COBRA X NEWS: Sep 11, 2012

Tuesday, September 11, 2012

Mahindra Satyam poised to treble employee strength in China by 2015

Mahindra Satyam plans to treble its employees strength in China to 1,500 by 2015 as part of strategic focus on engineering, manufacturing and telecom sectors.

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IT services provider Mahindra Satyam, a leading global consulting and IT services provider, will treble its employee strength in China to 1,500 by 2015 as part of strategic focus on few verticals. The company aims to team up with Chinese IT firms and provide services in the engineering, manufacturing and telecom sectors.

China will be used as a global base to serve clients in the Asia Pacific region, a statement by the company said. MahindraSatyam and its parent Tech Mahindra together have Global Delivery Centres in Shanghai and Nanjing. Mahindra Satyam had set up operations in China in 2002.

"China will be a critical pillar of our regional and global strategy. The region will increase its revenue contribution from 24% currently in view of the size of Chinese economy and specific opportunities which we have identified," Rohit Gandhi, Senior Vice President - Asia-Pacific, India, Middle East and Africa, Mahindra Satyam announced at the World Economic Forum in Tianjin.

Mahindra Satyam's move to expand workforce and operations in China come on the back of IT majors Infosys and Wipro expanding their footprint a couple of years ago. While Infosys has about 3,000 people Wipro has more than 2,000 employees in China.

China's telecom sector, the company said, has yet to experience the transformation which unifies fixed-line, mobile and data services into a seamless offering. Mahindra Satyam/Tech Mahindra have helped global and regional telecom giants such as British Telecom achieve this transformation in front-end customer interface and back-end integration and billing, and are keen to help Chinese telecom companies in this aspect.

MSat expects to hire local talent to serve customers. "Chinese universities are producing a high number of quality engineers each year. We are impressed by the level of skills, expertise and the willingness to learn - qualities we will build upon as we expand our operations in China," said Amitava Ghosh, Vice President and Head, North Asia. Mahindra Satyam.

For Mahindra Satyam, partnerships with Chinese companies will also help leapfrog its growth within China and to increase its near-shoring support of Japanese clients, Gandhi said.

China Slowdown Starts to Show in Labor Market

TIANJIN, China—Chinese Premier Wen Jiabao offered reassurance about China's economy at a big international gathering, saying the country is on track for its target of 7.5% growth this year.

His comments, at the World Economic Forum in Tianjin, came after a raft of weak data and as a Manpower survey suggested the slowdown is beginning to take a toll on the job market.

Mr. Wen, who is set to retire following a leadership transition this fall, also defended his record as premier since 2003, and was particularly forceful in defending China's hefty stimulus campaign during the global financial crisis in 2008 and 2009, which he said helped prevent job losses.

Acknowledging that the Chinese economy is under "notable downward pressure," Mr. Wen said the government has introduced several measures since May to support growth, including interest-rate cuts, reductions in the required reserves for banks and tax reforms.

He also hinted that Beijing may unleash massive fiscal spending to support the economy, saying China has a budget surplus so far this year of around 1 trillion yuan ($158 billion), and around 100 billion yuan in a special reserve fund, "which we will not hesitate to use for the fine tuning of the economy."

Meanwhile, a survey of more than 4,000 Chinese businesses by staffing company Manpower Group points to weaker employment growth at China's manufacturers.

Most of the businesses in the survey, released Tuesday, said they plan to maintain or increase their workforce in the final quarter of the year. But the number saying they plan to reduce headcount or are undecided crept up. Hiring intentions were particularly weak in the manufacturing and construction sectors, and in the export-heavy city of Shenzhen.

Manpower Chief Executive Jeff Joerres said the slowdown in hiring merited close attention, though not panic. "If we see more firms reducing their headcount, that could be a problem," he said.
China's economic growth has slipped to its slowest rate since 2009. But the labor market has proved mostly resilient, with few of the factory closures and mass layoffs that marked the previous slowdown. Analysts say that relatively robust labor markets so far this year are one reason the government has not done more to support growth.

