Posts Tagged ‘Indian’

TCS, Cloudera tie up to provide analytics services

August 26th, 2014

Tata Consultancy Services Ltd (TCS), India’s leading software services exporter, has tied-up with US-based Cloudera, an enterprise analytics data management provider, to offer Big Data and analytics services globally.

As part of the deal, TCS’s global team of Big Data experts will be certified through the Cloudera Certified Professional (CCP) programme, and its products will be validated through the Cloudera Certified Technology Programme (CCTP), TCS said on Monday.

While Satya Ramaswamy, global head for TCS Digital Enterprise said Big Data “is playing a central role in helping enterprises re-imagine their businesses”, Tom Reilly, chief executive officer of Cloudera, said the TCS’s investment in Cloudera has made it “the world’s largest group of Cloudera certified professionals”.

TCS is banking on revenue from emerging technologies such as social, mobility, analytics and cloud (SMAC) to stay ahead of the pack. In June 2013, it set up a separate digital enterprise unit in Silicon Valley to club its SMAC computing technology services under a single roof. outsourcing12

Last month, TCS said in a global trend report that digital spending by enterprises globally is expected to be a $113 million in 2014, as these organizations see digital initiatives, such as Big Data, analytics, cloud computing, mobile and pervasive computing, social media, robotics and artificial intelligence, as being crucial to their business success in this decade.

According to a February report by research firm Offshore Insights, Global 2000 firms will spend 15-16% of their information technology (IT) services and outsourcing budgets on SMAC and India will export $15 billion worth of SMAC software and services in fiscal 2017, despite SMAC currently accounting for less than 10% of the revenue of IT services firms.

According to global research firm International Data Corp. (IDC), Indian IT vendors will generate at least $225 billion in SMAC-related revenue in 2020. TCS made the announcement after market hours. On Monday, shares of TCS closed up 2.42% at Rs.2,521.15 on the BSE, while the benchmark Sensex index rose 0.07% to close at 26,437.02 points.


Sydney Trains signs $35m outsourcing deal with HCL

August 14th, 2014

Sydney Trains has awarded Indian IT outsourcer HCL Technologies a five-year, $34.9 million deal to maintain and support 107 of the agency’s legacy applications.

Late last year the rail operator went to market for offers to replace a network of 11 different external suppliers which had been supporting and maintaining the suite of customised and bespoke business applications inside the freshly re-branded agency (formerly CityRail).

“These contracts had been in place for varying periods of time and so there was an opportunity to go back to the market and consolidate our approach and vendors,” a Sydney Trains spokesperson told iTnews.

It marks the first time HCL has partnered with Sydney Trains on this specific program of work.

The spokesperson said while the work would be performed offshore under the new contract, a number of the previous 11 vendors had also been located offshore and used offshore models to support the applications in scope.

The agency said no Sydney Trains staff would be impacted by the change.

The spokesperson would not comment on the privacy and security implications of offshore workers accessing the data residing in the business-critical applications, saying only that “appropriate data and security controls are in place”.

The partnership follows a recommendation from the 2012 NSW Commission Audit, which found 130 corporate systems in use across the transport cluster, and suggested that amount be reduced to between 8 and 24 in order to reap annual savings of $100 million.


UK public sector starting to spread the ICT spoils

August 8th, 2014

Mid-sized companies are starting to outperform the leading IT suppliers to government, according to a report by analysts from TechMarketView.

Indian IT firms such as TCS and HCL saw their public sector revenues grow by 24 percent and 22 percent respectively last year, while mid-sized providers Computacenter and Dell reported public sector revenues up by seven and eight percent each.

Smaller software providers such as Advanced Computer Software (up 25 percent), Allocate (up 15 percent) and UNIT4 (up four percent) all reported strong growth in the public sector too.

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While revenues to the UK public sector IT market as a whole fell by 0.3 percent, the top 20 suppliers’ revenues in this sector fell by 2 percent.

TechMarketView said that these statistics prove show that “middle-ranking players just outside the top 20 are outperforming the leading suppliers”.

Despite this overall decline, the report found that Capita beat the trend with an 11 percent rise in sector revenue to £1.6 billion, making it the biggest IT provider to the UK public sector.

The firm beat HP which was ranked second due to a 10 percent decrease in public sector IT revenue to £1.5 billion.

Capgemini earned £1 billion from the UK public sector IT market followed by Fujitsu which took £889 milion last year. BT, IBM, Atos, Serco, Microsoft, CGI, Steria and Oracle were next in the rankings, in declining order by revenue.

Capita’s success is partly down to its focus on local government over Whitehall and the fact that it primarily provides business process outsourcing as opposed to ICT, which is subject to stricter Cabinet Office controls, the report said.

Notable wins for Capita in the last year include the Scottish Wide Area Network, a major contract with Transport for London and a Cabinet Office joint venture called Axelos.

