Posts Tagged ‘HCL’

Wipro likely to beat Nasscom’s growth estimates this fiscal, say analysts

July 23rd, 2014

Despite a tepid guidance for the first quarter of this year, fuelled by multi-million dollar deals in the past few months, Wipro is expected to beat Nasscom’s 13-15 per cent growth estimates for the 2015 fiscal.Outsourcing36

Analysts believe that on the back of a strong deal momentum, the company which has been growing at a lower rate than peers like TCS, Cognizant and HCL Tech is expected to bounce back this fiscal year.

In a research note, Espirito Santo Securities said that the strong deal wins in the recent quarters should drive 3-5 per cent quarterly growth guidance for the second quarter of 2015 fiscal. In the last couple of quarters, Wipro has bagged three multi-million dollar deals from companies like Citigroup for $500 million, a $400 million from Takeda Pharmaceuticals and $1.1-billion deal from ATCO.

In 2013-14, Wipro’s revenues grew 16 per cent over the previous fiscal at ₹43,755 crore, while net profit rose 17.5 per cent to ₹7,797 crore. However, this lags behind peers like TCS, which posted a 29.9 per cent growth, followed by Cognizant, which posted a 17 per cent growth in the last fiscal.

Wipro is expected to announce its first quarter results on July 24 and is in the silent period. However, in the last quarter, CEO TK Kurien had told Business Line that the way Wipro is exiting the 2014 fiscal and coupled with its strong deal pipeline, points to growth ahead.

This momentum also indicates that the turnaround strategy pursued by Kurien is on track.

Others agree. “Initiatives taken to improve internal process and an increased focus on automation, instead of depending on people additions have been successful,” said AK Prabhakar, an IT analyst.

Espirito Santo Securities also believed that win rates for large deals have improved by 50 per cent over the past two years and this is visible in higher large deal wins and improving revenues growth.

Further, these deal wins come in geographies such as US and Europe, which contributed about 79 per cent of Wipro’s overall revenues in the last fiscal year.

Sanchit Vir Gogia of Greyhound Research believes that large contracts helps Wipro get access to more high-profile deals at a time when outsourcing demand looks stronger when compared to previous years.


Cognizant hires senior experts for its IT infra

July 21st, 2014

Cognizant has hired in recent months a number of senior talent at rival companies for what is one of the most rapidly growing spaces in IT today — infrastructure management services. It’s the area that has helped HCL Technologies in recent years to dramatically raise its growth rates, and contributed to significant upsides for several others. Outsourcing27

The $8.8-billion Nasdaq-listed firm, one of the fastest growing among large IT companies in the world and which has been traditionally strong in banking and finance, and healthcare and life sciences, has roped in at least seven senior executives from IBM, Unisys, Capgemini, HCL and TCS to strengthen its capabilities in the infrastructure space.

Among these are Venu Lambu, former head of Continental Europe for HCL Technologies’ infrastructure services division, who has joined Cognizant as the VP of IT infrastructure services (ITIS) Europe; Sujit Pal, former program director of HCL America, who has come in as assistant VP; Sanjay Savla, former Unisys VP; K S Ganesan, former chief architect at IBM.

Cognizant’s ITIS division has over 15,000 employees and contributes around 7% to its overall revenues compared to HCL’s that contributes 36% to its revenues. The same figure for Wipro is 24.6%, for TCS 11.9% and Infosys 7%.

Over the last 5 years, ITIS has been growing at a scorching CAGR (compounded annual growth rate) of 50%, as per a Nasscom estimate. The Indian IT sector is estimated to have had an export revenue of $6 billion from ITIS in 2011 and the same is expected to more than double to $12.5 billion in the 2015 fiscal.

ITIS contracts involve data centre operations and services such as help desk support, desktop management, local and wide area network operations management, application development and maintenance and disaster recovery services. In recent times, the emergence of cloud computing, virtualization and mobility is changing the way IT infrastructures are designed, provisioned and maintained, and is forcing companies to be agile and flexible. This has encouraged outsourcing of these services to experts.

