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Life Insurance company rankings

Life Insurance companies ranking based on WRP:

Insurer	Total WRP
	Rs crore	Market share in %	Rank	YOY  growth%
ICICI Prudential	2,827	20.6	1	41
SBI Life	1,797	13.1	2	-15
HDFC Life	1,580	11.5	3	58
Reliance Life	1,258	9.2	4	11
Bajaj Allianz	1,152	8.4	5	-11
Birla Sunlife	1,044	7.6	6	-3
Max New York	870	6.3	7	15
Tata AIG	519	3.8	8	5
Kotak OM	468	3.4	9	32
Canara HSBC	350	2.5	10	29
Others	1,861	13.6	-	16
Private total	13,726	39.9	-	13
LIC	20,694	60.1	-	113
Total industry	34,420	-	-	58
WRP: Weighted received premium, that is, the sum of first year premium and 10 per cent weighted single premiums and single premium top-ups                                              Figures: H1, 2010-11

Megamart

Megamart, Loot bet big on aspirant shoppers

Business model: Buy surplus stock of big brands at a hefty discount and share the gains with customers

Last month, discount retail chain Megamart opened its 175th store. That’s in keeping with the Arvind Retail firm’s promise of occupying 5,000 square feet of new space every week, or 2.6 million sq ft a year.

Megamart says it sells apparels from 200 national and international brands (the bigger format stores of 30,000-40,000 sq ft known as Big Megamart also sells homeware products, luggage etc) at a discount of 35-40 per cent.

Arvind Retail CEO Suresh J says Megamart scores over other “value retailers” in customer service as there is a service executive for every 300 sq ft of store space as against others where shoppers have to wait for the sales staff. The chain is looking at a turnover of Rs 500 crore for FY 2011 and around Rs 1,000 crore by FY 2013.

Megamart isn’t alone. Other discount retailers are also beefing up their operations in a bid to tap the growing number of aspirant shoppers.

The Loot, the Mumbai-based151-store discount chain, is planning to open 50 more stores in the next six months and is looking at a Rs 100 crore public issue to fund this growth.

“Funding is a limitation for entrepreneurs like us when we aim for higher growth. Though IPO is one of the ways to fund growth, we need to achieve some scale first,’’ says Jay Gupta, managing director, The Loot, which is looking at a turnover of Rs 130 crore in FY 2011, nearly 25 per cent higher than the last financial year.

The business model of these discount stores are as follows: The Loot, for example, buys merchandise at 60-70 per cent discount. The high discount is possible for two reasons: one, these are bulk purchases, and two, these are mostly surplus stock after the end of season sale. Loot earns gross margins of 10 per cent in its business.

Brand Factory, part of Kishore Biyani’s Future group, which gives 20-50 per cent discount, lends space to brands in its stores and earns a percentage margins on the business brands do. The chain is looking at a business of Rs 750 crore by the end of 2011 and plans to open five to six more stores.

Megamart takes merchandise on consignment basis from brands at a discount of 30 to 50 per cent, meaning if it cannot sell them, it will return the goods. Its gross margins are around 35 per cent.

“Some of them are managing their stores well and help us clear our stock. A lot of new things are happening in this segment,’’ says Ashesh Amin, president, apparel and retail at S Kumar’s Nationwide, which retails brands such Reid & Taylor.

Loot is focusing on the franchisee model to keep its overheads low. Out of its 150 stores, 110 are under franchisees and the chain is looking to open 25 more through this route. It is also experimenting with an online format over the last six months, but it has not got a good response so far, adds Gupta.

To ensure that the backend operations keep pace with its growth, the retailer has tied up with Tata Consultancy Services (TCS) for enterprise resource planning, and regional transporters for faster delivery of goods to its stores.

Despite the bullishness of discount retailers, some executives say there is a number of challenges before them.

“It is a tough business. Margins are low and you have to be dependent on brands. A lot of brands come up with their own discounts at least twice a year and shoppers get a variety of choices,’’ says Bipin Gurnani, president, Provogue, which runs discount stores under Promart in Ahmedabad and Indore.

