Posts Tagged ‘Infosys’

Infosys denies allegation that it discriminated against Harley contract worker

July 15th, 2014

Infosys Ltd., an IT staffing firm hired by Harley-Davidson Inc. to outsource its internal IT functions, is denying claims after being sued for discrimination in a class action lawsuit over its practices in staffing the Milwaukee motorcycle manufacturer’s project.Outsourcing22

Kelly Parker, a former contract worker, and Brenda Koehler, of Milwaukee, allege in the lawsuit that the outsourcing firm discriminated against American workers a year ago by replacing them with workers from South Asia. Infosys, which is based in India, has disputed the claims saying that the company faced a talent shortage in the U.S.

The case was filed in the U.S. Eastern District Court of Wisconsin in August 2013.

“Selection was based on skills and experience of the individuals. We reject any accusation that Infosys discriminates against applicants or employees based on their nationality or race,” according to a statement by Tara Kozak-Lindsay, a spokeswoman for Infosys. “When we use H-1B visas to bring people with specific skills for short term engagements to work on projects for our clients, their salaries meet or exceed US Department of Labor mandated minimum levels for respective job categories. In addition, we recruit US residents to support our growing business. Today we have over 440 active openings across 20 states in the US for local hires.”

At the time, Infosys had 17 locations and the center was expected to train 125 people, but Harley laid off 125 of its employees and of those, 83 were expected to have “preferential consideration” for Infosys jobs.

Infosys did not identify how many workers were hired onto the project, but Harley confirmed that some were hired.

“We told them that they had to create a data center in Milwaukee, which it did,” said Maripat Blankenheim, Harley’s director of external communications. “It had to look at the existing employees, but they were not required to take them. A lot of our employees got jobs here. It’s not that we wanted to shed those employees; we actually hired some back in newly created positions. So it was a net gain of Harley-Davidson employees to manage the work.”

But the federal lawsuit alleges that at least one of the Harley contract workers was discriminated against.

According to federal court documents, Parker worked for another third-party contractor, Enterforce Inc., that Harley had used to provide global information services to its internal customers before it hired Infosys Ltd.

Parker, who performed contract work at Harley’s Tomahawk location from February 2012 through May 2013, interviewed with Infosys for the position she was already performing twice, but it never hired her, according to the complaint. The complaint also alleges that Parker trained a man who was an Indian national who then took over her duties, and in August 2013 Parker was fired by Infosys because her desk area wasn’t tidy and she was late to work one day.

In November 2013, Infosys paid $35 million to settle claims made in another federal suit that it fraudulently used methods to get “cheap visitor visas for its personnel,” according to a story by CNBC. That case stemmed from the actions of former Infosys employee-turned whistleblower that helped lead to a backlash against the use of H-1B and other visa programs.

Infosys denied guilt in the case, but it paid the largest amount for an immigration case.

Source:http://www.bizjournals.com/milwaukee/news/2014/07/14/infosys-denies-allegation-that-it-discriminated.html?page=all

India’s Infosys profit up 21% on US deals

July 11th, 2014

Indian outsourcing giant Infosys reported on Friday a better-than-expected 21 per cent jump in quarterly net profit, after winning new deals from US clients.Outsourcing18

The Nasdaq-listed firm said consolidated net profit climbed to 28.86 billion rupees ($481 million) in April-June from 23.74 billion rupees in the same period a year earlier.

Shares in the firm surged 4.16 per cent to 3429.35 rupees in response to the announcement.

India’s second largest IT services exporter by sales, which is based in the southern high-tech city of Bangalore, said it had signed 61 new clients in the quarter.

The results come after Infosys last month announced a new chief executive and said its co-founder N R Narayana Murthy was stepping down as executive chairman following a string of high-profile departures.

Vishal Sikka, a former top executive from German giant SAP, takes over as chief executive next month.

Murthy left after returning from retirement as executive chairman in June last year to help revive the company’s fortunes.

Infosys — created three decades ago by Murthy and six others around a kitchen table — has been losing market share to rivals such as Tata Consultancy Services and HCL.

In October, it said it would pay $34 million to the US government to settle an investigation into alleged visa fraud by the company.

Many of India’s IT outsourcing firms have reported subdued growth in recent years due to a global economic slowdown.

Source:http://www.channelnewsasia.com/news/business/india-s-infosys-profit-up/1254556.html

Infosys beats estimates, Q1 profit rise 21.6 pc

July 11th, 2014

Software behemoth Infosys posted a YoY growth of 21.6% with Net profit at Rs 2,886 crore for the quarter ended June 30, 2014 riding on outsourcing contracts it bagged.Outsourcing17
Beating estimates and despite high employee attrition, Infosys revenues were Rs 12,770 crore for the quarter, registering QoQ growth of 0.8%. Q1 revenue growth was at 13.3% YoY in INR terms.

