Posts Tagged ‘Wipro’

Wipro wins best outsourcing thought leadership award for 2015

June 15th, 2015

Wipro, the IT bellwether, won the best outsourcing thought leadership award for 2015 from a US-based leading institute, the global software major said on Tuesday.Outsourcing17

“The Outsourcing Institute, the largest neutral professional association dedicated to outsourcing, selected us for our thought leadership article showcasing a real world use case encompassing innovation, creativity and results,” the city-based company said in a statement here.

The institute’s eight-member sourcing executives from Fortune 1,000 enterprises were the judging panel.

“The business process leadership awards the Wall Street technology innovation showcases the most innovative work from providers’ across the outsourcing industry,” the statement noted.

The company’s seminal piece was recognised for its innovative work titled “Semantics and Ontology – The Future of Data Aggregation”.

“Financial institutions are giving more attention to improving quality of data and turning it into a strategic advantage, owing to competitive, regulatory and business pressures,” Wipro’s global head for securities & capital markets Roop Singh said on the occasion.

Source:http://businesstoday.intoday.in/story/wipro-wins-best-outsourcing-thought-leadership-award/1/220303.html

India prods China on IT, ITeS access

May 28th, 2015

New Delhi will soon send a reminder to Beijing on the hurdles faced by Indian IT/ITeS firms in getting greater market access in China. This follows concerns raised by industry bodies Nasscom and CII in meetings with the Union government about the difficulties in qualifying for bids put out by Chinese government and state-owned enterprises (SOEs) for IT/ITeS projects.Outsourcing10

In the aide memoire to be sent to China, sources said, India would also urge China to strengthen its intellectual property (IP) regime to protect Indian firms’ IP rights.

As per the 2013 Nasscom-KPMG study, of the estimated $46-billion Chinese IT/ITeS market, India’s share is less than $1 billion, despite its global reputation as a major export of IT-related services. China’s IT/ITeS market could cross $84 billion by 2020.

An aide memoire in diplomatic parlance means a note summarising in an informal manner (sans the usual courtesy phrases) the discussions between both sides. It is meant as ‘an aid to memory’, and a gentle reminder, seeking the necessary action on the points discussed. Indian IT firms operating in China include TCS, Infosys, Wipro, HCL, Tech Mahindra, NIIT (Education), Zenzar, Geometric, Mphasis, Mindtree, Birlasoft and KPIT.

In China, the government (at the federal and state/local levels) and SOEs are among the largest buyers of IT-related services. The Nasscom-KPMG study says by 2020 demand from SOEs is likely to be 45% of the total Chinese demand.

To qualify for bids of large projects, an applicant company needs to show that they have helped in the implementation of Chinese government/SOE projects of similar size. “We have suggested that China should ascribe more value to the experience of companies in government projects of similar sizes outside China, ” Gagan Sabharwal, director (global trade development), Nasscom said.

India had, on many occasions earlier and even during Prime Minister Narendra Modi’s recent visit to that country, taken up these issues with China. However, the fact that Beijing was yet to respond favourably to New Delhi’s concerns was recently discussed at a meeting held by the Indian commerce ministry, official sources told FE. The ministry then prepared the aide memoire and forwarded it to the Prime Minister’s Office to be sent to the Chinese authorities, they said.

Nasscom has also suggested that India and China should, on a reciprocal basis, allow easier movement of highly skilled professionals through long-term visas and work permits to enable Indian and Chinese companies to send across such experts to work in each other’s territory.

CII had pointed out that insistence on local entities in some provinces in China to avail subsidies was reducing competitiveness of Indian IT/ITeS firms. Besides, CII said, Indian IT/ITeS firms are facing challenges in staff mobility between provinces in China due to the ‘hukou’ system (a system of household registration that restricts internal mobility of people and ties their future prospects to their place of residence), necessitating local offices in each project area.

To showcase technological expertise of Indian IT firms, CII said certain pilot projects can be chosen to be jointly executed with Indian and Chinese companies. Also, both sides can jointly develop a platform on policy updates and business opportunities for Indian and Chinese companies, it said.

CII and Nasscom also want India to push for a totalisation agreement (on social security payments) with China. This, they said, will help avoid social insurance fees being paid twice by companies for Indian employees being deputed to China — once in India and then again in China. These industry bodies also want New Delhi to take up the issue of the lack of clarity in withholding tax imposed on repatriated profits. Among issues affected the Indian outsourcing firms, CII has pointed out resistance to outsourcing within China due to lack of understanding of benefits and perceived job loss fears in SOEs.

