Posts Tagged ‘Wipro’

Wipro bags $1.2 billion outsourcing contract of Canadian firm ATCO

July 18th, 2014

Wipro has bagged a $1.2 billion 10-year deal to manage information technology outsourcing of Canadian energy and utilities firm ATCO, thereby giving a further fill-up to the Bangalore-based IT firm’s oil and gas vertical. Outsourcing25

Under the deal – announced on Friday – Wipro will buy ATCO I-Tek, the IT subsidiary of ATCO for $195 million, and take on board 500 employees. The company, post the closure of the deal in the current quarter, will later merge ATCO I-Tek with itself.

“We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business in Canada and Australia,” said Anand Padmanabhan, Chief Executive – Energy, Natural Resources and Utilities, Wipro.

Wipro’s oil and gas unit generates over a $1 billion of the company’s $7.3 billion in revenues and is also one of the fastest growing units even as rival InfosysBSE 0.18 % tries to garner a significant share of providing IT services in the oil and gas market.

“This is outsourcing deal with significant amount of transformational and is also one of the largest deals for Wipro,” Padmanabhan told ET.

This will be the second such acquisition made by the Energy and Utilities division of Wipro, after it bought US-based Scientific Applications International Corp for about $150 million in April 2011.

Padmanabhan said that the buyout of ATCO I-Tek will also help Wipro as the company services other clients in the resource-rich regions of Alberta in Canada and Perth in Australia, though he declined to share the number of clients ATCO I-Tek has for now.

Source:http://economictimes.indiatimes.com/tech/ites/wipro-bags-1-2-billion-outsourcing-contract-of-canadian-firm-atco/articleshow/38602266.cms

IT stocks in demand

July 4th, 2014

Eight IT stocks rose by 0.04% to 0.74% at 9:39 IST on BSE on positive economic data in US, the biggest outsourcing market for the Indian IT firms.Outsourcing1

Tech Mahindra (up 0.74%), MphasiS (up 0.63%), HCL Technologies (up 0.62%), Oracle Financial Services Software (up 0.59%), Hexaware Technologies (up 0.46%), Infosys (up 0.41%), CMC (up 0.04%) and Wipro (up 0.04%), edged higher. However, TCS fell 0.35% to Rs 2,409.35.

The S&P BSE IT index was up 0.13% at 9,306.73. It underperformed the Sensex, which was up 0.16% at 25,865.47.

The S&P BSE IT index had outperformed the market over the past one month till 3 July 2014, rising 9.93% compared with 3.88% rise in the Sensex. The index had, however, underperformed the market in past one quarter, rising 3.68% as against Sensex’s 14.73% rise.

US employers added 288,000 workers to nonfarm payrolls in June, following a 224,000 increase in May that was bigger than previously estimated. A 1.39 million increase in employment over the past six months was the largest since early 2006, while the unemployment rate fell to 6.1%, the lowest level since September 2008.

Source:http://www.business-standard.com/article/news-cm/it-stocks-in-demand-114070400217_1.html

IT shares in demand after positive US data

July 2nd, 2014

Seven IT shares rose by 0.11% to 6.32% at 9:37 IST on BSE on positive economic data in US, the biggest outsourcing market for the Indian IT firms.Outsourcing47

MphasiS (up 6.32%), CMC (up 1.76%), Wipro (up 0.62%), Hexaware Technologies (up 0.42%), Infosys (up 0.23%), Tech Mahindra (up 0.19%) and TCS (up 0.11%), edged higher.

However, HCL Technologies (down 0.74%) and Oracle Financial Services Software (down 0.20%), edged lower.

The S&P BSE IT index was up 0.24% at 9,281.37. It underperformed the Sensex, which was up 0.76% at 25,709.22.

The S&P BSE IT index had outperformed the market over the past one month till 1 July 2014, rising 9.50% compared with 5.36% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 3.63% as against Sensex’s 13.68% rise.

The Institute for Supply Management’s US factory index was little changed at 55.3 in June from 55.4 in the prior month, the Tempe, Arizona-based group’s report showed on Tuesday, 1 July 2014. Readings above 50 indicate expansion.

Source:http://www.business-standard.com/article/news-cm/it-shares-in-demand-after-positive-us-data-114070200255_1.html

Global companies boost captive tech centres in India

June 30th, 2014

Global captives or offshore delivery centres (ODCs) of multinational companies that act as technology and business process nerve centres for their global operations are back in favour with about 30 new ones coming up in the last two years.Outsourcing37

With outsourcing of IT and technology service projects  to Indian companies such as Infosys or Wipro or their global rivals such as IBM and Accenture, multinationals have in the past avoided setting up their own centres in India, called “captives” in India. This enabled cost-cutting and also circumvented the logistical headaches in setting up their own operations. However, research and development  seen as a critical in-house activity and increased faith in India as a base, captives are growing again.

Global majors including AstraZeneca, Cargill, Lowes, Mercedes Benz have set up centres in India in the recent years while Grant Thornton, Fidelity and Flextronics are expanding furiously, industry officials said.

“The trend of setting up global captives increased in the last two years with focus shifting to high-end jobs from the cost arbitrage-based model of the past,” said KSVishwanathan, vice president, industry initiatives, Nasscom.

“In the past three months three companies have set up their captives in Bangalore. Four more will come up in the coming months,” he said.

Global captives which had grown rapidly between 2005 and 2010 lost steam with outsourcing to independent vendors for cost reasons before picking up pace again.

“MNCs want to leverage the talent pool. More than cost advantage, their main driver is to retain key data and information within their own set-up and get the mundane work done through partners,” said Vinu Nair, managing partner of recruiting firm Antal International Network.

