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.
Showing posts with label Satyam. Show all posts
Showing posts with label Satyam. Show all posts
Tuesday, August 25, 2009
Satyam
Another top Satyam executive quits
Top Mahindra Satyam executive Keshab Panda has put in his papers. Panda, who was jointly heading the all-important US operations for the company as well as its manufacturing & automotive group, announced his decision to the company management on Monday, a person close to the development told Financial Chronicle.
“Panda had expressed his desire to resign from his position some time ago. The leadership was trying to persuade him against this. But, finally he seems to have made up his mind,” the person said. “He would be joining another IT services company.”
The development comes as a blow to the Hyderabad-based company as the manufacturing and automotive group contributes almost $400 million to Mahindra Satyam’s top-line.
Panda was appointed to the position in February after company veteran Subu Subramanian quit in the aftermath of the revelation of the Rs 7,000-crore scam.
Panda took over as the head of the US operations after interim CEO Ram Mynampati stepped down. In a press statement, Mahindra Satyam confirmed Panda’s resignation. “Rakesh Soni, chief operating officer of Mahindra Satyam, will be leading the business development and delivery operations for the American market and for the manufacturing, commercial and services verticals,” the statement said.
The IT company has seen an exodus of senior executives over the last one month. Those who have quit include Nick Sharma, senior VP, infrastructure management services; Sriram Papani, head, enterprise architecture and Ravi Bommakanti, head of delivery.
“Panda had expressed his desire to resign from his position some time ago. The leadership was trying to persuade him against this. But, finally he seems to have made up his mind,” the person said. “He would be joining another IT services company.”
The development comes as a blow to the Hyderabad-based company as the manufacturing and automotive group contributes almost $400 million to Mahindra Satyam’s top-line.
Panda was appointed to the position in February after company veteran Subu Subramanian quit in the aftermath of the revelation of the Rs 7,000-crore scam.
Panda took over as the head of the US operations after interim CEO Ram Mynampati stepped down. In a press statement, Mahindra Satyam confirmed Panda’s resignation. “Rakesh Soni, chief operating officer of Mahindra Satyam, will be leading the business development and delivery operations for the American market and for the manufacturing, commercial and services verticals,” the statement said.
The IT company has seen an exodus of senior executives over the last one month. Those who have quit include Nick Sharma, senior VP, infrastructure management services; Sriram Papani, head, enterprise architecture and Ravi Bommakanti, head of delivery.
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.
Saturday, August 15, 2009
IBM, Satyam, TCS, Wipro
Bharti IT contract: TCS, Wipro, IBM, Tech Mah short-listed
Four Indian IT majors have been short-listed for Bharti Airtel's IT contract, reports CNBC-TV18, quoting sources. The shortlisted companies include Tata Consultancy Services, Wipro, IBM, and Tech Mahindra. Bharti Airtel's IT contract is valued at USD 500 million, for which 10 IT firms had bid.
When contacted, Bharti Airtel was unavailable for comment. The outsourcing contract is for management of inter-city fibre network. IBM is currently working on a USD 100 million IT contract for Airtel.
When contacted, Bharti Airtel was unavailable for comment. The outsourcing contract is for management of inter-city fibre network. IBM is currently working on a USD 100 million IT contract for Airtel.
Friday, August 14, 2009
BPO, new openings, Satyam
Tech Mahindra opens BPO centre in Chandigarh
IT firm Tech Mahindra on Thursday said that it has opened a new centre in Chandigarh with an initial capacity of 1,000 seats.
The set up will focus on providing end-to-end customer service delivery to global telecom service providers, Tech Mahindra said in a filing to the Bombay Stock Exchange.
Spread across 15 acres, the centre would have about 1,000 seats in the initial ramp up, with 500 seats at start and another 500 by the end of September 2009.
The centre will cater to both international and domestic clients, the filing added.
"Chandigarh is a preferred destination for its BPO and IT culture, state-of-art infrastructure, local support from the government, availability of skilled manpower and low rate of attrition," Tech Mahindra President (Corporate Affairs) Sujit Baksi said.
The firm already has a centre in Chandigarh and the new centre would be equipped with world class infrastructure. The firm also has BPO centres in Kolkata, Noida, Pune and Chennai and two overseas centres in Belfast and New Castle.
"This centre allows us to spread our operations in Northern India in a big way and we are keen to tap the local talent pool in this region to make this centre a major hub," Baksi added.
The set up will focus on providing end-to-end customer service delivery to global telecom service providers, Tech Mahindra said in a filing to the Bombay Stock Exchange.
Spread across 15 acres, the centre would have about 1,000 seats in the initial ramp up, with 500 seats at start and another 500 by the end of September 2009.
The centre will cater to both international and domestic clients, the filing added.
"Chandigarh is a preferred destination for its BPO and IT culture, state-of-art infrastructure, local support from the government, availability of skilled manpower and low rate of attrition," Tech Mahindra President (Corporate Affairs) Sujit Baksi said.
The firm already has a centre in Chandigarh and the new centre would be equipped with world class infrastructure. The firm also has BPO centres in Kolkata, Noida, Pune and Chennai and two overseas centres in Belfast and New Castle.
"This centre allows us to spread our operations in Northern India in a big way and we are keen to tap the local talent pool in this region to make this centre a major hub," Baksi added.
Wednesday, August 12, 2009
IT market, Satyam
Mahindra Satyam bags 30 contracts
Mahindra Satyam or the erstwhile Satyam Computer Services has bagged around 30 IT contracts, after it was taken over by telecom solutions company Tech Mahindra in April.
Most of the deals won by the Hyderabad headquartered Mahindra Satyam are in the $1 million-$20 million range from both new and existing customers, a company official told Business Line.
Majority of the new deals have come from Asia Pacific and Europe. “There is increased traction especially in verticals such as healthcare, utilities and retail. We have recently signed a major multi-million deal with an oil exploration company which has been a client for quite some time now,” the official said.
These contracts are in the areas of outsourcing related to enterprise applications, business intelligence and engineering services.
Mr Sridhar Maturi, spokesperson for Mahindra Satyam, said: “There is renewed customer confidence which is reflected by most of the embargoes being lifted and new deal wins.”
