News related to IT in Karnataka
- December 2009
- Infosys to launch its 2nd project in OrissaIT major Infosys will soon set up its second project in Orissa at an investment of Rs 300 crore, official sources said on Wednesday, Dec 30.According to sources, Infosys human resource director T V Mohandas Pai conveyed the investment plans to Chief Minister Naveen Patnaik here at a meeting last evening.
- Wipro accepts West Bengal land offerWipro Technologies has accepted the West Bengal’s offer of 50 acres in Rajarhat on the outskirts of the city and is planning on starting work to set up its second campus in 18 months.”We visited the site in the morning and have settled with the government for purchase of the land. We appreciate the support we have received from the state government,” Wipro chairman Azim Premji told reporters after meeting with the chief minister Buddhadeb Bhattacharjee.
- Infosys plans to hire 13,000 freshersIndia’s IT major, Infosys Technolgies plans to hire 13,000 freshers in the coming fiscal (2010-11), a media report said.”The company will close with 18,000 freshers and 3,500 laterals this fiscal year,” Infosys’ senior vice president and group head, Nandita Gurjar was quoted by WallStreet Journal as saying.
- S Gopalakrishnan: The MD who couldn’t be a doctorThe discretion of an unknown teacher changed the life of Senapathy “Call me Kris” Gopalakrishnan. Just two more marks and he would have become a doctor. Instead, Gopalakrishnan ended up in a boardroom and is today the CEO and MD of Infosys.His parents’ wish was that he study medicine as there were no doctors in their extended family. “In spite of being a fairly good student, I failed to get admission in the government medical college by two marks. The number of colleges and seats were very limited then and the family couldn’t afford a paid-for medical seat,” says Gopalakrishnan.
- Infosys partnering CSIR for TB projectSoftware giant Infosys Technologies Ltd is partnering the Council of Scientific and Industrial Research (CSIR) for its open source drug discovery project (OSDD). The project, launched last year, is a novel attempt at fashioning an efficient way to look for tuberculosis (TB) drugs.A key part of OSDD is to develop a gene map for mycobacterium tuberculosis (MTB), the bug responsible for the infectious disease. The gene map, which will be akin to “Google Earth”, as described by the scientists involved, will be Web-based. Infosys will help with the software aspects in making such a map.
- Infosys to double workforce in USIndia’s second largest software exporter, Infosys is reportedly planning on doubling its headcount in US by hiring about 1,000 employees.Apart from this, the company is also on a lookout for acquisition targets in Germany, France and Japan, reports Wall Street Journal.The report published on Thursday, Dec 3 quotes the company’s Chief Executive S Gopalakrishnan as saying that the company will be hiring 1,000 employees in the US
- November 2009
- IT sector to recover in next two quarters: Narayana MurthyThe IT sector would see a recovery from its current downturn in the next two quarters, a top industry official said.”There is a sign of recovery in the IT sector and I believe in the next two quarters there would be a positive sign for the sector,” Infosys’ Chief Mentor, N R Narayana Murthy, told reporters on the sidelines of an industry conference here today.
- Infosys to reduce sub-contractors, perform their work in-houseIT major Infosys plans to reduce the usage of sub-contractors and perform their work in-house particularly at cheaper offshore locations, a top company official said on Friday.”We found during our reviews that a large number of client work had been outsourced to sub-contractors. In such cases, we decided to reduce the usage of sub-contractors and use our (own) facility,” Infosys’ chief mentor, NR Narayana Murthy, said on the sidelines of an industry conference in Mumbai.
- 80 pc locals to be hired by Wipro for US operation
Here’s some good news for job hunters, Wipro Technologies is hiring local employees for its US expansion at Atlanta, according to report on Nov 23.”We are expanding our US operations to scale up our headcount to about 1,000 from 350 presently at our Atlanta centre of which 80 pc will be locals, including graduates from leading academic institutions in Atlanta,” the company said.
- Is Infosys lagging in IT recovery?
Among the large information technology (IT) firms, Cognizant Technology Solutions Corp. has clearly set itself apart, growing revenue by 10% sequentially in the September quarter. Its post-results commentary suggests that there has been a quick turnaround in sentiment. Application development services grew by 9%, indicating a revival in discretionary spends as well.
- October 2009
- Wipro Q2 net profit up 19 pc at 1,161.7 cr
IT major, Wipro on Tuesday, Oct 27 reported 18.76 pc increase in its consolidated net profit at 1,161.7 crore for the second quarter ended Sep 30, 2009.Wipro Chairman Azim Premji said, “We see more stability in volumes and pricing as well as an improving demand environment. Our broad portfolio of services and strong delivery excellence continues to position us as a partner of choice with customers, as they focus on capital conservation and cost transformation.”
- Infosys sees more biz from bank system integrations
Infosys Technologies, which counts Bank of America, Royal Bank of Scotland and ABN Amro among its top customers, sees more opportunities emerge as these banks merge their business and technology systems in order to consolidate their operations and integrate better with the acquired entities.For Infosys, which derives around 33% of its revenues from banking and financial services (BFSI) customers, consolidation among the top US and European banks is bringing new business, with some of these individual contracts worth around $500 million each, potentially.
- Narayana Murthy sells Infy stock for VC fund
Taking his first step towards starting a venture capital (VC) fund focused on India, the co-founder of Infosys, N R Narayana Murthy has reportedly sold company shares worth 37 million dollars on Wednesday, Oct 23 and Thursday, Oct 22.Narayana Murthy one of the most successful entrepreneurs of the country offloaded as many as 800,000 shares from his personal holding to raise about Rs 177 crore, Infosys said in a filing with the Bomby Stock Exchange on Thursday, Oct 22.