The trend could hit third-party service providers, but is seen as good news for job seekers.  According to Vishwanathan, captives alone may hire 60,000-80,000 employees in the current year.

For instance, Mercedes Benz Research and Development Centre will hire 800 staff to take its strength to over 2,000 by 2015. Auditing firm Grant Thornton has plans to hire over 3,000 and electronics design and contract manufacturing firm Flextronics 2,000 in the next two to three years.

“There is an increasing trend of high-end research and product development work getting done out of India by companies such as Cisco, GE, Facebook and Google,” Kris Lakshmikanth, founder of Head Hunters India. He said a PhD in the US would earn $150,000 a year — while an Indian counterpart gets $50,000.

India accounts for 45% of global captive centres.

Source:http://www.hindustantimes.com/business-news/global-companies-boost-captive-tech-centres-in-india/article1-1235065.aspx

Wipro gets Finnish co Sanoma Corp’s IT infra division as part of outsourcing deal

June 25th, 2014

Finnish media group Sanoma Corporation is set to transfer its IT infrastructure and support functions to Wipro as part of an outsourcing deal.Outsourcing24

As part of the transaction, 38 people in Finland and the Netherlands will become employees of Wipro, Sanoma said in a press statement. Sanoma’s in-house technology team will focus more on supporting the services that are critical to the business units in the future, it said

The centralisation of services to Wipro is part of Sanoma’s € 100 million cost-cutting programme. In Finland, the Helsinki-based Sanoma is merging media operations into one company.

Financial details of the transaction were not disclosed.

Sanoma is amongst the largest media and learning companies in Europe. Its key markets are Finland, The Netherlands, Belgium and Central and Eastern Europe.

Source:http://www.thehindubusinessline.com/features/smartbuy/tech-news/wipro-gets-finnish-co-sanoma-corps-it-infra-division-as-part-of-outsourcing-deal/article6147859.ece

Terra Technology and Wipro Partner to Offer Cloud-based Supply Chain Software

June 25th, 2014

Terra Technology today announced a global partnership with Wipro Ltd. , a global information technology, consulting and outsourcing company. Effective immediately, Wipro will offer Terra’s Demand Sensing and Multi-Enterprise Inventory Optimization software as a cloud-based business process as a service. Terra’s solutions help improve customer service, free cash from excess inventory and reduce operating costs by better predicting customer demand and setting optimal stock levels.Outsourcing24

Achieving a healthy inventory that balances customer commitments and cost to serve is important to generating profitable growth, especially in volatile markets. Inventory is a large investment for multinational manufacturers, often representing between 25 and 35 percent of current assets. This inventory frequently includes tens to hundreds of millions of dollars of excess stock that can be safely cut with Terra’s solutions. The new business process as a service (BPaaS) offering enables quicker adoption and lower initial costs, making it more accessible to a larger number of companies.

“This new service allows business leaders with limited information technology resources or those who prefer operational expenditures instead of capital investments to gain the financial benefits of sensing and responding to demand in today’s fast-moving markets,” said Robert Byrne, CEO of Terra Technology. “Wipro’s global cloud and supply chain process expertise provides an excellent platform to extend our reach and help more manufacturers gain the cash flow, earnings and balance sheet benefits of a modern demand-driven supply chain.”

“Extracting value from big data to deliver growth, control costs and manage risks provides an important competitive advantage,” said Brian Nolf, global supply chain practice leader of Wipro. “A better understanding of customers is also a key enabler in cutting waste and building sustainable supply chains, a strategic initiative for many of our clients. We look forward to working with Terra Technology to provide innovative cloud and business process services that harness the full potential of big data.”

Source:http://www.virtual-strategy.com/2014/06/24/terra-technology-and-wipro-partner-offer-cloud-based-supply-chain-software

Job losses tipped as NAB’s MLC investigates outsourcing

June 24th, 2014

National Australia Bank’s wealth ­management arm, MLC, has gone to market to scope out the possibility of ­outsourcing IT and back office services, a move that would see hundreds of internal positions shifted to external providers.Outsourcing14

The division, which has long been considered something of an underperformer since NAB acquired it from Lend Lease in 2000 for $4.6 billion, has been looking at options to restructure its operations since Andrew Hagger took over last year.

The Australian Financial Review understands NAB has sent an “expression of interest” document out to 10 ­potential suppliers, with the aim of assessing the viability of a shift to an ­outsourced model in coming months.

The EOI is believed to have been sent to incumbent tech suppliers Accenture, Genpact, IBM and Tech Mahindra, with a further six including Tata Consultancy Services, HCL Technologies and Wipro.

A spokesman for NAB said the bank had only run limited outsourcing ­programs over the past four years, but it was likely for a business of its size to be assessing the option. He said there had been no decision yet to change current arrangements. “We have continually assessed our business operations and will continue to work with third-party ­suppliers to see if we can identify whether there are opportunities to optimise and improve arrangements that can further benefit our customers,” he said.

It is understood the scope of the back office work would include work in ­technology, portfolio management, credit control and also on wrap platforms and self-managed super funds

One expert, who declined to be named, said this would mean the outsource ­provider being asked to provide between 600 and 700 workers, which would mean roughly 400 to 500 current MLC workers losing their jobs.

NAB declined to comment, citing the early stage of the proposal.

Mohit Sharma, director of ­outsourcing advisory firm Mindfields, said the proposed move made sense due to the potential efficiencies on offer.

“Wealth management operations would require niche providers and this long overdue exercise might have been undertaken to expand and refresh the current panel of vendors,” he said.

Source:http://www.afr.com/p/technology/job_losses_tipped_as_nab_mlc_investigates_v4eHmFc86gNCnVW7LY54fL

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