However, he refused to comment on the nature of new deal wins. The level of profitability of these new deals remains in the realm of speculation as customers aggressively want lower billing rates given the current economic environment.
Mr C. P. Gurnani, Chief Executive Officer of Mahindra Satyam, referred to this in a recent conference call with analysts.
“I think every customer, every business is looking at finding ways and means to address the downturn in the economy and we at Mahindra Satyam are finding the same challenges that the market is facing. We are constantly working with our clients to figure out methods of becoming more cost-effective or to become better at onsite offshore mixes,” he said.
After former Chairman, Mr B. Ramalinga Raju, confessed to a Rs 7,600-crore fraud which involved falsification of Satyam’s accounts, most of its customers had put a freeze on new deals with the IT firm. What followed next was large-scale client exodus which saw companies such as Coca Cola, State Farm Insurance and some others walk out of their contracts with Satyam.
However, since the new management from Tech Mahindra took over, things seem to have settled down.
Not a single customer left the company after April 13 – the day when Tech Mahindra was named as the suitor of Satyam, the official added.
Mr Gurnani did admit, in the conference call, that the pricing on some of Satyam’s existing IT contracts were derogatory to margins, leading credence to the theory that the previous Satyam management was focusing only on growing the company’s revenues.
“When you go through the contracts, you also realise that there is a certain amount of business from one or two clients where the pricing is more predatory and one is definitely trying to find ways to either renegotiate the contract or to exit the contracts or make them profitable by finding ways or means of lowering the delivery cost,” he said.
Most of the deals won by the Hyderabad headquartered Mahindra Satyam are in the $1 million-$20 million range from both new and existing customers, a company official told Business Line.
Majority of the new deals have come from Asia Pacific and Europe. “There is increased traction especially in verticals such as healthcare, utilities and retail. We have recently signed a major multi-million deal with an oil exploration company which has been a client for quite some time now,” the official said.
These contracts are in the areas of outsourcing related to enterprise applications, business intelligence and engineering services.
Mr Sridhar Maturi, spokesperson for Mahindra Satyam, said: “There is renewed customer confidence which is reflected by most of the embargoes being lifted and new deal wins.”
However, he refused to comment on the nature of new deal wins. The level of profitability of these new deals remains in the realm of speculation as customers aggressively want lower billing rates given the current economic environment.
Mr C. P. Gurnani, Chief Executive Officer of Mahindra Satyam, referred to this in a recent conference call with analysts.
“I think every customer, every business is looking at finding ways and means to address the downturn in the economy and we at Mahindra Satyam are finding the same challenges that the market is facing. We are constantly working with our clients to figure out methods of becoming more cost-effective or to become better at onsite offshore mixes,” he said.
After former Chairman, Mr B. Ramalinga Raju, confessed to a Rs 7,600-crore fraud which involved falsification of Satyam’s accounts, most of its customers had put a freeze on new deals with the IT firm. What followed next was large-scale client exodus which saw companies such as Coca Cola, State Farm Insurance and some others walk out of their contracts with Satyam.
However, since the new management from Tech Mahindra took over, things seem to have settled down.
Not a single customer left the company after April 13 – the day when Tech Mahindra was named as the suitor of Satyam, the official added.
Mr Gurnani did admit, in the conference call, that the pricing on some of Satyam’s existing IT contracts were derogatory to margins, leading credence to the theory that the previous Satyam management was focusing only on growing the company’s revenues.
“When you go through the contracts, you also realise that there is a certain amount of business from one or two clients where the pricing is more predatory and one is definitely trying to find ways to either renegotiate the contract or to exit the contracts or make them profitable by finding ways or means of lowering the delivery cost,” he said.
Friday, August 7, 2009
IT market, Satyam
Tech Mahindra in top 5: Nasscom
As an aftermath of the multi-billion dollar fraud at Satyam Computer early this year, the Hyderabad-based firm is now officially out of the league of the country’s largest software companies, but its new parent Tech Mahindra is now among the top five IT firms.
Besides, rival HCL Tech has now moved up one place to grab the country’s fourth largest IT firm’s position, occupied by Satyam Computer till last year, according to the latest rankings by industry association Nasscom.
Tech Mahindra, previously ranked sixth, has also moved up one place because of Satyam’s exit, while TCS, Infosys and Wipro
have retained their top three positions in the list of the country’s largest software exporters in terms of revenue.
Satyam Computer, which has been rebranded to Mahindra Satyam due to its acquisition by Mahindra group’s IT arm, has not been included in the ranking at all, as it is yet to release its full-year audited results for the present financial year.
“The ranking is based on companies that have submitted the detailed form. It does not include Mahindra Satyam whose revised
audited revenues are not available,” Nasscom said.
Satyam Computer plunged into a crisis after the revelation of an overstatement of numbers by its former chairman and founder B Ramalinga Raju.
This list by Nasscom also does not include some companies whose corporate headquarters are located outside India, but have significant India-centric delivery capabilities, and have not shared their India-centric revenue figures.
Had they been ranked based on their India revenues, firms such as Accenture, Cognizant, HP and IBM and would have also appeared in this ranking.
Besides, rival HCL Tech has now moved up one place to grab the country’s fourth largest IT firm’s position, occupied by Satyam Computer till last year, according to the latest rankings by industry association Nasscom.
Tech Mahindra, previously ranked sixth, has also moved up one place because of Satyam’s exit, while TCS, Infosys and Wipro
have retained their top three positions in the list of the country’s largest software exporters in terms of revenue.
Satyam Computer, which has been rebranded to Mahindra Satyam due to its acquisition by Mahindra group’s IT arm, has not been included in the ranking at all, as it is yet to release its full-year audited results for the present financial year.
“The ranking is based on companies that have submitted the detailed form. It does not include Mahindra Satyam whose revised
audited revenues are not available,” Nasscom said.
Satyam Computer plunged into a crisis after the revelation of an overstatement of numbers by its former chairman and founder B Ramalinga Raju.
This list by Nasscom also does not include some companies whose corporate headquarters are located outside India, but have significant India-centric delivery capabilities, and have not shared their India-centric revenue figures.