It also has major local government contracts in Birmingham, Barnet and West Sussex, although Birmingham City Council recently took elements of its outsourced service back in house and the contract with Barnet was challenged in court last year.

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HP has suffered as a result of its reliance on central government for 93 percent of its public sector revenues. It is the IT supplier most impacted by the Cabinet Office’s policy of breaking major legacy IT outsourcing contracts into smaller contracts with a range of providers, the report said.

Of the top 20 companies, 12 reported declines in their revenues for the last financial year, averaging at a drop of two percent. Aside from HP, the firms that experienced the sharpest declines were RM (8 percent), CGI (7 percent), Capgemini and Steria (6 percent each).

Suppliers who have managed to increase their public sector IT revenue include Atos (4 percent), Serco (1 percent), Microsoft (1 percent), Lockheed Martin (4 percent) and Northgate (7 percent).

The list also includes a new entrant – Agilisys- which earned £136 million from the public sector last year. Notable deals include a £5.7 million contract with the Legal Aid Agency and an agreement in partnership with BT to provide ICT services to the London tri-borough authorities.


Indian banks to raise IT spending by 10% in 2014 – Gartner

August 8th, 2014

Indian banking and securities companies will spend 470 billion rupees on IT products and services in 2014, an increase of more than 10 percent over 2013 revenue of 426 billion rupees, according to Gartner, Inc. This forecast includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications.

IT services is the largest overall spending category at almost 155 billion rupees in 2014 which confirms the strong focus on the banking industry by IT services providers, many of which are leveraging their prominent international exposure within this domestic market.

However, internal services (the expenditure of banks for internal IT staff) is forecast to achieve the highest growth rate amongst the top level IT spending categories – at 17.5 percent in 2014.

“The expansion strategy of banks is entering its peak in India with the release of two new bank licenses granted by the Reserve Bank of India (RBI) to IDFC and Bandhan Financial Services. There are another two dozen financial institutions still waiting for the same grant,” said Vittorio D’Orazio, research director at Gartner. “The RBI will grant the license to those banks willing to penetrate the rural territory as RBI wishes to increase the bank penetration across the country. This opens opportunities for front-office technologies, such as branch-related hardware and software, but also for new intangible channels such as mobile and the internet. On the other side, we expect network equipment and storage to grow quite a bit in the data center technology segment while business process outsourcing (BPO) and IT outsourcing (ITO) will excel across the IT services line.”

Core banking systems and other back-office technologies will also be affected by this trend as IT legacies are often unable to properly manage these new channels. This explains the estimated growth of 23 percent for the vertical specific software in 2014.


Outsourcing a source of innovation: CII

July 30th, 2014

Unveiling the prowess of Indian outsourcing companies not only as a cheaper, better and faster destination but also a source of innovation, the Confederation of Indian Industry (CII), on Tuesday, began its two day event ‘Smart Outsource Expo &Summit 2014, Enhancing Business Excellence through partnerships’.Outsourcing36

Speaking during the inaugural session of the summit, CII Karnataka Chairman Sandeep K Maini said with the exponential growth of the global outsourcing industry, India has made a mark of its own globally.

“The dynamics of global business are changing, and outsourcing is no different. As markets worldwide are becoming knowledge-intensive, India has evolved to become the most preferred destination for knowledge services,” said Maini.  Banking on its skilled manpower, he said India developed knowledge process outsourcing as the biggest revenue generator and thus strengthened its position in the knowledge service industry.

Speaking on the MSME sector which comprise 75 per cent of Indian industry, Maini said small enterprises often look at outsourcing as being too expensive and beyond their means, however in reality it’s just the opposite. “India has a great many young companies that have an affinity towards building great global brands for which people are the key stakeholders and it is important to engage them better,” he said.

Besides the conventional  IT and ITES, domestic and global outsourcing market has expanded to include engineering and design, talent management, the digital edge of marketing, logistics and supply chain management, technology, operational and infrastructure management among others.

The summit is dedicated to help businesses think about how they can leverage partnerships and external expertise to enhance their own capabilities, improve profitability as well as products and services. As per Nasscom study, IT-BPM industry is set to aggregate $118 billion in the current financial year.

Speaking at the summit, Commissioner for Industrial Development & Director of Industries and Commerce, Government of Karnataka, M Maheshwar Rao, IAS said, the advantages in India for outsourcing can best be illustrated as four pillars like skill, efficiency, growing flexibility and service.

Rao said that in the near future the outsourcing trend will drift towards domestic companies looking inward and start outsourcing their high-end knowledge as well. “The future of outsourcing is not just restricted to IT and ITES.

It will include sectors like IPR, business research, analytics, legal research, clinical research, publishing, market research etc. Specialised outsourcing services will allow organisations to focus on their core businesses so that they can increase revenue and improve bottom line,” he said.

According to  Rao, the industry is slowly getting back to normalcy in Karnataka and the biggest gainers are textile industry and the food & beverages industry which registered growth (Index of Industrial Production, year-on year) of 4.65 per cent and 4.76 per cent respectively.

