Posts Tagged ‘Software’

HCL Tech quarterly profit up 32 percent, shares fall over 9 percent

October 20th, 2014

HCL Technologies Ltd, India’s fourth-largest software services exporter, posted a 32 percent rise in quarterly net profit, beating estimates, as sales in the Americas, the company’s biggest market, rose.To match Insight INDIA-OUTSOURCING/

Shares in HCL Technologies, however, closed 9.1 percent lower on Friday, as the technology outsourcing company’s revenue growth of 12.8 percent in dollar terms was below street expectations, stock market dealers said.

For most IT services companies, analysts and investors track the dollar sales numbers as clients oversees get billed in that currency.

HCL earned 18.73 billion rupees ($303.44 million) in profit in the September quarter, compared to 14.16 billion rupees last year. Analysts, on average, were expecting the profit to be at 17.29 billion rupees, as per Thomson Reuters data.

HCL relies heavily on contracts to manage data centres and networks for revenue growth, whereas peers Tata Consultancy Services Ltd (TCS.NS) and Infosys Ltd (INFY.NS) earn a greater proportion of revenue from higher-margin software services.

Source:http://in.reuters.com/article/2014/10/17/hcl-techno-results-idINKCN0I608620141017

HCL Technologies Q1 net profit grows 2.1% QoQ, 32% YoY to Rs 1873 crore

October 17th, 2014

India’s fourth largest software services provider HCL TechnologiesBSE -7.97 % today reported 32.3 per cent rise in consolidated net profit at Rs 1,873 crore for the first quarter ended September 30 on the back of strong growth in Europe and business services. Outsourcing27

The company had posted a net profit of Rs 1,416 crore in the year-ago period, it said in a BSE filing.

Consolidated revenues grew 9.7 per cent at Rs 8,735 crore in the July-September quarter of this fiscal as against Rs 7,961 crore in the same quarter of the previous fiscal.

The firm follows July-June as the fiscal year. In dollar terms, net profits rose by 36.1 per cent to $307.2 million in the first quarter of the current fiscal as against $225.6 million in the year-ago period.

Revenues rose by 12.8 per cent to $1.43 billion during the review period from $1.27 billion in the corresponding quarter last fiscal.

“We have posted another healthy quarter of broad-based growth led by a revenue increase of 3.2 per cent quarter-on- quarter in constant currency,” HCL Technologies CEO Anant Gupta said.

Customer acquisition momentum continues with yet another billion dollar quarter driven by strong growth in global infrastructure services at 16.9 per cent year-on-year and engineering and R&D services at 14.1 per cent y-o-y, he added.

“Going forward, our investments will continue in the three strategic markets of ITO, Engineering Services Outsourcing and the emerging Digitalization space which will enable a continued balanced business portfolio performance for the company,” he said.

Revenues from Europe grew 20.8 per cent y-o-y, while that from Americas grew 11.1 per cent during the said quarter.

Americas crossed the USD 3 billion in revenue milestone on LTM basis.

HCL Technologies added 11,631 employees (gross) during the September quarter taking the total headcount to 95,522.

It signed 15 transformational engagements with more than USD one billion of Total Contract Value in this quarter.

The company has declared an interim dividend of Rs 6 per equity share of Rs 2.

“HCL’s performance has exceeded the market expectations. It’s showing signs of healthy growth but not industry leading as yet,” Greyhound Research Chief Analyst and Group CEO Sanchit Vir Gogia said.

The company holds a strong foothold in infrastructure management which has been generating a steady stream of revenue for the company, he added.

Source:http://economictimes.indiatimes.com/markets/stocks/earnings/hcl-technologies-q1-net-profit-grows-2-1-qoq-32-yoy-to-rs-1873-crore/articleshow/44845006.cms

‘India’s IT spending to grow 9.4% to $73bn in 2015’

October 16th, 2014

IT spending in India is projected to rise to $73.3bn in 2015 – a 9.4% increase from the $67.1bn forecast for 2014, said US information technology research and advisory firm Gartner.Outsourcing25

“India is forecast to be the third largest IT market within the Asia/Pacific region by the end of 2016 and will further progress to become the second-largest market for IT by the end of 2018,” said Peter Sondergaard, senior vice president at Gartner and global head of research.