Had they been ranked based on their India revenues, firms such as Accenture, Cognizant, HP and IBM and would have also appeared in this ranking.
IBM, IT market, Oracle, Satyam
Oracle, IBM and Satyam among tax defaulters
State owned telecom major Bharat Sanchar Nigam (BSNL), Tata Communications, Oracle, Nokia, IBM, and Mahindra Satyam are figured in the list of top 100 tax defaulters in the country.
Disclosing the list of defaulters in the Rajya Sabha, the Minister of State for Finance SS Palanimanickam said in a written reply that top 100 tax defaulters owe to the exchequer whopping Rs.1.41 lakh crore - more than three times the amount the government spends on National Rural Employment Guarantee Scheme (NREGA) scheme annually to provide employment to below poverty line (BPL) families.
BSNL owes Rs.2,417 crore to the government; Tata Communications has a tax demand of about Rs.505.5 crore. Oracle's tax due is Rs.558 crore, while Nokia owes Rs.448 crore, Mahindra Satyam has to pay Rs.290 crore to the exchequer. IBM's tax due is to the tune of Rs.208 crore.
The list also includes the country's largest state-owned bank SBI, automobile giant Tata Motors, oil major Indian Oil Corporation, Coca Cola India, stock broker Late Harshad Mehta and his associates and other brokers like A D Narrotam and Hiten Dalal.
As per the list, disgraced stud farm owner Hassan Ali Khan tops the list of tax defaulters with an outstanding arrear of more than Rs.50,000 crore. The Minister said that these tax demands also include those which are difficult to recover for various reasons like demands notified under special court, inadequate assets and companies under litigation.
The Centre is taking various steps to recover the outstanding dues. The government has requested the adjudicating authorities like Incomet Tax appellate Tibunal (ITAT) and settlement commission "to dispose of high demand cases expeditious," Palanimanickam said.
However, among special measures being taken by the government to expedite recovery of default taxes includes monitoring of the recovery of amount in large cases by a Task Force. "Invariably arrear demand above Rs.25 crore is monitored by Central Board of Direct Taxes CBDT and between 10 crore and 25 crore by CCIT/DIT (Recovery)," Palanimanickam said.
Disclosing the list of defaulters in the Rajya Sabha, the Minister of State for Finance SS Palanimanickam said in a written reply that top 100 tax defaulters owe to the exchequer whopping Rs.1.41 lakh crore - more than three times the amount the government spends on National Rural Employment Guarantee Scheme (NREGA) scheme annually to provide employment to below poverty line (BPL) families.
BSNL owes Rs.2,417 crore to the government; Tata Communications has a tax demand of about Rs.505.5 crore. Oracle's tax due is Rs.558 crore, while Nokia owes Rs.448 crore, Mahindra Satyam has to pay Rs.290 crore to the exchequer. IBM's tax due is to the tune of Rs.208 crore.
The list also includes the country's largest state-owned bank SBI, automobile giant Tata Motors, oil major Indian Oil Corporation, Coca Cola India, stock broker Late Harshad Mehta and his associates and other brokers like A D Narrotam and Hiten Dalal.
As per the list, disgraced stud farm owner Hassan Ali Khan tops the list of tax defaulters with an outstanding arrear of more than Rs.50,000 crore. The Minister said that these tax demands also include those which are difficult to recover for various reasons like demands notified under special court, inadequate assets and companies under litigation.
The Centre is taking various steps to recover the outstanding dues. The government has requested the adjudicating authorities like Incomet Tax appellate Tibunal (ITAT) and settlement commission "to dispose of high demand cases expeditious," Palanimanickam said.
However, among special measures being taken by the government to expedite recovery of default taxes includes monitoring of the recovery of amount in large cases by a Task Force. "Invariably arrear demand above Rs.25 crore is monitored by Central Board of Direct Taxes CBDT and between 10 crore and 25 crore by CCIT/DIT (Recovery)," Palanimanickam said.
Satyam
Satyam to decide on Australia project by Sept-Oct
Even as Satyam trouble brews in Australia for the Victoria state government over the A$75 million Geelong IT hub that hangs fire in the wake of Satyam fiasco, the new owners of Satyam, the Mahindras have said they would be taking a call on the project by September-October this year.
While the top brass at Mahindra Satyam admitted that the company did indeed have in its possession 10 hectares of land allotted by the Victoria government, they denied any knowledge of money having been given to the company.
We do have the 10 hectares of land. As for the money, it may have been spent by the government on infrastructure development in that area, Mahindra Satyams chief marketing officer, T Hari told TOI.
While, he refused to divulge whether the company had sought any more sops from the Ozzies for the project, he said they had sought more time from the Victoria government to take a decision on the Geelong project as the Australian market was one of the biggest markets for the company in the Asia-Pacific region.
At this stage, we can’t say much except that we are in the process of evaluating the project, its implications, the investment required and our own plan, given the fact that we are viewing any new investment with a fair amount of introspection and care, Hari said, adding a decision would be taken latest by October.
Mahindra Satyam V-C Vineet Nayyar is learnt to have met Victoria State authorities and discussed the project. The Victoria state government, headed by Premier John Brumby, is already in the eye of a storm over Satyam’s IT park at Deakin University that was supposed to have created 2000 jobs and added A$175 million to the states GDP.
The Brumby government is facing allegations of having not just handed over 10 hectares of prime land to Satyam, but also an undisclosed sum of money in a bid to woo the IT company.
While the top brass at Mahindra Satyam admitted that the company did indeed have in its possession 10 hectares of land allotted by the Victoria government, they denied any knowledge of money having been given to the company.
We do have the 10 hectares of land. As for the money, it may have been spent by the government on infrastructure development in that area, Mahindra Satyams chief marketing officer, T Hari told TOI.
While, he refused to divulge whether the company had sought any more sops from the Ozzies for the project, he said they had sought more time from the Victoria government to take a decision on the Geelong project as the Australian market was one of the biggest markets for the company in the Asia-Pacific region.
