Posts Tagged ‘USA’

Infosys Expands its CSR Activities With Infosys Foundation, USA

December 31st, 2014

Outsourcing34Infosys today announced that it would expand its Corporate Social Responsibility (CSR) activities in the Americas through its philanthropic arm, the Infosys Foundation, USA. It would focus on making quality computer science education widely and easily accessible across communities in the Americas. The company also announced the appointment of Mrs. Sudha Murty, Mrs. Vandana Sikka and Mr. Sandeep Dadlani as the trustees of Infosys Foundation, USA. The initial outlay for Infosys Foundation, USA would be USD 5 Million per annum.

Commenting on the expansion of CSR activities in the Americas, Mrs. Sudha Murty, Chairperson of Infosys Foundation, said, “I am delighted at the expansion of our CSR initiatives in the Americas. Infosys Foundation has always supported the cause of promoting quality education and empowering individuals. I am confident that we will leverage Infosys Foundation’s experience in India of imparting technical education to enhance employability.”

Mrs. Vandana Sikka, Chairperson of Infosys Foundation, USA, said: “Every day we see how computing technology is reshaping the world around us. Computing literacy is becoming increasingly important for an average person to be more productive and valuable to the economy, while purposefully contributing to our future. Through Infosys Foundation, USA, we want to ensure that lack of resources, prior skills and STEM proficiency are no longer barriers for individuals in the Americas seeking to advance their computing skills. From enabling computer education in K-12, to supporting research in computer science and empowering adults with IT training that enhances their employability, we will help bring computing literacy to people of all ages, backgrounds and abilities.”

In India, Infosys Foundation supports several programs aimed at alleviating hunger, promoting education, improving health, assisting rural development, supporting arts and helping the destitute. For the fiscal year 2015, Infosys Foundation plans to deploy approximately USD 40 Million towards these initiatives in India.


Infosys to hire over 2,100 in US, including 600 graduates

November 6th, 2014

Infosys, a global leader in consulting, technology, outsourcing and next-generation services, today announced a major recruitment drive in the US to support the growth of its business and enhance its capabilities. The company plans to hire 1,500 professionals for consulting, sales and delivery during the current financial year. In addition, it will hire close to 600 bachelors and masters graduates from US Universities over the next twelve months.Outsourcing20

With this program, Infosys will bolster its expertise in client relationship management, consulting and technical delivery. The addition of these employees will help Infosys provide its clients local market insights, industry-leading technology expertise, and timely responsiveness to critical issues.

Infosys will recruit up to 300 management and technology graduates from leading US universities. They will work across multiple technology domains including digital, big data, analytics and cloud. Up to 180 graduates will be recruited into the Infosys consulting practice in the US. They will join existing teams advising clients on business and technology transformation strategies. Infosys will also continue its global recruitment program of hiring MBA graduates from leading business schools, and will recruit 100 Masters graduates for its sales teams under this initiative.

Speaking on the recruitment drive, Peggy Tayloe, head of human resources in Americas, Infosys said, ”We believe in hiring professionals who will help us build a next-generation services company. Technology is truly reshaping the world around us today. At Infosys, we offer the best opportunities to learn while working on exciting projects, pioneering the latest technologies for some of the world’s best corporations.”

Sandeep Dadlani, executive vice president, Head of Infosys Americas, Infosys added, added, ”We are particularly looking forward to bringing a large group of graduates into Infosys in the US. This is a terrific time for young, smart and talented leaders to be graduating from the best American schools and choosing a career in the technology industry.”

Shares of the company gained Rs 41.5, or 1.02%, to settle at Rs 4,126. The total volume of shares traded was 73,263 at the BSE (Wednesday).


US business process, IT firms urged to seriously mull outsourcing in PH

October 28th, 2014

American information technology and business process management (IT-BPM) companies should take a serious look at the Philippines, which continues to be an “ideal location for customer service and technical support outsourcing,” the Philippine ambassador to the US advised.Outsourcing43

Ambassador Jose L. Cuisia, Jr. made this pitch to business executives and decision makers from Wall Street and Fortune 500 firms who attended a networking event hosted recently by the Philippine Consulate General in New York and the Seven Seven Corporate Group.

