Big 4 IT cos cash in on US revival

Big 4 IT cos cash in on US revival

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Indian IT’s big four — Tata Consultancy Services (TCS), Infosys, Wipro and HCL Tech — built on their growth momentum with increase in net profits during the October-December quarter. All four beat market expectations as client firms increased their discretionary IT spend — an indication of a client firm’s IT spending pattern, which can further translate into outsourcing deals. “There are signs that discretionary IT spend is going up for certain sectors such as the BFSI (banking, financial services and insurance), retail, consumer goods and for some business verticals like analytics and digital,” said Ankita Somani, an IT analyst at brokerage firm Angel Broking. This, in fact, must be music for the “big four” Indian IT firms since BFSI continues to offer maximum outsourcing deals and digital systems is the…
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At Wipro, HCL Technologies, TCS, Infosys, others, bulk hiring is on decline

At Wipro, HCL Technologies, TCS, Infosys, others, bulk hiring is on decline

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Bulk hiring seems to be on a downward spiral in Wipro, HCL Technologies, TCS, Infosys and others as the $108-billion Indian software-services industry moves towards a non-linear mode of business with higher intellectual property (IP)-led work. While the country's leading IT players have posted encouraging earnings in recent quarters, their hiring pattern has shifted, indicating that headcount growth doesn't need to match with revenue accretion any longer. In short, IT firms now believe they needn't continue to hire big to earn more. During the recently concluded December quarter, Wipro recorded its highest sequential dollar-revenue rise in the last eight quarters despite the IT firm continuing to shed its overall headcount. At the end of the third quarter, Wipro's total employee strength stood at 146,402, a decline of 814 people when…
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TCS creates new unit to focus on digital solutions

TCS creates new unit to focus on digital solutions

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MUMBAI: Tata Consultancy Services Ltd, the largest IT services player in India, has created a separate business unit to focus on digital solutions; a segment that could add billions of dollars to the company's revenue over the next few years. The Digital Software & Solutions Group has been designed to help customers make the transition to using emerging technologies and provide modular, industry-tailored solutions, TCS said in a statement. Initial industries being targeted by the group are Retail, Communications and Banking and Financial Services, the company said. "The Digital Software & Solutions Group is a serious commitment to TCS' strategic customer partnerships through fully integrated and scalable solutions that meet their business needs and challenges, while reducing the total cost of ownership." N Chandrasekaran, CEO & MD of TCS said.…
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Aegis hires over 600 military veterans, spouses in US

Aegis hires over 600 military veterans, spouses in US

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NEW DELHI: Aegis, the BPO arm of the India's $39-billion Essar Group, has hired more than 600 US military veterans and their spouses in 2013. Much of these hirings have taken place at Aegis' centres in Killeen, Texas and Sierra Vista, Arizona, which are adjacent to US military bases, the company said in a release today. At the firm's Killeen centre, which is located a few miles away from the largest domestic US military base, Aegis hired 202 veterans (12 per cent of all hires). It also hired 36 differently abled veterans (2 per cent) and 299 military spouses (18 per cent) at this centre, it added. Of the 183 hires at the company's Sierra Vista Centre, 8 were veterans (3 per cent), 27 were differently abled veterans (11 per…
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Capgemini and Sogeti Announce an Expanded Global Engineering Services Offer

Capgemini and Sogeti Announce an Expanded Global Engineering Services Offer

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Capgemini and Sogeti's GES offering addresses an increase in digital technology and cloud-focused environments which has led to a fundamental shift in how organizations approach mechanical design and simulation. The new global offering, at its core, intends to create synergies between organizations' IT and engineering systems to better align and become a more efficient in their operations. The GES offer plans specifically to focus on organizations operating within the Transportation sector, including Aerospace, Automotive, Railways and Trucks and Off Highway, Industrial Products, and Energy industry. Global Engineering Services is a highly differentiated offer, combining high tech engineering expertise with a large offshore leverage. Mechanical Design and Simulation The Mechanical Design & Simulation expertise pillar intends to specifically include design, modeling & analysis, value engineering, simulation services and data migration services.…
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We’re looking more at onsite hiring, depending less on visas: Wipro CFO