At this stage, we can’t say much except that we are in the process of evaluating the project, its implications, the investment required and our own plan, given the fact that we are viewing any new investment with a fair amount of introspection and care, Hari said, adding a decision would be taken latest by October.
Mahindra Satyam V-C Vineet Nayyar is learnt to have met Victoria State authorities and discussed the project. The Victoria state government, headed by Premier John Brumby, is already in the eye of a storm over Satyam’s IT park at Deakin University that was supposed to have created 2000 jobs and added A$175 million to the states GDP.
The Brumby government is facing allegations of having not just handed over 10 hectares of prime land to Satyam, but also an undisclosed sum of money in a bid to woo the IT company.
Thursday, August 6, 2009
Satyam
Tech Mahindra ranked No 1 telecom software service provider
Tech Mahindra, country's 5th largest software exporter, has been ranked as India's no.1 telecom software service provider by Voice & Data, India's no.1 communications magazine. According to the 14th V&D 100 annual survey conducted by the magazine, Tech Mahindra led the Rs 25,152 crore Indian telecom software service market in 2008-09 with 17.7% market share.
V&D100, which is considered to be a definitive ranking of the players in the Indian telecom services space, states that Tech Mahindra grew 19% to clock consolidated revenue of Rs 4464 crore for the year ending March 2009. The Voice & Data annual awards are considered as the hallmark of the Indian Telecom and IT industry. The awards are decided after extensive in-house research and analysis by Voice & Data and the research findings are published in the annual V&D 100 survey conducted by the publication.
V&D100, which is considered to be a definitive ranking of the players in the Indian telecom services space, states that Tech Mahindra grew 19% to clock consolidated revenue of Rs 4464 crore for the year ending March 2009. The Voice & Data annual awards are considered as the hallmark of the Indian Telecom and IT industry. The awards are decided after extensive in-house research and analysis by Voice & Data and the research findings are published in the annual V&D 100 survey conducted by the publication.
Wednesday, August 5, 2009
Satyam
Senior Satyam staff quit over work rejig
Despite a semblance of order after its takeover, Mahindra Satyam continues to face attrition at the top level. This time round, the company’s decision to displace several employees from their positions has triggered the exits, say sources privy the development.
Ravi Bommakanti, head, TIMES vertical in the US, and Kiran Cavale, head of the data warehousing application service , are understood to have put in their papers. Tech Mahindra, the parent company, had earlier placed around 8,000 people in a virtual pool for six months and these employees were entitled to draw part of their remuneration . In an internal communication, the company said, “associates belonging to the enterprise business competency (EBS) and those in sales, relationships, operations management , programme management , delivery integration, solution frameworks & presales will reside in the corporate reserve till allocations are made.”
But unlike those in the virtual pool, associates who have been identified for the corporate reserve are set to draw their full salaries, although exact details of their package are not known yet. The process of identifying employees for the corporate reserve is over and the exercise could be implemented by the end of this week.
ET had reported this development on Monday. The restructuring is primarily to eliminate duplication in roles. This model is expected to reduce overheads.
“There will be a natural cost benefit that a company will accrue due to realignment of roles and responsibilities and optimal use of resources,” a company spokesman told ET earlier. Employees belonging to Band Bi and above have been rendered surplus due to this restructuring because they were in horizontal competency units where leadership positions are now redundant.
The absence of a defined role after the rejig may have also compelled employees to look for better opportunities, said sources. The horizontals or software application services such as Oracle, data warehousing , business intelligence now have a special group of consultants to train the other associates on the required software service required for a project.
Ravi Bommakanti, head, TIMES vertical in the US, and Kiran Cavale, head of the data warehousing application service , are understood to have put in their papers. Tech Mahindra, the parent company, had earlier placed around 8,000 people in a virtual pool for six months and these employees were entitled to draw part of their remuneration . In an internal communication, the company said, “associates belonging to the enterprise business competency (EBS) and those in sales, relationships, operations management , programme management , delivery integration, solution frameworks & presales will reside in the corporate reserve till allocations are made.”
But unlike those in the virtual pool, associates who have been identified for the corporate reserve are set to draw their full salaries, although exact details of their package are not known yet. The process of identifying employees for the corporate reserve is over and the exercise could be implemented by the end of this week.
ET had reported this development on Monday. The restructuring is primarily to eliminate duplication in roles. This model is expected to reduce overheads.
“There will be a natural cost benefit that a company will accrue due to realignment of roles and responsibilities and optimal use of resources,” a company spokesman told ET earlier. Employees belonging to Band Bi and above have been rendered surplus due to this restructuring because they were in horizontal competency units where leadership positions are now redundant.
The absence of a defined role after the rejig may have also compelled employees to look for better opportunities, said sources. The horizontals or software application services such as Oracle, data warehousing , business intelligence now have a special group of consultants to train the other associates on the required software service required for a project.
New Deals, Outsourcing, Satyam
Satyam winning new deals
Indian IT services firm Mahindra Satyam is winning new outsourcing deals, but business is yet to see a total turnaround as some cautious clients wait for stability to return to the company before loosening their purse strings, an official said.
While there have not been any major client losses since April, some customers continue to keep Mahindra Satyam on their "watch list" to track its performance for about six months, said Atul Kunwar, head of operations in Europe, Asia Pacific, the Middle East, Africa and India.
Mahindra Satyam was earlier known as Satyam Computer Services. Satyam was acquired by India's Tech Mahindra in an auction in April after the firm was hit by India's biggest corporate fraud that was revealed in January.
"Definitely, there is a sense of optimism that has started to come back but it isn't something that's windfall kind of a situation right now," Kunwar said.
"I won't say that we have crossed the hump," he said. "The momentum is starting to build (but) it is not that it has reached critical mass kind of a thing."
Shares in Mahindra Satyam, which counts General Electric Co, Citigroup and Cisco Systems Inc among its clients, fell 1.2 per cent to Rs 103.35 in the main Mumbai market that rose 1.6 per cent.
While the stock is down 39 per cent in 2009, it has more than doubled since April 13 when Tech Mahindra -- majority owned by Mahindra & Mahindra -- won a competitive bidding to acquire fraud-hit Satyam.