India’s second largest software exporter’s FY 15 revenues are expected to grow 7%-9% in USD terms; 5.6%-7.6% in INR terms.

Its Earnings per share (EPS) was Rs 50.51 for the quarter ended June 30, 2014

According to the company, Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of  deposits and government bonds were Rs 29,748 crore as on June 30, 2014 as compared to Rs 30,251 crore as on March 31, 2014.

Infosys and its subsidiaries added 61 clients during the quarter and 11,506 employees (gross) during the same period.

The company has 161,284 employees as on June 30, 2014 for Infosys and its subsidiaries.

“We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realization.” said S. D. Shibulal, CEO and Managing Director.

“As I transition the CEO mantle to Vishal, I am confident that he will leverage this strong foundation to take Infosys to greater heights. I wish him the very best.”

U. B. Pravin Rao, COO, said: “We saw positive trends in our large deal wins during the quarter. We believe that this momentum will hold us in good stead as we focus on increasing volumes.”

“Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent,” he said.

Rajiv Bansal, CFO, said: “We improved operational performance as a result of our cost optimization initiatives and a focus on increasing productivity and utilization. This partially offset the impact of compensation increases for our employees this quarter.” said . “It will help us invest in areas that will accelerate growth.”

Source:http://indiablooms.com/ibns_new/finance-details/508/infosys-beats-estimates-q1-profit-rise-21-6-pc.html

Infosys Technologies Now Covered by Analysts at Stifel Nicolaus

July 11th, 2014

Stock analysts at Stifel Nicolaus assumed coverage on shares of Infosys Technologies  in a report issued on Tuesday, TheFlyOnTheWall.com reports. The firm set a “hold” rating on the stock.Outsourcing16

Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a “neutral” rating on shares of Infosys Technologies in a research note on Thursday, June 19th. They now have a $57.00 price target on the stock. Analysts at Jefferies Group initiated coverage on shares of Infosys Technologies in a research note on Friday, April 25th. They set a “buy” rating and a $60.00 price target on the stock. Three investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. Infosys Technologies has an average rating of “Buy” and a consensus price target of $60.67.

Infosys Technologies opened at 55.03 on Tuesday. Infosys Technologies has a 52-week low of $42.02 and a 52-week high of $63.20. The stock’s 50-day moving average is $53.20 and its 200-day moving average is $55.63. The company has a market cap of $31.444 billion and a price-to-earnings ratio of 18.15.

Infosys Technologies last posted its quarterly earnings results on Tuesday, April 15th. The company reported $0.85 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.80 by $0.05. The company had revenue of $128.75 billion for the quarter, compared to the consensus estimate of $129.14 billion. During the same quarter last year, the company posted $0.78 earnings per share. Infosys Technologies’s revenue was up 23.2% compared to the same quarter last year. Analysts expect that Infosys Technologies will post $3.29 EPS for the current fiscal year.

Infosys Limited (NASDAQ:INFY), formerly Infosys Technologies Limited, provides business consulting, technology, engineering and outsourcing services.

Source:http://www.wkrb13.com/markets/332394/infosys-technologies-now-covered-by-analysts-at-stifel-nicolaus-infy/

Infosys Q1 profit up 21.6 pct, retains annual forecast

July 11th, 2014

Infosys Ltd , India’s second-largest software services exporter, beat estimates with a 21.6 percent rise in quarterly net profit and retained sales growth outlook for this year on surging demand for outsourcing services.Employees walk in front of a pyramid-shaped building at the Infosys campus in the Electronic City area of Bangalore

Infosys, which named Vishal Sikka, a former senior executive at German software company SAP AG (SAPG.DE), as CEO last month, has been reeling under a staff exodus and loss of market share to rivals.

The staff departures are a major worry for the company, which saw its annualised staff attrition rate touching a record high of 19.5 percent in the quarter ended June 30 from 18.7 percent in the previous quarter.

“Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent,” Chief Operating Officer U.B. Pravin Rao said in a statement to accompany the results on Friday.

Infosys, which added 61 customers in the quarter, maintained its revenue growth forecast for the year to March 2015 at 7-9 percent, as expected.

Consolidated net profit for the quarter ended June 30 rose to 28.86 billion rupees ($480.20 million) from 23.74 billion rupees in the same year-ago period, Bangalore-based Infosys said in a statement on Friday.

