Archive for April, 2011

Infosys bets on double-digit growth again

April 15th, 2011

Riding on tech revival and increasing outsourcing, India’s second largest IT bellwether Infosys Technologies Ltd Friday forecast a double-digit revenue growth again in the new fiscal 2011-12.

Having beaten its last revised guidance for last fiscal (2010-11) and its fourth quarter (Jan-March) with robust growth, the company said consolidated revenue for this fiscal (FY 2012) would be Rs.31,999 crore (Rs.320 billion) — an increase of 16.4 percent year-on-year (YoY), according to the Indian accounting standard.

“We expect the demand environment to be normal this year for the industry,” Infosys chief executive S. Gopalakrishnan said in a statement.

“We have created a structure with strong customer-driven vertical focus and enhanced our investment to take advantage of the opportunities we see in the market,” he added.

For the first quarter (April-June) of this fiscal, consolidated revenue is expected to be Rs.7,347 crore (Rs.73.5 billion), projecting an increase of 18.6 percent YoY.

Under the International Financial Regulatory System (IFRS), consolidated revenue is projected to be $7.2 billion for entire fiscal, an increase of 19 percent YoY and $1.66 billion for this quarter (Q1), which would be 21.6 percent higher YoY.

For the fourth quarter (Jan-March) of last fiscal (FY 2011), the company posted net profit of Rs.1,818 crore (Rs.18.18 billion), registering an increase of 17.1 percent YoY and 2.1 percent sequentially, according to the Indian accounting standard.

Consolidated income during the quarter under review (Q4) was Rs.7,250 crore (Rs.72.5 billion) — an increase of 22 percent YoY and two percent sequentially.

Under the IFRS, net income for the quarter increased to $402 million, up 19 percent YoY and 1.3 percent sequentially, while gross income rose to $1.6 billion, up 24 percent YoY but flat sequentially.

“We have realigned our strategic focus to enable our clients to build their enterprise of tomorrow. We continue to make investment towards strengthening our transformational, operational and innovation capabilities,” chief operating officer S.D. Shibulal said.

Maintaining its robust growth quarter-on-quarter through last fiscal, the blue-chip company posted net profit of Rs.6,823 crore (Rs.68.23 billion) for fiscal 2010-11, registering an increase of 9.7 percent YoY.

Similarly, consolidated income for the entire fiscal under review (FY 2011) shot up 21 percent YoY to Rs.27,501 crore (Rs.275 billion), surpassing its last revised guidance of Rs.27,445 crore (Rs.274 billion) given Jan 13.

Under IFRS, net income rose to $1.5 billion, up 14 percent YoY and gross income to $6 billion, an increase of 26 percent YoY.

“We are seeing growth opportunities emerging in the market place. Our focus on high quality growth enables us to make the right investments to capture those opportunities,” chief financial officer V. Balakrishnan said.

On account of double-digit growth and strong bottomline, the company’s board recommended a final dividend of Rs.20 per share of Rs.5 each or 400 percent for fiscal 2010-11, an increase of 100 percent over previous fiscal (2009-10).

With an interim dividend of Rs.10 per share (200 percent) and Rs.30 per share (600 percent) special dividend on the occasion of the IT bellwether completing 30 years, the total dividend for FY 2011 zoomed to Rs.60 per share or a whopping 1,200 percent as against Rs.25 per share (500 percent) in previous fiscal.

The global software major and its subsidiaries added 34 clients during the fourth quarter, taking the total number for the fiscal to 620 as against 575 at the end of previous fiscal (FY 2010) and 612 in third quarter (Oct-Dec) of FY 2011.

With net addition of 3,041 employees in the quarter under review (Q4), the company’s total headcount has gone up to 130,820 for fiscal 2011 from 113,796 at the end of FY 2010, an increase of 15 percent YoY.

“We had a great year. We recruited 43,000 people during the fiscal, had 1.6 million persons days of training and made 26,000 campus offers for new fiscal (FY 2012),” outgoing human resources department head and board member T.V. Mohandas Pai said.

