Accenture on Monday signed multiyear deals to provide computer support and Web services to two European companies. The Hamilton, Bermuda-based Accenture, will provide outsourcing services to Luottokunta, a card payment service company based in Finland, for five years.
Accenture also signed a seven-year contract with the German-based consumer products maker Henkel AG & Co. In the U.S., Henkel is known for brands like Soft Scrub cleaning products, Purex laundry products, Dial soap and Right Guard deodorant.
Accenture did not disclose the terms of either deal.
Showing posts with label New Deals. Show all posts
Showing posts with label New Deals. Show all posts
Wednesday, September 9, 2009
Tuesday, September 8, 2009
New Deals, Satyam
Tech Mahindra bags Rs 2K cr Etisalat deal
Etisalat's India mobile telecoms unit will outsource its information technology applications to India's Tech Mahindra in a deal valued at $400 million spread over 10 years, the telecoms firm said on Monday.
Etisalat DB Telecom, which plans to start mobile services in 15 Indian telecoms zones later this year, said the outsourcing deal would include implementation of its end-to-end IT applications & infrastructure, system integration and managed services.
The prime IT applications stack for Etisalat DB involves components in the BSS (Business Support System) and OSS (Operating Support System) domain.
Etisalat's official spokesperson said, “Tech Mahindra has the required domain and process expertise with a proven track record as part of Etisalat’s launch of operations in Egypt. We are confident that Tech Mahindra’s exhaustive pool of IT skills and innovative delivery models will assist us in the forthcoming roll-out of service in India and delivering the best services & customer experience in the market.”
Etisalat DB and its subsidiary have the Unified Services Access License in 15 circles, comprising Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar.
Etisalat DB Telecom, which plans to start mobile services in 15 Indian telecoms zones later this year, said the outsourcing deal would include implementation of its end-to-end IT applications & infrastructure, system integration and managed services.
The prime IT applications stack for Etisalat DB involves components in the BSS (Business Support System) and OSS (Operating Support System) domain.
Etisalat's official spokesperson said, “Tech Mahindra has the required domain and process expertise with a proven track record as part of Etisalat’s launch of operations in Egypt. We are confident that Tech Mahindra’s exhaustive pool of IT skills and innovative delivery models will assist us in the forthcoming roll-out of service in India and delivering the best services & customer experience in the market.”
Etisalat DB and its subsidiary have the Unified Services Access License in 15 circles, comprising Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar.
Wednesday, September 2, 2009
Infosys, New Deals, Outsourcing, TCS, Wipro
IT majors chase $6.5-bn Belgian outsourcing deals
Belgian Grand Prix is not the only race where Indian hopes are riding high. A worsening economic crisis is forcing companies such as AXA, Dexia Bank, Belgacom, drugmaker UCB and car insurer Allianz in Belgium explore IT offshoring and back-office projects, making it almost $6.5-billion opportunity for Indian outsourcing vendors including TCS, Infosys and Wipro apart from MNC rivals.
According to Quantum Step, an outsourcing advisory firm, customers in Belgium will spend around $1.8 billion on infrastructure management outsourcing, almost $2.6 billion on application development and maintenance and nearly $2 billion on BPO this year.
“We have recently started discussions with some Indian suppliers for pure offshoring of our ERP maintenance — it would be fair to assume that until last year, we were not prepared for any such initiative,” said an official at one
of the biggest Belgian enterprises.
While many Indian offshoring firms have been attempting to hire more local European sales professionals and project consultants, it appears that now customers only want to deal with Indian offshore experts. “Many outsourcing dialogues these days are being spearheaded by Indian offshore delivery managers, unlike in the past when some local expert would help us gain entry into an account — the CIOs are specifically asking for Indian suppliers,” said a top executive at one of the Indian IT firms pursuing outsourcing contracts in continental Europe. Officials at the Belgian firms did not respond to an e-mail query sent by ET.
When contacted by ET on Tuesday, TCS said the company’s early investments in the Belgian market are now fetching dividends. “Belgium represents one of the more mature markets for us within Continental Europe. After 15 years of operations in the country, we hold a significant share of the market and are now a prime IT partner to some of the largest BEL20 companies,” said AS Lakshminarayanan, vice-president and head — Europe, TCS.
“Our strategy to invest in localised delivery centres in Europe, particularly the ones in Eindhoven and Luxembourg, fuses well with our Global Network Delivery Model,” he added. TCS already has around 700 professionals working for Belgian customers, with around 200 onsite. InBev, AXA and Belgacom are among TCS’ top customers in Belgium.
Experts such as Sridhar Vedala of outsourcing advisory firm Quantum Step say that the key European markets opening up for offshoring include BeNeLux, Nordics, Germany and France. “Most of the European companies are more or less first time outsourcers. Some big multinationals had offshored previously such as ABN Amro, Ikea, Nokia and Philips.
However, this did not trickle down to regional customers as many of them felt that there was cultural mismatch. Also, to a large extent, Indian providers also did not focus on this market,” he told ET in an interview.
As reported by ET recently, BASF AG, the world’s biggest chemical company, along with Euroclear-Europe’s largest settlement firm, and Anheuser-Busch InBev — the world’s biggest brewer are among companies looking at offshore outsourcing for the first time, as they seek to lower their operational costs and cope more effectively with an unprecedented slump in demand for their products and services.
According to Quantum Step, an outsourcing advisory firm, customers in Belgium will spend around $1.8 billion on infrastructure management outsourcing, almost $2.6 billion on application development and maintenance and nearly $2 billion on BPO this year.
“We have recently started discussions with some Indian suppliers for pure offshoring of our ERP maintenance — it would be fair to assume that until last year, we were not prepared for any such initiative,” said an official at one
of the biggest Belgian enterprises.
While many Indian offshoring firms have been attempting to hire more local European sales professionals and project consultants, it appears that now customers only want to deal with Indian offshore experts. “Many outsourcing dialogues these days are being spearheaded by Indian offshore delivery managers, unlike in the past when some local expert would help us gain entry into an account — the CIOs are specifically asking for Indian suppliers,” said a top executive at one of the Indian IT firms pursuing outsourcing contracts in continental Europe. Officials at the Belgian firms did not respond to an e-mail query sent by ET.
When contacted by ET on Tuesday, TCS said the company’s early investments in the Belgian market are now fetching dividends. “Belgium represents one of the more mature markets for us within Continental Europe. After 15 years of operations in the country, we hold a significant share of the market and are now a prime IT partner to some of the largest BEL20 companies,” said AS Lakshminarayanan, vice-president and head — Europe, TCS.
“Our strategy to invest in localised delivery centres in Europe, particularly the ones in Eindhoven and Luxembourg, fuses well with our Global Network Delivery Model,” he added. TCS already has around 700 professionals working for Belgian customers, with around 200 onsite. InBev, AXA and Belgacom are among TCS’ top customers in Belgium.
Experts such as Sridhar Vedala of outsourcing advisory firm Quantum Step say that the key European markets opening up for offshoring include BeNeLux, Nordics, Germany and France. “Most of the European companies are more or less first time outsourcers. Some big multinationals had offshored previously such as ABN Amro, Ikea, Nokia and Philips.
However, this did not trickle down to regional customers as many of them felt that there was cultural mismatch. Also, to a large extent, Indian providers also did not focus on this market,” he told ET in an interview.