The profit was higher than the 26.72 billion rupee average of analyst estimates, according to Thomson Reuters data.

Revenue in the quarter rose 13.3 percent to 127.70 billion rupees.

Infosys customers include BT Group Plc, Bank of America and Volkswagen AG.

Source:http://in.reuters.com/article/2014/07/11/infosys-results-idINKBN0FG07F20140711

Indian IT firms may report healthy revenue growth

July 9th, 2014

The top five Indian information technology (IT) services providers are expected to post healthy dollar revenue growth in the seasonally strong June quarter, following stable demand from the US and UK, which account for over three-quarters of overall sales of sales. Outsourcing8

Margins, however, may come under pressure because of wage increases in April, higher visa costs and a strengthening of the Indian rupee, said analysts.

India’s second largest software exporter Infosys Ltd is widely expected to post a 2-2.5% revenue growth in the three months ended 30 June over the preceding quarter, and also maintain its full-year revenue guidance of 7-9%, as it kicks off the earnings season for Indian IT firms on 11 June.

India’s largest IT services provider, Tata Consultancy Services Ltd (TCS), is estimated to post the highest revenue growth among top software exporters.

“TCS looks like the strongest of the pack, expect at least 5% sequential growth for them not just in June quarter, but also for September,” said an analyst at a foreign brokerage who did not want to be named.

“For Infosys, we expect a slower quarter and expect about 2.4% sequential growth—an improvement from their fourth quarter though. Infosys’s guidance will also be a crucial indicator of whether the recent top-level exits from the company have hurt them or whether it’s business as usual. When someone like a B.G. Srinivas leaves the company, it can have an impact on key client relationships.”

Infosys recently named former SAP board member Vishal Sikka as its first non-founder chief executive. He will join the company on 1 August.

Analysts with Kotak Institutional Equities Research expect “solid 4.6% c/c (constant currency) growth for TCS, while HCL Technologies Ltd will chug along with 3.9% US dollar growth”.

“Certain company-specific issues at Infosys and Wipro Ltd mean they will report revenue growth towards the lower end of the pack. We expect 1.8% and 1% c/c growth for Infosys and Wipro, respectively,” the analysts added in a 30 June note.

Analysts expect Infosys’s “margins to narrow 210 bps (basis points) on account of rupee appreciation, wage hikes and visa costs. Infosys is likely to retain its full-year 7-9% revenue growth guidance”.

One basis point in one hundredth of a percentage point.

TCS, according to the Kotak analysts, will report a “solid quarter with broad-based growth…sequential growth to accelerate to 5.1% (4.6% in constant-currency terms)” but its operating margins may decline by 210 bps due to wage hikes and rupee appreciation.

Hitesh Shah, director of equity research at IDFC Securities Ltd, expects 1-5% sequential growth for the top 5 IT firms due to a healthier demand environment for IT outsourcing in key markets like the US and Europe.“TCS would be at the higher end with about 5% growth and Wipro at the lower end with about 1%. Infosys, TechM (Tech Mahindra Ltd), and HCLT (HCL Technologies) would report 2-3% qoq growth. Small and mid-cap companies are estimated to report a wider gap in qoq USD (US dollar) revenue growth (-3% to +5%),” said Shah. He, however, added that wage hikes, US visa costs and rise in the rupee could affect margin in the June quarter.

Companies that have increased wages from 1 April are likely to report 220-450 bps sequential decline in margins, according to Shah. Hence, those with no wage hikes—TechM and HCL Tech—“are better placed in Q1FY15”.

According to a 30 June note by Motilal Oswal Securities Ltd, revenue growth for Tech Mahindra, Persistent and KPIT Technologies Ltd will be muted, while margins will decline.

Tech Mahindra, the note said, “will suffer from the base effect of Comviva, a single project execution and one-month impact of discontinued BT amortization—collectively upwards of $10m; KPIT is likely to suffer from a change in scope of work from its Telematics account in India; while Persistent is facing a decline in IP-led revenue on a strong 4Q base and also deferral in execution of certain projects due to delayed visa issuance”.

Ashwin Mehta and Pinku Pappan of Nomura Securities Co. Ltd, in a 1 July note, have forecast Infosys to retain its guidance of 7-9% dollar revenue growth for fiscal 2015, and expect TCS to “reiterate its bullish outlook on FY15F growth”, on the back of growth in the US and better growth in the BFSI (banking, financial services and insurance) sector.

