Offshore product development firm Symphony Services said the outcome-based model is becoming popular with its clients now more focused on improving productivity.
The models being used in the IT services industry include outcome-based, pay-for-performance and revenue-sharing delivery models. The outcome-based model will help bring predictability to cost and project completion schedules, the company added.
Friday, August 28, 2009
Good response to Symphony’s outcome-based model
MindTree aims to hit $1 bn in revenue by 2014
Mid-sized software services firm MindTree, which completed 10 years, 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.
At current valuations, Mphasis looks attractive
The Bangalore-based firm recently acquired AIGSS, the captive back-office arm of AIG, which adds insurance into Mphasis’ mainstay software development and maintenance services. Infrastructure management, customer services, technical helpdesk, and transaction processing services are some of the other verticals that the company derives its revenues from.
BP deal lends revenue visibility to IT majors
Even as the markets have already been marking up IT stocks, British Petroleum (BP), an existing client for several Indian IT majors, has awarded a long-term deal that is reportedly worth $1.5 billion which lends revenue visibility for these companies. It also reduces their dependence on the troubled BFSI vertical and the US.
HCL's Q4 income more than doubles
Beating market expectations and getting a boost by foreign exchange gains of Rs 69 crore and increased operating margins, Delhi-based information technology services and software exporter HCL Technologies posted a net income of Rs 330 crore for the fourth quarter ended June 30.The net income went up (134 per cent) year-on-year from Rs 141 crore.
Revenue in the quarter was 2,908.5 crore, up 34.7 per cent, from Rs 2,158 crore in the corresponding quarter last year.
HCL Tech joins hands with New Zealand-based firm
Software exporter HCL Technologies said it has partnered New Zealand-based Optimation for providing innovative and flexible software solutions.
The company has signed a partnership agreement with IT firm Optimation to offer software solutions to the New Zealand Government and enterprise customers, HCL Technologies said in a filing to the Bombay Stock Exchange.
Polaris Software implements solution for HDFC Bank
Polaris Software, a leading financial technology company, announced that HDFC Bank has implemented Polaris's Enterprise Business Rule Engine for its Retail Asset Lending Business comprising auto and personal loans.
The deployment will enable HDFC Bank to target customers better and manage credit risk.
Infosys bags five-yr outsourcing deal from BP
The country's second largest software exporter, Infosys Technologies, today said it has bagged a five-year outsourcing and support agreement from BP, one of the world's major oil and gas companies.
IBM & Tally team up to sell ERP to SMBs
IBM and Tally have announced an agreement to deliver Tally's ERP 9 Gold on IBM's Smart Business platform. The IBM and Tally solution claims to offer an open, simplified IT experience.
Downturn halves IT/BPO mergers, acquisitions in Jan-July
IT and BPO companies appear to have largely stayed away from blockbuster meger and acquisition (M&A) deals so far this year.
Tech Mahindra’s acquisition of beleaguered Satyam fired-up the domestic deal street, but overall M&A and private equity (PE) transactions during the first seven months of 2009 were less than half of the year-ago levels in value and volume
E-payments — at the heart of the action
Payments are at the centre of the economic universe, the ‘sun’ that provides all the energy and around which everything revolves. Thus describes V. Rama Kumar, Founder & CEO, Tarang Software, Bangalore ( www.tarangtech.com). His company is into electronic payments, a sector witnessing growth.
Friday, August 21, 2009
Sri Lanka’s Aitken Spence eye war-torn areas for tourism
Sri Lanka's Aitken Spence said it was eyeing tourism projects in the north and east of the island after the end of an internal conflict though group earnings dropped as arrivals slumped both at home and in the Maldives.
"We are vigorously looking at opportunities in all sectors to partner in the development of the North and East provinces," managing director J M S Brito said in a statement.
Management changes in Maersk Oil
Thomas Thune Andersen will leave his position as CEO of Maersk Oil and partner in Firmaet A.P. Møller as of the end of August. New CEO of Maersk Oil will be Jakob Thomasen who recently has been head of exploration and business development in Maersk Oil. Furthermore, he will become a member of the Executive Board of the A.P. Moller - Maersk Group.
Thomas Thune Andersen has been with the A.P. Moller - Maersk Group for 32 years, a partner since 2005 and for the last five years CEO of Maersk Oil.
