India's large software service providers are going increasingly local with hiring in overseas markets, part of a drive to position themselves as truly global players and polish their image in advanced economies reeling from job losses.
Beginning with employing foreign nationals for junior and mid-level positions, companies such as Tata Consultancy (TCS), Infosys and Wipro – together these three account for about a third of India’s IT exports – now have a number of foreigners in their top echelons.
“There’s a transition in mindset to grow out of the Indian mold and aspire to be like an Oracle , IBM, Accenture, SAP. Also, as Indian companies have gained scale they can tap the best foreign talent; earlier they had to settle for just about anyone,’’ says K Sudarshan, managing partner at executive search firm EMA Partners International.
In the past year, many of the top positions at Wipro Technologies have been filled by foreigners. American Martha Bejar left Microsoft to join India’s third largest software exporter as president, global sales and operations. Ralf Reich, a former Unisys executive in charge of strategic outsourcing in continental Europe, was appointed head of German operations. And Wipro’s centres in France and Japan are also headed by non-Indians.
Infosys’ German, French and Australian operations are managed by locals. Jackie Korhonen, ex-vice-president of managed business process services for IBM Australia and New Zealand, is now head of Infosys Australia.
“They want to be true multinationals. Besides, if you want to really penetrate a local market, bagging business from not only big companies but also small and medium, you better have a local face,’’ says Diptarup Chakraborti, principal research analyst, Gartner.
At TCS, India’s largest technology services company, foreign nationals comprise nearly 12% of the senior management. Among the key executives are John Lenzen, global head of marketing, Gabriel Rozman, global head of emerging markets and Carol Wilson, global business unit head, Hi-Tech solutions unit.
Amit Singh, head of the IT practice at Avendus Capital, says that Indian companies, used to expanding at 30%, are now seeing growth decline. “They want new avenues to maintain growth and hence the geographic expansion and local faces to drive it.’’
Indian software providers have also been expanding into new geographies in the past year. Infosys opened an office in Brazil in mid-December and in recent months Wipro started operations and ramped up investments in strategic development centres and near-shore centres like Atlanta (US), Bucharest (Romania), Wroclaw (Poland), Curitiba (Brazil), Chengdu (China) and Cebu (Philippines).
Continue reading on: EconomicTimes
Showing posts with label Wipro. Show all posts
Showing posts with label Wipro. Show all posts
Monday, January 4, 2010
Monday, December 28, 2009
Accenture, Infosys, TCS, Wipro
Wipro, TCS, Infy plan to follow rival Accenture's sales model
India’s top tech firms, including Wipro, plan to follow rival Accenture’s sales model by hiring senior partners with a few decades of experience and capable of having a dialogue with chief executives of customer organisations, a shift from the earlier focus on selling services to IT heads of leading customers such as Citigroup and General Electric.
Wipro, which serves customers such as British Petroleum (BP) and Citi, has hired around a dozen senior partners from rivals Accenture, Ernst & Young and Deloitte over the past few months. Girish S Paranjpe, the company’s joint chief executive, told ET in an interview that his company would hire another 30 such partners in 2010.
Some senior professionals who have joined Wipro during the past few months as part of the company’s new sales strategy include Kirk Strawser, managing partner and global head, Wipro Consulting Services; Chris Rooney, global practice head, business transformation; and Roger Camrass, senior practice partner, business transformation.
“We often lost because of having pure CIO-level dialogues, we got hurt and even lost some deals,” he said. “We will hire another 30-40 such professionals who will be responsible for growing our client relationships to $30-40 million in revenues,” he added.
For many years, TCS, Infosys and Wipro have been focused on software application development and maintenance, getting new business from CIOs of large customers such as Citi, GE and many others. As they now seek bigger, multi-year transformational deals, they need to penetrate boardrooms of Fortune-500 companies.
“Client partners think and breathe business problems of customers who seek advise and guidance—they are people with a few decades of experience,” Mr Paranjpe added.
In a year when business was hard to come by, Wipro managed to penetrate large customers such as BP, helped by the new approach. Camrass, who joined Wipro as senior practice partner a few months ago, is respected by many decisionmakers within BP. With over 35 years of experience, Mr Camrass has worked with top consulting firms such as Ernst & Young.
India’s biggest software exporter, TCS, once perceived as a slow-moving IT behemoth, is also recruiting these partner-profile people, according to an industry analyst who wished to remain anonymous.