For the same reasons, Provogue has decided to scale it down, Gurnani says. Originally, Promart wanted to open 20 stores in three years.

“Since you are dependent on how well large brands have done in their regular sales, you are in the dark on what is going to come,’’ Gurnani adds.

Adds Amin of S Kumar’s: “Once the main stores of brands picks up, there will be pressure on the discount retail chains. Besides customers are also realising that they are getting old merchandise,’’ he adds.

Though Vishnu Prasad, chief executive of Brand Factory, accepts that it is a challenge to get a consistent supply, he says no hypermarket or big retail chain can offer discounts throughout the year.

Discount retailers have sought to counter the problem by developing their own private labels. For instance, Megamart’s smaller stores mainly sell Arvind Retail’s brands such as Arrow, Wrangler and Excalibur. It has also launched Cherokee, an international value brand.

The Loot has four private brands, which account for 25 per cent of its sales.

Enter the Dragon:

Neighbor. Mao. Enemy. Bruce Lee. 1962. Noodles. Jackie Chan. Communism. Floods. Population. Jet Li. These are the answers I got on asking a random bunch of people to respond with the first thing they think of when they hear of China. These were average Indians, from all walks of life. Now, ignorant as they may seem to informed readers, the common Indian does really associate China with these things. We know it is a folly, because China is now so much more than that.

That ‘much more’ has to do a lot with China’s still rapidly increasing economy, which has now come within touching distance of the economies of the U.S. and Japan. In 2009, when the entire world was still shaking off the worst depression in almost a century, China’s economy grew by 9.1 percent. Her GDP stood at Rs.393 lakh crore, just behind Japan and the U.S. In the same year, it also made Rs.54 lakh crore in exports, just behind the exports made by the entire European Union.

These are jaw-dropping figures when you consider that till about 1978, China had a predominantly centrally-planned economic system which was closed to international trade. It was only after a series of systematic reforms were undertaken under Deng Xiaoping that the system turned into a market-oriented economy by the early ’90s.  From then on, fuelled by the availability of cheap skilled labor and a determined government, China has rode on to become the economy of this century.

To explore the greater Chinese picture, however, is the mandate of other publications. Our job though is about informing and educating our readers, who are mostly entrepreneurs and small businessmen, about opportunities and how they can best tap them. That is what exactly this issue on China will focus on.

Further down this issue, we will give you on-the-field information on how you can take your business there and how you can do business with the Chinese. These will be practical and informed steps and tips that entrepreneurs can deploy in order to break through the China wall. But going in uninformed about the factors that make China’s economy and market what they are would be foolhardy.

Rise of the capitalist class

Beginning in 1978, China undertook a series of reforms akin to Russia’s Perestroika that saw the development of civic infrastructure, networks and public transport. Quite naturally, this transformation has changed the standard of living for the average Chinese citizen as well. And that is evident in the changes they have made to their spending and lifestyle patterns since the economic reforms began.

Till the late ’80s, shopping in China was boring and uniform. There was a lack of variety in the products available and supplies were perpetually short in state-owned stores. But now, the average urban Chinese consumer is sitting in a market miles away from those times. In 2008, China was home to about 549,000 retail enterprises, each with an average of 15 employees. According to the PRC Ministry of Commerce, China had about 2,400 foreign-invested retail enterprises in the country as of August 2009.

And the Chinese love having a choice. In 2009, China’s retail sales hit Rs.81 lakh crore, up 5.5 percent from 2008. This was a year that saw declining sales everywhere else in the world. What this data has made evident is that the better living standards have now created a class of people that has moved on from the basic needs of life to pursuing a better lifestyle.

According to available government data, in 2008, China’s urban and rural households spent 37.9 percent and 43.7 percent of their incomes on food, respectively, down from 44.7 percent and 53.4 percent in 1998. Again, between the years 2001 and 2008, the average Chinese household more than doubled its spending on clothing, healthcare, transportation, and telecom services.

