Posts Tagged ‘US’

TCS profits rise on US, European demand

January 16th, 2015

India’s biggest outsourcing firm Tata Consultancy Services has reported a 5.1 per cent rise in quarterly net profits, driven by demand in its key markets of the United States and Europe.???????????????????????????????

The firm, commonly known as TCS, inked seven major agreements in the final quarter of 2014 and has ‘a strong pipeline of deals,’ said chief executive N Chandrasekaran.

Net profit for the three months to December 31 rose to 54.44 billion rupees ($A1.07 billion), from 51.80 billion rupees a year earlier, the firm said.

That missed the 54.8 billion-rupee median forecast from 37 analysts surveyed by Bloomberg.

The IT giant’s revenues also rose to 245.01 billion rupees in the October-December quarter, against 212.94 billion rupees a year ago.

Revenues were hit by ‘sharp cross-currency movements,’ according to chief financial officer Rajesh Gopinathan, who added that margins were maintained through ‘discipline and rigour’.

India has become a back office to the world as companies have sought to cut costs by outsourcing some functions to its industrious, English-speaking population.

But the sector has been hit by hard times as some US and Britain-based clients were reluctant to fix new budgets for IT-related services in the face of weaker growth.

That trend now seems to be reversing, with TCS’s main rival Infosys last week reporting a better-than-expected 13 per cent jump in third-quarter net profit.

TCS’s Chandrasekaran on Thursday also dismissed speculation the company is planning large-scale layoffs.

‘TCS is in high growth mode and there is no truth in the rumours of layoffs,’ he said.

In fact, the company ‘was likely to hire more’ than the 55,000 people it had announced earlier, he added.

In the just-ended quarter, the IT giant added 16,561 people to its workforce, taking its employee base to 318,625.

Source:http://www.skynews.com.au/business/business/world/2015/01/16/tcs-profits-rise-on-us–european-demand.html

IT stocks advance on positive jobs data in US

January 9th, 2015

Outsourcing41Key benchmark indices held firm in early afternoon trade. The barometer index, the S&P BSE Sensex remained past the psychological 27,000 level which it had attained in early trade. The Sensex was currently up 291.11 points or 1.08% at 27,199.93. The market breadth indicating the overall health of the market was strong with almost three gainers for every loser on BSE.

IT stocks advanced on positive jobs data from US. Infosys dropped amid volatility ahead of its Q3 December 2014 results tomorrow, 9 January 2015.

Foreign portfolio investors sold shares worth a net Rs 1073.18 crore yesterday, 7 January 2015, as per provisional data.

In overseas markets, Asian equity markets were higher today, 8 January 2015 as the fall in oil prices and concerns over Greece’s potential departure from the euro zone abated, while a positive finish on Wall Street overnight lifted trading sentiment.

In the foreign exchange market, the rupee edged higher against the dollar.

Brent crude futures recovered from the lowest level since April 2009 as investors weighed whether crude’s selloff was excessive amid signs of improving demand in the US.

At 12:15 IST, the S&P BSE Sensex was up 291.11 points or 1.08% at 27,199.93. The index surged 341.06 points at the day’s high of 27,249.88 in early trade, its highest level since 6 January 2015. The index rose 193.12 points at the day’s low of 27,101.94 in morning trade.

The CNX Nifty was up 94.90 points or 1.17% at 8,197. The index hit a high of 8,209.85 in intraday trade, its highest level since 6 January 2015. The index hit a low of 8,167.30 in intraday trade.

The BSE Mid-Cap index was up 164.53 points or 1.61% at 10,399.08. The BSE Small-Cap index was up 199.37 points or 1.81% at 11,188.36. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong with almost three gainers for every loser. On BSE, 1,870 shares advanced and 627 shares declined. A total of 83 shares were unchanged.

IT stocks advanced on positive jobs data in United States. Tech Mahindra (up 1.15%), Oracle Financial Services Software (up 0.97%), CMC (up 0.89%), TCS (up 0.76%), MindTree (up 0.71%), Wipro (up 0.53%), MphasiS (up 0.13%), and HCL Technologies (up 0.06%) edged higher.

United States is the world’s biggest outsourcing market for Indian IT firms.