“The IT-BPM industry has been the fastest growing industry in the Philippines in the last 10 years,” Cuisia said as he urged the executives from New York, New Jersey and Connecticut to seriously consider putting some of their investments in the Philippines.

“Our GDP growth accelerated to 6.4 percent in the second quarter of 2014. This bodes well for economic growth for the rest of 2014,” Cuisia said. “We remain as one of the bright spots in the region, the second fastest growing economy among major Asian countries for the period.”

During the event, Consul General Mario De Leon said that based on the most recent report of the IT and Business Process Association of the Philippines,  the IT-BPO industry directly employs one million Filipinos and is expected to earn $18 billion this year. He added that the industry also supports 2.5 additional jobs for each direct hire.

“The Philippines, now recognized as the number one provider of voice services, is determined to increase its market share for more sophisticated outsourced operations in such areas financial services, software design, medical and legal transcription, animation and gaming,” De Leon said.

The report also noted that by 2016, the Philippine business process management industry is expected to expand even more with projected revenues of $25 billion and direct employment for 1.3 million people, accounting for 7.8 percent of the Philippines’ GDP.

De Leon said Seven Seven has contributed significantly to this growth, being one of the first US companies to outsource from the Philippines. The company is currently being led by Mac Fojas, president, and Delle Sering, chief executive officer.

Founded in Manila and New York in 1996, Seven Seven provides services in information technology, including application development, IT infrastructure support, technical helpdesk, and back office processes.

The Filipino-American company supports customers in North America, Asia Pacific and Europe in the banking, insurance, global consumer, telecommunications, pharmaceutical and healthcare industries.

The event was the fifth annual cocktail mixer that Seven Seven has hosted for sourcing executives and decision makers from the New York tri-state area. The first was in 2009 then Consul General Cecilia Rebong and Trade Representative Josephine Romero.


Wipro Sees Rosier End to Year as US Clients Spend

October 24th, 2014

India’s third-biggest software services firm Wipro Ltd , under pressure to improve lacklustre sales growth, said it saw a rosier end to the year as more confident US clients increase spending.Outsourcing35
Wipro, which provides outsourcing services for big-name clients such as US bank Citigroup, posted an 8 percent increase in second-quarter net profit on Wednesday, narrowly missing expectations. It said it continued to face “headwinds” in key accounts, particularly European clients.

But chief executive TK Kurien, appointed in 2011 to turn around the technology firm, said there were improvements ahead as discretionary spending returns in North America.

“We expect the revenue to come back in quarter four of this year or maximum quarter one next year,” Kurien told reporters. “But it will come back.”

For the quarter ended Sept. 30, Bangalore-based Wipro posted consolidated net profit of 20.85 billion rupees ($340.4 million). Analysts, on average, were expecting Wipro to make 21.09 billion rupees, according to Thomson Reuters I/B/E/S.

Total revenue rose to 118.16 billion rupees from 109.91 billion rupees in the same period last year.

“Overall the demand environment continues to hold steady. In North America we see discretionary spend returning,” Kurien said. He added the group saw opportunities in continental Europe, where outsourcing has yet to expand to US levels.

Wipro added 50 new customers during the quarter.

Kurien was picked to lead the company more than three years ago by founder chairman Azim Premji, after Premji sacked joint CEOs Suresh Vaswani and Girish Paranjpe.

Wipro, however, has struggled to catch up with rivals such as Tata Consultancy Services and Cognizant Technology . Peer Infosys has itself been hit by management changes over the last couple of years, but has reassured investors with a new chief executive. [ID:nL3N0S51OA]

“Infosys has now laid out their plans, so we know what the idea is. Wipro has talked about plans for some time, but it does not show on results,” Ankita Somani, analyst with MSFL Research said.

Wipro said it expected revenues from its IT services business to be in the range of $1.81 billion to $1.84 billion in the current quarter. For thee quarter ended Sept., the unit saw revenues of $1.77 billion.

Shares in Wipro closed ahead of the results at 583.65 rupees on Wednesday in the Mumbai market.