The Chinese now have extra cash, thanks to the growing incomes. And they are spending it. In 2009, the per capita disposable income in urban areas reached Rs.1.1 lakh, three times over 1998. In cities like Shanghai, the average per capita disposable income is more than Rs.1.7 lakh. This is a class on the urge to move higher. And entrepreneurs should ride with them.

Get over the size

Yes, you need to get over the size of China pretty quickly. You also need to understand that the 1.3 billion people are actually groups of people of much smaller populations clubbed together by over-eager economists who see it as a sort of Shangri-La for their clients. These economists don’t tell you that China’s economic development and wealth distribution varies greatly from east to west and from south to north, thanks largely due to a variation in population density.

While western China is very thinly populated, eastern China is one of the world’s most densely populated. And thanks to a policy of the Chinese government to develop selected cities on the western coast on the Hong Kong model to lead its economic transformation, there now exists a staggering economic gap between China’s eastern and western regions.

According to data from the Chinese government, GDP of the western regions is 58 percent of the national average, far below that of the east, where it is about 85 percent of the national average. Further, according to the Boston Consulting group, in urban cities, incomes have been growing at about 10 percent annually in recent years, while incomes of rural people rose only 1 percent a year. Much like India, it is a situation where there is a gradual ceding away of economic and geographic groups from each other. Clearly, the concept of China as a homogeneous mass market is a thing of the past.

And consequently, entrepreneurs would do well to understand that consumer behavior in China is more varied than it was a decade and more ago. What may be fashionable in one city in the west may not be in another in the east. The successful companies in China are those which have understood the difference between urban and rural China, and also eastern and western China.

They are the ones who are offering their goods in different varieties and designs and constantly introducing new products. They are the ones who know that while a rural family may aspire to a motorcycle, an urban family will aspire to a car. But they both are aspiring nonetheless and one can’t ignore either. Nor can entrepreneurs looking to go there.

Where do you go?

For the average entrepreneur, the fact that the Chinese have money and are willing to spend it, should be enough to think seriously of taking his business to China. But what real business opportunities are there in China that Indian entrepreneurs can tap? Many. And many more we cannot even cover in this magazine. But these three are tipped by many experts to be the best bets for Indian entrepreneurs.

The tech and IT sector

The suggestion that we can perhaps go over to China and gain a foothold in their tech industry would seem weird to some. However, the puzzle is not really that complex.

While the Chinese have mastered the hardware side of all things technological, where they still fall back is on the software and service side. And this is where the opportunity for Indian entrepreneurs lies.

China is trying hard to attract technology companies and entrepreneurs to come set up base there. It has set up high-tech parks that offer very competitive terms to startups and investors alike. The good bit is that most of these tech parks are mostly at loggerheads with each other over attracting companies and that means better terms for businesses.

For example, the Zhongguancun in Beijing, Zhangjiang Hi-Tech Park in Shanghai and Shenzhen’s High-Tech Industrial Park. Many of these tech parks have also been located near universities, ensuring a steady supply of skilled talent to companies in the parks. Further, these universities also collaborate with businesses in their research and development needs in what are called technological alliances.

While there remain issues with China’s patenting and copyright problems, technology players from India are already making themselves at home there.

Tata Consultancy Services and Wipro are already in China with their IT and ITeS businesses. So are many other small companies that are trying to make their technology expertise match with the undoubted manufacturing expertise of the Chinese.

The auto sector

China is the world’s second largest automobile market behind the U.S. And at its current rate of growth, it is expected to surpass the American market in the coming decade due to a variety of reasons.

It was in 1991 that China embraced the auto industry as a pillar industry that would boost other industries in the Chinese economy such as fuel, glass, steel etc. This push by the government has transformed the bicycle-using Chinese towards a more car-loving one.

