yoghurt market in India has huge potential with consumers increasingly demanding greater hygiene and quality. The flavoured yoghurt is rapidly becoming a part of regular grocery purchases for many affluent urban households in tier-II and tier-III cities.”

Consuming yoghurt may compete with flavoured milk drinks and fruit/vegetable juice, whilst fruited spoonable yoghurt may emerge as a competition for ice cream as a dessert, the paper finds. Low/no fat and low/no sugar yoghurts are new trends in the market, added Rawat.

Mango, strawberry and pineapple variants, which are common to all brands, are finding takers. Frozen yogurt (plain and flavoured) has already started to replace ice cream to a certain extent. “Companies are also tying up with corporates to target office employees to increase consumption by making it a quick, convenient and healthy substitute for meals. The demand of frozen yoghurt market will see a growth of 70 to 80 per cent each year over the next three years,” adds Rawat.

(Picture courtesy groupon.co.in)

Categories
Deal with it

Raise IT exemption limit, says the salaried class

Survey across the country’s metros and Tier II cities reveals that people want more exemptions on HRA, transport allowance and health.

Budget 2013-2014 will soon be upon us, and people are already awaiting news of new tax slabs. However, a comprehensive survey by the Associated Chamber of Commerce (ASSOCHAM) across the country reveals that a vast majority of the salaried class employed in a host of trade and industry sectors wants Finance Minister P Chidambaram to raise the exemption limit of income tax to at least Rs 3,00,000.

The survey reveals that people also want him to increase deductions such as medical and educational allowances in the Union Budget, so that they are left with more purchasing power.

The survey was conducted in Delhi-NCR, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun, and was titled, ‘Budget 2013: Common man’s expectations from the FM’. About 2,500 employees from different sectors were covered by the survey from each city.

Over 89 per cent of respondents said that the slab of tax-free income has not moved up in line with real inflation. “The current basic exemption limit of Rs 2,00,000 should be increased to at least Rs 3,00,000, with the exemption limit for women going up to Rs 3,50,000. This will increase the purchasing power of individuals and stimulate demand,” the survey reads.

“Pushing the basic exemption limit will also align it with the proposals made by the Parliamentary Standing Committee on the Direct Taxes Code (DTC)”, the survey noted.

With increasing healthcare costs, the existing tax free limit of Rs 15,000 should be increased to Rs 50,000; the same also needs to be considered in the Budget, said 89 per cent of respondents.

The transportation allowance granted by employers to employees (for commuting between the place of work and residence) is tax-free to the extent of Rs 800 per month. This limit was fixed more than a decade ago, and definitely needs to be revised upwards to at least Rs 3,000 per month, given the rising commuting costs across the country, finds the survey.

“Additional benefits related to housing, the deduction limit for payment of interest (on self occupied property) has remained constant at Rs 1,50,000 since 2001. There is an increase in property prices and accordingly the amount of loan. An increase in the exemption limit to Rs 2,50,000 will be a welcome change.

“Section 80C of the IT Act provides a deduction of Rs 1,00,000 for certain investments. This provision helps people in making forced savings that helps them in the future. A common man expects this limit to be increased to Rs 2,00,000 with sub-limit of Rs 50,000 exclusively for insurance and pension,” says DS Rawat, Secretary General, ASSOCHAM.

The survey was able to target employees from 18 broad sectors, with maximum share contributed by employees from IT/ITes sector (17 per cent). 11 per cent of the respondents came from financial services. Employees working in engineering and telecom sector contributed 9 per cent and 8 per cent respectively in the questionnaire. Nearly 6 per cent of the employees belonged from market research/KPO and media background each.

Around 55 per cent of the survey respondents fall under the age bracket of 25 to 29 years, followed by 30 to 39 years (26 per cent), 40 to 49 years (16 per cent), 50 to 59 years (2 per cent) and 60 to 65 years.

“Investments in infrastructure bonds are currently not allowed as a deduction up to Rs 20,000. These bonds have proved to be quite popular and the limit should be increased to Rs 50,000, considering that the Government needs massive funds for the development of the infrastructure sector and also the lock in period be restricted to five years,” added 82 per cent of respondents.