According to R Suresh, MD of executive search firm Stanton Chase, all top IT firms are looking at hiring partner-level people. “One of the reasons is they are winning huge long-term IT outsourcing contracts. These are annuity-based contracts and the client needs to see the same face when he’s interacting with the service provider,” he said.
Unlike the traditional Accenture model, Indian companies are hiring these professionals more as ‘client partners’, and not necessarily ‘equity partners’, added Mr Suresh.
Experts such as John C McCarthy, vice-president and principal analyst of Forrester Research, say Indian firms need to shift from having pure technology-based dialogues and work on their sales and marketing efforts. “This will be one of the biggest cultural shifts—these companies need to intensify their sales and marketing efforts,” he said.
Indeed, by engaging with top business leaders at a customer organisation, Accenture creates entry barriers for other suppliers. “Accenture’s partner-driven sales model is the ultimate form of client engagement,” Edelweiss analysts Viju George, Kunal Sangoi and Pratik Gandhi noted in their September report. Today, the common sales structure of the big three Indian tech firms is typically three-tiered—overall vertical head, client director in overall charge of client relationship, and multiple account managers handling different facets of the relationship.
Source: EconomicTimes
Wipro, which serves customers such as British Petroleum (BP) and Citi, has hired around a dozen senior partners from rivals Accenture, Ernst & Young and Deloitte over the past few months. Girish S Paranjpe, the company’s joint chief executive, told ET in an interview that his company would hire another 30 such partners in 2010.
Some senior professionals who have joined Wipro during the past few months as part of the company’s new sales strategy include Kirk Strawser, managing partner and global head, Wipro Consulting Services; Chris Rooney, global practice head, business transformation; and Roger Camrass, senior practice partner, business transformation.
“We often lost because of having pure CIO-level dialogues, we got hurt and even lost some deals,” he said. “We will hire another 30-40 such professionals who will be responsible for growing our client relationships to $30-40 million in revenues,” he added.
For many years, TCS, Infosys and Wipro have been focused on software application development and maintenance, getting new business from CIOs of large customers such as Citi, GE and many others. As they now seek bigger, multi-year transformational deals, they need to penetrate boardrooms of Fortune-500 companies.
“Client partners think and breathe business problems of customers who seek advise and guidance—they are people with a few decades of experience,” Mr Paranjpe added.
In a year when business was hard to come by, Wipro managed to penetrate large customers such as BP, helped by the new approach. Camrass, who joined Wipro as senior practice partner a few months ago, is respected by many decisionmakers within BP. With over 35 years of experience, Mr Camrass has worked with top consulting firms such as Ernst & Young.
India’s biggest software exporter, TCS, once perceived as a slow-moving IT behemoth, is also recruiting these partner-profile people, according to an industry analyst who wished to remain anonymous.
According to R Suresh, MD of executive search firm Stanton Chase, all top IT firms are looking at hiring partner-level people. “One of the reasons is they are winning huge long-term IT outsourcing contracts. These are annuity-based contracts and the client needs to see the same face when he’s interacting with the service provider,” he said.
Unlike the traditional Accenture model, Indian companies are hiring these professionals more as ‘client partners’, and not necessarily ‘equity partners’, added Mr Suresh.
Experts such as John C McCarthy, vice-president and principal analyst of Forrester Research, say Indian firms need to shift from having pure technology-based dialogues and work on their sales and marketing efforts. “This will be one of the biggest cultural shifts—these companies need to intensify their sales and marketing efforts,” he said.
Indeed, by engaging with top business leaders at a customer organisation, Accenture creates entry barriers for other suppliers. “Accenture’s partner-driven sales model is the ultimate form of client engagement,” Edelweiss analysts Viju George, Kunal Sangoi and Pratik Gandhi noted in their September report. Today, the common sales structure of the big three Indian tech firms is typically three-tiered—overall vertical head, client director in overall charge of client relationship, and multiple account managers handling different facets of the relationship.
Source: EconomicTimes
Thursday, December 17, 2009
new openings, Wipro
Wipro to invest Rs 1,000 cr in Bengal's second campus
Azim Premji-controlled Wipro Ltd will invest close to Rs 1,000 crore in its second IT campus near Kolkata that will employ 20,000 tech professionals. But the company proposes to start construction work after more than a year, especially since land handover and creation of allied infrastructure is expected to take time.
On Thursday, Wipro chairman Azim Premji met West Bengal chief minister Buddhadeb Bhattacharjee to assure him that his company had accepted the state’s offer price of Rs 1.5 crore per acre for the 50-acre plot in Rajarhat.