“Much of the growth from being the number four market in Asia/Pacific to number three is likely to happen in 2015,” he added.

“IT spending in India is on pace to increase 2.9% this year, primarily on the back of strong growth within the IT services and software, which will grow 10.5% and 9.6%,” said Partha Iyengar, distinguished analyst and Gartner India head of research.

In 2014, mobile devices will grow 13.5%, and will dislodge mobile voice services to be the largest segment within the overall IT market in India, Gartner said.Mobile data services will be the fastest growing segment in India, growing 18.2% in 2014. Telecommunication services will account for 41.4% of overall IT spending, and it will decline 0.7% in 2014, it added.

“The impact that the digital business economy is having on the IT industry is dramatic. Since 2013, 650mn new physical objects have come online. 3D printers became a billion dollar market; 10% of automobiles became connected; and the number of chief data officers and chief digital officer positions have doubled. In 2015, all of these things will double again,” Sondergaard said.

Gartner defined digital business as new business designs that blend the virtual world and the physical worlds, changing how processes and industries work through the Internet of Things.

“This year enterprises will spend over $40bn designing, implementing and operating the Internet of Things,” Sondergaard said.

“Every piece of equipment, anything of value, will have embedded sensors. This means leading asset-intensive enterprises will have over half-a-million IP addressable objects in 2020.”

Source:http://www.gulf-times.com/eco.-bus.%20news/256/details/412359/%E2%80%98india%E2%80%99s-it-spending-to-grow-94%25-to-$73bn-in-2015%E2%80%99

IBM, SAP Team Up to Deliver Software as a Service Over Internet

October 15th, 2014

Companies in some countries are getting particular about where their data is stored, a trend that SAP SE SAP +0.53%  and International Business Machines Corp. IBM +0.15%  hope to turn to their advantage.Outsourcing20

The longtime partners on Tuesday said SAP will use IBM-operated facilities in addition to its own to deliver SAP software as a service over the Internet. IBM became a bigger player in such operations, known as cloud computing, when it acquired SoftLayer Corp. last year. It expects to deploy 40 data centers to supplement 20 facilities operated by SAP.

IBM’s data centers include sites in Germany, France, England and the Netherlands. Customers in such countries have become increasingly adamant that the cloud services they use store data in their own countries.

Such concerns as well as laws passed by some European governments have come to the fore since disclosures began in mid-2013 about data-collection practices by the U.S. National Security Agency and other intelligence services.

“We found that nearly every jurisdiction has some location or compliance requirements,” said Erich Clementi, an IBM senior vice president in charge of global technology services.

Kevin Ichpurani, an SAP senior vice president, said the IBM deal “allows us to address the data sovereignty issues.”

But moves to require local computing facilities conflict with the longtime concept of a borderless Internet, which stresses speed and efficiency rather than geographic preferences. Companies like Google Inc. GOOGL +0.72%  have argued against a trend they say creates unnecessary costs and complexity.

Eric Schmidt, Google’s executive chairman, warned recently of ”huge” costs of what he characterized as online Balkanization. “We’re going to end up breaking the Internet,” he said.

But corporate demands in the wake of the NSA revelations appear to be changing the business landscape. About 9% of U.S. companies selling cloud products to corporations now have clusters of computer servers in the European Union, compared with 2% before disclosures about the NSA surveillance programs, according to information compiled by Skyhigh Networks Inc., which advises companies on potential security threats of their tech services.

Robert Reid, CEO of Intacct Corp., recently estimated that 10% to 20% of potential European customers for cloud-based accounting software refuse to buy unless the vendor has a data center on the continent.

Such geographic concerns are yet another twist in a cloud craze that is forcing many companies to shift their strategies.

