Posts Tagged ‘Wipro’

IT: Prefer Infosys, TCS, Wipro says Prabhudas Lilladher

October 17th, 2014

According to ISG forecast, broader market ACV lagged, but remains strong YTD . The weakness was in‐line with expectation, and they expect to see a recovery in Q4CY14 with continued strength in CY15. They expect 2014 ACV to exceed 2013 by double digits despite tepid quarter.Outsourcing28

ISG highlighted about the challenges faced by IMS players as cloud infrastructure providers are denting the existing businesses of IMS players. However, ADM+BPO proposition sees a renewed sign of life as Digitization adoption drives newer spends in the segments.

Continental Europe continues to see stronger adoption for Outsourcing/Offshoring from geographies like France, Italy, Spain etc. However, the current trend is very different from earlier wave of Anglo‐Saxons outsourcing wherein India became the focal point of outsourcing centres. Current drive of outsourcing from Continental Europe is pushing for global delivery models  with presence in newer locations like Poland, Brazil, Philippines, etc. But, we do not see any loss in competency for Indian Vendors as they swiftly adopt for GDM.

Among the verticals, Financial Services grew strongly in Americas as new scope contracts return. In APAC and EMEA, manufacturing has witnessed strong growth.

Among the mid‐caps in our coverage universe, NIIT Tech and KPIT Technologies got mentioned in “The Breakthrough 10 Sourcing Standouts” (companies with revenue less than $2bn) in Americas.

CY14 has panned out in‐line with the expectation in terms of deal closures. According to ISG, a build‐up of transaction is likely to yield one of the strongest year in the last one decade. We see Digitization drive as an encouraging trend for Infosys that is in‐sync with their current commentary. We prefer Infosys  , TCS  , and  Wipro  among tier‐1

Source:http://www.moneycontrol.com/news/brokerage-recos-sector-report/it-prefer-infosys-tcs-wipro-says-prabhudas-lilladher_1205351.html

Indian IT firms like Wipro, HCL Tech likely to bid for CSC if it splits operations

October 3rd, 2014

Indian information technology companies, including Wipro and HCL Technologies, could bid for Computer Science Corp if the US-based IT company splits its public sector and commercial operations before putting itself up for sale. Senior executives at both Noida-based HCL Technologies and Bangalore-based Wipro said they could “consider” the commercial business of Computer Science Corp as it will help them scale up their presence in the United States and Europe.Outsourcing42

“Local data centres and existing IT infrastructure business can make for a risky, but good asset to buy—we will surely consider if it’s split,” said an executive at one of the top five Indian software firms. CSC has infrastructure business contributing 35% to its topline while global business services, including application services and consulting, account for 34% while the North American public sector brings the remaining 31%.

“If the business is split, HCL should be the favourite,” said a Mumbai-based analyst at a domestic brokerage, adding hat the company’s own application delivery business has not seen much traction and a buyout should help the company. CSC, which reported nearly $13 billion (Rs 80,000 crore) in revenues last fiscal, has reportedly reached out to private equity group, Blackstone and Bain Capital to gauge this interest in management-led buyout, Bloomberg reported on Tuesday. ET independently could not confirm if the company will split its commercial business operations from those of the government contracts. Both Bain Capital and Blackstone declined to comment while an email sent to CSC remained unanswered. Last year, CSC stitched a deal with country’s fourth-largest IT firm HCL Technologies under which the two firms aim to modernise applications run by their customers. The addressable market for applications services totaled $210 billion in 2014, according to Gartner’s 2014 Market Forecast for IT Services. Some experts, however, remain scepti cal if the company’s efforts in the two years are enough to entice interest from suitors. Indian IT firms like Wipro, HCL Tech likely to bid for CSC if it splits operations “The company has made efforts to transform its traditional consulting and outsourcing business and is embracing an operating model relying a lot more on software assets and platformbased delivery models,” said Frederic Giron, VP and research director, Forrester Research.

“But this is still the beginning of the journey and the transformation will require a lot more freedom of operation. Hence the idea of LBO (leveraged buyout), which would make sense taking the company private—similar to what Dell did.” Giron said the public sector chunk had about $4 billion in annual revenues.

“I believe Indian centric firms are interested in different types of acquisitions: software assets like Trizetto, targeted continental Europe presence like Alti, and potentially some digital capabilities.”

