Banking, securities companies' IT spends to rise 15% to Rs 53,600 crore

MUMBAI: IT spends by domestic banking and securities companies may grow by 15 per cent to Rs 53,600 crore this year and rise further on expectations of more companies using RBI's 'on-tap' bank licensing, global technology consultancy Gartner said today.

"The domestic banking and securities companies will spend Rs 53,600 crore on IT products and services in 2015, an increase of 15 per cent over 2014 spend of Rs 46,600 crore," it said in a statement.

The forecast on spends includes internal IT (largely personnel), hardware, software, external IT services and telecommunications, it added.

IT services will witness the largest spending at Rs 18,300 crore, which confirms the banking industry's interest for information technology, its research director Vittorio D'Orazio said.

On the growth front, software spending will have the maximum growth at 19.2 per cent, it said.

Growth in IT spending is slated to continue into next year as well, it said, making an apparent reference to RBI's announcement of moving new bank licensing "on tap" and added that 2015 will be a "turning point."

"India might see up to six new banks set up by the end of 2016 and up to 50 by 2020," it added.

The entry of new players will intensify competition and banks will invest more in technology to win market share and drive expansion, he said.

"Specifically, we expect an increase in IT spending correlated to branch technology, inclusive of core banking systems, and in the mobile channel space," D'Orazio said.

The Reserve Bank last year granted in-principle nod to micro-lender Bandhan and infra lender IDFC to enter universal banking fray.

The central bank is also going over applications of over 75 entities which have evinced interest to set-up payments banks and small finance banks, which are slated to be very IT-intensive.

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Mobile phone market expected to cross 300 milion devices this year

NEW DELHI: Mobile handsets market in India is expected to cross 300 million devices this year while only 46 million are likely to be built locally, says a report.

"The domestic market for mobile handsets is expected to cross 300 million devices in 2015, while the number of devices being manufactured locally is expected to be only 46 million," said a report by Ficci-EY titled 'Speeding Ahead on the Telecom and Digital Economy Highway'.

Citing the example of Vietnam, which has emerged as a global hub for manufacturing of mobile handsets because of favourable incentive schemes and stable regulatory environment, it said there is a need for incentives for setting up of new handsets and tablets manufacturing units in the country.

In spite of India's market growing at a robust rate, almost 83 per cent of the demand is met via imports, while domestic production and manufacturing continue to lag, the report said.

"It is imperative that measures are taken to address this mismatch and reduce dependence on imports. Correcting this imbalance will not only lead to saving of foreign exchange but also result in build-up of local capabilities and job creation," it said.

To further the efforts under 'Make in India' programme, DeitY has established a joint task force of industry representatives and government officials with an aim to achieve production of 500 million handsets by 2019, it said.

"The task force aims to rejuvenate the mobile handset and component manufacturing ecosystem in the country and targets to create additional employment opportunities for 1.5 million people," it said.

It recommended bringing handsets under provisions of 'Goods of Special Importance' of the Central Excise Tax Act, 1956, thus capping the maximum VAT levied by states at 5 per cent and also endorses a 10-year tax holiday on a block of 15 years on all profits and gains for manufacturing in the mobile phone industry.

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Policy to Promote Bulk Drug Manufacturing to be Formulated: Minister

New Delhi: The government is examining recommendations of a committee set up to study issues related to critical active pharmaceutical ingredients (APIs) so as to formulate a policy for promoting their manufacturing in the country.

"The Government has taken various measures to promote 'Make in India' initiative in pharmaceutical sector," and had constituted a committee under the chairmanship of Secretary, Department of Health Research in this direction, Minister of Chemicals and Fertilisers Ananth Kumar said in a reply to the Lok Sabha.

"The committee has recommended establishment of Mega Parks for APIs with common facilities such as common effluent treatment plants, testing facilities, captive power plants/assured power supply by state systems, common utilities/services such as storage, testing laboratories, IPR management, designing, guest houses/accommodation etc. maintained by a separate special purpose vehicles (SPV)," he said.

The recommendations are being examined for formulation of a policy for promotion of manufacturing of bulk drugs, Mr Kumar said.

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Govt urges corporates and stakeholders to support ‘TB Free India

Union minister for health and family welfare, J P Nadda today launched a nationwide campaign aimed at TB Free India and urged for support from all stakeholders to this initiative.