HDNL Awarded Sainsbury's Home delivery Contract
Following an extensive review of the parcel delivery market Sainsbury’s has appointed Home Delivery Network (HDN) as its primary carrier of parcels to home in line with the launch of its Non-food online business.
The retailer will be utilising HDN’s 24 and 48-hour services including the option for Saturday deliveries.
“The extension of our online proposition into non food requires us to provide our customers with a consistently high level of delivery service to the home as well as the ability for them to have their parcels delivered to suit their busy lifestyles. Having researched the market we believe that HDN is the market leader in both of these important areas,” said David James, Head of Non Food Logistics for Sainsbury’s.
HDNL Awarded Sainsbury's Home delivery Contract
Following an extensive review of the parcel delivery market Sainsbury’s has appointed Home Delivery Network (HDN) as its primary carrier of parcels to home in line with the launch of its Non-food online business.
The retailer will be utilising HDN’s 24 and 48-hour services including the option for Saturday deliveries.
“The extension of our online proposition into non food requires us to provide our customers with a consistently high level of delivery service to the home as well as the ability for them to have their parcels delivered to suit their busy lifestyles. Having researched the market we believe that HDN is the market leader in both of these important areas,” said David James, Head of Non Food Logistics for Sainsbury’s.
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
GlobalLogi to recruit 400 people in next 7 months
GlobalLogic, a provider of software product development, has said that it would recruit 400 technically skilled workforce in India in the next seven months.
"We have approximately 100 positions open at present. These positions have to be filled in a month's time. In the next seven months we will recruit around 400 technical people for our various divisions in India," GlobalLogic chief people officer Milind M Jadhav told CyberMedia.
Patni to go aggressive on domestic business for growth
The mid-size IT company Patni Computer Systems said that it will go aggressively after contracts in the local market, as it looks to increase the share of domestic business to almost six per cent of the company’s total turnover in three years.
Patni is also open to acquisitions to strengthen
Colombian bank selects Infosys 'Finacle' solution
Country-based software exporter Infosys Technologies today said that Bancolombia, the largest universal bank in Colombia has selected its banking solution --Finacle - to modernise its technology platform.
The Finacle solutions would be implemented in the banks Columbian branches and its international subsidiaries.
"We chose Finacle for its global leadership in new generation banking technology solutions backed by Infosys, a strong partner with excellent delivery track record," Bancolombia Vice President of Information Technology Olga Botero Pelaez said
Infosys looking for new billing models to protect margins
IT bellwether Infosys has started using a new billing system offering clients flexible schemes and protecting Infosys its margins.
Most of clients are now billed on the time and material based contracts (effort-based model) model under which Infosys charges a client based on the number of hours put in by the employees on a particular project.
Microsoft India Gets Partners Ready for SaaS
Microsoft is readying its partners for the launch of its software-as-a-service (SaaS) offering called Business Productivity Online Suite (BPoS). Slated for a commercial launch in October in the country, BPoS is already available for free trials on the company’s Website.
Nortel's Bengaluru International Airport IT contract extended
Bangalore International Airport Ltd (BIAL), the operator of India's Bengaluru International Airport has extended its IT infrastructure and network security contract with Nortel by three years.
The end-to-end managed services contract will oversee the airport's data and wireless network systems remotely through Nortel's network operations centre in India.
TCS bags Avaya IT deal
Avaya GLobalConnect (AGC) today announced that Tata Consultancy Services (TCS) will be its technology partner for managing and overseeing the company’s total internal IT outsourcing needs.
Under the multi-year deal, TCS will assume responsibility of AGC’s internal IT operations.
Mahindra Satyam expands 'ERP Shared Services'
Mahindra Satyam the new brand identity of Satyam Computer Services, today announced that it is expanding its footprint in the Middle East & North Africa (MENA) region, with the launch of its 'ERP Shared Support Services'.
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GlobalLogic plans to buy R&D unit
GlobalLogic, a provider of software product development services, plans to acquire a Bangalore-based captive R&D unit of a US company this month. The target captive centre employs 40-50 professionals and focuses on VoIP infrastructure, the GlobalLogic Chief Executive Officer, Mr Peter Harrison, said
VMware to acquire SpringSource
VMware announced a major step forward in its journey to help simplify IT by entering into a definitive agreement to acquire SpringSource. Both the companies plan to deliver compelling new solutions that enable companies to more efficiently build, run and manage applications within both internal and external cloud architectures.