While the lower middle class is buying local brands such as Geely, the better doing ones are going for the Volkswagens and Hondas. The Chinese government continues to invest heavily in road infrastructure as well. While new roads are being built across the country, existing roads are made wider and rural roads are being converted into highways. This would only mean that more and more people would like to buy cars.

Herein lies the opportunity for entrepreneurs, though perhaps not in the making and selling cars bit. That requires a bit of political clout as well as a huge budget. But as the demand for cars will grow, so will the demand for auto ancillaries as well as for many automotive services such as insurance, financing, spares, maintenance, etc. Further, China has embarked on a plan to adopt green technologies for cars and that creates another opportunity for entrepreneurs. Chinese local expertise has not been able to match up to the demands of the green sector within automobiles yet. Entrepreneurs must rush to grab this opportunity before it is too late.

The pharma sector

The only upside of having a very large population has to be rooted somewhere in the medical sector. After all, the more the population, the more visits a doctor can expect. China, much like India, falls into this space.

China has a large pharma market that is expected to pass the Rs.1,12,500 crore a year mark by the end of this year. Sales in this market by the top 10 multinational pharmaceutical companies have been growing more than 15 percent a year since 1999. Spending on healthcare too has grown at a rate higher than 12 percent in China, much faster than the GDP. Those are numbers that can’t lie about the business opportunity even if they tried to.

Though making medicines for the Chinese market is again something for the big boys to attempt, Indian businesses can make medicines locally and import to China.

Previously, this was a rocky path, given China’s reluctance to engage any other companies other than established western ones in her pharma market. But in January 2010, China agreed to give Indian companies access to government contracts on its program to procure pharmaceuticals.

This is substantial news. According to the State Food and Drug Administration’s Southern Medicine Economic Research Institute, the Chinese domestic drug market may reach a size of Rs.1,31,760 crore in 2010.

Apart from exporting medicines to China, Indian entrepreneurs in the pharma space must look to China for their research and development needs. China has the advantage of a relatively lax regulatory environment. Unlike in India and other nations, the rules on clinical trials and patient consent are less stringently enforced, for example. Similarly, animal testing is far more accepted in China than elsewhere.

China also has abundant skilled labor that can be employed for less. According to market reports, Chinese scientists and technicians can be hired for about 20 percent less than what Indian scientists and technicians cost. In addition, given the higher technology lean of Chinese universities, younger generations of Chinese scientists and technicians are much better trained than Indians.

This dual advantage of relaxed laws and cheap talent makes China the place for Indian entrepreneurs to go to when they want to set up an R&D center. Plus, there is always the chance that a product developed in China will get entry into the local market.

Get Virtual:

Ever heard the line ‘presentation is everything’? Well, it’s true. If you want to be taken seriously as an entrepreneur who means business, you need to look the part. And that is not limited to dressing well. Even bootstrappers can get a corporate boost by having an official identity. That would mean getting an office in a central business district… and a secretary, perhaps?

Right about now, you’re probably saying: “Is this guy crazy? That stuff costs hard cash—and loads of it! No bootstrapper would be able to afford that, especially in super expensive cities like Delhi, Bangalore and Mumbai.”

True, again. But what if I told you that you could get it all at a fraction of the cost, thanks to the concept of virtual offices—a boon to all entrepreneurs who don’t have the moolah for a 24/7 office space, but crave for the credibility that comes with it. In India, this concept is relatively new, but it’s fast catching favor in the entrepreneurial ecosystem.

As part of a virtual office package, which you can buy from a service provider, you get to use an office address in a major business area on your business cards or letterheads, have a professional receptionist take your calls, and get all your snail mail collected and forwarded to you. All that can start for as low as Rs. 2,000 per month.

What all do you get?

A typical virtual office package offers you all the services in which a physical human interface is not needed. So, you’d get a local business telephone number, which will be answered by a trained bilingual receptionist. If you wish, all your calls can be transferred to a home number or even your mobile number. Yes, you can be at work even while in your bedroom.