In a related development, Pai and co-founder K.Dinesh resigned from the company’s board of directors in pursuit of their personal endeavours.

The company has appointed former Microsoft India chairman Ravi Venkatesan as an additional director on the board.

The company’s 30th annual general meeting will be held June 11.

Source:http://smetimes.tradeindia.com/smetimes/news/industry/2011/Apr/15/infosys-bets-on-double-digit-growth-again478668.html

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IT, inflation exert pressure – Sensex down 312pts

April 15th, 2011

The Sensex’s 434-point rally on Wednesday was seen disintegrating today, as the markets, which opened on a flat note, with a downward bias, soon shed 200 points because of the Infosys results. At present, the markets are off the day’s low, with the Sensex at 19,385 down 312 points, and the Nifty at 5,824 down 88 points.

IT and outsourcing giant Infosys, the country’s second largest provider of IT and ITeS goods and services, declared a 17.1% jump in its Q4FY11 net profit at Rs 1,818 crore, but the stock plunged, because compared to the year-ago period, net profit saw a sequential rise of barely 2.1%. Industry and Street analysts were disappointed as the IT behemoth fell short of their expectations. Another dampener for the bourses is the March inflation figure of 8.98%, as compared to 8.31% reported in February.

The broader markets also slumped due to the 1.5% decline on the benchmark. On the BSE, the Mid-cap index slipped 0.4% to 7,192, while the Small-cap index shed 0.3% at 8,797.

Only four components on the Sensex were trading in the green, with Hero Honda leading the gains at rs 1,789 up 3%, followed by Bharti Airtel at Rs 372, Hindalco Industries at Rs 212 and heavy engineering major Larsen & Toubro at Rs 1,728 all up 1% each.

On the sectoral front, all the indices were in negative territory. Infosys’s results proved to be a severe dampener for the IT index, which plunged 6% to 6,303. The scrip dropped 8% to Rs 3,028, and contributed 170 points to the total loss on the Sensex. Wipro declined 5% to Rs 451, while HCL Technologies shed 4% at Rs 480. Core Projects slipped 3%, while Oracle Financial and TCS shed more than 1% each.

Sharing his views on the IT sector, Shshank Mehta, Derivatives Analyst, Nirmal Bang, said, “Brokerages such as CLSA have downgraded the Infosys stock, as Infosys could fall further. From the IT pack, only TCS looks good.”

Realty stocks also took a beating today, as the index fell 2% to 2,401. Top losers in this space were DB Realty at Rs 111 and Ackruti City at Rs 232 both down 3%, while DLF slipped 2% to Rs 246.

The Power index was one of the significant losers in the sectoral pack, with the index shedding 1% to 2,770. Significant losers on this index were Siemens at Rs 851 down 4%, GVK Power at Rs 28 and Suzlon Energy at Rs 55 both down 2%.

The market breadth was negative, with 1,137 advances versus 1,559 declines.

Speaking on the current market scenario, Mehta added, “A lot of put writing is observed at 5,800, 5,900 and 6,000 strike price; put writers who had bullish stance are squaring off. 5,900 put open interest has fallen by 15 lakh, Inflation and Infosys results are weighing on the markets.”

Source:http://www.business-standard.com/india/news/it-inflation-exert-pressure-sensex-down-312pts/132201/on

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Outsourcing and Industry Leading Technology Launched at Shopstorenow

April 15th, 2011

Shopstorenow, the leading business establishment known for ready ecommerce solution for profitable business dealings launches outsourcing for continuous profitable gains in business of all of types from manufacturing, publishing to ecommerce. The company outsources web based and fulfillment services with a leading team of professionals working with years of knowledge and experience and keeping economical systems in place for companies to take advantage in order to increase productivity, customer satisfaction and revenue savings.