“We do not view infrastructure services through the traditional lens of labour arbitrage,” said Debashis Chatterjee, president-technology solutions in Cognizant. The company is leveraging on its consulting and SMAC (social, mobility, analytics & cloud) capabilities to deliver infrastructure services. Cognizant has developed platforms such as Cloud360, OnTarget and HybridIT to offer cloud-based services to enterprise computing and storage.

Cognizant owns data centres both in the US (Chandler, Arizona and Sterling, Virginia) and Europe (Slough, UK and Amsterdam, the Netherlands), apart from leveraging partner-owned data centres. The company believes there are significant market opportunities for infrastructure services in the US and more so in Europe due to competitive and cost pressures. “Most enterprise customers have currently exhausted several levers of business differentiation and understand the growing significance of technology in optimizing costs, enhancing customer engagement, and gaining market share,” Chatterjee said.

Cognizant has a multi-year agreement with Norwegian consumer goods major Orkla for IT infrastructure, applications and support services. Some significant wins in this space by other IT players include Wipro’s $100 million contract from Netherlands-based media company Sanoma, Capgemini’s 30 million euro contract from Denmark-based industrial company Danfoss, and HCL Technologies’ $400 million contract from Norway’s DNB Bank.


Chesnara expands outsourcing contract

July 9th, 2014

Life and pension books manager Chesnara has extended its contract with HCL Insurance BPO Services Ltd for a further 11 years.Outsourcing3

The new outsourcing contract with between HCL and the Preston-based group consolidates the services provided in the existing arrangements.

Chesnara said the terms agreed are in line with expectations and therefore no financial impact is expected.

Graham Kettleborough, chief executive of Chesnara, said: “We are pleased to enter into this new contract with HCL who provide excellent service to us and our policyholders.”

Justin Harrington, chief executive of HCL, added: “We are delighted have secured this extension to our relationship with Chesnara and look forward to continuing to work with them over the coming years.”

Earlier this year, Chesnara reported its pre-tax profit had soared by more than 200 per cent.


Chesnara agrees outsourcing contract with HCL

July 8th, 2014

Chesnara, the life assurance consolidator, has agreed a new outsourcing contract with HCL Insurance BPO Services which consolidates the services provided in the existing arrangements and which extends the service for a further 11 years. Outsourcing3

The terms agreed are in line with expectations and therefore no financial impact is expected.

Chesnara chief executive Graham Kettleborough said: “We are pleased to enter into this new contract with HCL who provide excellent service to us and our policyholders.

” HCL chief executive Justin Harrington added: “We are delighted to have secured this extension to our relationship with Chesnara and look forward to continuing to work with them over the coming years.”


IT stocks in demand

July 4th, 2014

Eight IT stocks rose by 0.04% to 0.74% at 9:39 IST on BSE on positive economic data in US, the biggest outsourcing market for the Indian IT firms.Outsourcing1

Tech Mahindra (up 0.74%), MphasiS (up 0.63%), HCL Technologies (up 0.62%), Oracle Financial Services Software (up 0.59%), Hexaware Technologies (up 0.46%), Infosys (up 0.41%), CMC (up 0.04%) and Wipro (up 0.04%), edged higher. However, TCS fell 0.35% to Rs 2,409.35.

The S&P BSE IT index was up 0.13% at 9,306.73. It underperformed the Sensex, which was up 0.16% at 25,865.47.

The S&P BSE IT index had outperformed the market over the past one month till 3 July 2014, rising 9.93% compared with 3.88% rise in the Sensex. The index had, however, underperformed the market in past one quarter, rising 3.68% as against Sensex’s 14.73% rise.

US employers added 288,000 workers to nonfarm payrolls in June, following a 224,000 increase in May that was bigger than previously estimated. A 1.39 million increase in employment over the past six months was the largest since early 2006, while the unemployment rate fell to 6.1%, the lowest level since September 2008.


IT shares in demand after positive US data

July 2nd, 2014

Seven IT shares rose by 0.11% to 6.32% at 9:37 IST on BSE on positive economic data in US, the biggest outsourcing market for the Indian IT firms.Outsourcing47

MphasiS (up 6.32%), CMC (up 1.76%), Wipro (up 0.62%), Hexaware Technologies (up 0.42%), Infosys (up 0.23%), Tech Mahindra (up 0.19%) and TCS (up 0.11%), edged higher.