In addition, you can advice the receptionist to reject certain unwanted calls. Post working hours, your number will be answered by a voicemail service, which you can access at anytime by phone or e-mail. Some packages also include a fax number. The service provider will collect your faxes and forward to you as and when necessary.

You would also get an office address in a very prominent and central business district, like the Bandra Kurla Complex (BKC) in Mumbai and Nehru Place in Delhi. You can emboss this address on your business cards and collateral such as letterheads and invoices. The staff at the location will also collect any mail, documents, couriers you receive and forward it across to you.

Depending on how much you can shell out, you could also book and confirm meeting rooms, boardrooms and office suites at your swanky office location—just in case you need to have an actual meeting with someone. This might be over and above your package costs, but will be at a discounted rate. You could also head to the office to use its plug-n-play hotdesks. Most service providers also throw in the facility to book rooms and suites abroad, too.

Cost-effectiveness

Since virtual offices work on a sharing basis, they tend to be more than 40 percent cheaper than owning a real office at the same location. In addition, virtual offices work on a ‘pay-as-you-go’ model, which gives you complete freedom to cancel your package whenever you want. Also, if you have your own office, you tend to fit it out, which can cost you some serious bucks. Plus, costs for the receptionist, support staff, communications, and incidentals alone usually exceed Rs. 1 lakh, at a minimum. In comparison, if you take a monthly virtual office package at say Mumbai’s BKC complex, you’d end up paying no more than Rs. 30,000 per month, even if you have numerous meetings with clients.

What entrepreneurs think

I spoke with a few entrepreneurs about why they chose a virtual office instead of a home office or a small, rented one. What emerged were the real life benefits of a virtual office—and there were plenty.

“The rent at my Lower Parel office was astronomical, and the place was really bad,” says an entrepreneur, who now has a virtual office service operating for him out of Bandra. “This was a step up [for my business] in the terms of location, and a step down in terms of costs. When I have to meet clients, I book well in advance for meeting rooms or lounges. Otherwise, I am basically working from my study at home.”

Another Delhi-based entrepreneur who works in the financial services sector said what he likes about the service is that he doesn’t have to deal with administrative and technical hang-ups. “This place [his virtual office] is very classy and well-maintained. My clients are always impressed by the classy dig I have whenever I get them to the location for a meeting.”

According to a Mumbai-based bootstrapping architect, who is trying to set up his own practice, virtual offices are a lifesaver. “They take out the major investment, lease terms, productivity loss, restrictive lease terms and the maddening paperwork that can really be a time-waster.”

Not all are impressed, though. One entrepreneur we met up with was not too enthused about the idea: “What happens if somebody finds out that you are running a virtual office? While it may be okay with expats, Indians may not react too positively to it. Wedesis still like the nameplates outside the office door.”

Major players: Regus, Imperial Servcorp, Stylus

India’s Top 10 Business Celebrities

"Most Indian business celebs succeed in leaving their impression on the common people, making their image ‘larger-than-life’."

1.Ambani Brothers– India’s leading entrepreneurs 

Mukesh and Anil Ambani are sons of Dhirubhai Ambani, who built the biggest private sector giant ‘Reliance India’. Mukesh Ambani (RIL) is a high-life socialite. Anil Ambani (ADAG) actively participates in numerous social activities. Both have won several entrepreneurial awards and are renowned as the joint face of emerging India.

2.Dr. Vijay Mallya – A liquor and lifestyle King

UB Group and ‘Kingfisher Airlines’ owner Dr. Vijay Mallya is looked upon as a multi-national tycoon with a flamboyant attitude. He is an avid sports lover and an expert car racer. He is a Rajyasabha M.P. and is also involved in charity and philanthropy.

3.Kiran Mazumdar Shaw – Mastering the art of biotechnology

Founder and Chairperson of India’s biggest biotechnology firm ‘Biocon’, Dr. Kiran Mazumdar Shaw, is also known as one of India’s richest women. Besides being a rewarded personality, Dr. Shaw is a golf player and a collector of art paintings.