We’re looking more at onsite hiring, depending less on visas: Wipro CFO

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Suresh Senapaty, CFO and member of board, Wipro, speaks to Business Line on a range of issues ranging from impact visa costs, increased onsite hiring and sustainability of margins. Excerpts from the interview: A better quarter again. Will this continue? We will continue the momentum going forward. The hard work done over the last two years is bearing fruit and gives us confidence. It is also reflected in our customer and employee satisfaction, which both have gone up. Having said that we still have a lot to do. For example, in the client mining front we have done well but only in certain pockets. This has reflected in $100 million clients going up (from 10 to 11 this quarter) and the growth in the accounts has come at a higher…
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Visa curbs force TCS to beef up onsite hiring

Visa curbs force TCS to beef up onsite hiring

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With visa restrictions and protectionist policies being enforced in major markets, India’s largest software exporter Tata Consultancy Service (TCS) is looking at a substantial increase in onsite hiring. For instance, TCS will hire 2,000 people this financial year in its most important market, the US, which accounts for more than half of its $11-billion-plus (more than Rs. 67,782 crore) revenue. TCS’ hiring in the US increased by a fourth but its overall hiring this year is about 15% lower than last year. TCS plans to hire 55,000 people in 2013-14, while it hired 65,000 in 2012-13. “This year, we would hire 2,000 (employees) in the US. Last year, we hired 1,500-1,600 people. This will go up as our business volume grows,” Ajoy Mukherjee, executive vice-president and global head of human…
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Nissan licenses source code analysis technology to Tata Consultancy Services

Nissan licenses source code analysis technology to Tata Consultancy Services

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Nissan Motor Co., Ltd. announced that it has licensed its patented source code* analysis technology and proprietary know-how to Tata Consultancy Services (TCS), its partner in co-developing this technology. This source code analysis technology is software (a static source code analysis tool*) that can analyze a large-sized source program with several million lines of code in a short time to detect code errors during its development phase. Nissan mainly uses the technology during the development of source code for its car electronics systems. As the scale of software development has expanded in line with larger-sized and increasingly complicated source code, product manufacturers face the common challenge of detecting and fixing code errors. This takes a tremendous amount of time and increases workload. The licensing agreement allows TCS to incorporate the…
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Textiles & IT/BPO push job growth

Textiles & IT/BPO push job growth

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Eight sectors tracked by the Union government's Labour Bureau reported a combined rise in employment by 143,000 persons during the second quarter of the current financial year over the first quarter. This was the highest addition to jobs in these sectors in three quarters. Only two of the eight sectors, gems & jewellery and transport, saw a fall in jobs generated, showed data issued by the Shimla-based bureau. Also, employment growth in the handloom-powerloom sector was flat. The bureau did a sample survey of 2,303 units for the data. Hence, these aren't exhaustive but indicate a broad trend. About 88 per cent of the total rise was generated by only two sectors, textiles and information technology/business process outsourcing (IT-BPO). These two saw an addition of 127,000 jobs. Textiles added 66,000…
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Kumar Birla to sell Minacs for Rs 1.6k cr

Kumar Birla to sell Minacs for Rs 1.6k cr

M&A/ Alliances, Outsourcing News/ PR
MUMBAI/BANGALORE: The $40-billion Aditya Birla Group is close to selling its Bangalore-based business process outsourcing (BPO) firm Minacs to a private equity consortium structured by tech entrepreneur-turned-investor Sanjay Chakrabarty for about $270 million, or around Rs 1,600 crore, said people directly familiar with the matter. This would mark the Kumar Mangalam Birla-led group's exit from ITeS sector, where most of the traditional Indian business conglomerates have struggled to manage large operations. Minacs, which employs 21,000 people across 35 locations in the world, is the country's sixth largest BPO firm, according to Nasscom rankings. Aditya Birla Minacs Worldwide has a revenue of $450 million and an operating profit of $40 million. The bid values the company at six to seven times its operating profit even though Birla's asking price was slightly…
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