However, HCL Technologies (down 0.74%) and Oracle Financial Services Software (down 0.20%), edged lower.

The S&P BSE IT index was up 0.24% at 9,281.37. It underperformed the Sensex, which was up 0.76% at 25,709.22.

The S&P BSE IT index had outperformed the market over the past one month till 1 July 2014, rising 9.50% compared with 5.36% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 3.63% as against Sensex’s 13.68% rise.

The Institute for Supply Management’s US factory index was little changed at 55.3 in June from 55.4 in the prior month, the Tempe, Arizona-based group’s report showed on Tuesday, 1 July 2014. Readings above 50 indicate expansion.


Companies like Citi, Accenture and HCL turning to mobile apps, social media to rope in best talent

July 1st, 2014

Polishing your CV for that dream job? Brushing up your social media profile and practising online interviewing may help more. As employers compete intensely for scarce talent, companies such as Citi India, Accenture and HCL TechnologiesBSE -0.38 % are turning to new apps, big data tools and social networking websites to acquire talent.Outsourcing23

Citi India recently adopted apps Blue Jeans and Video Recruit to enable business managers to interview candidates remotely from across locations. These apps eliminate the need for traditional video conferencing facilities, enabling candidates to connect to the interviewer via their mobiles or tablets.

“Apart from being cost-effective, such technology enables us to keep pace with the growing talent requirements by closing open positions in a timely manner,” said Sarab Preet Singh, head of recruitment, learning and development at Citi India.

Others such as Accenture are using a mobile app that has a digital interview tool with an automatic interviewer that picks random questions to interview a cross-section and collects data on the talent base. “By using this app the catchment area of our hiring reduces dramatically. It will also help us when we want to explore a new market for talent in a new city,” said Manoj Biswas, ymanaging director, human resources at Accenture.

Arecent global survey by professional services firm Deloitte on human capital trends shows that 60% of respondents have just updated or are currently updating or revamping their talent sourcing strategy while another 27% are considering changes. “Employees today have different expectations

creative companies are today discovering new ways to attract talent,” said Jeff Schwartz, global human capital leader, Deloitte USI. Recruiters realise they have to do things differently to attract and manage talent than what they were doing seven-eight years ago to expect better results.

The study shows that nearly 45% of candidates now apply for jobs on mobile devices. Most companies today use social networking websites to post job openings while the more innovative ones also leverage social media to build networks of people interested in the company that might turn into high-quality recruits.

The report also suggests that organisations can now leverage big data tools from vendors such as LinkedIn, Facebook, Entelo, Gild, TalentBin, Work4, Identified and others to identify and source quality candidates around the world.

Information technology company HCL Technologies has used in certain locations a videobased interview through a secure connection that can be conducted from a desktop and allows the interview to be recorded and assessed later. “We also make sure that we are available for conversation and engagement with the potential candidate on FB, Twitter and Glassdoor,” said Naveen Narayanan, global head, talent acquisition at HCL Technologies.

The company has also started using gaming tools to engage people who have accepted their job offer but are yet to join the organisation. It gives them a platform to engage with their peer group and others in a gaming format. “The socalled ready talent available has not really risen.

In such a scenario companies are using the social space more and more to network with groups of potential candidates on the basis of their skills and engaging more to be seen as an employer of choice. Also, employees today are expecting a lot more engagement on mobile,” said Narayanan.

DCB Bank is also changing its talent acquisition strategy to be able to do mass hiring efficiently. It is evaluating recruiting process outsourcing, use of social media, working with partners who provide the ‘hire and train’ model and new campus hiring initiatives.

The bank has adopted a unique strategy to combat the challenge of candidates opting out after accepting offers and before joining, said Hamsaz Vasunia, HR head at DCB Bank. “We are launching an induction app with superhero avtaars through which we will be able to attract the GenY and Millennial Gen. This tool will increase the engagement of the candidates with the bank and will definitely improve our selection-joining ratio,” said Vasunia.

Besides, companies such as Citi India and HCL have integrated marketing with recruiting. At CitiPhones, for instance, the company reaches out to candidates with the help of its marketing team through Facebook for walk-in interviews and also offers iPhones to its employees for maximum number of referrals.


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