As reported by ET recently, BASF AG, the world’s biggest chemical company, along with Euroclear-Europe’s largest settlement firm, and Anheuser-Busch InBev — the world’s biggest brewer are among companies looking at offshore outsourcing for the first time, as they seek to lower their operational costs and cope more effectively with an unprecedented slump in demand for their products and services.
Tuesday, September 1, 2009
IT market, New Deals, Outsourcing
Indian IT firms queue up for criminal-tracking network project
27 firms will bid for the Rs 2,000-crore deal
Around 27 Indian IT firms, including majors like Tata Consultancy Services (TCS), Infosys Technologies and Wipro Ltd, are understood to have submitted their expressions of interest (EoIs) to develop a technology platform for the Centre’s Crime and Criminal Tracking Networks and Systems (CCTNS) project.
In June this year, the Rs 2,000-crore CCTNS project received approval from the Cabinet Committee on Economic Affairs, following which the National Crime Records Bureau (NCRB), which will implement the project, floated the EoIs.
The IT company that wins the bid will get to develop the core technology platform and software that will work as a standard for all Indian states to implement the project at the state level.
Other than creating a platform for sharing crime and criminal information (in the form of a web-based criminal record database) across the country, the CCTNS is expected to streamline investigation and prosecution processes; strengthen the intelligence-gathering machinery and improve the public delivery system. This will also facilitate the collection, storage, retrieval, analysis, transfer and sharing of data and information among police stations, district and state headquarters and the controlling agencies at the central level.
The CCTNS is a mission mode project (MMP) under the national e-Governance plan. The core application software (CAS) will have to be developed so that it will operate regardless of low- or unreliable-bandwidth scenarios.
“The selected parties can pursue multiple opportunities at the state level. The prime aim of the project is to create an architecture using an application programming interface (API), so that the systems to be launched by each state would speak to each other,” explained the Indian head of a software firm that has submitted an EoI for the project.
Before the CCTNS project was proposed, various state governments including those of Gujarat, Andhra Pradesh and Karnataka were either creating a web-enabled interface of the crime and criminal records or in the process of doing that.
In early 2008, for instance, the Gujarat government had signed an agreement with TCS to develop a technology platform that was aimed at enabling every police officer to have access to police records and background information at any given point of time.
India’s third-largest IT services provider, Wipro, which has developed an integrated police information system, is pursuing opportunities in Karnataka.
“Wipro sees a huge role for information technology to combat high crime rates more effectively. Our technology will bring in a lot of efficiency and agility in the functioning between various units of the police department through real-time information sharing,” said Ranbir Singh, general manager, government and defence, Wipro Infotech.
The government, however, has now made it clear that the states that have already deployed the technology to integrate the police records with the CCTNS and have to comply to the standards set by the National Crime Records Bureau (NCRB) at the central level.
Courtesy: Business-Standard
Around 27 Indian IT firms, including majors like Tata Consultancy Services (TCS), Infosys Technologies and Wipro Ltd, are understood to have submitted their expressions of interest (EoIs) to develop a technology platform for the Centre’s Crime and Criminal Tracking Networks and Systems (CCTNS) project.
In June this year, the Rs 2,000-crore CCTNS project received approval from the Cabinet Committee on Economic Affairs, following which the National Crime Records Bureau (NCRB), which will implement the project, floated the EoIs.
The IT company that wins the bid will get to develop the core technology platform and software that will work as a standard for all Indian states to implement the project at the state level.
Other than creating a platform for sharing crime and criminal information (in the form of a web-based criminal record database) across the country, the CCTNS is expected to streamline investigation and prosecution processes; strengthen the intelligence-gathering machinery and improve the public delivery system. This will also facilitate the collection, storage, retrieval, analysis, transfer and sharing of data and information among police stations, district and state headquarters and the controlling agencies at the central level.
The CCTNS is a mission mode project (MMP) under the national e-Governance plan. The core application software (CAS) will have to be developed so that it will operate regardless of low- or unreliable-bandwidth scenarios.
“The selected parties can pursue multiple opportunities at the state level. The prime aim of the project is to create an architecture using an application programming interface (API), so that the systems to be launched by each state would speak to each other,” explained the Indian head of a software firm that has submitted an EoI for the project.
Before the CCTNS project was proposed, various state governments including those of Gujarat, Andhra Pradesh and Karnataka were either creating a web-enabled interface of the crime and criminal records or in the process of doing that.
In early 2008, for instance, the Gujarat government had signed an agreement with TCS to develop a technology platform that was aimed at enabling every police officer to have access to police records and background information at any given point of time.
India’s third-largest IT services provider, Wipro, which has developed an integrated police information system, is pursuing opportunities in Karnataka.
“Wipro sees a huge role for information technology to combat high crime rates more effectively. Our technology will bring in a lot of efficiency and agility in the functioning between various units of the police department through real-time information sharing,” said Ranbir Singh, general manager, government and defence, Wipro Infotech.
The government, however, has now made it clear that the states that have already deployed the technology to integrate the police records with the CCTNS and have to comply to the standards set by the National Crime Records Bureau (NCRB) at the central level.
Courtesy: Business-Standard
Monday, August 31, 2009
IBM, New Deals, Outsourcing, Satyam, Wipro
TechM, Wipro, IBM vie for $400-m Loop Tele deal
LOOP Telecom, where the Essar Group has a stake, has shortlisted Tech Mahindra, Wipro and IBM for an IT outsourcing contract worth around $400 million. The contract is believed to be spread across a period of 10 years and will not include Loop Mobile’s operations, said two industry officials familiar with the deal. Loop Mobile provides cellular services in Mumbai, while operations in the rest of the country is under Loop Telecom.
The outsourcing contract is for the telco’s system integration and maintenance of IT systems across 22 cellular circles. This deal does not include BPO services since most of the back-end operations are done by Essar Group’s Aegis BPO. Loop Telecom has recently launched its services, selectively in Tamil Nadu, Orissa, Kerala and Karnataka.
A Wipro spokesperson said the company was in talks with a few telcos and would not comment on specific engagements, while Tech Mahindra and IBM declined comment on the deal.
A Loop Telecom spokesperson said, “We are constantly exploring ways to enhance our business model, launch plans and operational decisions and regularly engage in dialogue with vendors to help us build a compelling proposition. Nothing has been finalised in terms of partners or the contract amount. An announcement on our IT contract will be made as and when it gets firmed up.”
Loop Telecom is believed to be exploring an operating expenditure (opex) model, under which the shortlisted players can take Loop Telecom’s IT assets on its books. “They could either rent or lease the assets back to the client,” said a person familiar with the deal. This model of outsourcing is considered more cost-effective for companies. The telecom company has already outsourced its network infrastructure to China’s ZTE and Huawei Technologies.
Loop Mobile, earlier known as BPL Mobile, has a subscriber base of 2.4 million in the Mumbai circle, for which it already has an in-house team of IT professionals.
“The request for proposal (RFP) did not mention providing IT services to Loop Mobile, but to other 22 circles. While the company has had a soft launch in four circles, it will scale it up after finalising on the IT vendor,” said
another official familiar with the contract.
The domestic market has been the focus of many IT service providers after a decline in exports from the US and Europe, apart from a host of new companies launching mobile services in India. These new entrants have kept the order book running for IT companies. Earlier, Wipro had bagged a full IT outsourcing project from Unitech Wireless worth approximately Rs 2,500 crore over a nine-year period.
The outsourcing contract is for the telco’s system integration and maintenance of IT systems across 22 cellular circles. This deal does not include BPO services since most of the back-end operations are done by Essar Group’s Aegis BPO. Loop Telecom has recently launched its services, selectively in Tamil Nadu, Orissa, Kerala and Karnataka.