“We have out powered the others offering ecommerce solution as we think a step further in doing business with those collaborating to get the best out of the e-business dealings. We outsource enterprise ecommerce solution that brings in subsequent increase in sales guaranteeing rich shopper experience with advanced discounting, redundant web servers and modules fulfilling integration necessities. With it we also outsource designing, custom development and training services along with our ecommerce solution for you, for up to the mark deployment. Try our services with the least amount of investment as we outsource almost all that is needed to successfully run a business with reduced labor costs and cutting expenses on utilities, rent, insurance, supplies but increase efficiency and core competencies of business endeavors.” Said, Andy Anand, Vice President, Shopstorenow.com

Shopstorenow however charges the nominal that is required for a service with the costs tied directly to activity and specific ecommerce solution. The customers benefit out of the lower operational costs incurred with controlled overhead costs for ecommerce solution available. Additionally, the company outsources specialists available for ASP, PHP, PERL, MySQL and HTML, CSS and Java Script programming and web designers, testers, project managers, BPO professionals and marketing managers. Thus, one valuable provider that works up to help businesses succeed in development processes, GUI art implementation, application development, plug-ins and more are available at shopstorenow.com

Source:http://www.sbwire.com/press-releases/sbwire-87467.htm

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Escondido identifies potential services for outsourcing

April 15th, 2011

Several city services have been identified as potential areas for outsourcing.

The Escondido City Council has directed department leaders to look for ways to save money and do business more efficiently, including considering outsourcing.

Community Services Director Jerry Van Leeuwen presented seven preliminary recommendations to the City Council on Wednesday night: fueling services, pool maintenance, fleet maintenance, custodial services, street sweeping, park maintenance, library services.

Van Leeuwen outlined several “guiding principles” that would be used when considering whether to outsource a service, such as requiring vendors to give preferential hiring to laid off staff, yielding significant savings and maintaining quality of services.

Van Leeuwen also noted that some outsourcing strategies would be affected by labor agreements and limited city staff resources.

A swift move was recommended for fueling services because the city has identified a vendor, no staff would be displaced and the city would avoid the costs of permitting and relocating for the existing facilities when the public works yard is moved, Van Leeuwen.

He also saw a timely opportunity for outsourcing street sweeping because a natural attrition has occurred in the department and the equipment need to replaced. Further exploration also was recommended for pool maintenance and custodial services.

Chester Mordasini, a local Teamsters president, cautioned the City Council against rushing into outsourcing. He said that while outsourcing may save the city money in a down economy, contractors are likely to charge more when the economy recovers.

Van Leeuwen recommended deferring a study of library outsourcing until next year because only one private vendor provides the service and reviews are mixed.

The city already outsources landscaping and most engineering services, City Manager Clay Phillips said.

Source:http://www.signonsandiego.com/news/2011/apr/14/escondido-identifies-potential-services-outsourcin/

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Grupo ASSA Amongst the Best 100 Outsourcing Companies in the World

April 15th, 2011

Grupo ASSA, a Consulting and Outsourcing Company which helps its clients in their Business Process Transformation through IT processes, announced that the Company was ranked by The International Association of Outsourcing Professionals (IAOP) to the ‘Leader’ category and listed as one of the World’s top outsourcing service providers on The 2011 Global Outsourcing 100 list for the third year in a row. Moreover, it was distinguished as a “Rising Star” enterprise.

To prepare the The 2011 Global Outsourcing 100 enterprise list, the IAOP does an exhaustive selection process together with an independent panel of experts which evaluate the companies capabilities of outsourcing global services provision, according to four criteria: size and growth, management capabilities, human resources competences and most importantly, customer recommendations and references.

Also, the IAOP highlights 25 companies in the world, that are reckon as “Rising Star” companies of the year, due to their dynamism, rapid growth and future projection; Grupo ASSA has been included this year, for the third consecutive year.

The 2011 Global Outsourcing 100 enterprise list was announced on The 2011 Outsourcing World Summit, in Indian Wells, California and the Ranking Global Outsourcing 100 will be published in FORTUNE magazine in May 2011.