Mobile banking poised for rapid growth: IDC
A new report from IDC Financial Insights emphasizes that banks need to prepare themselves today for the imminent wave of mobile adoption to avoid being left behind by competitors.
Friday, August 7, 2009
Optivor Signs Reseller Partnership with Radware for Alteon Products
The leading provider of integrated application delivery solutions for business-smart networking, today announced it has signed Optivor, a trusted advisor for voice, data, wireless, security and convergence products, as a Radware Alteon reseller partner; further expanding Radware’s foothold in the global application delivery market. By joining Radware’s distribution network, Optivor will receive extensive knowledge and training for the Radware Alteon product line, enabling the Company to offer a greater level of customer service support.
Ixia and Hitachi Test 100 Gigabit Ethernet Interconnect
A leading, global provider of IP performance test systems, today announced that Ixia’s higher speed Ethernet (HSE) 100 Gigabit Ethernet (GE) test solution was used to test Hitachi’s prototype 100 GE frame transmission system, which was partly supported by Lambda Access Project funded by NICT (National Institute of Information and Communications Technology) in Japan. Ethernet-standard frame-level data formats were used – a significant advancement over previous optical signal tests.
Ixia’s “K2” 100 GE test module generated line-rate traffic which was sent over optical cable to Hitachi’s 100 GE prototype system. The Hitachi system successfully received and decoded the Ethernet frames.
Ixia and Hitachi Test 100 Gigabit Ethernet Interconnect
A leading, global provider of IP performance test systems, today announced that Ixia’s higher speed Ethernet (HSE) 100 Gigabit Ethernet (GE) test solution was used to test Hitachi’s prototype 100 GE frame transmission system, which was partly supported by Lambda Access Project funded by NICT (National Institute of Information and Communications Technology) in Japan. Ethernet-standard frame-level data formats were used – a significant advancement over previous optical signal tests.
Ixia’s “K2” 100 GE test module generated line-rate traffic which was sent over optical cable to Hitachi’s 100 GE prototype system. The Hitachi system successfully received and decoded the Ethernet frames.
New Head of Group Strategy Office
1 November 2009, Klaus Rud Sejling will assume the position as Head of Group Strategy Office in A.P. Moller - Maersk.
Klaus Rud Sejling (32) has been with A.P. Moller - Maersk since 1997 where he has held positions of increasing responsibility in various international locations. Klaus Rud Sejling most recently held the position as Head of Business Development in APM Terminals, based in The Hague, Netherlands.
GlobalLogic signs master service pact with Movius
GlobalLogic, a global leader in software product development, today said it has signed a master service agreement with Movius Interactive Corporation.
Movius Interactive Corporation is a leading provider of messaging and interactive mobile media solutions.
As part of this agreement, GlobalLogic has acquired Movius' captive development centre here, a GlobalLogic release said
Take Solutions to buy IPs for 2 product lines
Take Solutions Ltd, a Chennai-based software company, expects to see additional revenue of $4 million in the current fiscal and $6.5 million next year through its latest acquisition.
It had bought the intellectual property (IP) of two product lines from two US-based companies – PSI Software and EntComm.
The base price for the acquisitions will be $2.1 million and there is an ‘earn out’ provision of $4.7 million over the next two years. The company has nearly Rs 100 crore in cash, Mr H. R. Srinivasan, Founder and Vice-Chairman, Take Solutions, said.
Cognizant net rises 36%
Cognizant Technology Solutions, US-based provider of information technology, consulting and business process outsourcing services, reported a 36-per cent increase in net income at $141 million for the second quarter ended June 30, 2009 compared with $104 million in the corresponding quarter of 2008.
Revenue rose by 13 per cent to $777 million ($685 million), up by 4 per cent over
the $746 million reported in the April 2009 quarter.
The third quarter revenue is anticipated to be at least $800 million.
Infosys pursuing 12-15 deals in $1-b range
Infosys Technologies is pursuing a number of deals worth about $1 billion, according to its Chief Executive Officer and Managing Director, Mr S. Gopalakrishnan.
“We are currently negotiating 12-15 deals and the pipeline continues to be strong,” he told newspersons on the sidelines of the ICT East 2009, organised by the Confederation of Indian Industry. However, the deals are unlikely to be clinched in the current fiscal, he said.