Others jumping on the bandwagon include old-line software vendors like Oracle Corp. ORCL +0.60%  and Microsoft Corp. MSFT +0.18%  , hardware makers such as Cisco Systems Inc., and younger companies, such as Google and Amazon.com Inc., AMZN +0.61%  which grew up in the Web era. In some cases, companies are rivals and partners at the same time.

SAP sells software that manages corporate operations like manufacturing, inventory and finance. Its programs often are used along with a database, typically supplied by IBM, Microsoft or Oracle.

But SAP, which competes most fiercely with Oracle in business application software, lately has emphasized an internally developed database called HANA. That software exploits memory chips to gain speed advantages over conventional databases that run on disk drives. HANA has become the core of SAP’s cloud offerings.

SAP had previously established a relationship with Amazon Web Services, whose cloud services have a broad following among startups and Web companies. But Mr. Clementi said SAP’s pact with IBM will have greater appeal to established companies that have shied away from outsourcing operations or want use a combination of their own data centers and those in the cloud.

One reason, he said, is that SoftLayer specialized in features that appeal to many mainstream businesses. One is offering customers dedicated servers rather than commingling application software and data from multiple companies on each server, an approach that backers say has performance and security advantages.

“What we are signaling with this agreement is that you can run full-fledged core enterprise applications in the cloud,” Mr. Clementi said.

Holger Mueller, an analyst at Constellation Research, said the deal is important not only to improve SAP’s geographic reach but also to help IBM boost utilization of its newly acquired data centers. It also is important for SAP, with is German heritage, to take a lead on addressing concerns about the location of customer data.

“It’s harder for SAP to say to customers, ’don’t worry about it,’” he said.
Source:http://online.wsj.com/articles/ibm-sap-team-up-to-deliver-software-as-a-service-over-internet-1413317966

Software firm aims to help boost export sales for SMEs

October 13th, 2014

A FORMER chambers of commerce leader has helped launch a software start-up which promises to help the UK meet its targets for getting SMEs to crack vital export markets.Outsourcing18

Edinburgh-based Morgan Goodwin has invested £1.5million in a Cloud-based business processing tool that it says will dramatically simplify the export challenge for SMEs who are yet to move beyond domestic markets.

Geoff Runcie, who formerly headed the chambers in both Glasgow and Aberdeen, said: “We are also interested in the 211,000 exporters across the UK, we believe we have a tool which will enable them to export more efficiently.”

A Lloyds Bank UK-wide survey last month found almost three out of five firms turning over between £25m and £750m were not currently exporting, with only 7 per cent looking to start within the next five years. That followed a Scottish Chambers survey which found too few businesses expanding through international trade, but of those making the move, more than half had reported increased profits within 12 months.

Aberdeenshire-based Mr Runcie, has helped create Morgan Goodwin with Livingston-based Abdul Mann who runs successful IT outsourcing company Ambosco, and inventor Mark Sheahan, an Ambosco director.

He said: “This idea came out of the chambers of commerce movement, who have been looking over an extended period of time to try to ensure that Scottish SMEs had the best tools available to allow them to be as competitive in the UK as possible, and the whole area round export documentation has always been seen as a black art.

“We are appealing to companies which have a strong domestic presence who want to export but are concerned about the complexities.”

The chambers have a licence from government to operate a national certificates of origin facility for SMEs.

Mr Runcie, whose background is in industry and who latterly has been a consultant and non-executive, added: “Scottish Enterprise and SDI have held a view for a long time that they are the only people who know how to do trade development and enterprise development and that is patently not true, the private sector knows how to do a lot of this stuff… it has a role to play in terms of product development and innovation.”

He said the company’s EDGE product, developed over three years, cut out the need for expert staff and consultants. “It is a Cloud-based software tool that doesn’t require any IT investmenton the ground. You can run it from your phone, ipad or desktop, and it is extremely cost-effective, entry level cost is £20 a month less than a decent mobile phone contract.”