Entering the dragon
* Size of Chinese IT/ITeS market = $46 bn
* India’s current share = below $1 bn
* China’s IT/ITeS market size projected to be $84 bn by 2020
* Chinese govt & soes among potential big buyers of IT services
* By 2020, soes to make 45% of Chinese demand
* Indian IT majors in China: tcs, Infy, Wipro, hcl
* India seeks long-term work visas for IT workers in china
*  Totalisation pact with china proposed

Source:http://www.financialexpress.com/article/economy/india-prods-china-on-it-ites-access/77100/

Wipro, Infosys turn to AI, design thinking in subdued IT market

May 28th, 2015

India’s leading technology outsourcing firms Infosys Ltd and Wipro Ltd are banking on so-called design thinking and artificial intelligence (AI), respectively, to win large deals, as they struggle to raise revenue in a subdued market for information technology (IT) services.Outsourcing9

Bengaluru-based Infosys claims that design thinking, a creative and systematic approach to problem-solving by placing the user at the centre of the experience, has helped it win five large deals. Two of these orders exceed $100 million each in annual revenue. Meanwhile, cross-city rival Wipro plans to offer its AI platform Holmes to up to a third of its 1,000-plus clients in the next 24 months, claiming that it could be an “account opener and game changer”.

“We have won five big deals, two of them are over $100 million. Just in the last six weeks,” Infosys chief executive officer Vishal Sikka said in an interview last week. “We are not just responding to requests but being proactive and bringing clients to workshops. See, RFPs (requests for proposals) are controlled by third party… But then, you can always influence the client to become a strategic partner through design thinking.”

Infosys is trying to improve the effectiveness of its sales team by incorporating elements of design thinking, Mint reported on 29 April. Sikka’s push to drive more business comes after his company’s March quarter revenue fell short of forecasts.

Wipro, under chief executive T.K. Kurien, too, has been struggling to record a double-digit revenue growth for the last four years, and is now positioning Holmes in managing helpdesks for companies.

“In the next two-four years, one of the biggest disruptions will be (an IT vendor having) an AI-platform. I believe this will be as big as the Internet disruption. Customers have exhausted their levers of enhancing productivity. So, IT vendors need something which can promise productivity,” said K.R. Sanjiv, chief technology officer of Wipro.

Wipro is pitching Holmes against International Business Machines Corp.’s cognitive supercomputer, Watson, but according to Thomas Reuner, managing director of IT outsourcing research at US-based HfS Research, Wipro’s new cognitive platform, built with open source tools, also has features of New York-based IPsoft’s humanoid programme Amelia. All these platforms claim to improve productivity by allowing IT vendors to deploy fewer engineers for repetitive manual tasks.

Experts believe these measures reflect underlying changes shaping outsourcing deals, as customers across industries press IT vendors to help them with more “transformative changes” to improve their business operations.

Measures like AI and design thinking are needed for survival, said Sid Pai, partner and president of outsourcing advisory ISG’s Asia Pacific division. “A firm with a strong digital story and the ability to invest ahead of the curve on product bets in this space (fully accepting that some of these bets will work, while others will fail) will be able to gain market share in the evolving marketplace”.

“These are necessary strategic steps to position themselves for sustained leadership in the digital era,” said Bill Huber, managing director at Alsbridge, a US-based outsourcing advisory firm. “Winning will require innovation, customer centricity and business outcomes. Vishal’s design thinking campaign clearly has this in mind.

Similarly, the investment in Holmes should help Wipro transcend process centrism and move toward more natural fast integration of business insights into every operational process”.

For this reason, both Infosys and Wipro believe these technologies should help them match the revenue growth recorded by larger rivals such as Tata Consultancy Services Ltd and Accenture Plc.

“It (Wipro Holmes) will be an account opener and will be one of the key solutions through which we will lead into (winning new deals),” said Sanjiv of Wipro.
However, experts believe that even after taking these measures, it will be a tall task for Infosys and Wipro to get back to Nasscom projected revenue growth of at least 12% for 2015-16 as both are struggling to record even $1 billion worth of deals in a quarter.

“For companies of their scale, they need to have to have a quarterly TCV (total contract value) of at least $1.5-2 billion. So, will these measures help them get there? Difficult. It is not like others will be just sitting and watching the game,” said the head of research at a Mumbai-based brokerage, who did not want to be named.

“It could be tricky for Holmes to jump to 25% client usage in 24 months without an established pilot programme or deep-rooted AI partner network,” said Amy McLaughlin, a research analyst at US-based Technology Business Research Inc.