Analysts expect Wipro to guide for 2-4% sequential dollar revenue growth in the June quarter on the back of “recent strong deal flow announcements”. They have forecast Cognizant Technology Solutions Corp. to “keep its FY14 revenue growth guidance unchanged at 16.5%+ and guide for a 5%+ growth for 3QFY14F”.

On Tuesday, Infosys shares lost 0.30% to close at Rs.3,333.80 apiece on BSE. TCS closed down 1.36% at Rs.2,449.70 per share, while Wipro fell 1.26% to close at Rs.550.65 per share, and HCL Technologies ended down 2.24% at Rs.1,474.25 per share. The BSE IT Index lost 1.05% to close at 9,455.41 points, while the benchmark Sensex ended down 1.98% at 25,582.11 points on Tuesday.

Source:http://www.livemint.com/Industry/19WAIEBl1BbCNOtPghm2kM/Indian-IT-firms-may-report-healthy-revenue-growth.html

Infosys new CEO’s tech background may be key in getting the Indian firm back on track

July 3rd, 2014

Tech visionary and former SAP CTO Vishal Sikka is the new CEO of Infosys. His credibility as a technical professional could help win customers’ trust, and ultimately transform the IT services firm. Outsourcing32

After being led by cofounders for three decades since its inception, India’s second-largest IT services firm, Infosys, has hired an outsider CEO. Vishal Sikka, until recently the chief technology officer at SAP AG, will take over on August 1, 2014, replacing cofounder S.D. Shibulal. Infosys executive chairman Narayana Murthy is also leaving the company.

The $8.25 billion-in-revenues Infosys is a key player in the global IT services outsourcing industry with nearly 900 customers in 30 countries. However, the market-leading firm has been floundering in recent years. Even as the founder-driven firm prepared for a leadership change, a series of top-level executive departures and high attrition levels of 18% have compounded the crisis. Its market share has fallen, and the firm has had four consecutive years of shrinking profit margins.

Sikka, 47, needs to give Infosys a much-needed leadership overhaul and get it back on track as the smoothly-running services engine once favoured by customers. The firm counts Nike, Levi’s, Kimberly-Clark, and Toyota among its customers.

Regaining the old momentum will be the new CEO’s primary challenge and a tricky one. The industry is shifting around Sikka even as he attempts to get the company on a solid footing, said Partha Iyengar, country manager for research at Gartner India. “Infosys needs to create some organizational agility, which can only come through a very effective and decentralized sales engine,” said Iyengar. Regional leaders will have to be given the latitude to make quick decisions by themselves.
Customers are waiting to see how the situation evolves. Key markers like attrition level, senior level executive exits, and client growth numbers will provide its clients with good insight into whether the leadership change game plan is working.

“Explore extending work with the firm only after the situation settles, and you know the gamble is working (four to six months), they are in a delicate situation today,” said Sudin Apte, research director and CEO of Offshore Insights, a Pune-based IT consultancy, in an advisory to customers.
The leadership succession was originally scheduled for 2015 when the current CEO Shibulal was to retire, and the sudden changeover could surprise some clients. “However, there is no need for a Plan B to replace Infosys just yet,” said Apte. In the coming months, customers could continue evaluating the services of the company.

CEO-designate Sikka, who was instrumental in building SAP’s groundbreaking cloud-based database management system called HANA, is likely to focus on pitching innovative solutions to customers, which could stabilize revenues in the besieged company.

Having a technology professional as its CEO might help Infosys refashion its strategy. From the market standpoint, Sikka’s credibility as a technology visionary will win him trust from customers, said Karthik Ananth, director at consultancy firm, Zinnov Management Consulting. “For the last four years, Infosys has been talking about innovation, products, and platforms — now the market will take them seriously.” Customers would be more willing to discuss complex business challenges with the firm if Sikka consolidates with a new team that has technology depth, said Ananth.

Products currently accounting for a miniscule 6% of the firm’s revenues could get more focus. Until now the company earned most of its $8 billion revenues by developing solutions around product software for its customers. Sikka has been quoted as saying that the line between software products and software services are rapidly blurring.

For Infosys, the changeover will be a transformation. For the first time its cofounders will all have exited executive positions in the Bangalore-headquartered company. That includes its primary founder Narayana Murthy, who hauled himself out of retirement last year to take charge of the firm. Sikka will be able to make a fresh start. His base in the Silicon Valley, close to the technology ecosystem as well as Infosys’ main customer base (the US), may give him an advantage as he navigates the 160,000-employee company out of a morass.

Source:http://www.techrepublic.com/article/infosys-new-ceos-tech-background-may-be-key-in-getting-the-indian-firm-back-on-track/

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