A Wipro spokesperson said the company was in talks with a few telcos and would not comment on specific engagements, while Tech Mahindra and IBM declined comment on the deal.
A Loop Telecom spokesperson said, “We are constantly exploring ways to enhance our business model, launch plans and operational decisions and regularly engage in dialogue with vendors to help us build a compelling proposition. Nothing has been finalised in terms of partners or the contract amount. An announcement on our IT contract will be made as and when it gets firmed up.”
Loop Telecom is believed to be exploring an operating expenditure (opex) model, under which the shortlisted players can take Loop Telecom’s IT assets on its books. “They could either rent or lease the assets back to the client,” said a person familiar with the deal. This model of outsourcing is considered more cost-effective for companies. The telecom company has already outsourced its network infrastructure to China’s ZTE and Huawei Technologies.
Loop Mobile, earlier known as BPL Mobile, has a subscriber base of 2.4 million in the Mumbai circle, for which it already has an in-house team of IT professionals.
“The request for proposal (RFP) did not mention providing IT services to Loop Mobile, but to other 22 circles. While the company has had a soft launch in four circles, it will scale it up after finalising on the IT vendor,” said
another official familiar with the contract.
The domestic market has been the focus of many IT service providers after a decline in exports from the US and Europe, apart from a host of new companies launching mobile services in India. These new entrants have kept the order book running for IT companies. Earlier, Wipro had bagged a full IT outsourcing project from Unitech Wireless worth approximately Rs 2,500 crore over a nine-year period.
New Deals, Outsourcing, Satyam
Mahindra Satyam says it's chasing 30 large deals
Information technology services provider Mahindra Satyam is pursuing around 30 “large deals” and expects some of these to materialise during the current financial year, according to a senior official of the company.
“We are vigorously pursuing 20 to 30 large deals in the life sciences, public services, transportation and engineering domains, which are showing a lot of positive business momentum. We expect to close some of them to our advantage by this fiscal end,” the official told Business Standard, while declining to share the size of the deals.
A large deal, in normal IT parlance, is anywhere between $50 million (around Rs 245 crore) and $100 million (Rs 490 crore).
The scam-hit company, now logging on to the recovery path after Tech Mahindra acquired a controlling stake in it in April, has been seeing increasing business stability since then, winning over 30 new logos (customer wins), including the five-year SAP contract with global pharmaceutical major GlaxoSmithKline, the official added.
“The company has been witnessing high traction of business from emerging markets like India, Europe, Middle East and Asia (MEA) and the Asia Pacific. These new geographies are now accounting for close to 55 per cent of our business, while the contribution from the US is hovering around 45 per cent, a positive trend which is slowly beginning to grow and drive our revenues further,” he said.
On the company’s business processing outsourcing (BPO) arm’s recent major client win in Tata Docomo for providing back-office support, he said the company had already hired 1,000 professionals for its client. “Mahindra Satyam BPO will be adding 300 people every year over the next five years to service this telecom client,” the official added.
Mahindra Satyam, which had in June announced a one-time virtual pool programme aimed at addressing idle staff costs while retaining talent, had so far recalled 1,000 employees. “We will be calling back some more,” he added.
Mahindra Satyam stock ended the trade at Rs 113.85 on the BSE on Friday, down 0.52 per cent against the previous close of Rs 114.45.
“We are vigorously pursuing 20 to 30 large deals in the life sciences, public services, transportation and engineering domains, which are showing a lot of positive business momentum. We expect to close some of them to our advantage by this fiscal end,” the official told Business Standard, while declining to share the size of the deals.
A large deal, in normal IT parlance, is anywhere between $50 million (around Rs 245 crore) and $100 million (Rs 490 crore).
The scam-hit company, now logging on to the recovery path after Tech Mahindra acquired a controlling stake in it in April, has been seeing increasing business stability since then, winning over 30 new logos (customer wins), including the five-year SAP contract with global pharmaceutical major GlaxoSmithKline, the official added.
“The company has been witnessing high traction of business from emerging markets like India, Europe, Middle East and Asia (MEA) and the Asia Pacific. These new geographies are now accounting for close to 55 per cent of our business, while the contribution from the US is hovering around 45 per cent, a positive trend which is slowly beginning to grow and drive our revenues further,” he said.
On the company’s business processing outsourcing (BPO) arm’s recent major client win in Tata Docomo for providing back-office support, he said the company had already hired 1,000 professionals for its client. “Mahindra Satyam BPO will be adding 300 people every year over the next five years to service this telecom client,” the official added.
Mahindra Satyam, which had in June announced a one-time virtual pool programme aimed at addressing idle staff costs while retaining talent, had so far recalled 1,000 employees. “We will be calling back some more,” he added.
Mahindra Satyam stock ended the trade at Rs 113.85 on the BSE on Friday, down 0.52 per cent against the previous close of Rs 114.45.
Friday, August 28, 2009
New Deals, Outsourcing, Wipro
Wipro, Lavasa tie-up for ICT may result in $100 mn revenue
IT services provider Wipro has tied up with Lavasa Corp for planning, implementing and managing ICT services across Lavasa hill city, which could result in revenues of up to $100 million over the next 10 years.
The strategic partnership (on Information & Communication Technology) will focus on providing integrated and effective solutions for enhancing IT operations within the Hill city, a press release said.
“It will also provide the necessary infrastructure support including technology selection, supply, installation and management of platforms, networks and data centre. The estimated revenues out of this partnership from Lavasa city’s first town Dasve is about $100 million over the next 10 years,” it added.
Lavasa, spread over 12,500 acres, is a hill city complete with education, hospitality and health care services currently being developed by Hindustan Construction Company.
Wipro will design the detailed infrastructure for telecom services for governance.
It will also provide telecom-based services to facilitate smart homes, provide physical security requirements and other on-demand services.
The ICT services include voice-video-data services to various businesses operating in the hill city.
The strategic partnership (on Information & Communication Technology) will focus on providing integrated and effective solutions for enhancing IT operations within the Hill city, a press release said.
“It will also provide the necessary infrastructure support including technology selection, supply, installation and management of platforms, networks and data centre. The estimated revenues out of this partnership from Lavasa city’s first town Dasve is about $100 million over the next 10 years,” it added.
Lavasa, spread over 12,500 acres, is a hill city complete with education, hospitality and health care services currently being developed by Hindustan Construction Company.
Wipro will design the detailed infrastructure for telecom services for governance.
It will also provide telecom-based services to facilitate smart homes, provide physical security requirements and other on-demand services.
The ICT services include voice-video-data services to various businesses operating in the hill city.
HCL, New Deals, Outsourcing
Indian outsourcing majors in talks for $1 billion Exxon deal: report
ExxonMobil is in talks with Indian technology firms including L&T Infotech and HCL Technologies Ltd. and multinational vendors to outsource IT contracts worth up to $1 billion, the Economic Times reported on its Web site Friday, citing a U.S.-based person familiar with ExxonMobil's outsourcing strategy.
"The discussions are at an early stage. However, ExxonMobil wants to work with fewer, large and medium-sized vendors at lower rates," the Web site quoted the person, who spoke on condition of anonymity, as saying.
"The discussions are at an early stage. However, ExxonMobil wants to work with fewer, large and medium-sized vendors at lower rates," the Web site quoted the person, who spoke on condition of anonymity, as saying.