Typically, pilot projects take anywhere between six and nine months before a firm outsources a large deal to an IT vendor, according to industry executives.
“In a decelerating IT services market, combined with India-centric companies’ reputation as “fast followers” as opposed to market leaders, I’m not convinced that Wipro’s Holmes platform is in position to grow at such a rapid rate,” McLaughlin said.

Some analysts, like HfS Research’s Reuner, said though initiatives such as design thinking and AI are “important sign posts for the direction of travel for both the supply and demand side”, the “efficiency of the sales engine and the access to talent” are more important.

“Many of these initiatives will enhance offerings and will help to optimize margin but won’t be sold as stand-alone offering,” said Reuner.

Source:http://www.livemint.com/Industry/xP2D2XEOE0thyeZ5zMRMVL/Wipro-Infosys-turn-to-AI-design-thinking-in-subdued-IT-mar.html

Wipro Limited Downgraded to “Sell” at Zacks (WIT)

May 27th, 2015

Zacks cut shares of Wipro Limited (NYSE:WIT) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.Outsourcing7

Zacks’ analyst wrote, “WIPRO LTD-ADR provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally. Wipro Limited is the first PCMM Level 5 and SEI CMM Level certified IT Services Company globally. “

Zacks has also updated their ratings on a number of other information technology stocks in the last week. The firm downgraded shares of Siliconware Precision Industries from a hold rating to a sell rating. Also, Zacks downgraded shares of Pixelworks, Inc. from a hold rating to a sell rating. Finally, Zacks downgraded shares of pSivida Corp. from a hold rating to a sell rating.

Wipro Limited (NYSE:WIT) traded up 0.09% on Tuesday, hitting $11.66. 509,679 shares of the company’s stock traded hands. Wipro Limited has a 52-week low of $10.86 and a 52-week high of $14.18. The stock’s 50-day moving average is $12. and its 200-day moving average is $12.. The company has a market cap of $28.62 billion and a P/E ratio of 21.16.

Wipro Limited (NYSE:WIT) last announced its earnings results on Tuesday, April 21st. The company reported $0.15 earnings per share for the quarter, meeting the analysts’ consensus estimate of $0.15. The company had revenue of $121.42 billion for the quarter, compared to the consensus estimate of $121.27 billion. During the same quarter last year, the company posted $9.04 earnings per share. Wipro Limited’s revenue was up 4.2% compared to the same quarter last year. On average, analysts predict that Wipro Limited will post $0.59 earnings per share for the current fiscal year.

Wipro Limited is a global information technology (NYSE:WIT), services Provider. The Company develops and integrates solutions that enable its clients to leverage IT in achieving their business objectives at competitive costs. The Company uses its quality processes and global talent pool to deliver time to development advantages, cost savings and productivity improvements.

Source:http://www.lulegacy.com/2015/05/26/wipro-limited-downgraded-to-sell-at-zacks-wit/494330/

Infosys creates healthcare unit HILife

May 26th, 2015

In what appears to be an effort to increase its focus on healthcare, Infosys will transfer the healthcare business of its US-based, wholly-owned subsidiary Infosys Public Services to itself for a consideration of $100 million . Outsourcing4

In its latest annual report, Infosys said it has created a new business unit called HILife to provide services to healthcare, insurance and life sciences businesses. The new unit will presumably combine its existing healthcare and life sciences business, which accounts for about 7% of its overall revenue of $8.7 billion, with the healthcare business of Infosys Public Services.

The thrust in healthcare comes at a time when industry rivals like Cognizant and Wipro are aggressively focusing on the space, with Obamacare opening up outsourcing opportunities that aims to brings millions of people under the healthcare insurance fold in the US. Both healthcare providers and payers as well as life sciences customers, including pharmaceutical, biotech and medical device companies, are outsourcing work to IT service providers.
Almost a quarter of Cognizant’s revenue comes from healthcare, while for Wipro, that figure is close to 12%, both significantly higher than for Infosys. Last year, Cognizant acquired TriZetto, a healthcare IT software and solutions provider, for $2.7 billion to strengthen its healthcare capabilities. Wipro’s healthcare business is expected to touch $1 billion this fiscal.

In his note to shareholders in the annual report, Infosys CEO Vishal Sikka described the company’s full year performance as “average”. “There were hard fought battles in a difficult climate, one in which clients’ expectations are changing, new emerging technologies are rapidly coming to market and where the landscape of services companies has become vastly more competitive,” Sikka said. He said the company faced internal challenges that lagged growth and a string of senior level exits put pressure on its business and performance.