- After Infosys, Wipro plans to hire US workers
After Infosys, Wipro is also planning on hiring more US workers on hope that American employees will help the Indian company win deals from the world’s third largest economy and its federal government.In an interview with Bloomberg on Wednesday, Oct 14, Wipro’s Chairman and Chief Executive Officer Azim Premji said, “We are seeing signs of stability, signs of decision making coming back,” adding that even though it was a positive atmosphere there was still need for caution.
- Infosys hiring Americans, replacing Indians
In disappointing news, IT giant Infosys Technologies is hiring more Americans and will be replacing Indian employees with local talent in United States.This comes after the US Congress tightened the visa regulations and the company intends to surpass the visa problems and strengthen their businesses.The company has already recruited 72 Americans and 140 more offers are under way, say reports.
- MindTree Enters Handsets Biz With N!Mo, Post Kyocera Acquisition
Bangalore based IT Solutions company Mindtree Ltd is entering the mobile handsets business with white labelled ready-to-brand mobile handsets. The new business, called N!Mo (Next in Mobility) will offer handsets to telecom operators and OEMs; Samartha Raghava Nagabhushanam has been appointed President & CEO of the business, which will be a part of MindTree’s Product Engineering Services group.
- Wipro Q2 net profit up 19 pc at 1,161.7 cr
- September 2009
- Wipro looks to sell French unit as employee protests mount
Wipro plans to explore options to sell its development centre at Sophia Antipolis, France, because of extensive employee protests against shutting it down.The issue had snowballed into a major controversy with the involvement of the local French government officials. Wipro had initiated talks to close down the centre that it acquired from Newlogic because of poor demand. The centre employs around 60 people.
- Infosys over-hired, no recruitment: COO Shibulal
SD Shibulal, Chief Operating Officer of the Infosys Technologies Ltd, India’s second-ranked software exporter and employer of 100,000 people, said despite changes in business environment there would be no new recruitment.”We are very honestly over-hired,” he said.”There is a very slight blip of activity, but there is nothing to tell me it (a recovery) is secular in nature.”
- Infosys’ GEC II inaugurated in Mysore
UPA chairperson, Sonia Gandhi inaugurated the Infosys’ Global Education Center (GEC) at its Mysore Campus on Tuesday, Sep 15.The world class training facility has been established to strengthen learning activities across Infosys at its Mysore campus. The new facility has the capacity to accommodate a total of 14,000 (GEC I – 4,500 and GEC II – 9,500) Infoscions.
- MindTree to enter China with Huawei deal
Mid-sized software services firm MindTree will enter the Chinese market, after it bagged a significant outsourcing contract from Huawei, the largest telecommunications equipment maker in China.For the Bangalore-based company, China marks a new geography entry, besides the US and Europe. Confirming the development, Parthasarathy NS, chief executive officer, testing & IMTS, MindTree, said: “We will be doing independent testing in the telecom space, this project has different phases and potential to become large. This deal allows us to move up the value-chain after our major markets such as the US and Europe, as China has emerged a big growth market.”
- Infosys planning on buying consulting companies
In an attempt to attract more clients, Infosys is reportedly considering buying consulting companies for as much as 200 million dollars.Speaking at an interview in New York, Chief Financial Officer V Balakrishnan revealed that Infosys may also buy similar-sized businesses that process transactions, or information technology companies.
- Cong wants Wipro, Infy cos to stay back in West Bengal
Two days after the West Bengal government had cancelled the Wipro and Infosys projects at Rajarhat, Congress on Thursday, Sep 10, said they should be given alternate land elsewhere in the state.”We want companies like Wipro and Infosys to stay back and set their shops in the state. The government should provide them alternative land elsewhere,” WBPCC working president Pradip Bhattacharje said.
- West Bengal government rejects Wipro & Infosys projects
West Bengal government cancelled the Wipro and Infosys projects on Monday, Sep 7.The projects were planned in the proposed IT township at Rajarhat near Salt Lake. Issues regarding land acquisitions over the recent weeks are said to be responsible for the rejection of the projects.
- How Infosys, Wipro helped staffers turn entrepreneurs
Yellurkar, a partner at US venture capital firm Charles River Ventures, had joined Infosys Technologies Ltd, now India’s second largest software exporter, in 1987 when it had just 25 employees. Some years later, he co-founded Yantra Corp., a product firm incubated by Infosys, before leaving it in 1996.The group—XITE, or Ex Infosys Technology Entrepreneurs—had lots to glean from him. It was their third quarterly meeting since the group was formed in January and Yellurkar was on a visit to Bangalore. When they aren’t meeting, members keep in touch through an online forum to exchange views and ideas, and lend each other a helping hand.
- Karnataka leads in IT exports recording 23 pc growth
Recording a 23 per cent annual growth and procuring Rs 74,929 crore worth of IT and ITES exports for the year ending Mar 2009, Karnataka tops the country as a destination for software exports.Despite smaller base, however,Tamil Nadu, Andhra Pradesh and Maharashtra recorded higher growth rates than Karnataka, which provides 34 per cent to the national exports.
- Cash-rich Infosys finding difficult to make acquisitions at right price
Software major Infosys, which has a robust cash chest for sure and made no secret of its intention to buy out companies with strategic fit, is finding it difficult to acquire right firms at the right prices.The country’s second largest software exporter had cash and cash equivalents of Rs12,030 crore, including investment in liquid mutual funds and certificate of deposits, as of June end this year.