Confirming the development, a top source in the West Bengal government, who was privy to the discussions between Mr Premji and the chief minister, said: "Mr Premji has told the CM that his company will invest in a near Rs 1,000-crore IT campus in Rajarhat which will be equipped to house 20,000 IT/ITeS professionals once fully ramped up. Construction of the second Wipro campus in the city will start within 18 months and is expected to be operational by 2012."
While Mr Premji did not share details on the proposed investment in the Rajarhat campus, he did indicate that Wipro would fork out Rs 75 crore for the 50 acre plot. "We expect to start construction within 18 months, but before that the government needs to make the necessary infrastructure ready," he told reporters after his near 30-minute meeting with the chief minister at Writers’ Buildings on Thursday.
Significantly, Mr Premji inspected the campus site along with officials of the state IT department and Hidco, the government nodal agency that handles all land allotments in Rajarhat. Wipro’s new campus will be barely 15 minutes away from the Kolkata airport and will be right next to TCS’s upcoming 40-acre campus.
West Bengal IT minister Debesh Das said Wipro will pay the government the land price of Rs 75 crore in two installments. "The company will make the first tranche of payment of 25% of total land price in December 2009. The balance 75% will be paid subsequently. Wipro’s decision to invest in a second campus in Kolkata even during the downturn proves the state’s potential in the IT sector," he said.
Incidentally, Mr Premji also informed the chief minister that Wipro is significantly expanding headcount at its existing 20-acre IT SEZ in Sector V with growing business out of Kolkata. The headcount at its Kolkata campus will grow from 7,000 to 9,000 people shortly.
The much belated Wipro land allotment is a major breather of sorts for the Buddhadeb government, especially in the aftermath of the Vedic Village land scam that led to the scrapping of the mega IT township project in the vicinity where Wipro and Infosys were originally meant to receive 90 acres apiece. While the state managed has managed to make some headway in Wipro’s case, state IT department circles said Infosys was yet to respond to the government’s alternative land offer in Rajarhat.
On Thursday, Wipro chairman Azim Premji met West Bengal chief minister Buddhadeb Bhattacharjee to assure him that his company had accepted the state’s offer price of Rs 1.5 crore per acre for the 50-acre plot in Rajarhat.
Confirming the development, a top source in the West Bengal government, who was privy to the discussions between Mr Premji and the chief minister, said: "Mr Premji has told the CM that his company will invest in a near Rs 1,000-crore IT campus in Rajarhat which will be equipped to house 20,000 IT/ITeS professionals once fully ramped up. Construction of the second Wipro campus in the city will start within 18 months and is expected to be operational by 2012."
While Mr Premji did not share details on the proposed investment in the Rajarhat campus, he did indicate that Wipro would fork out Rs 75 crore for the 50 acre plot. "We expect to start construction within 18 months, but before that the government needs to make the necessary infrastructure ready," he told reporters after his near 30-minute meeting with the chief minister at Writers’ Buildings on Thursday.
Significantly, Mr Premji inspected the campus site along with officials of the state IT department and Hidco, the government nodal agency that handles all land allotments in Rajarhat. Wipro’s new campus will be barely 15 minutes away from the Kolkata airport and will be right next to TCS’s upcoming 40-acre campus.
West Bengal IT minister Debesh Das said Wipro will pay the government the land price of Rs 75 crore in two installments. "The company will make the first tranche of payment of 25% of total land price in December 2009. The balance 75% will be paid subsequently. Wipro’s decision to invest in a second campus in Kolkata even during the downturn proves the state’s potential in the IT sector," he said.
Incidentally, Mr Premji also informed the chief minister that Wipro is significantly expanding headcount at its existing 20-acre IT SEZ in Sector V with growing business out of Kolkata. The headcount at its Kolkata campus will grow from 7,000 to 9,000 people shortly.
The much belated Wipro land allotment is a major breather of sorts for the Buddhadeb government, especially in the aftermath of the Vedic Village land scam that led to the scrapping of the mega IT township project in the vicinity where Wipro and Infosys were originally meant to receive 90 acres apiece. While the state managed has managed to make some headway in Wipro’s case, state IT department circles said Infosys was yet to respond to the government’s alternative land offer in Rajarhat.
IT market, Wipro
Wipro ties up with Ariba Inc
IT major Wipro on Tuesday announced its partnership with Ariba Inc, a leading spend management solutions provider, to help companies
across India accelerate their spend management initiatives and the results that they deliver.