New Deals, Outsourcing, Wipro
Wipro wins Fosters' contract
Wipro, India’s third biggest software exporter, has won a new outsourcing contract estimated to be worth around $100 million from Australia's biggest brewer Fosters.
The contract involves managing and supporting Fosters IT infrastructure, data centres and different business applications across Australia, US and UK.
Having won several large deals including a contract from Origin Energy in Australia’s over $6.5 billion outsourcing market, Wipro continues to increase its footprint in the country.
When contacted by ET on Thursday, a Fosters spokesman confirmed the transaction. A Wipro spokeswoman had not responded to an email query sent by ET on Thursday morning.
"Fosters and Wipro are in discussions regarding global IT infrastructure services, data centre and applications support. The discussions are part of ongoing business efficiency initiatives. Wipro was chosen after a comprehensive tender and offer the capability to service our global operations and deliver significant costs savings with a combination of online, telephone and field staff services," said Troy Hey, Fosters Spokesman.
Fosters is already in the process of shifting members of its internal IT team.
"We are currently discussing transition arrangements with our people. Employees impacted by this approach in Australia, the United States and the UK will be offered alternative roles where available or provided full redundancy payments and career transition support," Mr Hey added.
Meanwhile, Fosters is not planning to outsource any back office and call centre jobs as part of this transaction.
"Discussions are limited to internal Information Technology services and all customer and consumer call centre services remain managed by Fosters teams in Australia, the United States and the UK," Mr Hey added.
At a time when new business is increasingly becoming tough to come by, Australia has emerged as a great opportunity for the outsourcing vendors. Other recent outsourcing contracts awarded by Australian companies include the $1.2 billion deal from Telstra and the over $100-million contract from Origin Energy.
The contract involves managing and supporting Fosters IT infrastructure, data centres and different business applications across Australia, US and UK.
Having won several large deals including a contract from Origin Energy in Australia’s over $6.5 billion outsourcing market, Wipro continues to increase its footprint in the country.
When contacted by ET on Thursday, a Fosters spokesman confirmed the transaction. A Wipro spokeswoman had not responded to an email query sent by ET on Thursday morning.
"Fosters and Wipro are in discussions regarding global IT infrastructure services, data centre and applications support. The discussions are part of ongoing business efficiency initiatives. Wipro was chosen after a comprehensive tender and offer the capability to service our global operations and deliver significant costs savings with a combination of online, telephone and field staff services," said Troy Hey, Fosters Spokesman.
Fosters is already in the process of shifting members of its internal IT team.
"We are currently discussing transition arrangements with our people. Employees impacted by this approach in Australia, the United States and the UK will be offered alternative roles where available or provided full redundancy payments and career transition support," Mr Hey added.
Meanwhile, Fosters is not planning to outsource any back office and call centre jobs as part of this transaction.
"Discussions are limited to internal Information Technology services and all customer and consumer call centre services remain managed by Fosters teams in Australia, the United States and the UK," Mr Hey added.
At a time when new business is increasingly becoming tough to come by, Australia has emerged as a great opportunity for the outsourcing vendors. Other recent outsourcing contracts awarded by Australian companies include the $1.2 billion deal from Telstra and the over $100-million contract from Origin Energy.
Thursday, August 27, 2009
Infosys, New Deals, Outsourcing, TCS, Wipro
TCS, Infosys, Wipro bag big chunk of BP's 5-year IT deal
Country's top three IT companies TCS, Infosys and Wipro today bagged a seizable chunk of five- year outsourcing deal from British oil Spokepersons of all three companies did not disclose the size when asked whether the total deal size is worth $ 1.5 bn (approximately Rs 7,500 crore). They also did not reveal their independent size of the contract they have won.
The multi-crore rupee contract is a big boost for the domestic outsourcing majors, currently under pricing and margin pressure in the wake of gloabl downturn.
Global IT majors IBM and Accenture have also has snapped a part of the deal. The three companies announced separately that they have entered into an outsourcing deal with BP.
Infosys said it will operate BP's business systems. Wipro said it will provide IT Application Development and Application Maintenance (ADAM) services for BP's Fuels Value Chain and corporate business globally.
TCS said it has been selected for engagements in refining, manufacturing and corporate IT with opportunities across fuels value chain including upstream and trading.
As part of the deal, IBM will manage and run the oil giant's enterprise applications and integrated service desk responsibilities, IBM said.
The big three closed up in the range of 2-4 per cent on BSE after the news of them bagging the deal broke out.
The multi-crore rupee contract is a big boost for the domestic outsourcing majors, currently under pricing and margin pressure in the wake of gloabl downturn.
Global IT majors IBM and Accenture have also has snapped a part of the deal. The three companies announced separately that they have entered into an outsourcing deal with BP.
Infosys said it will operate BP's business systems. Wipro said it will provide IT Application Development and Application Maintenance (ADAM) services for BP's Fuels Value Chain and corporate business globally.
TCS said it has been selected for engagements in refining, manufacturing and corporate IT with opportunities across fuels value chain including upstream and trading.
As part of the deal, IBM will manage and run the oil giant's enterprise applications and integrated service desk responsibilities, IBM said.
The big three closed up in the range of 2-4 per cent on BSE after the news of them bagging the deal broke out.
Infosys, New Deals, Outsourcing, Wipro
Infosys, Wipro bag 5-yr BP deal
Indian outsourcers Infosys Technologies Ltd and Wipro Ltd bagged five-year outsourcing deal from oil and gas firm BP.
Under the terms of the deal, Infosys will operate a large portion of BP's business systems. No financial details were available.
Kris Gopalakrishnan, CEO and Managing Director, Infosys Technologies, said, “Infosys has a long standing relationship with BP, delivering consulting and technology services. We are well positioned to use our global sourcing expertise and transformational capabilities in the oil and gas domain.”
Under the five-year agreement with BP, Wipro will provide IT applications development and maintenance services for the company’s fuel and corporate businesses globally.
Earlier last week, Infosys Technologies said that it has bid for more than 10 large government projects in India as part of a drive to lower its dependence on the US market.
Infosys, which gets more than half its business from the United States, plans to generate $1 billion in revenue from the Indian market in 2-3 years versus an insignificant level now, the head of its India business unit said.
"There are large opportunities in India. So we are definitely going to go after these kinds of businesses very aggressively in India," Binod Rangadore said. "We have a very healthy pipeline right now."
The market for technology and business outsourcing services in India is expected to expand five-fold by 2020 to $90 billion to $100 billion on the back of a growing economy, according to a recent study by lobby group NASSCOM and consultancy McKinsey.
Outsourcing firms such as Infosys and bigger rival Tata Consultancy Services are tapping new markets such as India, China, Japan and countries in Europe to beat a recession in the United States.
The Indian firms face competition from big global players such as IBM Inc, Hewlett-Packard and Accenture that have raided their home turf as they look for growth outside their mature markets.
Under the terms of the deal, Infosys will operate a large portion of BP's business systems. No financial details were available.
Kris Gopalakrishnan, CEO and Managing Director, Infosys Technologies, said, “Infosys has a long standing relationship with BP, delivering consulting and technology services. We are well positioned to use our global sourcing expertise and transformational capabilities in the oil and gas domain.”
Under the five-year agreement with BP, Wipro will provide IT applications development and maintenance services for the company’s fuel and corporate businesses globally.
Earlier last week, Infosys Technologies said that it has bid for more than 10 large government projects in India as part of a drive to lower its dependence on the US market.