The downturn in hiring reflects a slowdown in both exports and construction, two main pillars of China's economy. August exports were up just 2.7% from a year earlier, and exports from labor-intensive manufacturing hubs Zhejiang and Jiangsu provinces are falling. The area of new residential property area under construction in the first eight months of 2012 was down from a year earlier, denting demand for construction workers.

China's recent Purchasing Managers' Index surveys of employment also point to weaker labor markets, with some manufacturing businesses starting to let workers go. The official PMI survey employment index came in at 49.1 in August; a number below 50 indicates net firing, while above 50 indicates net hiring. Income-tax receipts are also down, likely reflecting a combination of a change to the tax rates and weaker employment.
Vice Minister of Human Resources and Social Security Xin Changxing sounded a note of caution on employment in remarks quoted in the People's Daily newspaper on Tuesday, saying the impact of the economic slowdown can be seen in a deceleration in new job creation starting in April.

Official data on China's labor markets is published infrequently and is widely regarded as unreliable.
Even as manufacturing slows, there are signs that China's service sector is taking up some of the slack. The Manpower survey shows a strong increase in hiring intentions in the services sector. The nonmanufacturing PMI also shows service-sector businesses still hiring.

In other indications government efforts to rekindle growth are beginning to have an impact, new loan data show signs of a recovery in credit demand. New loans rose to 703.9 billion yuan ($110.9 billion) in August from 540.1 billion yuan in July.

Many analysts give China great credit for its package of stimulus policies a few years ago, which arrested a sharp slowdown. But the stimulus plan also had many long-term costs, including inflation, soaring property prices that threatened to form a bubble, and a build-up of questionable loans at state banks.

At the World Economic Forum, Mr. Wen defended the policies.

"Some people made accusations about China's plan...and even said that we paid an undue price," Mr. Wen said Tuesday. "It was exactly due to our resolve and scientific response that China was able to prevent factory closures and job losses."

The stimulus was initially billed by the central government as being worth 4 trillion yuan, but was in fact significantly larger as local governments spent liberally on infrastructure projects and banks went on an unprecedented lending binge.

Mr. Wen, who is expected to be succeeded by Vice Premier Li Keqiang, touted progress made under his watch on various fronts. China has introduced measures to narrow its massive income gap, ameliorate regional disparities in development, improve environmental regulation, and lay out a basic system of social benefits, he said.

"We maintained social stability and prevented a disruption to the process of modernization," he said.

Chinese people, gov't together on Diaoyu Islands

BEIJING, Sept. 11 (Xinhua) -- Angered by Japan's so-called "purchase" of some of the Diaoyu Islands, a Chinese territory, people in China of various walks of life have expressed support for the Chinese government in introducing countermeasures.

Despite strong warnings and opposition voiced by top Chinese leaders, the Japanese government on Tuesday signed a contract with the Kurihara family, which Japan claims is the "private owner" of the Diaoyu Islands.

"Our tolerance should not be met with cruelty. And we should call stridently for the Diaoyu Islands and must not allow any country to forcibly occupy our territory," said a netizen nicknamed "Dingxinran" in a webpost.
Some people also posted online a Japanese map drawn by the Japanese military in 1876 to prove that the Diaoyu Islands don't belong to Japan.

"As a member of the Chinese nation, I resolutely and unconditionally support the Chinese government's stance and countermeasures that aim to safeguard national dignity and sovereignty," said another netizen.
Foreign Minister Yang Jiechi said on Monday that China urges Japan to immediately revoke its wrong decision to "buy" the Diaoyu Islands and stop all actions that undermine China's territorial sovereignty.
Otherwise, all consequences should be borne only by the Japanese side, according to Yang.

On the same day, the Chinese government announced the base points and baselines of the territorial waters of Diaoyu Islands, a move that further demonstrates China's sovereignty.