Under the terms of a newly formed alliance, Wipro will leverage Ariba's on-demand sourcing solutions to help its clients drive procurement process efficiencies and savings that positively impact their bottom line, a release said.
"The economic crisis has taught us lot of things, the most common of them being that companies must procure goods and services for less", said Ramakrishnan R, vice president and Global Practice Head, Wipro Consulting Services.
"By joining forces with Ariba, we can help companies mature their procurement processes in ways that create superior financial impact for their organisations", he said.
Wipro will leverage Ariba sourcing on-demand to expand on the strategic cost containment services that it provides to clients and deliver sourcing services through which companies can effectively lower their costs on a wide range of goods and services.
across India accelerate their spend management initiatives and the results that they deliver.
Under the terms of a newly formed alliance, Wipro will leverage Ariba's on-demand sourcing solutions to help its clients drive procurement process efficiencies and savings that positively impact their bottom line, a release said.
"The economic crisis has taught us lot of things, the most common of them being that companies must procure goods and services for less", said Ramakrishnan R, vice president and Global Practice Head, Wipro Consulting Services.
"By joining forces with Ariba, we can help companies mature their procurement processes in ways that create superior financial impact for their organisations", he said.
Wipro will leverage Ariba sourcing on-demand to expand on the strategic cost containment services that it provides to clients and deliver sourcing services through which companies can effectively lower their costs on a wide range of goods and services.
Tuesday, December 8, 2009
IT market, Wipro
Ex-Wiproite takes bosses to court
An ex-Wipro employee has reportedly filed a court case against nine of his former seniors who he says forced him to resign after making him go through hell at work
According to a news report in Mid Day, Hyderabad-based G Ram Mohan has filed a private complaint in the court of Chief Judicial Magistrate, Bangalore Rural, against nine Wipro officials because he says the police did not look into his grievances when he approached them.
In the complaint, Mohan told the court that he was an employee of Wipro Technologies, Electronics City, from December 3, 2007, till his services were terminated on March 10.
Mohan has alleged that his bosses made him run personal errands and humiliated him. In his complaint, the software professional has claimed that when he opposed this, they threatened him and sought his resignation. The nine Wipro employees named in the complaint are Keshav Kumar, Sreeranganathan, Ankur Chadha, Anuradha Raju, Ganesh Halapethi, Supriya Mahajan, Vikram Mirani, Sulekha Jagadish and Shalini Macaden.
Mohan told the news daily that he had nine years of experience in software testing when he joined Wipro in 2007.
According to the report, spokesperson of Wipro, when contacted, sought more time to reply to queries about the complaint filed in the court.
Source: IndiaTimes
According to a news report in Mid Day, Hyderabad-based G Ram Mohan has filed a private complaint in the court of Chief Judicial Magistrate, Bangalore Rural, against nine Wipro officials because he says the police did not look into his grievances when he approached them.
In the complaint, Mohan told the court that he was an employee of Wipro Technologies, Electronics City, from December 3, 2007, till his services were terminated on March 10.
Mohan has alleged that his bosses made him run personal errands and humiliated him. In his complaint, the software professional has claimed that when he opposed this, they threatened him and sought his resignation. The nine Wipro employees named in the complaint are Keshav Kumar, Sreeranganathan, Ankur Chadha, Anuradha Raju, Ganesh Halapethi, Supriya Mahajan, Vikram Mirani, Sulekha Jagadish and Shalini Macaden.
Mohan told the news daily that he had nine years of experience in software testing when he joined Wipro in 2007.
According to the report, spokesperson of Wipro, when contacted, sought more time to reply to queries about the complaint filed in the court.
Source: IndiaTimes
IBM, Infosys, New Deals, TCS, Wipro
TCS, Infy, Wipro, IBM to bid for Rs 2000 cr online FIR project
Vijay Kumar Singh hopes that by 2012, most of those he gets to see in person would be potential criminals.
Well, Singh happens to be a cop. And those whom he intends to spare from his appointment diary are the general public. Singh’s hopes are pinned on a new automated complaint filing and tracking system that the ministry of home affairs (MHA) plans to roll out across India, aimed at trimming the time the general public spends in doing the labyrinthine rounds of the good old police station.
At the Greater Kailash-1 police station in South Delhi, where Singh is the station house officer, the existing Zipnet search is pretty much an ornament. The system tracks from a set base of data, often outdated, and fails to read the latest inputs from other law enforcement agencies.