Infosys, which gets more than half its business from the United States, plans to generate $1 billion in revenue from the Indian market in 2-3 years versus an insignificant level now, the head of its India business unit said.
"There are large opportunities in India. So we are definitely going to go after these kinds of businesses very aggressively in India," Binod Rangadore said. "We have a very healthy pipeline right now."
The market for technology and business outsourcing services in India is expected to expand five-fold by 2020 to $90 billion to $100 billion on the back of a growing economy, according to a recent study by lobby group NASSCOM and consultancy McKinsey.
Outsourcing firms such as Infosys and bigger rival Tata Consultancy Services are tapping new markets such as India, China, Japan and countries in Europe to beat a recession in the United States.
The Indian firms face competition from big global players such as IBM Inc, Hewlett-Packard and Accenture that have raided their home turf as they look for growth outside their mature markets.
Wednesday, August 26, 2009
IBM, New Deals, Outsourcing
IBM bags Nomura's IT services deal
IBM announced that Nomura Services India Private Limited, a subsidiary of leading financial services group Nomura, would implement IBM's end-to-end business continuity and resiliency services to bolster its business continuity, disaster and system failure response strategies.
The multi-year IT services agreement would also provide Nomura Services with an in-city work area recovery solution to recover critical business functions in the event of an interruption at a primary site, an IBM press release said.
"This will help Nomura Services effectively respond to crisis scenarios that may have the potential of causing major disruption to its business", it said.
The multi-year IT services agreement would also provide Nomura Services with an in-city work area recovery solution to recover critical business functions in the event of an interruption at a primary site, an IBM press release said.
"This will help Nomura Services effectively respond to crisis scenarios that may have the potential of causing major disruption to its business", it said.
Tuesday, August 25, 2009
New Deals, Outsourcing, Satyam
TechM bags Etisalat contract
Gets a portion of Rs 1,500-crore IT outsourcing deal from the UAE firm
IT solutions provider Tech Mahindra is understood to have bagged a majority portion of the Rs 1,500-crore telecom IT outsourcing deal from new operator Etisalat DB Telecom India, pipping seven other IT vendors like Wipro Technologies and IBM to the post. The deal is expected to be announced soon.
The UAE-based telecom giant Etisalat holds a 45 per cent stake in Etisalat DB Telecom India (formerly Swan Telecom).
A Letter of Intent (LoI) regarding the contract has been awarded to Tech Mahindra, while the company is yet to respond to this.
When contacted, a senior executive at Tech Mahindra said: “We do not comment on market speculation.” Executives at Etisalat DB Telecom India and Wipro Technologies also declined to comment.
Tech Mahindra has been finalised for customer billing solutions, which comprises around 50-60 per cent of the total IT contract.
The technology part of the deal is yet to be finalised, for which IBM, Tech Mahindra, Wipro Technologies and Chinese vendor ZTE Corporation are in the race, a source close to the development told Business Standard.
According to a Mumbai-based analyst, Tech Mahindra winning the deal might not come as a surprise as Etisalat had earlier awarded an outsourcing contract to the solutions provider. Tech Mahindra, jointly with Sony Ericsson, had won Etisalat’s Egypt outsourcing contract in February last year.
Indian telecom providers have been increasingly outsourcing their IT infrastructure, as it would enable them to be asset-light and concentrate on their core competencies.
While the trend was started by Bharti-Airtel’s deal with IBM which has now risen to over $2 billion, most of the telecom players have opted for outsourcing.
Recently, Wipro won a Rs 2,500-crore deal from Unitech Wireless.
In January 2008, Aircel Cellular had awarded a $600-million deal to Wipro, while Aditya Birla group company Idea Cellular had signed a 10-year IT outsourcing deal with IBM. Idea Cellular’s deal was estimated to be around $600-800 million.
IT solutions provider Tech Mahindra is understood to have bagged a majority portion of the Rs 1,500-crore telecom IT outsourcing deal from new operator Etisalat DB Telecom India, pipping seven other IT vendors like Wipro Technologies and IBM to the post. The deal is expected to be announced soon.
The UAE-based telecom giant Etisalat holds a 45 per cent stake in Etisalat DB Telecom India (formerly Swan Telecom).
A Letter of Intent (LoI) regarding the contract has been awarded to Tech Mahindra, while the company is yet to respond to this.
When contacted, a senior executive at Tech Mahindra said: “We do not comment on market speculation.” Executives at Etisalat DB Telecom India and Wipro Technologies also declined to comment.
Tech Mahindra has been finalised for customer billing solutions, which comprises around 50-60 per cent of the total IT contract.
The technology part of the deal is yet to be finalised, for which IBM, Tech Mahindra, Wipro Technologies and Chinese vendor ZTE Corporation are in the race, a source close to the development told Business Standard.
According to a Mumbai-based analyst, Tech Mahindra winning the deal might not come as a surprise as Etisalat had earlier awarded an outsourcing contract to the solutions provider. Tech Mahindra, jointly with Sony Ericsson, had won Etisalat’s Egypt outsourcing contract in February last year.
Indian telecom providers have been increasingly outsourcing their IT infrastructure, as it would enable them to be asset-light and concentrate on their core competencies.
While the trend was started by Bharti-Airtel’s deal with IBM which has now risen to over $2 billion, most of the telecom players have opted for outsourcing.
Recently, Wipro won a Rs 2,500-crore deal from Unitech Wireless.
In January 2008, Aircel Cellular had awarded a $600-million deal to Wipro, while Aditya Birla group company Idea Cellular had signed a 10-year IT outsourcing deal with IBM. Idea Cellular’s deal was estimated to be around $600-800 million.
Saturday, August 22, 2009
Accenture, New Deals, Outsourcing
SAS hires Accenture in 7-year outsourcing deal
Scandinavian Airlines Awards Finance and Accounting Business Process Outsourcing Contract to Accenture
Accenture (NYSE: ACN: 35.45, -0.9, -2.48%) will provide Scandinavian Airlines (SAS) with finance and accounting (F&A) business services in Western Europe under a seven-year business process outsourcing (BPO) agreement.
The services Accenture covers include accounts payable, accounts receivable and accounting to reporting. Accenture will provide the services to SAS in 14 countries across Western Europe; mainly in Sweden, Norway, Denmark and the United Kingdom. The services will be delivered through Accenture's Global Delivery Network from its delivery center in Delhi, India.
"The work being performed by Accenture is part of SAS's new strategy "Core SAS" that is designed to deliver annual savings through a streamlined and simplified operating model," said Sara Jinnerot, VP at SAS Accounting Services. "We selected Accenture because of their ability to provide a qualitative and cost effective solution. Accenture has a proven track record of delivering similar services".
"We are proud to have been selected to support SAS. The contract agreement will deliver cost-effective solutions and a standardized process for the finance and accounting services and further strengthens our position in the airline industry, says Patrik Bjorkler, a senior executive in Accenture's Nordic outsourcing practice.
Accenture (NYSE: ACN: 35.45, -0.9, -2.48%) will provide Scandinavian Airlines (SAS) with finance and accounting (F&A) business services in Western Europe under a seven-year business process outsourcing (BPO) agreement.
The services Accenture covers include accounts payable, accounts receivable and accounting to reporting. Accenture will provide the services to SAS in 14 countries across Western Europe; mainly in Sweden, Norway, Denmark and the United Kingdom. The services will be delivered through Accenture's Global Delivery Network from its delivery center in Delhi, India.