Over 71 per cent of respondents demanded for national pension system (NPS) brought under the EEE (exempt-exempt-exempt) as against EET (exempt-exempt-tax) at present. This means that investors get a tax exemption at all three stages of investment, appreciation and withdrawal.

(Picture courtesy profit.ndtv.com)

Categories
Trends

Women ‘outsmarting’ men at getting jobs: Survey

ASSOCHAM survey finds that more women are being shortlisted for interviews; women better at soft skills, more focussed, survey finds.

It’s an increasingly slow economy and jobs are hard to come by across sectors, but if a recent survey by the Associated Chamber of Commerce (ASSOCHAM) is to be believed, women are doing better at men – at least in getting a callback for interviews and making it to the shortlists of companies.

“Women candidates are increasingly outsmarting men when it comes to shortlisting by HR managers for sending calls for interviews or written tests for jobs, and more and more Muslim women are making it to India Inc in areas like advertising, journalism, public relations, travel and tourism and private sector banking,” the study points out.

Based on the feedback received from 110 Human Resource heads of leading companies all over India, the study found that the ratio for receiving interview or test calls is 1:1.20 in favour of women. This is fast resulting in women from business schools, journalism institutions, travel and tourism courses filling more vacancies than their male colleagues, at least in select but key sectors of the service sector, the study found.

The survey results were released last week. ASSOCHAM President Rajkumar Dhoot says, “The study also found that however much the HR managers in some of the companies may try to balance the number of female candidates with male candidates, they end up finding more women on the final roll-call for the job. The main reason for these trends is that women are becoming  more focussed and are navigating their career paths more professionally than they used to. Besides, they are found to be more suitable than boys when it comes to soft skills like spoken English.”

The study found that in certain areas like television news anchoring, including the business channels, the males are finding themselves in a minority. “Besides being photogenic, the women reporters and anchors are found to be adept at taking questions, be it related to stock markets or car launches,” a Pune-based HR manager said. Additionally, in fields such as corporate communications, advertising, human resource management and personnel management, women are increasingly being preferred by several companies.

“The point to be noted is that female candidates are not only competing well with their male counterparts for the lower hierarchy jobs like those of receptionists and house-keepers, but also for management trainees and senior positions. The trend is quite visible in banks like ICICI Bank, HDFC Bank, Yes Bank, Axis Bank and other private sector banks,” the study finds.

However, the issue of security for women employees is being taken seriously, and top level corporate managements are asking their HR and logistics divisions to see that women are, as far as possible, not assigned late evening or night duty. Interestingly, feedback from HR personnel indicates that this may, in the long run, adversely impact the women’s job prospects, as corporates may employ women staff for night duty only as a last choice. “However, industries like the media, particularly television, are coping with the situation rather well,” the survey notes.

(Picture courtesy thehindu.com)

Categories
Trends

Looking to set up business? Try Afghanistan

Afghanistan President Hamid Karzai says that Indian businesses are investing in his country. But are we game for new territory?
by The Diarist | thediarist@themetrognome.in

The field is set for major Indian investment in Afghanistan. Or so says its President, Hamid Karzai. At a recent business session organised by the Confederation of Indian Industry (CII), FICCI and ASSOCHAM in Mumbai, Karzai said that his country “is ripe and ready for investments from India and offers lots of opportunities for Indian industry…You need not worry about your investments. Not only will Afghan law protect you, but also Afghan people will add to your profits.”

Karzai added that Afghanistan’s forex reserves, including gold, had risen to $7 billion now from $180 million in 2002. “Those who came in the past few years like a telecom company with $5 million investment has now become $600-700 million and this applies to other sectors as well.” He spoke about the rich mineral resources in the country and said that already an Indian conglomerate is in talks for an iron ore mine and hoped a contract would be signed shortly.

The bilateral trade between the two countries is estimated to be over $600 million every year. Speaking on the occasion, CII President Adi Godrej said, “Our Government and us in the industry view Afghanistan as a key ally – This is underlined by the government of India’s announcement three days ago of $100 million to support small development projects in Afghanistan.” He outlined a five- point agenda to strengthen the ties between the two nations, suggesting that Afghanistan embrace a frugal innovation approach to help small and micro entrepreneurs and women under the small development projects in Afghanistan. He also suggested setting up an India Afghan business forum to promote economic cooperation.

 

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