To be sure, twice in the past – 2006 and last year – management at CSC has tried to find buyers for the company but a deal could not be reached. The company, which employs nearly 79,000 employees and counts the US government as one of its 2,500 clients, ended last year with Rs 4,250 crore in cash.

Source:http://economictimes.indiatimes.com/tech/ites/indian-it-firms-like-wipro-hcl-tech-likely-to-bid-for-csc-if-it-splits-operations/articleshow/44056239.cms

IT veterans from Infosys and Wipro to help Dell treble services revenue in few years

September 23rd, 2014

Michael S Dell wants to more than treble the software services revenue in a “few years”, an ambition that the entrepreneur is betting on his team of leaders handpicked from Indian outsourcing giants such as InfosysBSE -1.36 % and Wipro. Outsourcing15

Significantly, the founder, chairman and CEO of the Texas-based computer hardware and services firm believes ever since going private, Dell has been able to focus more on clients without being distracted by “activist shareholders” and invest in some of the long-term strategies, including investing in cloud, security and analytics space.

“We want to double, triple, quadruple our (services) business,” Dell said in a phone interview last week, outlining his ambitions on services play for the first time. “There are 10 companies which have 1% of the $3 trillion IT industry, we have about 2%. We would want to have 3-4% in the years to come,” he said from Brussels where he’s been meeting customers. To be sure, Dell had a services unit in addition to selling desktops before it was taken private earlier this year.

The company first handpicked WiproBSE -0.70 % veteran Suresh Vaswani in December 2012 to steer its services business, who since then has aggressively built a core team by poaching executives from Infosys, Wipro and Hewlett Packard. “(But) remember the IT industry itself will be more than $3 trillion in years to come, and with internet of things (IoT), industry will grow beyond $3 trillion and we would want to bring solutions to capture a bigger share of the growing pie,” Dell said.

INSIDE DELL STRATEGY

The centerpiece of Dell’s turnaround strategy is based on combining existing IPs within to create software platforms and build newer solutions around disruptive technologies in IoT. Dell’s chest thumping on IP hinges on its aggressive play in acquiring companies — it has bought over two dozen firms in the last five years, from StatSoft in advanced analytics to SecureWorks in security space, thereby helping it provide end-toend solutions to its customers.

Over the past one year, Vaswani has been able to convince top Indian IT executives such as Anand Sankaran, a Wipro veteran, Prasad Thrikutam, a high profile Infosys leader among others, to join Dell — “the world’s largest startup” as described by its founder.

“If you look at the industry, it needs some freshness, and I will say we are providing that freshness,” Vaswani told ET in an interview. “Indian IT services come from a particular angle and HP, EDS are monoliths so to speak. We say a different story, and we don’t have legacy. And we have lots of IP.”

Thrikutam, who was hired by Nandan Nilekani in 1995 at Infosys, joined Dell last month. “Most companies have a constraint on which path they can take because if they are a public company, they have to follow quarterly targets. Michael said I can choose the path I want, so I have control over my destiny — that was the clincher for me to join,” Thrikutam said.

Source:http://economictimes.indiatimes.com/tech/ites/it-veterans-from-infosys-and-wipro-to-help-dell-treble-services-revenue-in-few-years/articleshow/43189559.cms

TCS leads Indian peers, says global survey

September 19th, 2014

Clients see Tata Consultancy Services (TCS) as the only local information technology (IT) company strong on two important parameters, implementation and innovation, said a study.Outsourcing8

It was conducted by America-based HfS Research and KPMG last month. The annual survey, state of services & outsourcing, covered 312 global clients, 347 advisors and consultants, and 420 participants from the companies that manage IT and business operations.

“IT-outsourced service providers, such as TCS, are leading the way in terms of buyer perceptions, both on innovation and execution, relative to their peers,” said Charles Sutherland, executive vice-president of research at HfS Research.

The country’s second- and third-largest in the sector, Infosys and Wipro, respectively, were seen as strong on implementation but weak on innovation. This could mean if their areas of execution become less significant, these may become candidates for churning, the report added.

Smaller companies iGate, Xerox, Fujitsu, Unisys and CSC scored low in the survey. “For these, the task ahead is to increase awareness of their capabilities and, in particular, to highlight investments in innovation,” said Sutherland.