Infosys fell 0.1% at Rs 1,962.85. The stock hit a high of Rs 1,996.85 and a low of Rs 1,951. Due to cross currency headwinds, analysts expects Infosys’ management to prune the company’s revenue growth guidance in dollar terms for the year ending 31 March 2015 (FY 2015) when the company announces its Q3 December 2014 results tomorrow, 9 January 2015. The IT major is widely expected to prune its FY 2015 dollar revenue growth to 7%-8%, from 7%-9%.

At the time of announcement of Q2 September 2014 results, Infosys had on 10 October 2014 retained its earlier guidance of 7% to 9% growth in revenue in dollar terms for FY 2015. At that time, the company had raised its revenue growth guidance in rupee terms due to rupee depreciation. The company had raised the revenue growth guidance for FY 2015 in rupee terms to 6.7%-8.7% from earlier 5.6%-7.6% at that time. The revised guidance was based on rupee dollar conversion rate of 61.

Bharat Electronics fell 1.77% at Rs 3,160. The stock hit a high of Rs 3,265 and a low of Rs 3,154.05. The company during market hours today, 8 January 2015 said it has inaugurated its modernised BEL Software Technology Centre (BSTC) of Navratna Defence PSU Bharat Electronics yesterday, 7 January 2015. BSTC is a part of the Central Development & Engineering Group of BEL-Bengaluru and is the software development centre of BEL, the company said in a statement.

On the macro front, data to be released in near future is expected to show industrial production growth remaining muted in November 2014 and consumer price inflation accelerating in December 2014. Industrial production is seen rising 1.6% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for November 2014 after trading hours on Monday, 12 January 2015. Industrial production had witnessed a surprise contraction of 4.2% in October 2014.

The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.4% in December 2014 from 4.4% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the data on CPI inflation for December 2014 after trading hours on Monday, 12 January 2015.

The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band.

The rate of inflation based the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon on 14 January 2015.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.9675, compared with its close of 63.18 during the previous trading session.

Brent crude futures recovered from the lowest level since April 2009 as investors weighed whether crude’s selloff was excessive amid signs of improving demand in the US. Brent for February settlement was up 30 cents at $51.45 a barrel. The contract had advanced 5 cents to settle at $51.15 a barrel during the previous trading session.

Asian equity markets were higher today, 8 January 2015 as the fall in oil prices and concerns over Greece’s potential departure the euro zone abated, while a positive finish on Wall Street overnight lifted trading sentiment. Key indices in Hong Kong, Japan, Singapore, Taiwan, South Korea, and Indonesia were up 0.24% to 1.67%. In China, the Shanghai Composite was off 1.36%.

Trading in US index futures indicated that the Dow could gain 129 points at the opening bell today, 8 January 2015. US stocks surged yesterday, 7 January 2015, with the S&P 500 rebounding from a five-session dive, as US crude stopped a four-day skid and Germany left the door open to discussing options with Greece’s next government on its debt. Federal Reserve policymakers said they could begin raising interest rates before inflation starts to pick up, according to minutes of their meeting on 17 and 18 December 2014. However, the Fed officials added that “they would want to be reasonably confident that inflation will move back” toward the Fed’s annual 2% target “over time”.

US private sector employment gains accelerated in December as employers added 241,000 jobs, Automatic Data Processing Inc. reported yesterday, 7 January 2015. ADP revised November’s gain to 227,000 from a prior estimate of 208,000.

The US Labor Department reports monthly payroll data for December 2014 tomorrow, 9 January 2015.

In Europe, the uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country later this month. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.

Source:http://www.business-standard.com/article/news-cm/it-stocks-advance-on-positive-jobs-data-in-us-115010800393_1.html

Lufthansa signs $1.25 billion outsourcing deal with IBM

November 18th, 2014

IBM has won an outsourcing contract from Germany’s Lufthansa worth 1 billion euros ($1.25 billion) that will see the U.S. company take over the airline’s information technology infrastructure services division and staff.A German airline Lufthansa A380 Airbus aircraft flies over Frankfurt

The move is part of plans by Lufthansa to restructure and cut costs as it seeks to compete with fast-growing rivals in both Europe and the Gulf.

Under the seven-year deal, IBM said it will make the airline’s IT processes more efficient, such as moving it more toward cloud computing, saving Lufthansa around 70 million euros a year.