The new integrated system police officers like Singh are looking forward to will network initially 14,000 police stations across the country, and all the 6,000 higher offices in police hierarchy (like headquarters, range offices, zonal offices). It will bring the benefits of India Inc’s technology prowess to this British era institution, hopes Singh.
Well, Singh happens to be a cop. And those whom he intends to spare from his appointment diary are the general public. Singh’s hopes are pinned on a new automated complaint filing and tracking system that the ministry of home affairs (MHA) plans to roll out across India, aimed at trimming the time the general public spends in doing the labyrinthine rounds of the good old police station.
At the Greater Kailash-1 police station in South Delhi, where Singh is the station house officer, the existing Zipnet search is pretty much an ornament. The system tracks from a set base of data, often outdated, and fails to read the latest inputs from other law enforcement agencies.
The new integrated system police officers like Singh are looking forward to will network initially 14,000 police stations across the country, and all the 6,000 higher offices in police hierarchy (like headquarters, range offices, zonal offices). It will bring the benefits of India Inc’s technology prowess to this British era institution, hopes Singh.
Friday, December 4, 2009
new openings, Wipro
Wipro to hire 5,000 in 2 months
IT firm Wipro Technologies said it will hire 5,000 people in the next couple of months and is looking at a fresh recruitment strategy of taking in graduates from non-engineering institutes.
"Our strategy is to recruit non-engineering graduates, in addition to engineering and make them fit into the slot. We are still working out the details," Wipro Technologies Joint Chief Executive Officer Girish Paranjpe today said.
Refusing to divulge more details for next year's recruitments and outlook, Paranjpe said it would be a mix of 60 per cent freshers and 40 per cent experienced.
Around 5,000 will be taken into the company in a month or two, he said.
Last year, the company made offers to as many as 8,500 persons through recruitment drives in colleges and institutions.
"We expect clients to make no further cuts in their budgets. We expect 2010 to be a better year than 2009," Paranjpe said.
He said the new hiring strategies will be worked out in a month or two. Attrition rate in the company stood at 10 per cent. On becoming energy efficient, he said the company is determined to reduce the carbon emission per employee by 45 per cent from the present 3.96 tonnes to 2.5 tonnes in the next five years.
"Our power consumption went down by 12 per cent last year and we are planning to set up a micro windmill at our Hyderabad facility soon," Paranjpe said.
The company consumes nearly 75 megawatt power from both government and internal sources. He said the company's exposure in the Gulf market is around 4 per cent and the Dubai financial crisis will have no impact.
"Our strategy is to recruit non-engineering graduates, in addition to engineering and make them fit into the slot. We are still working out the details," Wipro Technologies Joint Chief Executive Officer Girish Paranjpe today said.
Refusing to divulge more details for next year's recruitments and outlook, Paranjpe said it would be a mix of 60 per cent freshers and 40 per cent experienced.
Around 5,000 will be taken into the company in a month or two, he said.
Last year, the company made offers to as many as 8,500 persons through recruitment drives in colleges and institutions.
"We expect clients to make no further cuts in their budgets. We expect 2010 to be a better year than 2009," Paranjpe said.
He said the new hiring strategies will be worked out in a month or two. Attrition rate in the company stood at 10 per cent. On becoming energy efficient, he said the company is determined to reduce the carbon emission per employee by 45 per cent from the present 3.96 tonnes to 2.5 tonnes in the next five years.
"Our power consumption went down by 12 per cent last year and we are planning to set up a micro windmill at our Hyderabad facility soon," Paranjpe said.
The company consumes nearly 75 megawatt power from both government and internal sources. He said the company's exposure in the Gulf market is around 4 per cent and the Dubai financial crisis will have no impact.
Wednesday, November 25, 2009
new openings, Wipro
Wipro to hire more locals in US for Atlanta operations
Global software major Wipro Technologies is expanding its US operations and will hire about 1,000 people, including more locals, at its Atlanta development facility, the IT bellwether said on Monday.
"We are expanding our US operations to scale up our headcount to about 1,000 from 350 presently at our Atlanta centre," the company said in a statement here.
"About 80 percent of them are locals and includes graduates from leading academic institutions in Atlanta," it added.
"The local employees will support our North American clients in diverse verticals such as healthcare, manufacturing, telecom, utilities, retail and financial services," Wipro chief global delivery officer Sambuddha Deb said in the statement.