- Wipro looks to sell French unit as employee protests mount
- August 2009
- West Bengal Govt may fail to keep its word to Wipro, Infosys
Although the West Bengal government has committed to provide land to Infosys Technologies Ltd and Wipro Ltd at a proposed information technology (IT) township near Kolkata, it is currently not in a position to honour its promise.However, the state’s IT minister Debesh Das claimed the government was ready to allot 90 acres each to Infosys and Wipro. “If they want, we can allot 180 acres of contiguous land immediately,” he said.
- MindTree aims to hit $1 bn in revenue by 2014
Mid-sized software services firm MindTree, which completed 10 years on Tuesday, will come up with newer strategies as it aims to achieve over $1 billion in revenues by March, 2014. The company, which counts steel-maker Arcelor Mittal and Swedish truckmaker Volvo among its top customers, will be focusing on areas like energy, defence and healthcare. The firm is also targeting newer geographies like Japan.
- MindTree tries turning a new leaf to grow
Mid-sized technology company MindTree Ltd spent its first decade pitching itself as an IT services firm offering focused consultancy and intellectual property-led services. Now, the Bangalore firm is tweaking its business model for steadier revenue from long-term but comparatively low-end work such as maintenance and testing.The global slowdown has made that necessary. End-to-end product engineering and research and development services have taken a hit in the past year as clients cut their spending on high-end technology, said an executive at MindTree.
- Infosys chasing govt deals to beat recession
In an attempt to lower its dependence on the US markets, Infosys is reportedly chasing government deals in India.Quoting an official, media reports reveal that the country’s second-largest IT services exporter, has bid for more than 10 large government projects.Infosys gets almost half of its revenue from the America as opposed to the current ‘insignificant’ level of projects from domestic markets.
- Infosys among world’s fastest growing companies
India’s Infosys Technologies Limited has been named among the world’s 100 fasted growing companies by American publication Fortune. The list also features Cognizant Technology Solutions, headed by India-origin Chief Executive Francisco D’Souza. Infosys is placed at the 100th place while Cognizant is ranked 90.
- Infosys plans buyouts in Oz, Europe, Latin America
Even amid the financial slump due to the global crisis, India’s second largest outsourcer, Infosys seems to be doing good. The company is reportedly working on 12 to 15 deals worth 1 billion dollars in the July-September quarter.Speaking at an industry meet, CEO, S Gopalakrishnan said, “Typically in a quarter we have 12-15 deals in the pipeline and it continues to remain the same in the current quarter.”
- CISF to guard Infosys campus in Bangalore
Infosys Technologies (Infosys) has availed the security cover facilitated by the Central Industrial Security Force (CISF) for its vast complex located in Bangalore.A formal function to herald this service was held at the Infosys campus here on Friday, Jul 31.The programme included the hoisting of the CISF flag by N R Narayana Murthy, founder and Chairman-Emeritus of Infosys followed by the ceremonial guard of honour presented by the CISF personnel.
- West Bengal Govt may fail to keep its word to Wipro, Infosys
- July 2009
- Infosys to start campus recruitment from Jan 2010
In what may come as a huge relief for the students in the IT stream, Infosys has announced that the company will start campus recruitments from Jan 2010.In a CII meet, Chief Executive Officer and Managing director, Infosys technologies Limited, S Gopalakrishnan told reporters that expansion and recruitment will commence early next year based on the hopes that the economy will recover from the slump.
- India should keep up pressure on US on protectionism: Premji
Wipro chairman Azim Premji on Wednesday said India should continue to exert pressure on the United States not to switch over to an era of protectionism.Premji said the visit of the US Secretary of State Hillary Clinton to India had stated that Washington would not “switch over to protectionism”.
- Infosys Technologies nets $10-mn Intel pilot project
Intel, the world’s biggest chipmaker, has awarded a pilot outsourcing contract to Infosys Technologies worth $10 million currently, which could evolve into a $100-million engagement for India’s second biggest software exporter that is seeking to grow its revenues from customers such as BP (British Petroleum ), Intel and Telstra.“Infosys has been working on this account for more than a year, while it is a small deal now — it surely can evolve into a much bigger engagement,” said a New York-based person familiar with the contract. He requested anonymity because he is not authorised to speak to the media about this transaction.
- Infosys to hire in Australia
After securing a 450-million Australian dollars contract, Infosys has revealed plans to recruit about 100 people in Australia for a variety of positions this fiscal.The company will be hiring personnel for positions at senior and middle levels and may include some junior level employees.
- I’m losing my identity today: Nilekani
At 4 pm on Thursday, computers fell silent at the steel & glass Electronic City campus of Infosys Technologies as 20,000-odd employees logged out and headed to the convention hall, to hear Nandan Nilekani, their co-founder and co-chairman, who is leaving to lead the national ID project. He logs into his new job next week in New Delhi.Nilekani took the floor at 5 pm to a standing ovation, saying, “I am generally very articulate but this is not the day or place where I can be articulate. I’ve been wrapped up in Infosys for 28 years. My only identity is Infosys. I will be going to lead a programme to give identity to every Indian. But today I am losing my identity.’’
- Nilekani’s last day is a full house
The convention hall at Infosys Technologies’ sprawling campus in Electronics City normally seats about 2,000. It is considered large. On Thursday, some 2,500 ‘Infoscians’ thought they were lucky to be packed like sardines inside the hall where Nandan Nilekani was taking his last bow at a company he helped found 28 years ago. Thousands of others were cursing that the hall was a few sizes too small.Also feeling the strain was the company’s intranet. So many of them — Infosys employs about 100,000 worldwide — had logged on to witness the live webcast of the event that the intranet system had slowed to a crawl.