"The work being performed by Accenture is part of SAS's new strategy "Core SAS" that is designed to deliver annual savings through a streamlined and simplified operating model," said Sara Jinnerot, VP at SAS Accounting Services. "We selected Accenture because of their ability to provide a qualitative and cost effective solution. Accenture has a proven track record of delivering similar services".
"We are proud to have been selected to support SAS. The contract agreement will deliver cost-effective solutions and a standardized process for the finance and accounting services and further strengthens our position in the airline industry, says Patrik Bjorkler, a senior executive in Accenture's Nordic outsourcing practice.
IT market, New Deals, Oracle
Oracle wins approval to buy Sun Micro
Software giant Oracle Corp has won US antitrust approval to buy computer maker Sun Microsystems, clearing a key hurdle in the companies' plan to close the $7.4 billion deal before the end of this month.
Oracle said that the deal cleared the US Justice Department with no restrictions. The takeover also requires approval by the European Commission. US officials in June said they wanted to scrutinise the deal over questions about Oracle's plans for licensing Sun's Java software, one of the world's most widely used computer languages. Since then, investors have been waiting to see how long that might delay the deal.
Analysts have said that the delay has worked to the advantage of Sun's two chief rivals in the server market, IBM and Hewlett Packard Co. They have been courting Sun's customers during the past few months, trying to persuade them to change suppliers amid uncertainty about Oracle's plans for running the server business.
Until Oracle closes the acquisition, it cannot say much about its strategy for Sun's hardware division. Oracle has said it expects to close the deal by August 31. Sun's shareholders have approved the deal.
Oracle agreed to buy Sun in April after the collapse of weeks of talks between the struggling hardware and software maker and IBM.
The deal gives Oracle's outspoken billionaire CEO, Larry Ellison, control of Sun's Java software and the Solaris operating system for Unix servers.
Ellison has said he wants to build and sell Sun computers preloaded with Oracle software and also tweak Java software so that it is easier to use on smartphones and netbook computers.
Oracle said that the deal cleared the US Justice Department with no restrictions. The takeover also requires approval by the European Commission. US officials in June said they wanted to scrutinise the deal over questions about Oracle's plans for licensing Sun's Java software, one of the world's most widely used computer languages. Since then, investors have been waiting to see how long that might delay the deal.
Analysts have said that the delay has worked to the advantage of Sun's two chief rivals in the server market, IBM and Hewlett Packard Co. They have been courting Sun's customers during the past few months, trying to persuade them to change suppliers amid uncertainty about Oracle's plans for running the server business.
Until Oracle closes the acquisition, it cannot say much about its strategy for Sun's hardware division. Oracle has said it expects to close the deal by August 31. Sun's shareholders have approved the deal.
Oracle agreed to buy Sun in April after the collapse of weeks of talks between the struggling hardware and software maker and IBM.
The deal gives Oracle's outspoken billionaire CEO, Larry Ellison, control of Sun's Java software and the Solaris operating system for Unix servers.
Ellison has said he wants to build and sell Sun computers preloaded with Oracle software and also tweak Java software so that it is easier to use on smartphones and netbook computers.
Friday, August 21, 2009
Infosys, New Deals, Outsourcing, Satyam
Infosys, Satyam vie for $200 mn deal
Bombardier, the world’s third biggest aircraft maker, has invited tech vendors to bid for an outsourcing contract potentially worth up to $200 million over next few years, as the company seeks to increase outsourcing of design projects in order to lower its operational costs.
While Mahindra Satyam and Capgemini already work with Bombardier and are in discussions with the aircraft maker for this contract, India’s second biggest software exporter Infosys and smaller rival QuEST Global are also pursuing this opportunity.
The contract will involve engineering design projects for Bombardier’s CSeries jetliners being procured by Lease Corp. International Aviation and Lufthansa are in transactions worth over $3 billion.
From around $1.8 billion currently, India’s engineering services outsourcing (ESO) market is expected to reach $50 billion over the next ten years as more aviation and manufacturing companies seek to lower their design costs by outsourcing to the country.
When contacted, a Bombardier spokesperson declined to provide any specific details of this contract. “Bombardier Aerospace is active in India through associations with Capgemini and Mahindra Satyam in Bangalore since 2005. Bombardier Aerospace in its normal course of business continues to hold exploratory discussions with several entities located around the world to address various business opportunities,” said Marc Duchesne, Manager, Public Affairs & Senior spokesperson, Bombardier Aerospace.
Apart from smaller focused firms such as Infotech Enterprises and QuEST Global, large Indian software firms including TCS, Infosys and HCL have been attempting to increase their revenues from aviation design projects.
While Infosys would not comment on any specific customer, a person familiar with the company’s strategies told on conditions of anonymity that Infosys is among vendors bidding for the Bombardier contract. “Infosys is in conversation with Bombardier which is the main OEM among the four to five big players in this market. Bombardier’s future road map is throwing up an enormous potential as they have formed the blueprint for C-Series,” he said.
Companies such as Infosys now want a bigger pie of the outsourcing contract, which will include some portion of mechanical engineering design work as well.
“Bombardier is looking for design work for metallic and composite structures to be done in India which also includes work like floor panels, la
nding gears, doors, fuselage, wings. Infosys is looking for complete package rather then doing work for one part or another,” the person added.
Aviation customers are increasingly looking at sourcing design and other IT projects from India not necessarily for cost savings, but also because the country offers a pool of skilled engineers who understand complex avionics.
“QuEST Global has typically provided our customers with cost savings from 20% to 40%, in business models where we setup a dedicated engineering team for them consisting of at least 20-25 engineers providing a similar range of services. These kind of cost savings can be achieved in a period of 18 to 24 months from the setup of operations,” said Bejoy George, chief marketing officer of QuEST.
Two of the world’s biggest aircraft makers Airbus and Boeing have been outsourcing to India-based vendors over past many years. Boeing awarded a deal to HCL Technologies to develop software for its 787 Dreamliner and has also formed collaborations with several institutions such as IISc, IIT and National Aeronautical Laboratory, for development of futuristic aerospace technology.
Hindustan Aeronautics Limited (HAL) is developing components for Airbus’s A380, including the doors. QuEST on other hand is making the components that go in to the landing gears of aircraft’s made by Airbus and Boeing.
While Mahindra Satyam and Capgemini already work with Bombardier and are in discussions with the aircraft maker for this contract, India’s second biggest software exporter Infosys and smaller rival QuEST Global are also pursuing this opportunity.
The contract will involve engineering design projects for Bombardier’s CSeries jetliners being procured by Lease Corp. International Aviation and Lufthansa are in transactions worth over $3 billion.
From around $1.8 billion currently, India’s engineering services outsourcing (ESO) market is expected to reach $50 billion over the next ten years as more aviation and manufacturing companies seek to lower their design costs by outsourcing to the country.
When contacted, a Bombardier spokesperson declined to provide any specific details of this contract. “Bombardier Aerospace is active in India through associations with Capgemini and Mahindra Satyam in Bangalore since 2005. Bombardier Aerospace in its normal course of business continues to hold exploratory discussions with several entities located around the world to address various business opportunities,” said Marc Duchesne, Manager, Public Affairs & Senior spokesperson, Bombardier Aerospace.
Apart from smaller focused firms such as Infotech Enterprises and QuEST Global, large Indian software firms including TCS, Infosys and HCL have been attempting to increase their revenues from aviation design projects.