However, brokerage CLSA said in a report on July 23 that the assumption about customer losses being over was "overly simplistic" and that stabilising operations amid a challenging global economic environment was tougher than thought earlier.
"In fact, until clarity emerges on Satyam's financials, we would refrain from valuing Satyam as a going concern itself since client losses can linger on for several quarters," it said. Mahindra Satyam is in the process of restating its accounts.
New outsourcing wins
Kunwar said Mahindra Satyam was seeing good business momentum in the geographies excluding the United States,
with the company "actively participating" in some deals in Europe that could bring in revenues of about $50 million over four to five years.
"Europe is actually, from the point of view of looking at all these terrains, moving faster towards getting the momentum."
The company has also won new deals in Africa in the last couple of weeks, Kunwar said, but declined to give details as the information was not public yet. In India, the company is bidding for a "large number" of government deals.
Non-US regions bring in about 50 per cent of Mahindra Satyam's revenue and the firm expects a sharp surge in India, Africa and the Middle East businesses in about two years, Kunwar said.
In June, Satyam had announced a "virtual pool" programme under which about 8,500 employees, who had not been working on any outsourcing project for three months, were sent home for up to six months on a reduced salary structure to cut costs.
About 1,200 employees from the programme have already been asked to return following new outsourcing wins, Kunwar said.
While there have not been any major client losses since April, some customers continue to keep Mahindra Satyam on their "watch list" to track its performance for about six months, said Atul Kunwar, head of operations in Europe, Asia Pacific, the Middle East, Africa and India.
Mahindra Satyam was earlier known as Satyam Computer Services. Satyam was acquired by India's Tech Mahindra in an auction in April after the firm was hit by India's biggest corporate fraud that was revealed in January.
"Definitely, there is a sense of optimism that has started to come back but it isn't something that's windfall kind of a situation right now," Kunwar said.
"I won't say that we have crossed the hump," he said. "The momentum is starting to build (but) it is not that it has reached critical mass kind of a thing."
Shares in Mahindra Satyam, which counts General Electric Co, Citigroup and Cisco Systems Inc among its clients, fell 1.2 per cent to Rs 103.35 in the main Mumbai market that rose 1.6 per cent.
While the stock is down 39 per cent in 2009, it has more than doubled since April 13 when Tech Mahindra -- majority owned by Mahindra & Mahindra -- won a competitive bidding to acquire fraud-hit Satyam.
However, brokerage CLSA said in a report on July 23 that the assumption about customer losses being over was "overly simplistic" and that stabilising operations amid a challenging global economic environment was tougher than thought earlier.
"In fact, until clarity emerges on Satyam's financials, we would refrain from valuing Satyam as a going concern itself since client losses can linger on for several quarters," it said. Mahindra Satyam is in the process of restating its accounts.
New outsourcing wins
Kunwar said Mahindra Satyam was seeing good business momentum in the geographies excluding the United States,
with the company "actively participating" in some deals in Europe that could bring in revenues of about $50 million over four to five years.
"Europe is actually, from the point of view of looking at all these terrains, moving faster towards getting the momentum."
The company has also won new deals in Africa in the last couple of weeks, Kunwar said, but declined to give details as the information was not public yet. In India, the company is bidding for a "large number" of government deals.
Non-US regions bring in about 50 per cent of Mahindra Satyam's revenue and the firm expects a sharp surge in India, Africa and the Middle East businesses in about two years, Kunwar said.
In June, Satyam had announced a "virtual pool" programme under which about 8,500 employees, who had not been working on any outsourcing project for three months, were sent home for up to six months on a reduced salary structure to cut costs.
About 1,200 employees from the programme have already been asked to return following new outsourcing wins, Kunwar said.
Tuesday, August 4, 2009
Satyam
'Mahindra Satyam's clients need more clarity'
Mahindra Satyam will be able to keep its revenue in the range of $900 million to $1.1 billion, says a study by Forrester, an IT research firm. However, the report stated that clients are still unclear about what is happening in the company.
The report is based on client interaction the analyst firm has had even after Tech Mahindra’s senior management started to talk with some of the customers. “Satyam has close to 600 clients. Our understanding is that the management started talking to the large clients and the talks are still at the top level. How the relationship will pan out is everyone’s guess,” said Sudin Apte, Senior Analyst, Forrestor.
Citing an instance, Apte said many of the clients were not aware of what would happen if the Open Offer for shares failed. “Besides, there was enough confusion in the market by competition as well. Some of the customers turned to us to ask what happens. People were also not aware that because of this, Mahindra Satyam now has capital. Moreover, clients are also not clear as to how this capital is going to be used,” he added.
The report further stated that many clients are keen to know the road map of the acquisition and how the integration will pan out. For example, a tier-1 auto supplier and large Satyam client told Forrester that while they intend to continue business with Satyam, the uncertainty and complete lack of any communication from the new leadership is making the client consider exploring other options, said Apte.
The other challenge in case of Mahindra Satyam is scaling up the existing clients’ base.
The report is based on client interaction the analyst firm has had even after Tech Mahindra’s senior management started to talk with some of the customers. “Satyam has close to 600 clients. Our understanding is that the management started talking to the large clients and the talks are still at the top level. How the relationship will pan out is everyone’s guess,” said Sudin Apte, Senior Analyst, Forrestor.
Citing an instance, Apte said many of the clients were not aware of what would happen if the Open Offer for shares failed. “Besides, there was enough confusion in the market by competition as well. Some of the customers turned to us to ask what happens. People were also not aware that because of this, Mahindra Satyam now has capital. Moreover, clients are also not clear as to how this capital is going to be used,” he added.
The report further stated that many clients are keen to know the road map of the acquisition and how the integration will pan out. For example, a tier-1 auto supplier and large Satyam client told Forrester that while they intend to continue business with Satyam, the uncertainty and complete lack of any communication from the new leadership is making the client consider exploring other options, said Apte.
The other challenge in case of Mahindra Satyam is scaling up the existing clients’ base.