- Infosys looks to outbid rivals for UBS unit buy
Infosys Technologies has intensified its efforts to outbid rivals Wipro and Genpact to acquire the back-office operations of the Swiss financial giant UBS.At least two people familiar with this transaction said Infy has moved into a final due diligence phase in a deal that may involve upfront cash payment of over $50 million for the assets in India and Poland, as well as assured multi-year business contract from UBS.
- Q1: Infy beats estimates, net profit down by 5pc
The much awaited Q1 results of India’s leading IT firm, Infosys was announced on Friday, Jul 10. The giant’s Q1 net profit is down by 5 per cent, but failed to disappoint the markets as it was better than the expected numbers.For the first quarter (Q1) that ended Jun 30 PAT (profit after tax) is at Rs 1,527 crores, a decline of 5 per cent from the net profit of 1,613 crores posted in the fourth quarter (Q4) of last fiscal.
- Infosys bids adieu to Nandan Nilekani
Infosys will be bidding farewell on Thursday to one of its founding legends. Nandan Nilekani who set up the company together with N R Narayana Murthy and five others 28 years ago, is leaving — as reported earlier — to head the central government’s project to provide unique ID cards to all Indians.It will be a quiet affair, “as per Nandan’s wishes”, a company spokesperson said about the plans for Thursday. An hour long event, to which all Infocians have been invited, has been planned to begin at 5pm at the amphitheatre in Infosys’ Electronics City campus in Bangalore. All the founders and board of directors are expected to be present. And all of them are likely to speak a few words about Nilekani.
- Infosys to start campus recruitment from Jan 2010
- June 2009
- Rishad Premji moves up the ladder, gets new role
When Rishad Premji, the 32-year-old son of Wipro founder Azim Premji, joined the company as a business manager two years ago, he had to travel almost 10 km from his Koramangla residence to work at the company’s Electronic City campus.As the elder son of Mr Premji moves into a new role of general manager, treasury and investor relations (IR), at Wipro’s corporate headquarters on Sarjapur road starting Wednesday, he will only need to drive around 5 km every day. For some who is being looked upon as an obvious heir to inherit around 80% of Wipro stake along with his brother, moving up the corporate ladder continues to be a normal process — something Mr Premji himself has ensured ever since he proposed that his elder son join Wipro.
- Infy bags $335mn Telstra deal
India’s Infosys Technologies Limited on Tuesday, Jun 9 said that it has won a new IT outsourcing contract from Australia’s Telstra Corporation.Infosys Technologies, International Business Machines Corp (IBM), Hewlett-Packard (HP), Electronic Data Systems (EDS) won orders worth A$450 million ($355 million) over five years from Telstra Corporation.
- Wipro to remain unaffected by GM’s bankruptcy
India’s third largest software services firm, Wipro has declared that General Motors’ Bankruptcy will not hurt it.Wipro on Wednesday, Jun 3 said that the accounts receivable from GM was less than $8 million and that it will be unaffected by the U.S. automaker’s bankruptcy filing.
- Rishad Premji moves up the ladder, gets new role
- May 2009
- Cap on H1B will generate a trade war: Azim Premji
Azim Premji, Wipro’s executive chairman warned US that restriction on hiring H1B visa holders for skilled workers will choke America of talent coming in and could generate a trade war with countries such as India.In an interview with BusinessWeek Premji said, “In my opinion it’s a very drastic initiative.” He was referring to a bill in the US Senate basically preventing firms from hiring H1Bs in the US or bringing in holders of L1 visas for semi-skilled workers.
- Infosys eyes $250 mn BP deal as BT revenues shrink
At a time when revenues from its top customer BT are dwindling, Infosys is chasing new contracts worth $100-250 million from another existing customer-British Petroleum (BP), as the company seeks to grow its revenues from almost $15 billion outsourcing market in the UK.Europe’s third-biggest oil company-BP, which started outsourcing its back office functions many years ago, is currently fleshing out new contracts for outsourcing business application maintenance, development and support, as the oil major plans to bring down its operational costs and ensure better focus on its core business.
- Wipro expanding fast in Middle East: Premji
Wipro Ltd, India’s leading outsourcer said that its operations were expanding fast in the Middle East.Azim Premji, Wirpo Chairman said, “We are growing more than 50 per cent a year in the Middle East. We see higher potential in markets that have not been penetrated such as the Middle East, Portugal and Brazil.”
- STPI withdrawal may hit Infosys, Wipro net profit
Top Indian software exporters – Infosys and Wipro – have cautioned investors about a potential impact on their profitability because of higher tax rates, as the country~Rs over $40 billion IT industry prepares to cope with removal of tax holiday under the Software Technology Parks of India (STPI) scheme due to expire by March 2010.”Our net income would decrease if the government of India imposes additional taxes or withdraws or reduces tax benefits or other incentives ,~T India~Rs third biggest software company Wipro said in a recent regulatory filing with the US Securities and Exchange Commission (SEC).
- WB disclosure results will have negative biz impact: Wipro
One of India’s leading IT major Wipro on Monday, May 25 warned that its business could be ‘adversely affected’ due to the World Bank’s (WB) disclosure four months ago that the ‘Indian Company’ was ineligible to work with.Soon after the World Bank disclosure, Wipro has said in a regulatory filing on Jan 13, 2009, that its revenue from World Bank was insignificant and its “inability to get future business from World Bank will not adversely affect our business and results of operations”.