Roberto Wagmaister, Chairman and CEO of Grupo ASSA stated that “we are honoured to continue in this year’s list, and it is a proof of our difference: the Business Process Transformation Model. Through this unique approach of Grupo ASSA, the proximity to clients and our nearly 20 years of experience, we lead the IT industry in Latin America”.

Currently, Grupo ASSA provides maintenance and application support to 40,000 end users of SAP and Oracle J.D. Edwards platforms, which belong to Global Fortune 500 companies, multinationals and large local companies in 30 countries in the world in outsourcing mode from its Delivery Centres in Latin America. This new international recognition awarded by the IAOP, adds to the Global Services TOP 100 and Great Place to Work, received by Grupo ASSA in 2008, 2009 and 2010.

Michael Corbett, IAOP Chairman, and chair of the judges’ panel, pointed that “the information provided by participants in the Global Outsourcing 100 shows the size and strength of this industry. Outsourcing is enjoying strong growth and companies are outsourcing more of their operations than ever before”.

Carlos Castilla, Vice chairman of Grupo ASSA, stressed that “belonging to the privileged group of the 25 companies considered as “Rising Stars” by the IAOP, shows our commitment as a result of being dynamic and growing constantly – fully developed capabilities in the industries in which we specialize: retail, consumer goods, healthcare and mining”.

Deborah Hamill, Senior Managing Director Global Membership de IAOP declared that “The Global Outsourcing 100 and The World’s Best Outsourcing Advisors rankings help companies make better-informed purchasing decisions with confidence because these companies have gone through a rigorous process that has put their credentials through objective scrutiny”.

Source:http://www.newswiretoday.com/news/89034/

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Outsource your 21st century business: Telstra

April 15th, 2011

Telstra chief technology officer, Hugh Bradlow, has called on businesses to outsource their core ICT functions to specialised companies, including Cloud operators, in order to get with the 21st century.

“The way that we have done ICT in the 20th century is not the way we need to do it for the 21st century,” Bradlow told attendees at a lunch for the American Chamber of Commerce in Australia.

Businesses risked falling prey to forthcoming “disruptive” technologies without doing so, such as increases in telecommuting, changes in videoconferencing technology and context-sensitive computing.

Instead, he urged businesses to outsource those ICT functions considered core, either specialist organisations or Cloud operators where possible.

“We have to run security for organisations,” Bradlow said. “We have an operational security group who specialise in this type of thing of 300 to 400 people and it’s very hard for organisations to replicate that.

“But we can serve people that out of our Clouds with the same capability at a margin, which makes it much more cost-effective for the organisation you’re securing.”

Bradlow’s push comes as Telstra itself looks to outsource back-office and support staff through ‘Project New’, a $290 million business revitalisation project announced by chief executive, David Thodey, at the telco’s yearly financial results briefing last year.

The company’s continued efforts to cut fat and remove superfluous internal division has reduced a staff count once more than 50,000 internal employees to around 34,000.

Though outsourcing and Cloud migration strategies have resulted in companies like Jetstar whittling their resources to as little as five in-house staff, others – like maintenance services company the Programmed Group – maintain in-sourcing is required to lower costs and retain intellectual property.

Jetstar CIO, Stephen Tames, told Computerworld Australia that the budget airline’s IT outsourcing strategy, which has been in place since the company was first erected as a Qantas subsidiary, had on-flow effects to the wider group’s investigation of business service outsourcing.

Tames was also focused on developing the strategy as an “IT-as-a-service” approach, delivering the same capabilities to franchisees of the airline’s brand across Asia Pacific for a fee.

Telstra’s view on outsourcing also appears to have influenced its application platform strategies, with Bradlow likening the telco to shopping centre conglomerate Westfield.

“Westfield makes it money out of the enabling environment: The buildings, the airconditioning, the parking, the road; I’m able to draw some analogies between what we do with network capability, quality of service and those types of things and that enabling environment,” he said.