Monday, August 3, 2009
Cost cutting, Satyam
Mahindra Satyam places another 500 associates on the bench
Mahindra Satyam is on course to cut more flab to trim costs. After placing over 8,000 employees on the virtual pool, the company has now created a “corporate reserve” akin to a bench for over 500 associates. The move, however, sparked off speculation about possible exit of senior-level employees in the Hyderabad based outsourcing firm.
In an internal communication, the company said “associates belonging to the enterprise business competency (EBS) and those in sales, relationships, operations management, programme management, delivery integration, solution frameworks & presales will reside in the corporate reserve till allocations are made.
“With a transition to the new organisational design, some of the erstwhile units like vertical business units and horizontal competency units will cease to exist. Employees who have not been allocated any portfolio yet in the new organisation design will be placed in the unit called corporate reserve”, said T Hari Chief People’s Officer and Chief Marketing Officer of Mahindra Satyam.
According to him, there would only be a few hundred associates in the corporate reserve. “We are aware of the inconvenience that this could cause for the small set of associates, but request your understanding given the complexities of this large-scale exercise”, the communication stated.
Earlier, the company placed around 8,000 people on the virtual pool fort six months. The creation of a corporate reserve, according to analysts, is akin to placing employees on the bench. Scam tainted Satyam had around 42,000 employees on its rolls when the firm was acquired by Pune based Tech Mahindra.
In an internal communication, the company said “associates belonging to the enterprise business competency (EBS) and those in sales, relationships, operations management, programme management, delivery integration, solution frameworks & presales will reside in the corporate reserve till allocations are made.
“With a transition to the new organisational design, some of the erstwhile units like vertical business units and horizontal competency units will cease to exist. Employees who have not been allocated any portfolio yet in the new organisation design will be placed in the unit called corporate reserve”, said T Hari Chief People’s Officer and Chief Marketing Officer of Mahindra Satyam.
According to him, there would only be a few hundred associates in the corporate reserve. “We are aware of the inconvenience that this could cause for the small set of associates, but request your understanding given the complexities of this large-scale exercise”, the communication stated.
Earlier, the company placed around 8,000 people on the virtual pool fort six months. The creation of a corporate reserve, according to analysts, is akin to placing employees on the bench. Scam tainted Satyam had around 42,000 employees on its rolls when the firm was acquired by Pune based Tech Mahindra.
Monday, July 27, 2009
Satyam
Mahindra Satyam loses Railways’ tech contract
Indian Railways has cancelled a locomotive management system (LMS) contract awarded to Satyam Computer Services (now Mahindra Satyam) in January this year, after the company failed to meet the deadline for submitting required financial details and start working on the pilot project.
“After non-delivery of the pilot, we served a notice around one-and-a-half months ago,” a senior railways official told ET. He requested anonymity because he is not authorised to speak with media about vendors and contracts. While the value of the LMS contract is less than Rs 100 crore, it could help vendors chase similar contracts worth up to Rs 3,000 crore more effectively. Apart from Mahindra Satyam, rivals, TCS, Infosys, Wipro and HCL are all aggressively bidding for these contracts.
“We have already received three applications, including from Wipro, after we issued a new tender for the same project,” he added. Railways has now invited other vendors including Wipro to bid for the project.
Mahindra Satyam had emerged as the lowest bidder for the first in a series of outsourcing contracts worth almost Rs 2,000 crore to be awarded by Indian Railways in January earlier this year.
When contacted, a Mahindra Satyam spokesman said his company could not produce the audited financial statements for past three years, which led to the cancellation of the contract.
“It is true that Satyam had bid for an Indian Railways project for asset management solutions (called Loco-shed Management System LMS) in June 2008. This was decided in January 2009 and the ‘letter of acceptance’ was placed on us,” said Sridhar Maturi, a Mahindra Satyam spokesman.
“However, since we were not able to meet the statutory requirements of submitting the audited financial statements for the past three years as required by the Indian Railways, the contract awarded to us was cancelled,” he said, adding, “So, there is no question of losing the contract.”
Railways is planning to outsource three more contracts over the next few months, with each estimated to be in the range of Rs 450-500 crore. Apart from the asset management contract, railways also plan to invite bids for a contract to develop and deploy a solution for automating and integrating the functions of finance and payroll and the other one for material management solution.
“While Satyam is free to bid for all future contracts, we will be closely looking at the past track record,” the railways official added. Indian Railways, which is the second-largest rail network in the world, also plans to outsource another contract called ‘implementation of software-aided train scheduling’, valued at around Rs 450 crore. The project will help railways do real-time train scheduling and management with the help of a software solution.
However, Mahindra Satyam still sees opportunities for gaining new business from railways. “Mahindra Satyam is free to participate in bidding for future projects for Indian Railways and it has not been blacklisted by them. Our senior management is in touch with the railway authorities and is exploring future business opportunities,” Mr Maturi added.
Mahindra Satyam had emerged as the lowest bidder for the first in a series of outsourcing contracts worth almost Rs 2,000 crore.
Railways is planning to outsource three more contracts over the next few months, with each estimated to be in the range of Rs 450-500 cr.
“After non-delivery of the pilot, we served a notice around one-and-a-half months ago,” a senior railways official told ET. He requested anonymity because he is not authorised to speak with media about vendors and contracts. While the value of the LMS contract is less than Rs 100 crore, it could help vendors chase similar contracts worth up to Rs 3,000 crore more effectively. Apart from Mahindra Satyam, rivals, TCS, Infosys, Wipro and HCL are all aggressively bidding for these contracts.
“We have already received three applications, including from Wipro, after we issued a new tender for the same project,” he added. Railways has now invited other vendors including Wipro to bid for the project.
Mahindra Satyam had emerged as the lowest bidder for the first in a series of outsourcing contracts worth almost Rs 2,000 crore to be awarded by Indian Railways in January earlier this year.
When contacted, a Mahindra Satyam spokesman said his company could not produce the audited financial statements for past three years, which led to the cancellation of the contract.
“It is true that Satyam had bid for an Indian Railways project for asset management solutions (called Loco-shed Management System LMS) in June 2008. This was decided in January 2009 and the ‘letter of acceptance’ was placed on us,” said Sridhar Maturi, a Mahindra Satyam spokesman.