- Karnataka IT poised for super growth
Karnataka is the unquestionable hub for multiple businesses like IT/ITeS, biotechnology, nanotechnology, aviation, textile/ garments and manufacturing. Industry experts say the state will successfully weather the downturn and emerge as one of the most sought-after destinations in the country.Serial entrepreneur and investor Jaithirth (Jerry) Rao says: “We did go through a bad time but none of it will last. The industry has done well and will continue to do so. We are on track and get back soon; we will get further clarity in the coming months.’’
- US immigration curbs may impact biz growth: Wipro
With the Obama administration turning the wave against outsourcing activities, Indian IT major Wipro fears that restrictions on foreign workers in the US could hamper its growth.IT bellwether Infosys Technologies, too, had raised concerns that curbs on movement of working visa holders could affect its business activities.”Restrictions on immigration in the US may affect our ability to compete for and provide services to clients in the US, which could hamper our growth and cause our revenue to decline,” Wipro said in its annual filing to the US Securities and Exchange Commission.
- Wipro may outsource work to Egypt
India, the offshoring capital of the world, is now outsourcing software and back-office projects to Egypt as vendors like Wipro plan to send more domestic work to the most populous Arab country to leverage lower costs and availability of skilled professionals.Wipro, which counts Bharti Airtel, Unitech Wireless and Dena Bank among its top customers, said with 10-15 % lower costs than India, and availability of required technical skills across different programming languages including Windows and Unix, Egypt is emerging as an attractive location for offshoring.
- Infosys to hire 1,000 techies in US
Infosys Technologies, India’s leading software firm is planning to hire about 1,000 people in United States in the next 12 to 18 months amid the global slump.Krish Gopalakrishnan, the Infy Chief Executive said that company plans to add more than 1000 new employees as part of a big US expansion in anticipation of growth resuming in 2010.
- Wipro Tech ties up with Oracle
Wipro Technologies said on Monday that its Business Process Outsourcing divison, Wipro BPO has partnered with Oracle for ‘best-of-breed HR platform solutions.’Wipro has also selected The Hackett Group, a global strategic advisory firm, to provide empirical data, best practices and world-class performance insights on the development of its innovative bundled solution platform, it said in a release here.The solution simPlify, allows employers to reduce and control cost as it provides an opportunity to centralise and standardise processes while eliminating duplicative management structures.
- Infosys to cancel home loan facility
The cup of troubles for tech employees is overflowing. After companies have cut-back on salaries and perks given to employees, Infosys Technologies is planning to withdraw its home loan facility for employees with effect from 1 July, according to an internal mail from the company.Infosys, which values each employee at nearly Rs 1 crore, has been providing interest free home loans to needy employees for several years. So far over 2,000 employees (with experience of five years and above) have availed the loan facility accounting for a cumulative disbursements of Rs 80 crore, company officials said.
- Each Infosys employee worth Rs 97 lakh!
Each employee at IT bellwether Infosys Technologies is worth as much as Rs 97 lakh, mainly based on the potential value of his/her future earnings.The IT major’s total value of human resources, which includes both software professionals and support staff, is pegged at Rs 1,02,133 crore for the fiscal ended March 2009.According to the company’s annual report, the human resources’ value of Rs 1,02,133 crore during fiscal 2009 was for 1,04,850 employees during the same period.On average, the same translates into a value of about Rs 97 lakh for each employee.
- Anti-offshoring pitch, H-1B visa cap may affect biz: Infosys
Expressing concerns over the possible measures by foreign countries, especially the US, to restrict off-shoring and movement of work visa-holders, Indian IT bellwether Infosys has said that such steps could adversely impact the company’s business.The Obama administration has restricted the hiring of H-1B visa-holders by companies bailed out by the Federal government and recently announced a plan to end tax incentives for American entities generating jobs overseas.
- Premji calls upon Obama to ‘exercise judgement’
Wipro’s chairman Azim Premji has expressed ‘concern’ over the protectionist measures of the Obama administration saying that the steps proposed were contrary to the vows made by Barack Obama in the G20 summit.Speaking on the recent reforms in the corporate tax in US, Premji said on Thursday, May 7, “We are reading too much into it…one needs to wait and see.”
- Cap on H1B will generate a trade war: Azim Premji
- April 2009
- I don’t think we should be too optimistic: Premji
I would put a definition of a recovery in terms of the world going back into positive GDP growth rates in real terms and that should be a reasonable definition of a recovery, says Azim Premji
- Tech trouble: Wipro and HCL too signal a tough year ahead
Wipro Ltd and HCL Technologies Ltd repeated the glum warnings put out by the country’s largest software exporters in the past few days, as slowing orders in their main markets in the US and Europe, pressure on pricing, and foreign exchange losses bode a tough year ahead.India’s third biggest information technology (IT) company, Wipro, saw its revenues in the three months to end-March decline 3% from the preceding quarter but managed a slight improvement in profits with help from a depreciating rupee.
- Wipro Q4 net up 15% at Rs 1,010cr
Software firm Wipro Technologies on Wednesday said it has reported a 14.77% rise in consolidated net profit at Rs 1,010 crore for the fourth quarter ended March, 2009.The Bangalore-based firm had a net profit of Rs 880 crore in the same quarter of FY’08, Wipro said in a filing to the Bombay Stock Exchange
The total income surged 13.55% at Rs 6,583.20 crore in the March quarter from Rs 5,797.40 crore in the same period last fiscal.
