Mahindra Satyam (up 2.31%), HCL Technologies (up 2.30%), TCS (up 1.59%), Wipro (up 1.25%), Infosys (up 1.08%) and Tech Mahindra (up 0.97%), edged higher.

The BSE IT index was up 1.07% at 5,055.52. It outperformed the Sensex, which was down 1.15% at 16,172.70.

The BSE IT index had outperformed the market over the past one month until 22 September 2011, gaining 6.19% compared with the Sensex’s 0.12% gain. The index had underperformed the market in past one quarter, sliding 12.86% as against 6.78% decline in the Sensex.

The partially convertible rupee was at 49.82/83 per dollar, after hitting 50 in a one-off deal, its weakest since 14 May 2009. The rupee had closed at 49.57/58 on Thursday, 22 September 2011. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion’s share of revenue from exports.

Infosys executive co-chairman S. Gopalakrishnan on 8 September 2011 said clients are unlikely to cut their technology budgets for 2011, though they may end up cutting them for next year. He also warned that clients may hold back spending budgets earmarked for this year. Infosys had earlier said that it is witnessing delays in decision-making by clients.

TCS on 13 September 2011, said the demand for outsourcing technology services continues to be good, although economic uncertainties in Europe remain the biggest concern for the technology major. TCS is cautiously optimistic about the demand for outsourcing services as clients remain wary of spending in an uncertain economic environment, S. Ramadorai, vice chairman, said in a media interview.

The National Association of Software and Services Companies, or Nasscom, the main software trade body on 23 August 2011 reiterated its estimate of the industry recording 16%-18% growth in export revenue this fiscal year. Nasscom had in February 2011 forecast the industry’s export revenue at $68 billion-$70 billion for the fiscal year that started on 1 April 2011. Nasscom has reiterated estimate of growth in export revenue this fiscal year despite fears of economic troubles in the main outsourcing markets viz. the US and Europe.

Source:http://www.indiainfoline.com/Markets/News/IT-shares-reboot-as-rupee-hits-50-against-dollar/3945528741

Chetan Dube, a former associate professor of mathematics at New York University, thinks he can teach IT services providers a lesson. Using artificial intelligence and humanoids, he is revolutionising the way computer networks are managed and making the low-cost business model of Infosys, Wipro and IBM look like relics of the past.

Dube, 42, and his company IPSoft operate in the area of IT infrastructure management, a fast-growing and lucrative part of the outsourcing business that Indian companies are keen to make deep inroads into. IPSoft stands in the way. “The last decade belonged to labour arbitrage; this decade belongs to advanced automation arbitrage,” Dube told ET in a telephone interview from New York, where IPSoft is headquartered.

A testament to this claim is the fact that IPSoft employs only 1,400 people for revenues of $700 million (Rs 3,400 crore). In comparison, Indian IT services companies typically employ at least 15,000 staff for each $1 billion in revenue.

IPSoft, founded in 1998 by Dube and his colleagues from New York University, pulls this off by relying heavily on expert systems that mimic the human brain. They are capable of self-healing, self-learning and autonomously solving a majority of the problems that arise on computer networks. And IPSoft’s correlation engines do what the human brain just cannot: pick trends by analysing hundreds of pieces of information all at once to diagnose and solve problems. Nearly two-thirds of all problems on computer networks are being solved by IPSoft with no human intervention at all, said Dube who studied electrical engineering at IIT Delhi.

The global market for managing computer servers, desktops and communication networks is worth around $25 billion at present and expected to grow to $45 billion in the next four years, according to research firm Gartner.
India’s export of remote infrastructure management services was worth $4.3 billion in 2010 and the segment employed nearly 1 lakh people, data from Nasscom show.

Humanoid Vs Humans

Humanoid Eliza can identify problems, have natural conversations with users and solve them in few seconds compared with a few hours taken by human engineers

At current rate, IPSoft will reach a billion dollar in revenues with just 2000 staff while Indian outsourcing fi rms typically employ at least 15000 staff for every billion dollar in revenues

Source:http://economictimes.indiatimes.com/tech/ites/using-humanoids-ipsoft-making-the-low-cost-business-model-of-infosys-wipro-and-ibm-look-like-relics-of-the-past/articleshow/10084453.cms