While Infosys would not comment on any specific customer, a person familiar with the company’s strategies told on conditions of anonymity that Infosys is among vendors bidding for the Bombardier contract. “Infosys is in conversation with Bombardier which is the main OEM among the four to five big players in this market. Bombardier’s future road map is throwing up an enormous potential as they have formed the blueprint for C-Series,” he said.
Companies such as Infosys now want a bigger pie of the outsourcing contract, which will include some portion of mechanical engineering design work as well.
“Bombardier is looking for design work for metallic and composite structures to be done in India which also includes work like floor panels, la
nding gears, doors, fuselage, wings. Infosys is looking for complete package rather then doing work for one part or another,” the person added.
Aviation customers are increasingly looking at sourcing design and other IT projects from India not necessarily for cost savings, but also because the country offers a pool of skilled engineers who understand complex avionics.
“QuEST Global has typically provided our customers with cost savings from 20% to 40%, in business models where we setup a dedicated engineering team for them consisting of at least 20-25 engineers providing a similar range of services. These kind of cost savings can be achieved in a period of 18 to 24 months from the setup of operations,” said Bejoy George, chief marketing officer of QuEST.
Two of the world’s biggest aircraft makers Airbus and Boeing have been outsourcing to India-based vendors over past many years. Boeing awarded a deal to HCL Technologies to develop software for its 787 Dreamliner and has also formed collaborations with several institutions such as IISc, IIT and National Aeronautical Laboratory, for development of futuristic aerospace technology.
Hindustan Aeronautics Limited (HAL) is developing components for Airbus’s A380, including the doors. QuEST on other hand is making the components that go in to the landing gears of aircraft’s made by Airbus and Boeing.
Thursday, August 20, 2009
IT market, New Deals
India's education sector to step up its IT spending
India's education sector is forecasted to increase its IT spending from an estimated $356 million in 2008 to $704 million by 2012, reflecting in a Compounded Annual Growth Rate (CAGR) of 19 percent during 2007-2012, according to the research study by Springboard Research, an IT Market Research industry. Majority of educational institutes in India are expected to spend on networking and basic infrastructure upgrades in the next two years.
According to Springboard's report "Inside the Campus: IT in India's Education Sector", Wireless LAN (WLAN), Storage Area Network (SAN) and ERP are the three most popular IT solutions adopted by educational institutes in India. "In particular, a large number of institutions are opting for networking solutions, storage and ERP implementations to support their business, upgrade operations and streamline budgets," said Nilotpal Chakravarti, Senior Research Analyst - Vertical Markets at Springboard Research.
Findings of the report are based on Springboard interviews of IT solution providers, System Integrators and solution vendors in the education vertical, along with a survey of 250 IT decision-makers from primary, secondary and higher educational institutions in India.
The report revealed that majority of institutes reported moderate to high IT spending on software (up to 50 percent of their total IT spending). In contrast, 18 percent of respondents reported spending more than 75 percent of their budgets on hardware. Spending on IT services remains low in the Indian education sector with nearly half of respondents spending up to 25 percent of their budgets on services. "License and subscription fee renewals take up a large piece of spending, while network infrastructure upgrades will enable students and teachers to have more access to quality curriculum-based digital content such as digital learning objects," Chakravarti said. When questioned on their future IT investment plans, survey respondents gave the highest importance to networking, PCs and servers and student administration systems. The report revealed high level of home PC penetration among students in major cities in India with 74 percent of school students and 86 percent of college and higher education students estimated to have access to personal computers at home.
Also, a majority of respondents in the survey named Microsoft as a leader in providing educational software and solutions. Other key solution players in the market are IBM, NIIT and Oracle. According to the survey respondents, IBM led the market in servers and storage infrastructure, HP was ranked as top PC vendor in the education market and D-Link and Cisco are the top two networking vendors in the education sector in India.
"Educational institutions in India are presently focused on the deployment of IT systems that will enable them to improve the educational process for their students, and to stay ahead of the competition," said Chakravarti.
According to Springboard's report "Inside the Campus: IT in India's Education Sector", Wireless LAN (WLAN), Storage Area Network (SAN) and ERP are the three most popular IT solutions adopted by educational institutes in India. "In particular, a large number of institutions are opting for networking solutions, storage and ERP implementations to support their business, upgrade operations and streamline budgets," said Nilotpal Chakravarti, Senior Research Analyst - Vertical Markets at Springboard Research.
Findings of the report are based on Springboard interviews of IT solution providers, System Integrators and solution vendors in the education vertical, along with a survey of 250 IT decision-makers from primary, secondary and higher educational institutions in India.
The report revealed that majority of institutes reported moderate to high IT spending on software (up to 50 percent of their total IT spending). In contrast, 18 percent of respondents reported spending more than 75 percent of their budgets on hardware. Spending on IT services remains low in the Indian education sector with nearly half of respondents spending up to 25 percent of their budgets on services. "License and subscription fee renewals take up a large piece of spending, while network infrastructure upgrades will enable students and teachers to have more access to quality curriculum-based digital content such as digital learning objects," Chakravarti said. When questioned on their future IT investment plans, survey respondents gave the highest importance to networking, PCs and servers and student administration systems. The report revealed high level of home PC penetration among students in major cities in India with 74 percent of school students and 86 percent of college and higher education students estimated to have access to personal computers at home.
Also, a majority of respondents in the survey named Microsoft as a leader in providing educational software and solutions. Other key solution players in the market are IBM, NIIT and Oracle. According to the survey respondents, IBM led the market in servers and storage infrastructure, HP was ranked as top PC vendor in the education market and D-Link and Cisco are the top two networking vendors in the education sector in India.
"Educational institutions in India are presently focused on the deployment of IT systems that will enable them to improve the educational process for their students, and to stay ahead of the competition," said Chakravarti.
Infosys, New Deals
Infosys bids for over 10 govt deals
Infosys Technologies, India's second-largest IT services exporter, has bid for more than 10 large government projects in India as part of a drive to lower its dependence on the US market, an official said.
Infosys, which gets more than half its business from the United States, plans to generate $1 billion in revenue from the Indian market in 2-3 years versus an insignificant level now, the head of its India business unit said.
"There are large opportunities in India. So we are definitely going to go after these kinds of businesses very aggressively in India," Binod Rangadore said. "We have a very healthy pipeline right now."
The market for technology and business outsourcing services in India is expected to expand five-fold by 2020 to $90 billion to $100 billion on the back of a growing economy, according to a recent study by lobby group NASSCOM and consultancy McKinsey.
Outsourcing firms such as Infosys and bigger rival Tata Consultancy Services are tapping new markets such as India, China, Japan and countries in Europe to beat a recession in the United States.
The Indian firms face competition from big global players such as IBM Inc, Hewlett-Packard and Accenture that have raided their home turf as they look for growth outside their mature markets.
US business software maker CA expects its bookings, an indicator of future business, will rise 50 percent in the year to March 2010 and by 30-40 percent for the following two years on growing technology spending.
Infosys, which set up its India business unit in late 2007 as part of a strategy to diversify its revenue base, has put in bids for IT services contracts from railways and state-run telecom Bharat Sanchar Nigam Ltd (BSNL) among others, Rangadore said.
He declined to set a timeframe for the outcome of the bids. The US market had contributed 63.2 percent of Infosys’ 2008/09 revenue of $4.4 billion, with just 1.3 percent coming from India.
Rangadore said the business from IT services in India was very
Window of opportunity
Last month, Infosys said it had won a contract to design, develop and support a portal for the ministry of commerce and industry. A government official said the contract was valued at Rs 150 million ($3 million) for three years.