“However, since we were not able to meet the statutory requirements of submitting the audited financial statements for the past three years as required by the Indian Railways, the contract awarded to us was cancelled,” he said, adding, “So, there is no question of losing the contract.”
Railways is planning to outsource three more contracts over the next few months, with each estimated to be in the range of Rs 450-500 crore. Apart from the asset management contract, railways also plan to invite bids for a contract to develop and deploy a solution for automating and integrating the functions of finance and payroll and the other one for material management solution.
“While Satyam is free to bid for all future contracts, we will be closely looking at the past track record,” the railways official added. Indian Railways, which is the second-largest rail network in the world, also plans to outsource another contract called ‘implementation of software-aided train scheduling’, valued at around Rs 450 crore. The project will help railways do real-time train scheduling and management with the help of a software solution.
However, Mahindra Satyam still sees opportunities for gaining new business from railways. “Mahindra Satyam is free to participate in bidding for future projects for Indian Railways and it has not been blacklisted by them. Our senior management is in touch with the railway authorities and is exploring future business opportunities,” Mr Maturi added.
Mahindra Satyam had emerged as the lowest bidder for the first in a series of outsourcing contracts worth almost Rs 2,000 crore.
Railways is planning to outsource three more contracts over the next few months, with each estimated to be in the range of Rs 450-500 cr.
Saturday, July 25, 2009
Infosys, IT market, Recession, Satyam, TCS, Wipro
Campus Recruitments: IT cos freeze recruitments before final semester
The days of goofing off in the last year of college after getting job placements in the penultimate academic year are over for students.
The IT industry, the biggest recruiter in colleges, has decided to visit campuses only in the final semester leaving students with no choice but to study hard even in their last year.
Most IT companies have so far been making offers at least a year or so before graduation, prompting students to take it easy in their final year. But not any more.
“All our member companies have unanimously taken this decision. The change is not only for this year, it is permanent,” said Som Mittal, president of software industry body Nasscom. The decision taken by Nasscom is unlikely to be reversed even if demand picks up. In fact, the trend may even catch up with companies outside the IT industry.
Nasscom has sent a communication to industry associations, Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI), which have in turn circulated it among their members.
The IT industry hired 2,26,614 people in 2008-09, and an even bigger number 3,89,000 in the previous year. In the last few quarters of 2008-09 and in the current year, the slowdown has caused the industry to recruit less and also extend joining dates for freshers. The uncertainity in demand has made it hard for IT firms to forecast how many employees they would need to meet their future requirements.
Some students who have graduated in 2008 and have been made job offers are yet to join companies as uncertain demand has made it hard for companies to predict the number of employees they will need in the coming year.
“WE felt it would be better if we go to campuses in the eighth semester when we would be in a better position to understand what the demand would be,” Ajoy Mukherjee, Global Head - Human Resources, Tata Consultancy Services (TCS), said.
TCS, which interacts annually with the heads of some of the top management and engineering colleges, said the colleges were agreeable to it.
“That’s the kind of feedback we were getting from the institutes also. They felt students tend to relax once they have got a job and focus less on studies. Trainee offers were being done a year in advance. For example, the students we made offers to last year will be joining us this year,” added Mr Mukherjee.
“It is better for the companies and for the students,” said Infosys Technologies board member and director-human resources, Mohandas Pai. He said Infosys had communicated its decision to all the 500-600 colleges it visits . “I cannot comment on how many colleges we will exactly visit. All I can say is that the colleges are happy,” he said.
According to Mr Mittal, companies were hiring almost three years ahead of demand as they were visiting campuses in the fifth semester (around the third year) of engineering.
After the students graduate, it takes approximately another year before they become productive because they have to undergo training before being assigned any client projects.
The IT industry, the biggest recruiter in colleges, has decided to visit campuses only in the final semester leaving students with no choice but to study hard even in their last year.
Most IT companies have so far been making offers at least a year or so before graduation, prompting students to take it easy in their final year. But not any more.
“All our member companies have unanimously taken this decision. The change is not only for this year, it is permanent,” said Som Mittal, president of software industry body Nasscom. The decision taken by Nasscom is unlikely to be reversed even if demand picks up. In fact, the trend may even catch up with companies outside the IT industry.
Nasscom has sent a communication to industry associations, Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI), which have in turn circulated it among their members.
The IT industry hired 2,26,614 people in 2008-09, and an even bigger number 3,89,000 in the previous year. In the last few quarters of 2008-09 and in the current year, the slowdown has caused the industry to recruit less and also extend joining dates for freshers. The uncertainity in demand has made it hard for IT firms to forecast how many employees they would need to meet their future requirements.
Some students who have graduated in 2008 and have been made job offers are yet to join companies as uncertain demand has made it hard for companies to predict the number of employees they will need in the coming year.
“WE felt it would be better if we go to campuses in the eighth semester when we would be in a better position to understand what the demand would be,” Ajoy Mukherjee, Global Head - Human Resources, Tata Consultancy Services (TCS), said.
TCS, which interacts annually with the heads of some of the top management and engineering colleges, said the colleges were agreeable to it.
“That’s the kind of feedback we were getting from the institutes also. They felt students tend to relax once they have got a job and focus less on studies. Trainee offers were being done a year in advance. For example, the students we made offers to last year will be joining us this year,” added Mr Mukherjee.
“It is better for the companies and for the students,” said Infosys Technologies board member and director-human resources, Mohandas Pai. He said Infosys had communicated its decision to all the 500-600 colleges it visits . “I cannot comment on how many colleges we will exactly visit. All I can say is that the colleges are happy,” he said.
According to Mr Mittal, companies were hiring almost three years ahead of demand as they were visiting campuses in the fifth semester (around the third year) of engineering.
After the students graduate, it takes approximately another year before they become productive because they have to undergo training before being assigned any client projects.
Saturday, July 18, 2009
Layoffs in India, new openings, Satyam
Satyam lays off staff, starts hiring afresh
The market may have run dry of jobs, but guess who is still hiring? Well, it’s Mahindra Satyam. Believe it or not, but the scam-hit IT firm has on offer over two dozen jobs in various departments of the company, with the most number of vacancies in its SAP unit. Interestingly, these openings have been created not more than a month after the management of the company moved over 7,000 Satyamites to a Virtual Pool Program (VPP), citing “excess work force” as the reason.