4.Sunil Mittal – The man behind India’s cell-phone revolution 

Chairman and MD of the Bharti Group, Sunil Mittal is renowned as a man leading the GSM- based cellular phone revolution in India. He is fond of playing golf and is a licensed pilot.

5.Chanda Kochhar – Rebuilding the ICICI Corporate

ICICI’s MD and CEO Chanda Kochhar, ranks on the 20th position on Forbes ‘World’s 100 most powerful women list.’ Kochhar is aware of her role-play in shaping the group’s identity and culture. Reading, gardening, music, watching movies are some of her hobbies.

6.Narayan Murthy and Sudha Murthy – The Industrial and social icons of India 

Narayan Murthy is the mastermind behind Bangalore-based Infosys, the technology legend of modern India. Murthy is a techno-preneur with a creed to do business with ethics. His wife Sudha Murthy heads the Infosys Foundation, which has seamlessly contributed towards the growth of the helpless and poor in India.

7.Shahnaz Husain - A face behind India’s beauty industry
‘Shahnaz Husain Herbals’ is a $100 million company pioneered by beauty priestess Shahnaz Husain. It has launched more than 400 beauty products that dominate the global markets.

8.Ekta Kapoor – The Television Queen

Ekta Kapoor, Creative Director of Balaji Telefilms, has been awarded by E&Y for breaking all previous records of the TV serials produced in India.

9.Naina Lal Kidwai – The Corporate Diva

HSBC Country Head and Padmashri Award winner, Naina Lal Kidwai, is the first Indian woman to play a critical role in guiding functions of an India-based foreign bank. Besides being a family woman, she is a wildlife lover.

10.Ness Wadia – The Textile Magnet

Ness Wadia is a MD of Bombay Dyeing and has been instrumental in bringing a strategic approach to the company’s retail operations. He has established a commerce collage and his interest lies in cricket.

Green Drive

As a new generation of electric vehicles gets set to enter the market, Nissan Leaf takes the lead:

In 1997, Toyota sold the first hybrid Prius in Japan. In 1999, Honda introduced the first hybrid to the US. US hybrid sales since then have amounted to around 1% of the country’s total vehicle sales, with Prius models accounting for around half of those hybrids. The Obama administration has made a strong contribution by buying almost a fourth of the Ford and GM hybrid vehicles sold since the current president took office, pumping up federal purchases as consumer demand waned in light of the economic downturn. The latest kid on the block is the Nissan Leaf, which is the first vehicle to go through a new US Environmental Protection Agency (EPA) rating system that tries to give gas-mileage equivalents for cars powered by alternative energy. EPA, it seems, will give the Leaf the ‘best’ designation for fuel economy and environmental impact. Nissan representatives have been making much of how their Leaf posed a real challenge for EPA: We have no gallons, no gasoline. Its rating is nearly double that of the Prius. Its tailpipe emissions are actually non-existent. The Leaf alleviates range anxiety as well, because it delivers the equivalent of 99 miles per gallon.

Nissan & Renault CEO Carlos Ghosn has predicted that battery-powered autos may account for 10% of global sales by 2020, especially in light of higher oil prices and tighter emission norms. But, as in the US case, governments will have to get behind such vehicles in a solid way. In the UK, deficit targeting has left the $7,940 electric car subsidy untouched. Beijing is planning to put 500,000 energy-efficient vehicles into the market every year. Is India paying heed?

An emerging career option for MBAs

Real estate: an emerging career option for MBAs:

With increasing number of developers, projects, introduction of new formats, role of private equities and expansion of multinationals, real estate industry has outgrown the expected size in recent times. Besides, development of infrastructure, government regulations and infusion of FDI has supported the expansion of real estate sector many folds. With the increasing size of industry, there is an increasing demand of professionals across all segments.