Lauding Wipro for investing in the Georgia state capital, Metro Atlanta Chamber vice-president Jorge Fernandez said the trade body's goal was not to just attract global firms, but also ensure that they thrive and grow in the US market.
"Wipro's success signifies more high-tech jobs to metro Atlanta and continues to build our reach into India," Fernandez said.
Atlanta Development Authority director Charles Whatley said Atlanta has emerged as the prime location for global firms like Wipro to set up their US headquarters.
"Wipro is finding attractive talent and our market is welcoming its services," Whatley added.
"We are expanding our US operations to scale up our headcount to about 1,000 from 350 presently at our Atlanta centre," the company said in a statement here.
"About 80 percent of them are locals and includes graduates from leading academic institutions in Atlanta," it added.
"The local employees will support our North American clients in diverse verticals such as healthcare, manufacturing, telecom, utilities, retail and financial services," Wipro chief global delivery officer Sambuddha Deb said in the statement.
Lauding Wipro for investing in the Georgia state capital, Metro Atlanta Chamber vice-president Jorge Fernandez said the trade body's goal was not to just attract global firms, but also ensure that they thrive and grow in the US market.
"Wipro's success signifies more high-tech jobs to metro Atlanta and continues to build our reach into India," Fernandez said.
Atlanta Development Authority director Charles Whatley said Atlanta has emerged as the prime location for global firms like Wipro to set up their US headquarters.
"Wipro is finding attractive talent and our market is welcoming its services," Whatley added.
Thursday, November 19, 2009
IT market, Wipro
Wipro ties up with Intel for rural medical solutions
Wipro Technologies has tied up with Intel to provide medical solutions in rural areas. With its new medical gateway solution aided by Intel Atom processor, Wipro is hoping to address some of the difficulties faced by healthcare providers, the company said on Tuesday.
The medical gateway is essentially an intelligent embedded platform, which enables patients, doctors and other healthcare professionals to monitor and track healthcare information from a remote location. The solution enables real-time clinical view by capturing vital data from multiple medical devices, such as blood pressure monitors and glucose meters. Devices can connect to the gateway solution through wired and wireless technologies such as Bluetooth/USB to provide real-time medical data, video and image transfer.
According to Manimaran, general manager -medical devises, Wipro Technologies, ageing population in the developed markets are playing an active role in taking care of their health. “This has spurred advances in remote patient monitoring technologies. But these are beyond the financial reach of a large section of the population in the emerging economies. Wipro’s medical gateway solution would help bridge this gap and enable faster time-to-market for medical device OEMs to launch customised products,” he added.
In hospitals, the medical gateway has the ability to transmit real-time medical data to application servers and physician handhelds. According to Wipro, the low-cost solution would bring about improvements in existing solutions whose adoption has been low due to their high cost.
Intel South Asia’s marketing director for emerging markets, Sanat Rao, said the new solution is an example of how Intel enables groundbreaking applications. “The Intel design house programme provides hardware and software support and training to get products to market,” he said. Intel, however, said that no clear figure had emerged about the addressable market size for this particular solution. “But India will emerge as one among the top six destinations for medical software by 2010,” said Rao.
The medical gateway is essentially an intelligent embedded platform, which enables patients, doctors and other healthcare professionals to monitor and track healthcare information from a remote location. The solution enables real-time clinical view by capturing vital data from multiple medical devices, such as blood pressure monitors and glucose meters. Devices can connect to the gateway solution through wired and wireless technologies such as Bluetooth/USB to provide real-time medical data, video and image transfer.
According to Manimaran, general manager -medical devises, Wipro Technologies, ageing population in the developed markets are playing an active role in taking care of their health. “This has spurred advances in remote patient monitoring technologies. But these are beyond the financial reach of a large section of the population in the emerging economies. Wipro’s medical gateway solution would help bridge this gap and enable faster time-to-market for medical device OEMs to launch customised products,” he added.
In hospitals, the medical gateway has the ability to transmit real-time medical data to application servers and physician handhelds. According to Wipro, the low-cost solution would bring about improvements in existing solutions whose adoption has been low due to their high cost.
Intel South Asia’s marketing director for emerging markets, Sanat Rao, said the new solution is an example of how Intel enables groundbreaking applications. “The Intel design house programme provides hardware and software support and training to get products to market,” he said. Intel, however, said that no clear figure had emerged about the addressable market size for this particular solution. “But India will emerge as one among the top six destinations for medical software by 2010,” said Rao.