The businessman said SMEs faced the twin challenges of finding overseas markets and then dealing with the business processes. The company was also working on a solution for the market identification issues.

Mr Runcie said: “There is a national government ambition to increase the number of exporters by 100,000 by 2020 and double the volume of exports. Those are easy words to say, but unless there is real innovation in terms of the support we can provide, it is only ever going to be a pipe-dream.”

Source:http://www.heraldscotland.com/business/people/software-firm-aims-to-help-boost-export-sales-for-smes.25560042

NAB writes off $297m in under-performing software

October 10th, 2014

National Australia Bank is to write down $297 million in software expenses as the promised benefits of some deployments failed to materialise amid rising costs. NAB levied the impairment charge following an internal review of its sprawling technology overhaul. Outsourcing7

Write offs were directed to areas “where the benefits associated with the software were substantially reduced from what had originally been anticipated, the costs of development are in excess of expectations, or there is uncertainty when the technology capability will be deployed”.

NAB is about halfway through a major technology refresh, rolling out a new core platform and upgrading and building new networks, data centres, and software.

A substantial element of the impairment charge, $106 million, is related to a mortgage origination platform developed for its UBank subsidiary as part of the bank’s NextGen technology transformation strategy. The charge equates to 10% of the Nextgen spend> NAB is keen to stress that it is not writing off any of the costs associated with its oracle-based core banking upgrade.

Separately, local rival Bank of Queensland has handed a five-year IT outsourcing contract to long-standing partner HP. Under the terms of the deal, HP will be responsible for service desk, platform and application support, software engineering, technical solution analysis, testing services, and project solution design and architecture for the bank.

Source:http://www.finextra.com/news/fullstory.aspx?newsitemid=26556

South Africa’s IT Services Sector Will be Worth $7.4bn By 2018

October 7th, 2014

In its latest report, global advisory services firm, International Data Corporation (IDC) projects that IT services spending in Africa’s second largest economy will increase 10.5 percent year on year to hit $5.7 billion in 2015 and eventually reach $7.4 billion in 2018.Outsourcing50

The report titled “South Africa IT Services Market 2014-2018 Forecast and 2013 Analysis” x-rays a number of key markets and provides detailed spending trends and forecasts, including key developments within the industry, challenges, and drivers. Principally, its analysis is informed by hard data collated via surveys, technology assessments, country demographics and economic data.

According to the report, systems integration will be the fastest growing IT service for the next five years as related spending is expected to increase at a Compound Annual Growth Rate (CAGR) of 13.6%; this will be driven by technologies such as cloud, social and mobility which require significant levels of integration with existing backend infrastructure.

The outsourcing services macro market is, and will remain, the largest in South Africa with an expected 45.4 percent share of South Africa’s IT services market in 2015. This can be explained by current economic challenges that have heightened the attractiveness of outsourced services that reduce costs and optimize investments; this trend is expected to continue into 2015 at least.

Providing some qualitative insight from the findings of the report, Lise Hagen, IDC’s research manager for software and IT services in Africa, said; “IT initiatives in 2015 will not only continue to focus on technologies that enable continuous improvement and optimization, but also deliver value to the business. New investments in IT will focus on technologies that can demonstrate cost efficiencies, such as automation, cloud, and SaaS.”

“CIOs and IT decision makers are increasingly coming under pressure to cut costs and deliver services based on highly efficient IT processes that align with business objectives, while simultaneously supporting and sustaining business growth. For their part, providers need to help demonstrate that IT is not just a cost center, but a fundamental part of the business that can drive revenue and value as well as reduce costs,” she added.

Apart from the Combined Systems Integration service expanding at a CAGR of 13.6 percent, other top-performing services should be applications related. IDC posits that Application Management Outsourcing and Application Consulting and Customization will both expand at the same CAGR of 13 percent.

Source:http://www.ventures-africa.com/2014/10/south-africas-it-services-sector-will-be-worth-7-4bn-by-2018/

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