“The expected implementation of the State Industrial Policy (2014-19) and Infrastructure Policy will reflect positively on industrial development of the state and the state industry will see robust growth in the next 2 to 3 years,” he said.


TCS CEO N Chandrasekaran sends AS Lakshminarayanan to head TCS’ Japan business

July 21st, 2014

Tata Consultancy Services’ CEO N Chandrasekaran has deputed one of his top lieutenants, AS Lakshminarayanan, to head the company’s Japan business and grow its revenue as the largest Indian IT player looks to grow in that large and largely unpenetrated market.Outsourcing28,

Japan was a very small part of TCS’ business — with just about $100 million in revenue. But in April, the company announced it was acquiring Mitsubishi Corp’s IT arm, which has about $500 million in revenue a year, and about 2,400 employees. The deal, which closed at the end of June, gives TCSBSE 0.30 % the greatest scale of any Indian IT firm in Japan.

Lakshminarayanan, who joined TCS in 1983, has a history of being sent to build businesses from the ground up at the Mumbai-based company. He built the UK-business at TCS almost from scratch and since 2011 has been leading the emerging verticals business — including hi-tech and media and entertainment — which now accounts for over 10% of TCS’ revenue.

“I am moving from one island to another. It is a personal challenge and it is hugely exciting. In the UK, we built our platform there organically. In Japan, with the acquisition, I am being given a platform that has its advantages and challenges. We have to bring our Japanese workforce onto the TCS processes and the TCS way of doing things,” Lakshminarayanan told ET.

The challenge is not just a personal one. When Chandrasekaran offered Lakshminarayanan the job, he also issued a target — to double the company’s revenue in a set period of time.

“I can’t tell you the time frame but knowing TCS, you should know we always have plans and they are ambitious,” Lakshminarayanan said. Japan is the second-largest market in terms of IT outsourcing. Its total outsourced IT spending is about $109 bn and it has been tough for non-Japanese vendors to gain a foothold. Of the total, almost 70% is serviced by Japanese players. Indian IT’s share of business is less than 1%.

But analysts expect TCS to grow quickly after its acquisition. “I expect their internal target should be to grow that business to $1-$1.5 billion in the next three to five years,” a Mumbai-based analyst said. He declined to be identified because he is not authorized to talk to the media. TCS’ Chandrasekaran has said he expects Japan to grow to a billion dollar business in the next few years.

One of the reasons that Japan has been tough for Indian IT is the insularity of the culture. TCS is already taking steps – from town halls to translating the internal magazine to Japanese – to welcome its new employees.

“We held a town hall and there were about 2,000 employees. And a lot of young people came up to me and they were very excited about working for TCS. We’ve met clients and the initial feedback is that they are also happy. Now we have to work to convert that excitement to actual results,” Lakshminarayanan said.

Talking to employees will be an on-going process, to explain the company’s long term vision for Japan and working with the middlemanagement. Lakshminarayanan is learning Japanese and is encouraging his top management to speak in English, a language they know but aren’t very comfortable with, to smooth communication.

He is relocating to Japan from the UK for the next few years. His wife will join him once his daughter, who is in her final year at school, goes to university. TCS, through Lakshminarayanan, will be spear-heading the biggest push into Japan and growth in that new market will help the company retain its lead over the rest of the industry.

“The law of large numbers would catch up with TCS if the footprint and capability were the same as other Indian IT. The reality is that growth leadership will sustain; what sets it apart is that its addressable space is the largest among Indian IT and capabilities wellspread across the entire IT spectrum,” Kawaljeet Saluja, analyst with Kotak Institutional Equities said in a note after Mitsubishi deal was announced.


Indian Outsourcers Hope Budget Will Help Them Evolve

July 11th, 2014

India’s booming software services and outsourcing industry is hoping Thursday’s budget will give it the tools and tax incentives it needs to graduate from being just a big pool of inexpensive telemarketers and programmers.Outsourcing14

New Delhi needs to get behind the country’s biggest success story by committing  government money to rebranding the $110 billion outsourcing technology services industry as an innovation hub rather than just a cost arbitrage center, said Krishnakumar Natarajan, the chief executive of Indian software exporter Mindtree Ltd.

“For 20 years we were the back office of the world. I think we need to change from that to becoming the innovation hub,” said Mr. Natarajan, who was previously the chairman of India’s main software trade body the National Association for Software and Services Companies.

The future growth drivers for the industry will be high-end, high-margin businesses such as big data, analytics, cloud services and consulting, which many industry representatives say require a new kind of Indian company and a different nurturing environment.

Mr. Natarajan expects the government to create a technology investment fund of 10 billion rupees ($167 million) to 50 billion rupees to help support startups.

Nasscom president R. Chandrashekhar expects the government to announce an India Technology Entrepreneurship Mission which will support startups and simplifies the rules to set up business in India.

The organization also expects the government to announce measures to streamline the process of procuring technology products and services.


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