Infosys, which has a market value of $23 billion, has also won a project from the tax authorities for a project to enable electronic filing by taxpayers, Rangadore said.
He said spending on technology by private companies was seeing a slowdown in India due to the economic downturn, but investment by the government remained robust and was likely to increase in the near term.
A host of IT services firms are expected to vie for the government's initiative to provide the country's more than 1 billion people with identity cards, a new project which is being headed by Infosys co-founder Nandan Nilekani.
"The window of opportunity in India is probably in the next one to two years when most of the decisions will be made for large spending in India," Rangadore said.
The Infosys stock has jumped about 75 percent this year, compared with a 54 percent rise in the main index.
small and bulk of the revenue in India came from Finacle, the banking solutions and services unit of Infosys.
Infosys, which gets more than half its business from the United States, plans to generate $1 billion in revenue from the Indian market in 2-3 years versus an insignificant level now, the head of its India business unit said.
"There are large opportunities in India. So we are definitely going to go after these kinds of businesses very aggressively in India," Binod Rangadore said. "We have a very healthy pipeline right now."
The market for technology and business outsourcing services in India is expected to expand five-fold by 2020 to $90 billion to $100 billion on the back of a growing economy, according to a recent study by lobby group NASSCOM and consultancy McKinsey.
Outsourcing firms such as Infosys and bigger rival Tata Consultancy Services are tapping new markets such as India, China, Japan and countries in Europe to beat a recession in the United States.
The Indian firms face competition from big global players such as IBM Inc, Hewlett-Packard and Accenture that have raided their home turf as they look for growth outside their mature markets.
US business software maker CA expects its bookings, an indicator of future business, will rise 50 percent in the year to March 2010 and by 30-40 percent for the following two years on growing technology spending.
Infosys, which set up its India business unit in late 2007 as part of a strategy to diversify its revenue base, has put in bids for IT services contracts from railways and state-run telecom Bharat Sanchar Nigam Ltd (BSNL) among others, Rangadore said.
He declined to set a timeframe for the outcome of the bids. The US market had contributed 63.2 percent of Infosys’ 2008/09 revenue of $4.4 billion, with just 1.3 percent coming from India.
Rangadore said the business from IT services in India was very
Window of opportunity
Last month, Infosys said it had won a contract to design, develop and support a portal for the ministry of commerce and industry. A government official said the contract was valued at Rs 150 million ($3 million) for three years.
Infosys, which has a market value of $23 billion, has also won a project from the tax authorities for a project to enable electronic filing by taxpayers, Rangadore said.
He said spending on technology by private companies was seeing a slowdown in India due to the economic downturn, but investment by the government remained robust and was likely to increase in the near term.
A host of IT services firms are expected to vie for the government's initiative to provide the country's more than 1 billion people with identity cards, a new project which is being headed by Infosys co-founder Nandan Nilekani.
"The window of opportunity in India is probably in the next one to two years when most of the decisions will be made for large spending in India," Rangadore said.
The Infosys stock has jumped about 75 percent this year, compared with a 54 percent rise in the main index.
small and bulk of the revenue in India came from Finacle, the banking solutions and services unit of Infosys.
Wednesday, August 19, 2009
New Deals, TCS
TCS bags Avaya IT deal
Avaya GLobalConnect (AGC) today announced that Tata Consultancy Services (TCS) will be its technology partner for managing and overseeing the company’s total internal IT outsourcing needs.
Under the multi-year deal, TCS will assume responsibility of AGC’s internal IT operations. Avaya GlobalConnect is leading solutions integrator in areas of Unified Communication, Contact Centers and IP Telephony, with focus on accelerating customer’s business across industry verticals.
Anil Nair, Managing Director, Avaya GlobalConnect said, “For us, scalability and cost-control are essential to tap the enormous potential of India market, expand customer base and sustain our leadership position. Outsourcing our IT systems to TCS will allow us invest the accruing savings towards growth and customer responsiveness.”
G Srinivasa Raghavan, Country Head, India Business, TCS said, “We will provide comprehensive IT solution for AGC’s business needs and work with them on a well-integrated delivery platform built for quality service and high performance.”
Under the multi-year deal, TCS will assume responsibility of AGC’s internal IT operations. Avaya GlobalConnect is leading solutions integrator in areas of Unified Communication, Contact Centers and IP Telephony, with focus on accelerating customer’s business across industry verticals.
Anil Nair, Managing Director, Avaya GlobalConnect said, “For us, scalability and cost-control are essential to tap the enormous potential of India market, expand customer base and sustain our leadership position. Outsourcing our IT systems to TCS will allow us invest the accruing savings towards growth and customer responsiveness.”
G Srinivasa Raghavan, Country Head, India Business, TCS said, “We will provide comprehensive IT solution for AGC’s business needs and work with them on a well-integrated delivery platform built for quality service and high performance.”
HP, New Deals
HP Wins Application Management Outsourcing Deal with German Firm MLP
HP (NYSE: HPQ) today announced a six-year applications management outsourcing deal with MLP, an independent financial services and wealth management consulting company in Germany, that will enable MLP to increase business development.
The agreement reduces MLP's financial risk by offering pay-per-use pricing and increases the company's flexibility to respond to changing business priorities with adjustable service levels. In addition, HP will help MLP reduce costs by standardizing technology processes and leveraging a global delivery model.
MLP also extended its existing infrastructure technology agreement for management of three data centers, network devices, distributed servers, Lotus Notes messaging and end-user PCs to 2015.
Under the new applications management contract, HP will manage key applications that support sales, customer service and the design of new products. These include MLP's SAP applications and the customer relationship management that is part of its broker platform, as well as its business intelligence, document management and custom JavaTM applications. Additionally, HP will be responsible for the complete life cycle management of the applications, from development to implementation, including quality assurance and operations.
"With the new contract, we are able to focus our IT assignments close to the core of our businesses," said Klaus Strumberger, chief information officer, MLP. "Thanks to the modularity and flexible pricing of these services, we will be able to reduce risk while improving our ability to adapt to changing business needs."
HP's current infrastructure agreement is based on the concept of utility pricing, where services are bundled and invoiced on a pay-per-use model. This same model will be used for the applications management deal. This will allow MLP to quickly scale infrastructure and applications up or down to meet changing business requirements.
The agreement reduces MLP's financial risk by offering pay-per-use pricing and increases the company's flexibility to respond to changing business priorities with adjustable service levels. In addition, HP will help MLP reduce costs by standardizing technology processes and leveraging a global delivery model.
MLP also extended its existing infrastructure technology agreement for management of three data centers, network devices, distributed servers, Lotus Notes messaging and end-user PCs to 2015.
Under the new applications management contract, HP will manage key applications that support sales, customer service and the design of new products. These include MLP's SAP applications and the customer relationship management that is part of its broker platform, as well as its business intelligence, document management and custom JavaTM applications. Additionally, HP will be responsible for the complete life cycle management of the applications, from development to implementation, including quality assurance and operations.
"With the new contract, we are able to focus our IT assignments close to the core of our businesses," said Klaus Strumberger, chief information officer, MLP. "Thanks to the modularity and flexible pricing of these services, we will be able to reduce risk while improving our ability to adapt to changing business needs."
HP's current infrastructure agreement is based on the concept of utility pricing, where services are bundled and invoiced on a pay-per-use model. This same model will be used for the applications management deal. This will allow MLP to quickly scale infrastructure and applications up or down to meet changing business requirements.
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