Almost half the survey participants said they would look at switching their existing IT service providers for several reasons. While 15 per cent said they planned to do so at the renewal cycle, 12 per cent said they planned to move some or all of the outsourced work in-house. As many as 23 per cent said they wanted to switch their provider but were still working through the practicalities of doing so.

“Some of this (dissatisfaction) may be the result of long-standing contracts where it is harder to repeat the level of savings initially achieved and booked for first-generation contracts,” said Sutherland. “But when combined with the results of a perception study of the IT outsourcing service providers, it may be that the larger issue is the market is increasingly fragmenting and certain providers (specially some entrants like Amazon and Google) are just changing the market at such a speed, that a new level of dissatisfaction with the previous status quo is setting in.”

Source:http://www.business-standard.com/article/companies/tcs-leads-over-indian-peers-in-execution-innovation-114091801124_1.html

Indian IT companies battle it out for Rs 11k-cr Australian pie

September 15th, 2014

Indian IT companies will be fiercely competing with MNCs for five big IT contracts in Australia valued at over A$2 billion (Rs 11,000 crore).infosys

Infosys, Wipro, TCS and HCL Technologies are participating alongside IBM, HP and Capgemini in request for information (RFI) and request for proposal (RFP) for incremental IT outsourcing work coming from Sydney Water, Rio Tinto, Jetstar, Aurizon and Transport for NSW, said an Australian IT consultancy firm that did not want to be named.

Incumbent IT vendors IBM, Infosys and Accenture have sought RFIs and RFPs to participate in mining major Rio Tinto’s A$750 million IT-BPO contract. The work is in HR, analytics, engineering and logistics. Rio Tinto had previously outsourced procurement to Infosys and finance & accounting (F&A) to IBM. Accenture was engaged with the mining major for ERP and application support, while CSC maintained its IT infrastructure. These previously outsourced 10-year contracts were worth A$3 billion.

Jetstar, a wholly-owned subsidiary of the Qantas Group, is considering outsourcing work related to ticketing, customer loyalty programme, analytics, HR and F&A. Wipro TCS and Genpact are participating in the RFIs/RFPs. “Jetstar is currently using Lincom for virtual desktop support. It has been subcontracted through Tech Mahindra. Jetstar’s customer support is partially outsourced to Teleperformance and Convergys,” the consultancy said.

Australian companies are reviewing monolithic contracts and are breaking them down into smaller ones to drive operational and cost efficiencies.

The Australian IT services market has gone through several cycles of IT outsourcing with strong demand particularly from public sector utilities. Last year, New South Wales (NSW) Transport had floated an expression of interest (EoI) for next generation infrastructure services (NGIS) that includes server and webhosting, data centre infrastructure and end user computing. Infosys, Wipro, HCL and TCS, as also HP and IBM, participated in the EoI.

“Analytics and BPO will lead the charge (in contracts). Public sector contracts have opened up in a big way. There will be at least 7-8 RFPs in both federal and state governments in the next six months,” said Mohit Sharma, director of Australia-based advisory firm Mindfields.

Siddharth Pai, president in outsourcing advisory firm ISG Asia Pacific, says Australia is one of the early adopters of offshoring, with Telstra using offshoring a decade back. Infosys counts the telecommunication and media company as one of its top ten customers.

Australia’s largest rail freight operator Aurizon is floating an incremental A$500 million contract for IT and BPO services. The freight operator is looking to outsource F&A, procurement and analytics, for which Capgemini, Wipro, Genpact and WNS have sought RFIs and RFPs.

Source:http://timesofindia.indiatimes.com/tech/tech-news/Indian-IT-companies-battle-it-out-for-Rs-11k-cr-Australian-pie/articleshow/42493940.cms

Wipro, Infosys bet on Internet of Things to revive telecom business

September 10th, 2014

Indian IT service providers such as Infosys and WiproBSE -0.76 % expect Internet of Things and adoption of cloud computing to open up new revenue streams in their telecom business even as telcos cut down spending on their traditional outsourcing contracts.
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“There is huge opportunity due to the potential of Internet of Things,” said Ayan Mukerji, chief executive of Wipro’s media and telecom strategic business unit and product engineering services. Internet of Things, or IOT, refers to interconnection between different objects and devices through the internet.