India’s second-largest IT services firm’s growth lagged those of its peers last year. Revenue grew 7.1%, just about meeting the lower end of its guidance of 7%-9%.

“When we look at Infosys today, we can see that it has been a year of great transition for the company…We are learning to work in a new environment and in new ways and it has been a difficult learning experience. But with learning comes the promise of renewing ourselves and the opportunity to pursue entirely new horizons,” Sikka said.

Source:http://timesofindia.indiatimes.com/tech/tech-news/Infosys-creates-healthcare-unit-HILife/articleshow/47412855.cms

Indian IT firms like TCS, Infosys to gain from HP’s enterprise services cost cuts, say analysts

May 25th, 2015

Hewlett-Packard’s decision to cut $2 billion (about Rs 12,700 crore) in costs in its enterprise services business could open up opportunities for Indian technology firms such as Tata Consultancy Services and InfosysBSE -0.08 %, said analysts tracking the development. Outsourcing48

Infrastructure contracts such as HP’s $400-million data centre outsourcing deal with oil company BP in 2010 and its $700-million deal with German energy provider E.ON could be taken over by Indian firms when renewed, they said. HP’s troubled enterprise services businesses provides technology consulting, outsourcing and support services and competes with companies such as TCS, Infosys, Wipro, IBM and Accenture.

“In the infrastructure space, certainly they are being challenged by cheaper Indian providers,”said an Indian IT industry consultant, declining to be identified. “And the constant round of cost-cutting is a distraction and makes them less competitive.”

The 75-year-old company faces increasing pressure in India where its pricing is much higher than that of traditional outsourcing firms, and some shedding of contracts will happen with the split, giving Indian IT companies an opportunity to take over HP’s market share, said a second industry expert who also did not want to be named.

“HP has been in constant restructuring for a while; the whole company has been in flux,”said Tom Reuner, managing director at HfS Research. “It’s caught between two big rocks –the secular trend of asset light, more cloud-based IT and its own internal troubles.”

The planned cuts in the enterprises services division can come from staff reductions, moving more work offshore, delaying or eliminating investments, and writing down assets that are being deprecated, said Peter Bendor-Samuel, chief executive at consulting firm Everest Group.

Source:http://economictimes.indiatimes.com/tech/ites/indian-it-firms-like-tcs-infosys-to-gain-from-hps-enterprise-services-cost-cuts-say-analysts/articleshow/47409478.cms

IT shares trade firm; HCL Tech, Tech Mahindra up 3%

May 21st, 2015

Shares of information technologies (IT) companies were trading firm on the bourses, gaining upto 4% each, on the back of positive corporate announcements and weakening rupee.Outsourcing43

HCL Technologies, Tech Mahindra, Tata Consultancy Services (TCS), Persistent Systems and Cyient rose 3%-4% each, while Infosys, Wipro, Hexaware Technologies, Polaris Consulting & Services and MindTree gained 1%-2% each on the National Stock Exchange (NSE).

At 1311 hours, CNX IT index was the largest gainer among sectoral indices, gaining 1.8% compared to sub-1% gain in the benchmark CNX Nifty.

Tech Mahindra spurted by 3% to Rs 640 after the company said Ontario Ministry of Energy and the company invested in innovative Smart Grid solution powered by analytics.

Tech Mahindra announced that it will build an Intelligent Electric Vehicle Charging System (IEVCS) designed to help build Ontario’s clean energy future. The project, sponsored by the Ministry of Energy and funded in part through the Ontario Smart Grid Fund initiative, will analyze the effects of electric vehicle charging on transformers by creating a real-time transformer monitoring and analytics solution.

TCS gained 2% at Rs 2,563 after its client, Euroclear Finland launched platform, Infinity powered by TCS BaNCS for market infrastructure.

Infinity is a multi-year program powered by TCS BaNCS for Market Infrastructure and is a key component of Euroclear Finland’s outsourcing its securities settlement processing to TARGET2Securities (T2S) as part of the European Central Bank’s fourth migration wave in February 2017, TCS said in a statement.

Meanwhile, the rupee depreciated by 11 paise to 63.78 against the US dollar at the Interbank Foreign Exchange in early trade today as the American currency appreciated in wake of strong economic data, the PTI report suggests.

Source:http://www.business-standard.com/article/markets/it-shares-trade-firm-hcl-tech-tech-mahindra-up-3-115052000446_1.html

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