Financial banking

Financial banking is the science of managing money and other assets pertaining to a specific business. We all know that banks offer basic loans, deposits and financial advice, but they also facilitate transactions on sophisticated financial instruments such as private equity, bonds and mutual funds. Most top performing candidates typically view careers in Banking as the pinnacle of achievement, and sectors such as treasury, equity trading, investment banking and private banking are viewed as the most lucrative jobs for new graduates. In addition to traditional banks, other financial institutions such as credit unions, trust companies, mortgage loan companies, insurance companies, brokerage firms and asset management firms also offer a host of financial advice. Hence, when viewing the opportunities in the sector, one must also carefully consider these other specialized financial institutions. Performance The financial crisis of 2007-2008 was triggered by an insolvent United States banking system (catalysts of which were sub-prime lending, over leveraging and poor regulation) resulting in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. The destabilization of the banking sector in the U.S. had a domino effect on the global financial industry, with effects felt in Europe, the Middle East and the Asia Pacific. 24 months later, the global financial industry still hasnt regained its lost glory, and even countries with deep pockets such as the U.A.E. and Singapore have exhibited limited sectoral growth. The Indian financial industry underwent rapid transformation post liberalization in the early 90s, resulting in greater inflow of investments from FII's into the capital market. Despite the foray of foreign banks in the country, nationalized banks continue to be the biggest lenders in the country, primarily due to their size and penetration of networks. In fact, Industry estimates indicate that over 80% of commercial banks in India are in the public sector and of the 50-odd private banks, less than half are foreign banks. The Reserve Bank of India is the Indian equivalent of the Fed. The opportunities in this industry remain extremely promising due to its relatively low penetration of both basic as well as advanced financial products. Though the Indian finance and banking industry did suffer significantly during the past 2 years, it was relatively sheltered from the triggers of the global melt-down, suffering instead due to monies from FIIs drying up, falling interest rates, rapidly rising inflation and poor investor confidence. Annual reports suggest that most of the larger Banks have begun to pick up from where they left off, albeit with more caution, and most industry pundits are optimistic about the current fiscal year.

Growth Potential There are a range of retail jobs to suit most skill sets, including banking officer, probationary officer, loan agent, assessor, mortgage loan underwriter, loan processing officer, accountant, product marketing and sales executive, and customer service executive among others. However, job security is not very high in retail banking as many players suffer from shrinking margins and poor customer retention due to increasing competition and limited market differentiation, leading to lay-offs. Meanwhile, there are also more skilled jobs available such as actuarist, equity researcher, forex trader, securities linked products developer and portfolio manager for those with the relevant knowledge and ambition. The biggest opportunity in this sector remains in improving information flow to customers. Hence, there is a growing emphasis on in-house research and market intelligence. Future Prospects In the upcoming 12 months, hiring is likely to remain robust. Many banks are investing in training programs to upgrade worker skills to enhance their competitive edge in anticipation of the segment once more regaining its rightful place as the harbinger of development and progress.

Information technology (IT)

Information technology (IT) is defined as the design, development, implementation and management of computer-based information systems, particularly software applications and computer hardware. Today, it has grown to cover most aspects of computing and technology. The reason why it has catapulted in importance is due to the improving accessibility, awareness and utility of technology. It is a common fact that a countrys IT potential is paramount for its march towards global competitiveness, healthy GDP and defense capabilities. IT professionals perform a variety of duties ranging from data management, networking, engineering computer hardware, database and software design, to the management and administration of entire systems. With the already high penetration of conventional personal computer and network technology, coupled with the growing convergence of information, communication and entertainment, the industry is now keenly focused on the integration with other technologies such as mobile phones, automobiles and televisions etc, thereby increasing the demand for such jobs. The largest firms globally include IBM, HP, Dell and Microsoft. Performance In India, it is important to make the distinction between IT and ITES (IT enabled services). The latter refers to services delivered over telecom networks/ Internet to a range of external business areas (Colloquially referred to as KPO and BPO) and is treated elsewhere on this website (see ITES industry overview). Hence, we shall focus on the IT industry here by limiting the discussion to electronics hardware manufacturing and software development and services.

Despite the unprecedented global economic downturn, the Indian IT industry has weathered the storm well, and will achieve sustainable growth going forward. India is expected to witness an average 8% salary increase in 2010 and ~50% of companies have strong hiring plans, according to a survey by global HR consultancy Mercer, giving yet another indication of the high confidence levels among the countrys corporate houses after the economy staged a faster-thanexpected recovery from the slowdown. While the larger players continue to lead growth, gradually increasing their share in the industry aggregate, several high-performing small and medium enterprises have also stood out. Growth Potential The strong demand for electronic hardware and software in India has been fuelled by a variety of drivers including the high growth rate of the economy, emergence of a vast domestic market catering to the new generation of young consumers, a thriving middleclass populace with increasing disposable incomes and a relatively low-cost work force having advanced technical skills. Indeed, the Government has also identified growth of this sector as a thrust area as there remains great expectation for significant growth given the fairly low levels of penetration of technology among the 1.1 billion population; There were only 60 million Internet users in 2009, 7 million DVD players and personal computers were sold in 2008-09, and 11 million new mobile subscribers were added every month in the same period. In this scenario there is now a big opportunity to step up the production to gain higher global share besides meeting the domestic demands. The Indian IT sector has also built a strong reputation for its high standards of software development ability, service quality and information security in the foreign market- which has been acknowledged globally and has helped enhance buyer confidence. The industry continues its drive to set global benchmarks in quality and information security through a combination of provider and industry-level initiatives and strengthening the overall frameworks, creating greater awareness and facilitating wider adoption of standards and best practices. Future Prospects The industry is likely to continue growing from strength to strength, as local players incorporate best in class practices from global counterparts whilst retaining their edge in terms of lower cost of labor and focused governmental investments. New graduates with degrees in related fields such as electrical engineering and computer science can hope to achieve significant professional growth and a healthy remuneration from companies looking to hire the best talent available, given the high proportion who leave to pursue jobs in this sector overseas.

Industry Buzz

Recruitment activities witness a dip CSC India: We are recruiting 800 people every month Huge job opportunities for Indian youth Companies likely to hire more than 5 lakh new employees NRI hiring to accelerate during January-March quarter IT giants up local hiring overseas India to witness robust hiring in fourth quarter Hiring by MNCs at an all-time high

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