Around 1,400 Lufthansa Systems employees will transfer to IBM as part of the deal, which was first outlined in October.

The deal is subject to approval by antitrust authorities and the Lufthansa supervisory board.

Source:http://www.reuters.com/article/2014/11/18/us-lufthansa-ibm-outsourcing-idUSKCN0J20PV20141118

Very Few CIOs Concerned by Risks of Outsourcing IT

September 12th, 2014

More than 75% of IT executives in the U.S. corporate world believe that their company’s decision to outsource IT infrastructure services will have no impact on their careers.outsourcing43

This was one of the findings of a recent survey of 1,014 IT executives in U.S. businesses by Information Week.

Only 3% of executives fear that outsourcing would lead to their dismissal, while a similar number of executives feel worried that they could be relocated as a result of such a decision. On the contrary, 19% of executives believe that their responsibilities will be expanded as a result of outsourcing.

Across North America, according to another survey from Information Week, businesses have continued to struggle to implement information technology, largely due to a lack of human skills and budget.

“CIOs pay top dollar for namebrand technology and believe it’s generally worth it because they do have limited staff and that staff has specific but limited expertise,” the report said.

Many CIOs surveyed for the report expressed concern that IT leadership would slip out of their hands because the decision for IT procurement typically comes from business units.

The swiftly advancing technology world has offered businesses with several alternatives to their in-house IT infrastructure: Software-as-a-Service, Infrastructure-as-a-Service, and other Cloud-based offerings.

“The bottom line, though, is that IT leaders need to change their outlook and tactics, and embrace today as a time of golden opportunity. They need to borrow tactics and strategies from digital-native businesses, and adapt them to their needs, to create an infrastructure that’s as responsive as the company demands,” the report noted.

With businesses increasingly aware of the need to adapt technology to stay one step ahead of their competitors, IT budgets are ballooning more than ever, with the majority of CIOs surveyed talking of increasing their IT budgets.

Source:http://www.nearshoreamericas.com/survey-cios-concerned-outsourcing/

Google has to face US privacy suit over new user data policy

July 23rd, 2014

A California court has allowed a privacy class action suit against Google to continue, though only in part.
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After evaluating each claim of each sub-class in the suit, Magistrate Judge Paul S. Grewal has allowed two claims of the “Android Application Disclosure Subclass,” which includes all persons and entities in the U.S. that acquired an Android-powered device between Aug. 19, 2004 and the present, and downloaded at least one Android application through the Android Market or Google Play.

On March 1, 2012, Google introduced a single, unified policy that allows the company to comingle user data across accounts and disclose it to third-parties for advertising purposes.

This move triggered the class action lawsuit in March, 2012 in the U.S. District Court for the Northern District of California, San Jose division, which argued that by switching to the less-restrictive privacy policy without user consent, Google violated both its prior policies and consumers’ privacy rights, according to court records.

The Android Application Disclosure Subclass claimed Google’s disclosures to third parties caused increased battery and bandwidth consumption as well as invasions of their statutory and common law privacy rights.

The suit was filed over two years ago and since then the court twice dismissed the plaintiffs’ claims. Google moved for a third dismissal.

The claims allowed by the judge includes a breach of contract claim that Google breached terms of the contract by disclosing user data to third parties following every download or purchase of an app, resulting in damages in the form of resource consumption. The second claim is under California’s Unfair Competition Law.

Claims by persons and entities in the U.S. that acquired an Android-powered device between May 1, 2010 and Feb. 29, 2012 and switched to a non-Android device on or after March 1, 2012 were dismissed.

Google could not be immediately reached for comment.

Source:http://www.itworld.com/legal/428311/google-has-face-us-privacy-suit-over-new-user-data-policy

Is outsourcing killing us?

July 17th, 2014

The U.S. is experiencing a different kind of “reshoring.” China, the world’s largest air polluter, is sending us via the jet stream a fair amount of their harmful emissions. And, according to a recent study published in the Proceedings of the National Academy of Sciences, much of it is our own fault.Outsourcing25

Researchers say a large part of the emissions are due to Chinese manufacturers making goods for foreign consumption. For years, American companies have been outsourcing production to China to take advantage of low labor rates. So all the cheap appliances, toys, and electronics we’re hooked on may be coming back to bite us, in an indirect way.