Industrialisation boosts IT firms in Koramangala

September 22nd, 2014

Rapid industrialisation and partial privatisation of the telecommunication industry has fuelled fresh blood into the Koramangala-based IT companies. The industry insiders opined that the new developments have helped the industry to log at least 13-15 percent growth in second quarter of the current fiscal. Outsourcing11

T Umakanth Rao, director, Zarlina Systems Private Limited said, “In last two-three years, Koramangala has witnessed a rapid industrialisation along with partial privatisation in the telecom sector. IT being an integral part of these two major industries, has also witnessed a growth of around 13-15 percent in the second quarter of the current fiscal as a trickle-down effect.”


Rao went on to add that if the way the US and EU economy have shown the recovery, the growth rate in the IT industry may go beyond the 20 percent levels in the quarters to come in the current fiscal. He said that slowdown recovery among the EU nations and the US has helped industrialisation in the respective countries as well.

Such economic developments in first world nations help outsourcing business from these nations in Koramangala. Asked about the benefit of industrial growth in first world economies, and its benefit to the Koramangala-based BPO industry; T Umakanth Rao of Zarlina Systems Private Limited said, “In last three months, rate of IT outsourcing in Koramangala has gone up by around 8-10 percent.”


Naved Ahmed, director, MN Associates said, “Privatisation in the telecom sector is one of the major drivers in IT growth. Since, telecom sector requires lots of IT services like software programming, data processing, data storage solutions etc. Telecom sector has fuelled demand for the IT solutions in the locale and hence are cashing in on this opportunity.” On telecom privatisation helping the IT industry of Koramangala, he said that demand for IT solutions in the telecom sector has gone up by more than 30 percent in last six months.

Sushanth K Nair, proprietor, Innova Team Software, a Koramangala-based IT company which has base in New York as well said, “These days special economic zone (SEZ) has become a modern trend of executing organised business. Since, the SEZ helps IT companies to avail tax benefits; it is also a major reason for IT companies growing healthy these days.”


Nair further said that generally, IT companies run on low operation cost if compared to the industries fuelling its business these days. Hence, IT companies are growing faster in comparison to the industries which are outsourcing business to the Koramangala-based IT industry. He further added, “For rapid industrialisation, a manufacturer requires huge amount of money, however, for the IT companies need not to put much money to provide its services to the concerned company. They already have a resource readily available to aid such rapid industrialisation in the region.”

V Prasad, director, R&B Software Solutions, a Koramangala-based IT company said, “This growth in the Koramangala IT industry is expected to boost the IT exports also. He said that NASSCOM has predicted the Indian IT exports to be in the range of 15 percent. However, if we look at the Bangalore and Koramangala, the exports would be in the range of 20 percent as the area is considered IT hub in India.”


Commenting on IT growth translating into the job opportunities; Prasad said, “The IT and ITeS (information technology enabled services) sector has generated massive employment in the past and continues the trend of providing jobs. With online shopping, social media and cloud computing flourishing more than ever before in the locale, there is great demand for IT professionals in e-commerce and business to consumer firms, especially in Koramangala.” He said it fuelled IT hiring by around 5 percent in last quarter.


IT stocks gain after positive US economic data

August 28th, 2014

Firmness continued on the bourses in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently up 115.76 points or 0.5% at 26,573.79. The market breadth indicating the overall health of the market was positive. The market sentiment was booutsourcing26osted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. ONGC gained on hopes of announcement of reforms by the government on subsidies and gas prices ahead of its share sale. IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. HCL Technologies hit record high.

Key indices have remained in green after a strong opening triggered by higher Asian stocks and a first closing for S&P 500 in the US above 2,000 overnight.

Asian stocks rose after US data on durable goods and consumer confidence boosted optimism in the strength of the world’s largest economy. Meanwhile, there are expectations for quantitative easing and other steps by the European Central Bank. Crude oil prices rose ahead of the weekly US oil inventory data from the US government.