- Wipro Buys Nokia Mobile Broadcast Solutions Unit
Indian IT Services company Wipro has bought Nokia Mobile Broadcast Solutions reports Reuters. The unit, which had around 40 employees, provided enterprise Mobile TV solutions. The value of the deal has not been disclosed. Nokia will continue to focus on the mobile TV client for its devices, a company representative told Reuters.Going through the site, it does appear as if Nokia Mobile Broadcast Solutions has been in a bit of a limbo for two years – the latest brochure for their services is dated Feb 2007, and the last announcement for the segment was a DVB-H partnership in Malaysia in June 2007.
- Wipro focuses on crisis-proof biz segments
Wipro Technologies, India’s third biggest software exporter, has established a new practice for serving healthcare customers, and has
also restructured some of its business units in order to focus on recession-proof business segments and ensure sharper focus on its existing business units.Rajiv Shah, who was heading Wipro’s technology business unit, will now head the newly-created healthcare business unit, and will report to the joint chief executive Suresh Vaswani. Mr Shah will be replaced by GK Prasanna. Mr Prasanna was the head of the technology infrastructure services
at the company.
- Infosys to work as IT consultant for Rajasthan power cos
“We would pay Infosys Rs 1.8 crore as consultation fee for 4 years,” said power discoms Chairman R G Gupta. The central government has earmarked Rs 459 crore for the project, out of which Rs 316 crore would come from union power ministry, while the remaining Rs 143 crore would have to be raised by the three discoms.
- Wipro Infotech is top green firm in India
Wipro Infotech has been rated the No. 1 green brand in India and among the top 5 global green brands in the world as per the latest edition of Greenpeace’s ‘Guide to greener electronics’ ranking.The latest Greenpeace ranking saw Wipro’s rank move up largely due to its efforts in energy efficiency and structured programme for effective e-waste management.
- I don’t think we should be too optimistic: Premji
- March 2009
- Infy shares cheaper yet attractive: Barron’s
A report by Barron claims that shares of India’s IT major Infosys Technologies are a cheaper investment in a bright future. It also appreciated Infy for holding up well in the recession period and said the company is positioning itself nicely for a recovery.
- Employees on bench can work in NGO: Infosys
Infosys is giving its employees a chance to do some act of philanthropy. With no much work for employees, the company is offering some of them an option to work with a non-profit organisation for a year and get paid half their salary by the IT major, its co-founder Nandan Nilekani has said.Nilekani also said that the company with go on with the recruitment process amidst recession, but, ‘very selectively’.
- Infosys to pick up most of IBM’s contract
Bangalore-based software giant Infosys will pick up most of IBM Global Services’ multi-million dollar applications support contract with Australian software giant Telstra, after the latter’s deal with the former was scrapped following TELCO reducing its outsourcing partners from four to two.According to The Australian, the decision to shift from IBM to Infosys could result in hundreds of job losses locally and in Bangalore, where IBM operates outsourcing centres.
- Infosys may bag large govt deal
Infosys Technologies may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year, according to industry sources. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings. A final decision is expected in the next 15-20 days, but the possibility of the elections causing further delay cannot be discounted, said an industry source. If Infosys bags the project, it will be its first mega win in the public sector.
- MindTree to split biz into 5 units
Bangalore-based IT firm MindTree has decided to restructure its business into five independent business units under different CEOs as it looks to rapidly expand each of these segments. Effective April 1, the proposed restructuring will see the CEOs report to the group CEO, a company official said.The five units are IT services, product engineering services which include research and development (R&D) and outsource product development (OPD), testing, infrastructure management and technical support (IMTS), and a new area called knowledge services. Currently, MindTree has two business units — IT services contributing 79% in revenues and R&D 21%.
- India to have more IT professionals than US in next 3 yrs
Infosys chief and co-founder S Gopalakrishnan has said that the Indian IT industry would tide over the current downturn and may surpass the US in terms of having the largest number of IT professionals in the world in the next three years.In the IT revolution, we are at the centre. We are underinvested, but that is an opportunity. A lot of investment is being done in R&D here because of the availability of talent. Our education system provides for that,” infosys CEO and managing director Mr Gopalakrishnan said.
- Will honour job offers, says Infosys
India’s IT big giant, Infosys Technologies said it would employ all the candidates who have been given offer letters, although the company is going slow on hiring due to economic crisis.”All the call letters that have been sent out will be honoured… we are sticking to our numbers… we will honour the commitments we have made,” Infosys co-chairman Nandan Nilekani told reporters on the sidelines of a CII event.
- Tech Mahindra in talks to buy Sloka Telecom
IT services major Tech Mahindra is in discussions to acquire Bangalore-based niche telecom solutions player Sloka Telecom.People close to the situation said the 5- year-old tech start-up Sloka Telecom has put a price tag of Rs 30-35 crore but there is no agreement on a final transaction.
Karnataka IT exports down by 5 pc this fiscal
Karnataka’s IT exports are facing the heat of global recession. Due to the economic slump, State’s IT exports is set to pull down by five per cent in the current fiscal year. However, the state officials rubbished the talks on large scale job cuts in the IT sector.
Karnataka’s IT Secretary Ashok Kumar C Manoli said “We expect four to five per cent fall in exports for the year (2008-09) compared to last year.”
- Infosys bucks trend, absorbs all offered jobs
India’s second largest software services provider by revenue, Infosys Technologies Ltd, says it has completed absorbing all 20,000 engineering students who graduated last year and to whom it had made job offers on campus.The induction process was delayed by several months because of the global economic crisis that deepened last year, forcing overseas clients to pare technology budgets and delay projects in an attempt to cut spending.