IT market, New Deals, Outsourcing, Wipro
Wipro bags Australian univ deal
Australia's University of Canberra, which awarded an outsourcing contract to Wipro in May earlier this year, plans to bring down its operational costs by up to 40 per cent over next three to four years, and focus better on its core business of teaching and research.
The University of Canberra, along with other Australian educational institutes are expected to spend around $650 million on different IT initiatives in order to modernise their processes, bring down operational costs and compete better in the global education market.
“There is a real competitiveness happening in education and I want every spare dollar to go into teaching and research”, said professor Stephen Parker, vice-chancellor and president of the university.
The university decided to outsource when it felt its IT support was expensive and not as effective as it should be. “It was a new world to me and we linked to the people in India who can do such things,” said Mr Parker.
Bruce Lines, registrar of the university added that offshoring of services was not an easy choice because of anti-offshoring sentiments in Australia.
However, the university decided to go ahead with outsourcing in order to save 30-40 per cent in operational costs, and manage different applications and data records of almost 10,000 students better.
“I almost fell off my chair when somebody mentioned the term offshoring, but gradually we realised that it is more about efficiency gains beyond pure cost savings,” he said.
Universities in Australia are also expected to use some $350 million infrastructure grant from the government towards modernisation of their processes and administrative systems.
“Education is Australia’s third biggest export market. There is a huge potential to tap this unexplored market, where universities need huge IT support not only to maintain administration, but also for high end research and development,” said Kannan Natarajan, general manager at Wipro for Australia, Asean and Middle East Markets.
Meanwhile, the university did face backlash when it announced its contract with Wipro. “We realised that it makes sense not only for cost benefits, but also because there are people who can do a job better than us,” said Mr Parker. “We are living in globalisation which is about exchange and it is not one way,” he added.
As educational institutes prepare to address a growing market, their investments in modernisation of different systems is likely to increase.
The University of Canberra, along with other Australian educational institutes are expected to spend around $650 million on different IT initiatives in order to modernise their processes, bring down operational costs and compete better in the global education market.
“There is a real competitiveness happening in education and I want every spare dollar to go into teaching and research”, said professor Stephen Parker, vice-chancellor and president of the university.
The university decided to outsource when it felt its IT support was expensive and not as effective as it should be. “It was a new world to me and we linked to the people in India who can do such things,” said Mr Parker.
Bruce Lines, registrar of the university added that offshoring of services was not an easy choice because of anti-offshoring sentiments in Australia.
However, the university decided to go ahead with outsourcing in order to save 30-40 per cent in operational costs, and manage different applications and data records of almost 10,000 students better.
“I almost fell off my chair when somebody mentioned the term offshoring, but gradually we realised that it is more about efficiency gains beyond pure cost savings,” he said.
Universities in Australia are also expected to use some $350 million infrastructure grant from the government towards modernisation of their processes and administrative systems.
“Education is Australia’s third biggest export market. There is a huge potential to tap this unexplored market, where universities need huge IT support not only to maintain administration, but also for high end research and development,” said Kannan Natarajan, general manager at Wipro for Australia, Asean and Middle East Markets.
Meanwhile, the university did face backlash when it announced its contract with Wipro. “We realised that it makes sense not only for cost benefits, but also because there are people who can do a job better than us,” said Mr Parker. “We are living in globalisation which is about exchange and it is not one way,” he added.
As educational institutes prepare to address a growing market, their investments in modernisation of different systems is likely to increase.
Sunday, November 15, 2009
IT market, Wipro
Bengal government to hand over 50 acres to Wipro next month
Information technology (IT) company Wipro has agreed to pay Rs.1.5 crore per acre for A 50-acre plot at Rajarhat at the northeastern fringes of this city and the land will be handed over to them next month, a minister said here Saturday.
"Wipro has accepted our offer and we would hand over the land by next month. We are in touch with the Wipro chief and within the next three to four days we will be able to fix the date on which he would be available to touch down in the city," Housing Minister and Chairman of Housing Infrastructure Development Corporation (Hidco) Goutam Deb told reporters at a programme in Rajarhat.
Wipro will pay the land price to Hidco.
Hidco managing director Saurabh Das said Hidco will soon send the offer letter to Wipro. "We will complete the process of handing over the land to them within the next 15 days," he said.
The IT major wrote to the state government Oct 30 seeking land at concessional price.