China's oceanic authority has recently improved its monitoring over far-sea territory including the Diaoyu Islands.

Gao Hong, an expert on Japan studies at the Chinese Academy of Social Sciences, told Xinhua in an interview on Tuesday that China can use all necessary means to monitor the islands regularly, conduct patrols and offer protection to fishermen.

China assures Pakistan of ‘complete support’ on regional, int’l issues

China on Tuesday said it completely supports Pakistan on all its regional and international issues. Chinese Premier Wen Jiabao reiterated the stance of his government of supporting the sovereignty and integrity of Pakistan when he met Prime Minister Raja Pervez Ashraf here on the sidelines of World Economic Forum’s Annual Meeting of New Champions 2012. The two leaders reaffirmed their governments’ resolve to further strengthen ties in diverse fields particularly trade and defence. The first official meeting between the two leaders that was scheduled for 25 minutes lasted for 40 minutes.

The two sides noted that Pakistan and China share similar views on important regional and global issues and would continue to extend support to each other at all levels.

Prime Minister Raja Ashraf and the Chinese premier discussed a whole gamut of issues ranging from bilateral ties, defence cooperation, infrastructure development, energy, agriculture and banking.

The Prime Minister said Pakistan attaches great importance to enhancing economic and trade links with China which include promoting closer collaboration in projects on energy, telecommunication and railways.

Chinese Premier Wen welcomed the Prime Minister on undertaking his first official visit to China and said it reflected the level of Pak-China friendship and the importance Pakistan gives to China. He conveyed best wishes for President Asif Ali Zardari and for the Pakistani people.

He said China considers Pakistan its friend and underscored the importance of time-tested strategic partnership between the two countries.

He expressed appreciation for Pakistan’s role in fight against terrorism and extremism and called for greater international recognition of its efforts and sacrifices in this regard.

Both the leaders were of the view that the two nations were opposed to terrorism and would continue to cooperate with each other to eliminate this threat.

Prime Minister Raja Ashraf sought investment by Chinese companies in Pakistan’s various areas and stressed the need for making efforts to realize full potential of bilateral trade. He termed the Chinese assistance in carrying out mega projects in Pakistan as significant. He said it was high time to address the global economic crisis and find ways to counter its impact on growing economies.

The Chinese Premier stressed upon regional approach for resolving regional issues and said it was in the benefit of the people of all countries.

The two sides agreed on exploiting full potential of the two business communities to boost their economy and trade. They renewed their focus on achieving the target of 15 billion dollar bilateral trade.

It was agreed that China would support the National Bank of Pakistan to launch the financial bonds worth 6.5 billion Renminbi in China.

Prime Minister Ashraf was told that the machinery from China to carry out work at Ata Abad Lake would reach Pakistan in October.

Finance Minister Dr Abdul Hafeez Sheikh and Foreign Secretary Jalil Abbas Jilani assisted the Prime Minister. China’s Vice Foreign minister, Trade Minister and Tianjin’s mayor were present.

Earlier on his arrival at the State Guest House, Prime Minister Raja Ashraf was warmly received by Premier Wen Jiabao. Both the leaders shook hands and exchanged greetings. Prime Minister Ashraf introduced to Premier Wen the members of his delegation including Finance minister and senior officials.

Pakistan seek Miandad’s expertise before World T20

Javed Miandad speaks to Shoaib Malik at a training session in September 2009. The PCB has sought Miandad’s services as batting consultant before the World T20 in Sri Lanka starting next week.

KARACHI: Pakistan’s former Test captain and prolific batsman Javed Miandad will join the national team in Sri Lanka to give batting tips ahead of the World Twenty20 this month.

Miandad will not interfere with the work of current boss Dav Whatmore for the September 18-October 7 tournament but will instead concentrate on any individual batting niggles following a series of recent collapses. He will be with the team in Sri Lanka during their warm-up matches and practice sessions until the start of the tournament.