The openings are for positions ranging from storage and WebSphere administrators to SAP and Oracle consultants and managers. Applications from junior as well as middle level employees with work experience ranging from two to eight years have been invited. Most positions are for the firm’s Pune office.
Senior sources say that the SAP unit of Satyam is indeed in “dire need for staff” as it lost many of its good hands and even senior associates over the last few months. Sources say that Mahindra Satyam is frantically looking out for SAP expertise primarily because the company wants to bag certain projects that require this skill.
“The main reason why Tech-Ma took over Satyam was because the latter’s SAP unit was very strong. TechMa wanted to use this expertise to win over the several million dollar-worth British Telecom’s SAP project, that it has been eying for sometime now,” the source said adding, “Though several from this unit of Satyam, including some top leaders, have already quit there are still some experts who, with the help of a larger team, can do wonders.”
Though this recruitment drive might have come as good news for those in desperate need for an opening, it has left Satyamites, currently on VPP, fuming.
Source: EconomicTimes
The openings are for positions ranging from storage and WebSphere administrators to SAP and Oracle consultants and managers. Applications from junior as well as middle level employees with work experience ranging from two to eight years have been invited. Most positions are for the firm’s Pune office.
Senior sources say that the SAP unit of Satyam is indeed in “dire need for staff” as it lost many of its good hands and even senior associates over the last few months. Sources say that Mahindra Satyam is frantically looking out for SAP expertise primarily because the company wants to bag certain projects that require this skill.
“The main reason why Tech-Ma took over Satyam was because the latter’s SAP unit was very strong. TechMa wanted to use this expertise to win over the several million dollar-worth British Telecom’s SAP project, that it has been eying for sometime now,” the source said adding, “Though several from this unit of Satyam, including some top leaders, have already quit there are still some experts who, with the help of a larger team, can do wonders.”
Though this recruitment drive might have come as good news for those in desperate need for an opening, it has left Satyamites, currently on VPP, fuming.
Source: EconomicTimes
Friday, July 17, 2009
BPO, Satyam
Tech Mahindra opens BPO centre in Kolkata
IT firm Tech Mahindra on Wednesday said it has opened a BPO centre in Kolkata with the initial capacity of 1,000 seats.
The facility would focus on providing customer service delivery to telecom service providers and primarily be servicing Reliance Communications' operations in the first phase, the company said in a statement.
The Kolkata centre would cater to other clients in the future, it added. The centre would have about 1,000 seats in the initial ramp up with 500 seats coming up in end July 2009 and another 500 in the end August 2009.
The firm already has centres in Noida, Chandigarh, Pune and Chennai and two overseas centres in Belfast and New Castle.
Tech Mahindra President (Corporate Affairs) Sujit Baksi said: "Tech Mahindra has always expanded in major cities around India to leverage the availability of local skilled staff. This centre allows us to spread our operations in Eastern India in a big way and we are keen to tap the local talent pool in this region to make this centre a major hub that will service other telecom service providers in this region as well."
The facility would focus on providing customer service delivery to telecom service providers and primarily be servicing Reliance Communications' operations in the first phase, the company said in a statement.
The Kolkata centre would cater to other clients in the future, it added. The centre would have about 1,000 seats in the initial ramp up with 500 seats coming up in end July 2009 and another 500 in the end August 2009.
The firm already has centres in Noida, Chandigarh, Pune and Chennai and two overseas centres in Belfast and New Castle.
Tech Mahindra President (Corporate Affairs) Sujit Baksi said: "Tech Mahindra has always expanded in major cities around India to leverage the availability of local skilled staff. This centre allows us to spread our operations in Eastern India in a big way and we are keen to tap the local talent pool in this region to make this centre a major hub that will service other telecom service providers in this region as well."
Wednesday, July 15, 2009
Satyam
Satyam allots 45,222 shares to staff
Mahindra Satyam said that it has allotted 45,222 shares to its employees under the stock option plans of the company.
"The board has allotted 45,222 shares under the stock option plans of the company," it said in a filing to the Bombay Stock Exchange.
Post allotment, the paid-up share capital of the company stands at Rs 235.10 crore from earlier Rs 235.09 crore, the filing added. Shares of Satyam on Monday closed at Rs 72.80 on BSE, down 2.28 per cent over the previous close.
"The board has allotted 45,222 shares under the stock option plans of the company," it said in a filing to the Bombay Stock Exchange.
Post allotment, the paid-up share capital of the company stands at Rs 235.10 crore from earlier Rs 235.09 crore, the filing added. Shares of Satyam on Monday closed at Rs 72.80 on BSE, down 2.28 per cent over the previous close.
Saturday, July 11, 2009
New Deals, Satyam
Satyam renews GlaxoSmithKline deal
Mahindra Satyam renewed a five-year multi-million dollar contract with GlaxoSmithKline (GSK) to provide system application products (SAP) and other critical systems support worldwide, the IT services provider said.
The fraud-hit Satyam Computer Services was working with GSK since 2002 to provide IT application development and support services.
"The contract renewal is good sign that we are on our way to regain our position as a market leader. GSK's selection recognises the competitive spirit and resolve of our employees," Mahinda Satyam chief executive C P Gurnani said.
GSK chief information officer Bill Louv said the company looked forward to continuing to receive the high level of professionalism and commitment from Satyam as it had over the last seven years.
The Mumbai-based Tech Mahindra took over Satyam in April and renamed it as Mahindra Satyam last month.
The fraud-hit Satyam Computer Services was working with GSK since 2002 to provide IT application development and support services.
"The contract renewal is good sign that we are on our way to regain our position as a market leader. GSK's selection recognises the competitive spirit and resolve of our employees," Mahinda Satyam chief executive C P Gurnani said.
GSK chief information officer Bill Louv said the company looked forward to continuing to receive the high level of professionalism and commitment from Satyam as it had over the last seven years.
The Mumbai-based Tech Mahindra took over Satyam in April and renamed it as Mahindra Satyam last month.
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