Making many of these products takes a lot of energy. Chinese industry relies on coal as its main source of power, and emissions controls on power plants are often limited or outdated. Further, the general level of manufacturing technology and energy-efficiency standards in particular aren’t as advanced as in the west, so it takes even more energy to make these goods in China.

The study says 36% of the sulfur dioxide, 27% of nitrogen oxides, 22% of CO, and 17% of soot emitted in China are due to production of goods for export. About a fifth of those pollutants were attributed to goods headed to the U.S.

Atmospheric models used by the researchers indicate that this accounted for a quarter of the sulfate pollution over the western U.S. in 2006, and increased surface sulfate concentrations by up to 10% and ozone by 1.5%.

According to the U.S. EPA, scientific evidence links short-term exposure to high levels of sulfur oxides with an array of adverse respiratory effects, including bronchoconstriction and increased asthma symptoms, particularly in children and the elderly. Longer term, it can cause or worsen respiratory diseases such as emphysema and bronchitis, and can aggravate heart disease.

A second NAS study claims computer models show that pollution from Asia, particularly fine aerosols, could be intensifying Pacific storms headed to the U.S. and altering weather patterns over North America.

Simulations showed that aerosols alter the distribution of moisture and heat in the Pacific storm track, a relatively narrow zone where cyclones form and travel and a major driver of weather in the Northern Hemisphere. These tiny particles suspended in the air can change weather patterns because they scatter or absorb solar radiation; and water vapor condenses around aerosols, a process that alters cloud formation and makes them denser and higher. The results, according to the model, are more precipitation, stronger cyclones, and more heat moving from the tropics toward the arctic.

Researchers didn’t predict how this affects U.S. weather, so we have to cross our fingers that it doesn’t exacerbate the Southwest drought or Midwest storms.

What is pretty clear is that air pollution in China isn’t a regional problem. Thanks partly to outsourcing, what we save in cheap goods we’re paying for in lower air quality and, possibly, worse weather.

Source:http://machinedesign.com/blog/outsourcing-killing-us

IT stocks in spotlight after positive US economic data

June 24th, 2014

IT stocks may gain on positive economic data in US. Data on Monday, 23 June 2014, showed US sales of existing homes climbed 4.9% to a 4.89 million annualized rate in May, the most since October. A separate report from Markit Economics showed a measure of US manufacturing growth rose to 57.5 in June from 56.4 in May. US is the biggest outsourcing market for the Indian IT firms.Outsourcing22

The board of Power Grid Corporation of India approved investments of about Rs 5500 crore for upgrading networks in about 4 years. The board approved strengthening the transmission corridor for independent power producers (IPPs) in Chhattisgarh at an estimated cost of Rs 5151.37 crore, Power Grid Corporation informed the stock exchanges. The commissioning schedule of the transmission project is 45 months from the date of investment approval, it said. The board also approved investment for upgradation of the transmission system associated with Lara thermal power project of NTPC at an estimated cost of Rs 400.47 crore, with commissioning schedule of 34 months from the date of investment approval, the statement said.

Adani Ports and Special Economic Zone (APSEZ) said it has completed the acquisition of 100% stake in the Dhamra Port Company from L&T Infrastructure Development Projects and Tata Steel. APSEZ had signed the share purchase agreement for the transaction with L&T Infrastructure Development Projects and Tata Steel on 16 May 2014.

Bajaj Hindusthan had issued Foreign Currency Convertible Bonds (FCCBs) worth $15 million to International Finance Corporation (IFC), Washington. The company has made repayment of $17.723 million, including the redemption premium of $2.723 million on the due date (16 June 2014), in accordance with the terms and conditions of the said FCCBs. With the aforesaid repayment, entire outstanding FCCBs held by IFC, Washington stands redeemed on maturity.

Kansai Nerolac Paints said that Dr. J. J. Irani has retired from the Chairmanship as well as the Directorship of the company with effect from the conclusion of the 94th Annual General Meeting of the company held on 20 June 2014. Mr. Pradip P. Shah has been appointed as the new chairman of the company.

Source:http://www.business-standard.com/article/news-cm/it-stocks-in-spotlight-after-positive-us-economic-data-114062400191_1.html

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