The mentality differed to that of European carriers, which had attempted to control the application store environment established by mobile phone manufacturers by establishing its own wholesale application catalogue, one which is yet to be considered successful against the likes of Apple or Google.

Bradlow thwarts emergency services’ call for spectrum

Bradlow also joined the throng of telco industry players opposing the possible use of 700MHz spectrum for emergency services use.

The Police Federation of Australia in December called for the Australian Communications and Media Authority (ACMA) to set aside two 10MHz bands in the 126MHz of the spectrum, set to be auctioned as part of the digital dividend in 2013, for use by law enforcement and emergency services.

However, its call was thoroughly lambasted by the communications industry, with Communications Alliance chief executive, John Stanton, labelling the proposal a “policy fumble of gothic proportions” at the recent Commsday Summit in Sydney.

The Australian Mobile Telecommunications Association also called for “urgent” talks on the issue.

Bradlow this week said the proposal by the police association made no sense.

“That, to my mind, would be an absolute disaster because spectrum is the scarce resource and to give to an organisation that has part-time use and can never afford a network with the capability, the size and capacity we can by sharing it across the entire population seems to be a big waste of resources,” he said.

“We are working on solutions that would allow the emergency service organisations to share our network and to get the information they need in emergency situations. That is the most viable way forward both for their customers – us – and for them, by pooling that investment we’ll get the best outcome.

Source:http://news.idg.no/cw/art.cfm?id=6199742F-1A64-6A71-CE42B06D445EA20D

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Problems at outsourced Indian passports, visa centres

April 15th, 2011

Teething problems have hit the newly outsourced Indian passport and visa service centres, expected to cater to around 300,000 applicants in a year, Gulf News has learnt.

Many residents who had to wait for hours complained about the poor quality of service, such as delays and ignorance of the staff. When contacted, the two Indian diplomatic missions said that the delays were mainly due to technical glitches and that the issue was being sorted out.

On March 16, the Indian diplomatic missions announced that the management of the Indian Passport and Visa Service Centres, which has been under Empost since 2009, would go to a new agency BLS International.

BLS started operations on April 6. They handle the collection and dispatch services of Indian passport and visa applications and are in charge of answering all queries related to their service through their number 04-3594000.

Standard

“The services rendered by BLS International for the renewal of passports and other services is not up to the standards,” Hariette D’Cunha, a resident who went to the BLS centre in Abu Dhabi two days ago for passport renewal, said.

Empost had been providing good services without any hassles, she said. “They seem to be inexperienced and unable to manage the services.”

D’Cunha said that she reached the centre at 6pm on Tuesday only to be turned away since there were already too many people waiting. The next day her family returned and had to wait from 2pm until 9.30pm, she said.

M.K. Lokesh, the Indian Ambassador, told Gulf News that the Embassy was working with BLS International to sort out the problems.

“About 90 per cent of the problems related to the services have already been sorted out,” he said. The ambassador said the visa issuance has been going smoothly. “There are some teething problems related to the passport services but we are making all efforts to sort them out soon,” Lokesh said.

“There were about a hundred people standing outside the centre since morning when I visited the centre. … the staff at the centre was clueless,” said Mahmoud, a resident who had gone to the Bur Dubai centre.

Data upload: Official explains glitch

An Indian embassy official said that the glitch was related to difficulties in uploading some data fields into the system. “It will also take some time for the staff to become well-versed in dealing with the rush,” the official said. Despite repeated attempts, BLS officials could not be reached for comment yesterday.

Compared to Empost, which was the previous service provider, BLS is offering the services at a 25 per cent reduced rate. In addition to the passport fee, the service charge for passports have been reduced to Dh9 from Dh12 and for the visa to Dh37.50 from Dh50.

Source:http://gulfnews.com/news/gulf/uae/community-reports/problems-at-outsourced-indian-passports-visa-centres-1.792769

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