One of the most promising job profiles in this sector is of a real estate consultant, which is much in demand both for the commercial and residential segments. The number of jobs for real estate agents is expected to grow as the players operating in residential agents are many but it is difficult to find trusted advisors for commercial properties. With the augment of multinationals, outsourcing business and expansion of Indian companies, a property consultant’s role is more evident and valued. One of the thrills for a real estate consultant is the constant learning he derives from fast changing market trends, launch of new projects, change in government reforms, introduction of new formats and changing client’s requirements.

Working as a consultant in commercial properties means that you will be interacting with the heads, admin/facility managers and senior management across industries. Thus, it is important for the consultant to keep an update on the client’s industry movement. One needs to get into the psyche of the client to understand his requirements.

As the country lacks specialised academic courses and institutes for real estate, it is both profitable and beneficial for MBA graduates as it generates new scope for them. There are two main routes into real estate consulting. One is directly from the campus (undergraduates and MBAs) into entry-level positions (research/market analyst, business development). The other leads from industry into middle-level positions from specific industries (banking, insurance, retail and financial services) and functions (marketing or client relation associate). It’s a high-paying, high-profile field that offers students the opportunity to take on a lot of responsibility right after their master’s degree and quickly learn a great deal about the real estate world. After making a stint of 2-3 years with reputed developers, many people shift from project marketing to real time consultancy.

Getting a job opportunity with a reputed consultant may be a challenge for freshers. However, stint of 1-2 years in any marketing field with good qualification set may get you an entry level position with a trusted banner in consultancy. In consultancy, one can earn big money; a large part of the remuneration is sales driven, so more one can sell, more one earns. After spending 2-3 years with a professional consultant, many practitioners find it lucrative to start their own set-up.

Employment with a reputed realtor or working with us as well gives a secure income along with annual incentives based on sales achieved. Besides, while choosing a consultant in commercial real estate, clients seek trusted company with long-term presence and staff strength. Working with a reputed realtor can help learn the tricks of the trade following ethics and complete professionalism. There are some skills required of a good real estate marketer. These are excellent communication skills, smart decision-making, creating trust factor, analytical reasoning, being aware of the latest market trends and future market predictions, efficiency in financial calculations and high patience levels.

'Working women need flexi work time'

Information technology and BPO industry body NASSCOM today favored a flexible work atmosphere for women engaged in raising their family to curb drop-out rates and boost their numbers in mid-level and senior management positions in companies.

National Association of Software and Services Companies Chairman Harsh Manglik said one of the major issues facing the IT-BPO industry was that of women wanting to raise their families at some stage.

"So, during the time that they are gone, if they are interested (to work during that period), we need to look for...can we offer them an opportunity to stay engaged..so perhaps some flexible way...,"he said at the NASSCOM-organised "Diversity and Inclusivity Summit 2010" here.

Harsh Manglik, who is also Chairman & Geography Managing Director, Accenture India, observed that the "biggest barrier" is that once women take a break and come back to the profession after a few years, it's (the work atmosphere) is "intimidating" as they feel "outdated" and "disconnected" and fallen behind in technology competency.

He stressed that while women accounted for about 30 per cent of the IT-BPO industry workforce, the number of those rising to mid and senior-level positions needs to accelerated.

NASSCOM officials said that women accounted for more than 30 per cent of entry-level workforce of the industry and that overall, there were six lakh women working in the IT-BPO industry in India today.

"But one major gap still remains. We still have less than four per cent women as CEOs and CXOs in our industry. Where do the women disappear. Let's explore this," Sucharita Eashwar, Senior Director, NASSCOM, said at the beginning of the two-day event.

She said the shared child-care services model in IT hubs has worked well and has addressed the major reason why women drop out of the workforce in mid-careers.

Managing Director of Britania Industries, Vinita Bali, said diversity was more than just about increasing women workforce and about having certain percentage of women in the company.

It is about if the "voice" of the women is being heard and if women who are part of an organisation know "what's happening" in the organisation and functions (roles) that they represent. "Diversity without inclusion is a blunt sword", she observed.