“In many ways, we are going back to centralised computing, i.e., intelligent cloud platforms, digital highways and connected devices. Products and services will increasingly be available across automotive, banking, and other industries,” Mukerji said. Wipro’s engagement with clients such as British telecom giant BT around domain-specific operational projects is helping it tide over the current challenging times, he said.

“Revenue share from non-core areas is increasing, i.e., in cloud services, networking and data center services and the IOT opportunity.” This comes at a time when traditional revenues decline. Some of the world’s largest telecom companies, including AT&T and BT, which outsource significant IT work to Indian firms, are seeing voice revenues declining at a faster clip than an increase in data revenues.

At the same time, the likes of Skype and Google that provide voice calls, do almost all their IT backend work themselves. Yet the new opportunities have started having an impact on IT firms’ revenues. Although telecom and media contribution to Wipro’s revenues has been declining over the last few years — from 18 per cent in 2011 to 13.8 per cent by the end of March 2014 — the unit has posted a growth of more than 4 per cent in both the fourth quarter of last fiscal and the first quarter of this fiscal year.
One of the factors, according to Mukerji, that helped the division do better than overall company’s growth has been the demand for telecom network design as “telecom IT and the network are becoming more integrated”.

Tom Reuner, an analyst at a London-based IT research firm Ovum, said: “Wipro is a good example of developing longterm client relationships around domain-specific operational projects and scaling them out over time. Examples for this are their contracts with BT and Talk-Talk in the UK.”

Wipro’s rival Infosys, too, expects its existing telecom clients such as AT&T to open up new revenue streams for the company. “AT&T has launched AT&T Digital Life services, where they are offering to take care of home security, automation and climate control at per month subscription,” said a senior executive of the company, adding that the US telecom giant is extending this to Europe and other international markets.

“So Infosys is going to partner with AT&T to provide billing and web solutions, which will be offered to AT&T on pay per use model and this will allow us a vehicle and give entry to Infosys to entry to the European markets,” the person said. Infosys’ share of revenues from telecom unit declined from 9.7 per cent in FY 2013 to 8.3 per cent in FY2014 as most of its client face pressure from “over-the-top” players such as Skype and Google. IT companies are now looking to win more transformational deals.

Wipro’s Mukerji said the industry will see more transformational deals in the range of “$100-250 million” than mega deals, including northwards of $500 million. “My objective is very clear that the telecom and media business unit should not be margin dilutive within the company,” he said.

Source:http://economictimes.indiatimes.com/tech/ites/wipro-infosys-bet-on-internet-of-things-to-revive-telecom-business/articleshow/42123494.cms

Wipro Global Infrastructure Services Achieves Strong UK Customer Satisfaction Scores

September 9th, 2014

Wipro Ltd., a leading global Information Technology, Consulting and Business Process Services company has been acknowledged as a leader in several categories of the 2013 KPMG UK ICT Outsourcing Service Provider Performance and Satisfaction (SPPS) study.outsourcing29

The study which analysed satisfaction scores for 22 service providers, ranked Wipro’s Global Infrastructure Services (GIS) business first, in the Infrastructure Management category and the Managed Network Services category. The respective customer satisfaction levels of 73% and 68% achieved in these categories are 12% and 10% above the industry average.

“We can only grow when our clients are satisfied and can see a real positive impact on their business through working with us,” said G. K. Prasanna, Chief Executive, Global Infrastructure Services, Wipro Limited. “Our deep investments in the practice help our customers meet their dual mandate of delivering ruthless efficiency coupled with business enablement. This customer centric view makes us the partner-of-choice to our customers in their transformative journey to the new world,” he added.

KPMG’s annual customer perception study evaluated 490 contracts across 210 participants, analysing satisfaction scores for 22 service providers.

The Infrastructure Services market is poised for high growth, with many organizations readying themselves for the next wave of transformation. Wipro provides Infrastructure Services to global customers using state-of-the-art tools and processes. Wipro’s GIS services portfolio spans Data Center, End User Computing, Networks, Managed Services, Cloud, Business Advisory and Global System Integration services. Underpinning these services is Wipro’s ServiceNXT™ platform which helps provide customers with a future-ready IT landscape more responsive to business needs.

Wipro has recently won deals from companies like Corning Incorporated, a world leader in specialty glass and ceramics and Carillion, a UK based leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. Wipro will be providing infrastructure services as a part of these deals.

Source:http://www.sys-con.com/node/3175159

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