On this occasion, the minister along with representatives from The Union, World Health Organisation, USAID – US Agency for International Development, Bill and Melinda Gates Foundation, World Bank, The Global Fund, Tuberculosis Association of India, Indian Medical Association, Indian Association of Paediatrics among many others pledged their support to the national campaign.

The call to action to end TB in India is a part of the global initiative “Challenge TB” led internationally by USAID and aligns with the Government of India’s vision of a TB free India. The ‘TB Free India’ echoes the sentiments of the WHO’s ‘End TB Strategy’ and the country is now gearing up to intensify its TB control efforts through innovative policies and strategies.

The Government is committed to end TB from the country and realise the dream of TB free India where all patients will receive accurate diagnosis, appropriate treatment and complete care. He also highlighted the need of innovation which is required for TB care. He also urged all stakeholders to unite in the fight against TB and this Call to Action is such a kind of platform. He also announced the launch of a Missed Call Campaign , massive media campaign and special strategy for addressing key populations said health minister Nadda.

Our primary challenge is diagnosis. The Indian patient urgently needs quick and accurate diagnosis of TB. I also want every single case to be tested for drug resistance at the earliest possible. I believe this is far more cost effective than testing them later when cases have become extensively drug resistant, said Jagdish Prasad, DGHS, MoHFW.

According to Anshu Prakash, Joint Secretary, MoHFW, activities under this challenge TB work plan will be designed to develop a Call to Action to End TB as the vehicle for mobilizing all relevant sectors of Indian society, developing new policies and partnerships that support TB control efforts, and increasing domestic resources for TB control activities on a large scale.

Revised National Tuberculosis Control Programme (RNTCP) has made significant achievements since inception. However, there are challenges to reach vulnerable key populations, which can reach through partnerships and community engagement, said Dr Sunil D. Khaparde, DDG TB – CTD.

Commenting on the initiative, Jose Luis Castro, executive director, The Union said that initiative has a two-fold objection. One is to mobilize stakeholders to demand and sustain high-level domestic commitment to end TB in India. The second is to drive political, administrative, and technical solutions to specific barriers affecting TB control in India.

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Foreign investors against arbitrary change in tax policy'

Kolkata: Colin Dyer, the President and CEO of property consultancy firm Jones Lang LaSalle, said foreign investors were against any arbitrary change of policies and taxes with change of government in India.

"If there is arbitrary change of taxes and policies with change of government, then foreign investors are wary about investment," Dyer said while interacting with journalists here last night.

There should be consistency of taxes and laws, otherwise foreign investors would not invest, the head of JLL, which offers specialized real estate services to clients worldwide, said.

They are for consistency of taxes and laws and against new taxes with retrospective effect, he claimed.

Dyer said things were moving fast in India and the bureaucracy which earlier used to take a lot of time to do things is now taking quick decisions.

Prime Minister Narendra Modi during his foreign visits, especially to the US, Canada, Germany and France, has conveyed a strong message to the investors that he was firmly in charge and thing were changing for the better.

The reliability of the government is changing among foreign investors, who now wants to invest in India, he said.

Foreign investors like pensions funds, sovereign funds and others are watching India very keenly before investing, he said

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Measurement of customer satisfaction in marketing research

We can measure customer satisfaction level of marketing research projects using PZB model. According to Parasuraman, Zeithaml and Beiry (PZB) model, Perceived Service Quality = Perceived Service - Expected Service. Based on their research work, they identified that customers consider five dimensions in their assessment of service quality which results customer satisfaction, as given below:

1. Reliability: Ability to perform the promised service dependably and accurately
2. Responsiveness: Willingness to help customers and provide prompt service
3. Assurance: Employee's knowledge and courtesy and their ability to inspire trust and confidence.
4. Empathy: Caring, individualized attention given to customers
5. Tangibles: Appearance of physical facilities, equipment, personnel and written materials

Scale can be developed for these attributes and weightage to be assigned. Then use a empirical model to calculate Perceived service. Assume perceived service as equal to expected service in ideal situation, means service was as expected. The calculated value of perceived service gives its deviation to +ve  "above than expectation" or -ve "not upto the mark".  Researcher can use this procedure for each project. Always keep in mind that "above than expectation" is equally worse like "not upto the mark" in service business !! 

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