At 11:16 IST, the S&P BSE Sensex was up 115.76 points or 0.5% at 26,573.79. The index jumped 156.31 points at the day’s high of 26,599.12 in early trade, its highest level since 25 August 2014. The index rose 101.63 points at the day’s low of 26,544.44 in mid-morning trade.

The CNX Nifty was up 29.85 points or 0.38% to 7,934.60. The index hit a high of 7,946.85 in intraday trade, its highest level since 25 August 2014. The index hit a low of 7,929.50 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,404 shares gained and 946 shares fell. A total of 78 shares were unchanged.

The BSE Mid-Cap index was up 43.05 points or 0.46% at 9,301.87, underperforming the Sensex. The BSE Small-Cap index was up 83.45 points or 0.82% at 10,256.83, outperforming the Sensex.

ONGC gained 1.99% on hopes of announcement of reforms by the government on subsidies and gas prices ahead of its share sale. The government plans to sell a stake in ONGC later this year. State run upstream companies share a part of the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PDS kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.

Oil India gained 2.08%.

GAIL (India) fell 1.27% as the stock turned ex-dividend today, 27 August 2014, for final dividend of Rs 5.90 per share for the year ended 31 March 2014.

IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Wipro (up 0.65%), and TCS (up 0.43%) edged higher. Tech Mahindra fell 0.01%.

HCL Technologies rose 3.21% to Rs 1,648.60 after hitting record high of Rs 1,649 in intraday trade.

Infosys rose 0.09%. At an investor conference yesterday, 26 August 2014, Infosys’ chief operating officer UB Pravin Rao reportedly reiterated the company’s 7% to 9% US dollar revenue growth guidance for the current financial year. Rao also reportedly said that Infosys would look to maintain operating profit margins at 24-25% for the current year.

Hindustan Media Ventures advanced 3.32% to Rs 165 after 0.47% equity changed hands in a bulk deal on BSE today, 27 August 2014. A bulk deal of 3.50 lakh shares was executed on the Hindustan Media Ventures counter at Rs 163 per share in opening trade on BSE today, 27 August 2014.

The market sentiment was boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 364.72 crore on Tuesday, 26 August 2014, as per provisional data from the stock exchanges.

The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month August 2014 series to September 2014 series. The near-month August 2014 F&O contracts expire tomorrow, 28 August 2014.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.49, compared with its close of 60.44 on Tuesday, 26 August 2014.

Crude oil prices rose ahead of the weekly US oil inventory data from the US government. Brent for October settlement was up 22 cents at $102.72 a barrel. The contract fell 15 cents to settle at $102.50 a barrel yesterday, 26 August 2014, after reaching $103.40 during the session. The US is the world’s biggest oil consumer.

At a meeting yesterday, 26 August 2014, the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) decided against investing in equities and Exchange Traded Funds (ETFs). The finance ministry had suggested EPFO to invest in equities to enhance returns for subscribers.

Asian stocks rose today, 27 August 2014, after data signaled a stronger US economy and Russia’s president hailed as “positive” talks over Ukraine. Key benchmark indices in Indonesia, Hong Kong, Japan, China, Taiwan, Singapore and South Korea were up 0.06% to 0.78%.

Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Wednesday, 27 August 2014. US stocks edged higher on Tuesday, 26 August 2014, to lift the S&P 500 index just a hair above the 2,000 mark, its first close above that milestone, after data that pointed to a brighter future for the US economy.

Bookings for goods meant to last at least three years climbed by a record 22.6% in July after a 2.7% gain in June that was bigger than previously reported, data from the Commerce Department in Washington showed. The Conference Board’s US consumer confidence index rose to 92.4 in August, the highest since October 2007, the New York-based private research group said.

Russian President Vladimir Putin yesterday, 26 August 2014, said talks with his Ukrainian counterpart over separatist fighting that’s killed more than 2,000 people were “positive.”

Meanwhile, there are expectations for quantitative easing and other steps by the European Central Bank. Ever since ECB President Mario Draghi’s comments at US Federal Reserve’s annual symposium in the United States on 22 August 2014, there have been expectations of quantitative easing and other steps by the ECB. Draghi said expectations of future inflation in Europe exhibited significant declines at all horizons this month.

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.


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