- Infosys cuts 5 per cent workforce at Australian unit
Top IT firm Infosys Technologies is restructuring its Australian operations. This has created some redundancies, downsizing its workforce at Infosys Australia by around 5%, a source briefed in the matter said. The subsidiary employs 360 people, a majority of them from Expert Information Services — the first acquisition Infosys Australia made six years ago.Infosys board member and director for human resources Mohandas Pai confirmed that there were some separations from Infosys Australia. Responding to a mail from ET, he said: “We have had an organisational restructuring in our Australia subsidiary and as a result, some positions have become redundant. It is the first time after the acquisition that this is being done.”
- Infy shares cheaper yet attractive: Barron’s
- Feb 2009
India will soon limp back to normalcy: Infy CEO
The year long global economic crisis will end in 18 months and India would recover faster and limp back to normalcy, said Kris Gopalakrishnan, CEO and Managing Director, Infosys Technologies Ltd. and Chairman, Industry Vision Group.
He further elaborated that despite the crisis, export markets have continued to remain steady. The industrialists should not lose confidence and go about optimistically. Investments should continue and opportunities would follow automatically. However, growth on an extreme fast pace will be bad and caution should always be exercised in any venture, he stressed.
- Infosys takes flak for its risk-averse strategy
A leading outsourcing expert has questioned the ability of Infosys Technologies to maintain its leadership position if it continues with its current risk-averse philosophy in pursuing acquisitions and business deals.The company has, however, countered this view, saying that it’s not averse to risk and has taken the plunge after understanding what it means to them.
- Infosys identifies European SAP firms as potential targets
Infosys Technologies, India’s second-largest software exporter, has identified European SAP services firms BCC and Ciber Novasoft, among others, as potential acquisition targets. This is part of the company’s move to increase revenues from SAP-based services and compete more effectively.At least two people familiar with the discussions told ET on condition of anonymity that while Infosys was evaluating the potential acquisition targets, a final transaction could be still far away. “Especially, since there is no agreement yet on the valuation of BCC and the SAP services unit of Ciber,” one of the sources told ET last week.
- Nalanda Capital Picks Up 2.4% Stake In Aztecsoft
Nalanda Capital has earlier picked up stake in MindTree, which acquired Aztecsoft last year for around Rs 400 crore.Singapore-based Nalanda Capital has picked up a 2.36% stake in outsourcing product development firm Aztecsoft Ltd on Thursday. Nalanda India Fund picked up the stake for Rs 3.8 crore from ICICI Prudential Life Insurance on the Bombay Stock Exchange through bulk deal route. The deal is interesting as Nalanda picked up a stake in MindTree Ltd earlier this month.MindTree acquired Aztecsoft last year for around Rs 400 crore in one of the biggest deals in domestic IT space. MindTree holds an 80% stake Aztecsoft, while rest is held by trusts and public shareholders. Nalanda bought nearly a 2% stake in MindTree for Rs 15.6 crore from venture capital firm Walden International on February 3. Going by Nalanda’s previous investments, the firm is likely to pick up more stake in these two firms.
Recession has hit IT hiring in India: Nilekani
Nandan Nilekani, the Vice-Chairman of Infosys Technologies said that the global economic meltdown has affected hiring in India’s IT industry. He was speaking at the sidelines of a function in the Institute of Social and Economic Change (ISEC).
“The IT sector is not seeing job buoyancy now compared to earlier years due to global economic slowdown,” said Nilekani. While delivering a lecture on ‘India at the Crossroads: the Choices Before us’ he said that the IT industry is facing severe crisis and no prediction can be made how long the economic slowdown will continue.
- Wipro shifts focus to France, Germany and West Asia for growth
India’s third largest software exporter by sales, Wipro Ltd, says it will focus on France and Germany in Europe and West Asia to offset slowing growth in the US as well as the UK.“The entire Indian IT (information technology) export industry has been severely impacted because of developments in the US and UK markets. Wipro has taken steps to address newer markets in Europe and Asia which have been relatively insulated,” said Suresh Vaswani, joint chief executive officer, Wipro.
- H-1B curbs not for Indian IT cos: Infy
Software exporter Infosys which has sizeable onsite employee base in the US said the latest amendment to the H-1B visa rules for the country will not be applicable to it.”We believe the amendments are restricted to the US companies which receive funding under TARP (Troubled Asset Relief Programme) and is not applicable to companies like us. Having said that we have to wait for the law to be passed.
Indian software giant Infosys Technologies bagged 14th place in the list of top 20 global companies focused on grooming not just professionals but leaders. Infy achieved this honour in ‘The 2008 Best Companies for Leaders’ survey conducted by management consultancy Hay Group and Chief Executive Magazine.
The survey reveals that these companies which are focused on developing leaders will not only survive and thrive in the current financial crisis, but also would be well positioned for growth, once the economy gets revived. 3M Company tops the list, followed by Procter & Gamble and General Electric on the second and third position respectively.
- Infosys to get tough with poor performers (you can call this layoffs)
The economic slowdown has made Infosys Technologies, India’s second-largest IT services firm by revenues, take a harder look at
employee performance. The firm has put 2,200 employees under the scanner for non-performance this year — more than double the number last year, a senior executive said.Last year, about 1.5% of IT services staff or about 1,000 employees figured among the bottom performers. This year, the percentage has shot up to about 3.5%. About 600 of such non-performers have left the company already this year.
- Jan 2009
- Infosys to set up BPO unit for I-T dept
Infosys Technologies Ltd has been selected by the income-tax (I-T) department to set up a business process outsourcing (BPO) unit to carry out its routine work and give tax officials more time to focus on nabbing tax evaders.
