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Right Angle
Opens it's First Franchisee
Right Angle Management Solutions has opened its first
franchisee in Virugambakkam, Chennai. This is the first step of
Right Angle's expansion plan of its Recruitment Business Unit. The
franchisee is owned and managed by Mrs. Subbulakshmi Chelladurai,
under the banner "The Bridge Consulting Firm".
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Right Angle
Blog launched
Right Angle Management Solutions has launched a blog
called "Da Right Angle Blog". The blog is aimed at being a
resource centre for candidates, providing them with interview tips,
current openings, interesting news, etc. This is the first step of a
plan devised to make the website more interactive, especially for
candidates. An interactive discussion forum is being constructed,
and will be launched soon. The blog can be viewed at
www.rightanglesolutions.com/blog.html
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According to a recent Study by CRISIL, the IT-ITES
sectors have had a multiplier impact on the Indian economy.
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In 2005-06, IT-ITES employees spent Rs.
260 billion on domestic consumption.
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Every Rs.1 spent by the IT-ITES sectors
(on domestically sourced goods and services), translated
into a total output of about Rs. 2 in the economy.
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For each person employed in the IT-ITES
sectors, around four people were employed in the rest of
the economy.
A recent study by CRISIL has shown that the
growth of the IT-ITES sectors has had a direct bearing and
multiplier effect on the Indian economy, including its vital
parameters such as employment and consumption spending.
Besides generating millions of dollars worth of
foreign exchange and employment for lakhs of professionals, the
IT-ITES industries have also played a role in the socio-economic
transformation of the country by contributing to the success of
other sectors that they share either backward or forward
linkages with.
An analysis of the financial statements of firms
and findings from primary studies of IT-ITES firms and their
service providers by CRISIL have been reflected in the findings
of its latest study, The Rising Tide Employment and Output
Linkages of IT-ITES.
The study indicated that in 2005-06, of the
total turnover of Rs. 1,342 billion, the IT-ITES sector
spent Rs. 619 billion (46 per cent) on salaries and
wages, Rs. 374 billion (28 per cent) on non-wage
operating expenses and had an operating margin of Rs.
349 billion (26 percent). A part of this turnover was
spent in the domestic economy, and through forward and
backward linkages impacted other sectors as well.
The study estimated that of the turnover
of Rs. 1,342 billion, Rs. 634 billion was spent in the
domestic economy via non-wage operating expenses, capital
expenditure and consumption spending by professionals. This
spending, in turn, generated an additional output of Rs.
620 billion via its direct and indirect backward
linkages with other sectors and induced effect of wages
and salaries.
Effect on consumption spending
The CRISIL report indicated the following:
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In 2005-06, IT-ITES employees spent Rs.
260 billion on domestic consumption.
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Every Rs.1 spent by the IT-ITES sector
(on domestically sourced goods and services), translated
into a total output of about Rs. 2 in the economy—driven by
derived demand from firm-level spends (capital expenditure as
well as operating expenses) and high levels of consumption
spending by professionals employed in this sector.
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Of the total, the maximum spending was
housing-related (26 percent of gross income) followed by
food items, durable goods and holidays.
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Consumption spending generated an additional
output of Rs. 290 billion.
IT-ITES spending on other sectors, and its
multiplier effect also generated additional employment within
India. While the IT-ITES sector provided direct
employment to 1.3 million people, it created additional
employment for 5.2 million Indians. Thus, for each person
employed in the IT-ITES sector, around four people were
employed in the rest of the economy.
The Study also showed that:
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The maximum employment was generated through
consumption spending by IT professionals (2.49 million),
followed by other operating expenses (2.1 million) and capital
expenditure (0.63).
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A significant part of the additional job creation
was a result of IT-ITES spending on sectors such as
construction, transportation, apparel, retail, security,
hospitality and entertainment.
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The increased employment opportunities were
not restricted to educated/ skilled professionals; according
to the survey, nearly three-fourths of the workforce employed by
major service providers to IT-ITES (catering, housekeeping,
transport, security) was SSC/HSC qualified or uneducated.
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The kick to the economy arose essentially
from the differential between the salary of an IT-ITES
professional, and his salary in other avenues of
employment.
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Sustained cost competitiveness remained a key
factor in determining investment attractiveness.
Clearly, the IT-ITES industries are having a
direct bearing on the Indian economy and provided issues such as
wage inflation and taxation remain in check, will continue to be
a driver of the country’s overall economic growth.
Source: NASSCOM.
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