At present, about two per cent of the company’s business comes from India, 62 per cent from the US, 26 per cent from Europe, and 10 per cent from the rest of the world.
TCS to reduce stake in NPEX to 17%
Tata Consultancy Services Ltd (TCS) is now mulling a reduction of its stake in the Rs 50-crore equity of National Power Exchange (NPEX) from the present 50 per cent to 16.66 per cent.
According to shareholders agreement, TCS is required to prune its majority shareholding before commencement of business, according to sources.
Other promoter-partners in the joint venture NPEX are National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC) Ltd and Power Finance Corporation Ltd.
IBM partners Tally for ERP solution
Targeted at small and mid-sized businesses, technology giant IBM today announced that it has partnered Tally to deliver Tally's enterprise resource planning (ERP) solution for its platform.
By combining Tally's leadership in the ERP market for small and mid-sized companies with IBM's technology strength and reach, a noteworthy new solution has been introduced to the dynamic Indian mid-market, IBM said in a statement.
HCL Info bags order from SBI for ATMs
IT hardware company HCL Infosystems announced on Tuesday that it has clinched an over Rs 40-crore order from State Bank of India and associated banks to install and service ATMs.
The company, a listed entity of the $5-billion HCL Group, will deploy over 1,000 ATMs and cash dispensers across the country.
“The installation will be over a six-month period, whereas the maintenance and service contract is spread over seven years. The revenue from the contract will start kicking in from the coming quarter onwards,” the HCL Infosystems Executive Vice-President, Mr George Paul, told Business Line.
Wipro actively looking at overseas acquisition
Outsourcing major Wipro is actively looking at overseas acquisitions, a top company official said here on Wednesday.
"As far as acquisition is concerned, we are already active in that area and we will continue to remain active. Our focus will remain on most emerging economies - it could be Asia Pacific, Middle East or Australia," said Wipro Executive Director and Chief Financial Officer Suresh Senapaty.
Wipro, US co in 5-year deal
Wipro Technologies has bagged a five-year IT services deal with Charming Shoppes Inc, the US-based multi-brand speciality apparel retailers primarily focussed on plus-size women’s apparel. As part of the deal, Wipro will provide IT services that include application management, remote infrastructure management and mainframe hosting. Wipro did not disclose the deal size. Wipro will be also responsible for application management of the entire suite of applications encom passing stores, supply chain, merchandising, marketing and analytics, business intelligence and corporate systems. Wipro will provide hosting services from its US-based data centres and manage infrastructure, including data centre operations, network and security operations and performance management.
Mahindra Satyam places another 500 associates on the bench
Mahindra Satyam is on course to cut more flab to trim costs. After placing over 8,000 employees on the virtual pool, the company has now created a “corporate reserve” akin to a bench for over 500 associates. The move, however, sparked off speculation about possible exit of senior-level employees in the Hyderabad based outsourcing firm.
IT majors chase Rs 2,500-cr railways' outsourcing deal
Tech firms TCS and Wipro, apart from several others, are in pursuit of up to Rs 2,500-crore outsourcing contract at Indian Railways, as the world’s biggest civilian employer plans to procure a human resource management system (HRMS) and other modules for integrating and automating functions of payroll, accounting and pension.
With around 1.6 million employees, Indian Railways aims to have a centralised system for managing its staff better. The organisation plans to spend around $1.5 billion over the next two to three years on technology.
US and BFSI still the key to IT cos
The US remains the predominant geography that contributes to the revenues of offshore IT vendors and BFSI (Banking Financial Services and Insurance) the main outsourcing vertical, suggests a comparison of June 2009 numbers of IT companies with those of June last year.
This despite the US being the epicentre of a global financial crisis, and BFSI the worst hit sector. For top IT vendors such as Infosys, TCS and Wipro, as well as large to mid-tier players such as Patni Computer and MindTree, the contribution to revenues from US-based clientele has been maintained or increased over the last three-four quarters.
Bad debt of vendors rises in June quarter
Indian IT vendors have seen an increase in debt considered doubtful and outstanding for more than six months in the June quarter due to delays in payment by some clients, ahead of their revenue growth.
Infosys leads the top three firms at 60 per cent increase year-on-year, followed by Wipro at 56.3 per cent, while for Tata Consultancy Service, it is 38.5 per cent. Revenue for the three companies grew at 12.7 per cent, 5 per cent and 12 per cent, respectively.
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