Taxpayers, too, will benefit, with refunds issued within three months of a tax filing and a call centre established to handle taxpayer queries.
- Infosys gets service tax notice for Rs33 cr
The Indian IT sector continues to be in the news for all wrong reasons with another leading firm Infosys coming under the government scanner for alleged evasion of service tax worth Rs33 crore on commission paid by the company for its global issue.“We have issued showcause notice as the company has not paid service tax on the underwriting commission paid by Infosys towards American Depository Receipt (ADR) for the years 2003, 2005 and 2006,” said a senior tax official.
- IBM, Infy in tug-of-war for Fidelity’s IT captive unit
Infosys Technologies and IBM are locked in a battle to acquire the Indian IT captive unit of the world’s largest mutual fund company, Fidelity Investments. The deal may involve $150-180 mn upfront transaction
in return for an assured multi-year outsourcing contract, at least two people involved with the matter said.A senior official at one of the companies bid-ding for Fidelity’s back-office business said, “IBM has offered to pay around $150 mn for the unit while Infosys has indicated that it could pay up to $180 million,” he said, requesting anonymity. Though Wipro is still left in the fray, the tussle is between IBM and Infy as of now, a person involved in the negotiations said.
- Wipro goes slow on IT hiring
For the second time in the past nine months, more people have left Wipro Technologies compared to those who joined its IT/BPO services businesses. At the end of the third quarter, the total headcount at Wipro’s IT business stood at 96,965 as against 97,552 in the second quarter.It reported a negative headcount addition of 1,092 for its global IT services segment and 226 for its BPO division. The first time that Wipro reported a negative headcount addition was for the first quarter of the current fiscal. The only positive increase in headcount was in its India and Middle-East IT services business segments. Wipro has effected a 7-8% hike in wages for its offshore employees, much lower than the 12-14% of last year.
- Infy’s Finacle in demand as FIs, banks adopt tech
At a time when customers are tightening their software services spending, India’s second-biggest software exporter Infosys is seeing more demand for Finacle, its product for helping banks integrate and automate their core and retail banking operations.“Very clearly, the banks and other financial institutions are on the path of transforming their business through technology by bringing in standard platforms,” Haragopal M, head of Finacle business told ET.
- Did World Bank go wrong in banning Wipro
Media preoccupation with Satyam has let another scandal this month escape close scrutiny. The players in this scandal are Wipro and the World Bank. Sadly, while the guilty party is the World Bank, punishment has been meted out to Wipro and its shareholders.Some eight years ago, in 2000, Wipro carried out an initial public offering (IPO) of American Depository Shares in an effort to raise capital from the US market. As a part of that effort, it offered a small number of shares to its employees and clients at the IPO price through the Directed Share Program (DSP).
Wipro meets forecast, Q3 net up at Rs 1,004 cr
India’s third largest software exporter Wipro Technologies on Wednesday, Jan 21 reported net profit of Rs 1,003.9 for the quarter ended Dec 31, 2008. Wipro’s net profit was Rs 854 crore in the third quarter of the financial year 2007-08.
Azim Premji, Wipro Chairman said, “For the quarter ended Dec 2008, we delivered a strong performance with IT Services revenues growing sequentially 3.5 pc in constant currency.” He added that Wipro won four multi-million dollar deal in the current quarter and have 31 new customers.
- Infosys hires Mercer to rejig 5-year-old HR management system
Infosys Technologies is set to overhaul its performance management system— PerformMagic—which has been in use for over five years, when the company had about 10,000 employees on its rolls. As of December 2008, the employee strength has crossed 1, 00,000.Infosys has now hired global HR consultant Mercer to work on the overhaul and the process will be completed before June. “Our current performance management system does not meet the requirements of a 100,000-plus organisation. The new system is undergoing evaluation by Mercer,’’ TV Mohandas Pai, Infosys’ director for HR, education, research and administration
- Satyam scam: Infosys, IBM, Accenture may benefit most
Infosys Technologies is expected to gain the most among the top Indian IT players from Satyam’s loss of credibility. Although there will be no shift towards one single provider, Infosys’ reputation as a firm with high corporate governance standards as well as its US listing is expected to stand it in good stead when customers make a choice, said analysts.On Wednesday, when Ramalinga Raju confessed to cooking Satyam’s books, Infosys was among the few IT stocks that ended higher. The stock was up 1.7% to Rs 1,187, as compared to Wipro and TCS that ended almost flat at Rs 243.30 and Rs 503.70, respectively. HCL Technologies, the other top player, was down 15%.
- Infy, Wipro not to proactively approach Satyam clients
Expressing solidarity, country’s top IT majors such as Infosys and Wipro on Sunday said they will not proactively approach clients of Satyam but made it clear that they will not say ‘no’ if clients approach them.”We have already made the announcement that we will not poach any Satyam employee. We will not proactively approach their clients and customers either… but clients have to decide for themselves and they have the right to choose their partner at work,” Infosys HR Director Mohan Das Pai said.
- Infosys to integrate IT & BPO operations to cut costs, add value
Infosys Technologies is looking at ways of increasing synergies with its BPO arm. In addition to easier movement of executives between Infosys the IT and BPO arms, the tech bellweather is also working on integration and business plans to maximise profits.The knowledge services business unit of Infosys BPO is headed by a former Infosys Technologies executive. So is the vice-president and head of sales of Infosys BPO. Communication, the second-largest revenue earning customer segment for the BPO, is also headed by an executive formerly with Infosys Technologies.
- Infosys to set up BPO unit for I-T dept