“He has been given a special assignment for a short period before the start of the World Cup,” a Pakistan Cricket Board (PCB) spokesman said.

Miandad has previously acted as head coach of the Pakistan cricket team and is currently employed by the PCB as its director general.

“My main priority is to have pep talks with the players, to raise their spirits and confidence, and work with the batsmen in the nets, advise them on batting issues, keeping in mind the requirements of the World Cup and conditions in Sri Lanka,” the Test great was quoted as saying by cricket website ESPNCricinfo

Which is the real Pakistan?

The writer is a consultant and a freelance writer based in New Delhi, where she writes for Business Standard and blogs for The Times of India.

Pakistan’s Foreign Minister Hina Rabbani Khar stole the show last week as she stood next to India’s Foreign Minister SM Krishna at a press briefing towards the end of Krishna’s visit to Pakistan. Never has the transformation from a glamorous ‘goongi gudiya’ — as she was widely described during her visit to New Delhi last year — to a woman and leader of passion and conviction been more surprising or creditable in the recent history of India-Pakistan relations.

Khar’s main argument during that press briefing was about the need for India and Pakistan to move on from the past and forge a brand new future, and was clearly meant to send the message that India should not link progress on the rest of the relationship to progress on investigating and finding the culprits responsible for the Mumbai attacks.

So here’s the counterargument: if both countries should, indeed, move on, does this mean that Pakistan is willing to forget the Kashmir dispute and accept that the Line of Control is really an international border? That India and Pakistan must keep their respective parts of the states that they control and not yearn for the other? That Pakistan must accept the current status quo on Siachen and Sir Creek? If that is what Khar was trying to say, then it is truly a spectacular turnaround from the Pakistani establishment.

But, of course, we all know that Khar’s “moving on” was really limited to India dropping its insistence on movement on the Mumbai attacks. In what may account for one of the more insensitive moments of the recent Krishna visit, Khar is believed to have told an Indian TV channel the following: if you can’t forget Mumbai, Pakistan can’t forget its 1971 humiliation at the hands of India.

Pakistanis have often argued that Indians don’t understand the enormity of their own war against terrorists and ongoing ethnic conflict — the war against the Tehreek-i-Taliban Pakistan in the northwest, Shia-Sunni killings, as well as those between political parties in Karachi in particular — and that Indians must stop harping about their pain of the one attack in Mumbai.

There is a clear answer to this: the terror inside Pakistan is not sponsored by India. Nobody in Mumbai asked anyone in Karachi or elsewhere to climb into a boat and set sail for Mumbai with sten guns.
My friend and fellow The Express Tribune columnist Ejaz Haider had another interesting thesis that I hadn’t heard before or — more to the point — hadn’t wanted to hear before. According to him, the Indian army was known to conduct false flag marches in (Indian) Kashmir, meaning they had killed scores of Indian — read, Muslim — civilians in Kashmir under the guise of offering protection to them.

What did this have to do with Mumbai, I asked Mr Haider? Was he implying that the Indian security forces — the army, paramilitary or the police — could have turned upon its own people in Mumbai? That could be one possibility in a range of several possibilities, he replied.

Khar’s forceful passion at the press briefing notwithstanding, the penny seems to have finally dropped in my own head: a section of the Pakistani intelligentsia believes the terror attack against Mumbai was just retribution — for 1971, for Balochistan, for Karachi, and anything else it believes India is responsible for.
That is why the opening up of the visa regime is so important: ordinary Indians and ordinary Pakistanis will get a chance to meet each other and discuss what their relationship is really about and whether they really want to forge one. Indians visiting Pakistan are more than often accosted with the unimaginable generosity of ordinary Pakistanis: aap hamaare mehmaan hain, hum dil ki gehraai se kehna chaahte hain hum kitne khush hain aap logon ko yahan dekh kar.

See how this contrasts with the state’s commentary? The question is, which is the real Pakistan?