Earlier a release by the state IT department said: "Today on 30th October, 2009 the Wipro officials met the managing director, Housing Infrastructure Development Corporation (HIDCO) and submitted their request to allot 50 acres of land at a concessional price."
Courtesy: EconomicTimes
"Wipro has accepted our offer and we would hand over the land by next month. We are in touch with the Wipro chief and within the next three to four days we will be able to fix the date on which he would be available to touch down in the city," Housing Minister and Chairman of Housing Infrastructure Development Corporation (Hidco) Goutam Deb told reporters at a programme in Rajarhat.
Wipro will pay the land price to Hidco.
Hidco managing director Saurabh Das said Hidco will soon send the offer letter to Wipro. "We will complete the process of handing over the land to them within the next 15 days," he said.
The IT major wrote to the state government Oct 30 seeking land at concessional price.
Earlier a release by the state IT department said: "Today on 30th October, 2009 the Wipro officials met the managing director, Housing Infrastructure Development Corporation (HIDCO) and submitted their request to allot 50 acres of land at a concessional price."
Courtesy: EconomicTimes
Wednesday, November 11, 2009
IT market, new openings, Wipro
Wipro to recruit experienced hands
Related: Wipro to hire sacked employees
With an increase in business, India’s third-largest IT services company Wipro is holding recruitment drives to hire experienced IT professionals (termed lateral hiring) across the country. The company said in a statement today that it plans to organise two-day walk-in interviews for experienced IT professionals in Bangalore, Chennai, Mumbai, Pune, Hyderabad, Noida and Kolkata, starting November 14.
The drive is a part of its regular hiring in line with business demands, the company said. Vice-President (Talent Acquisition) Pradeep Bahirwani said the company would hold recruitments simultaneously across the country to provide applicants a quick process to allow them to consider opportunities in other cities.
“We are looking to meet applicants across skill requirements in all business divisions with experience levels ranging from 2-14 years,” he said.
He added the company had released recruitment advertisements to inform applicants of the drive.
“We encourage applicants to apply directly to us and not fall prey to fraudsters misusing company names and duping candidates,” he added.
Wipro has also announced plans to hire BSc, BCM and BCA students graduating in 2010 for its Wipro Academy of Software Excellence.
With an increase in business, India’s third-largest IT services company Wipro is holding recruitment drives to hire experienced IT professionals (termed lateral hiring) across the country. The company said in a statement today that it plans to organise two-day walk-in interviews for experienced IT professionals in Bangalore, Chennai, Mumbai, Pune, Hyderabad, Noida and Kolkata, starting November 14.
The drive is a part of its regular hiring in line with business demands, the company said. Vice-President (Talent Acquisition) Pradeep Bahirwani said the company would hold recruitments simultaneously across the country to provide applicants a quick process to allow them to consider opportunities in other cities.
“We are looking to meet applicants across skill requirements in all business divisions with experience levels ranging from 2-14 years,” he said.
He added the company had released recruitment advertisements to inform applicants of the drive.
“We encourage applicants to apply directly to us and not fall prey to fraudsters misusing company names and duping candidates,” he added.
Wipro has also announced plans to hire BSc, BCM and BCA students graduating in 2010 for its Wipro Academy of Software Excellence.
IT market, Layoffs in India, Wipro
Wipro to hire sacked employees
If you are a pink slip recipient from Wipro, here’s a piece of good news. Wipro plans to rehire some of the employees it fired a year ago.
"Non-performance was the reason for these separations. However, we are open to rehire some of these people who were fired by us a year ago, if they come back to us with additional skill sets. A one-year window would have been enough for them to acquire some additional skills," said Joseph John, vice-president (HR) in Wipro Infotech, the business that looks at the India and Middle-East markets.
The tech major's involuntary attrition rate has gone up by 2 percentage points in the last 16 months. Wipro Infotech said it would also resume campus hiring from January. "We are looking at hiring over 1,000 laterals during the fiscal and 1,000 freshers from campuses in January," said John.
The division, which recruited 1,000 people in the first six months of the fiscal, expects hiring numbers in the second half of the year to be more than double of that.
The additional people requirement comes with Wipro winning a slew of large projects in India and the Middle-East, and also to cater to the growing requirements of existing accounts. The company hired 200 people in Saudi Arabia and Egypt recently.
Wipro is also hiring for its Global Service Management Centre in Mysore with almost 5% jobs earmarked for differently-abled people.
Wipro Infotech is planning to raise the ratio of its women employees from 13% now to 20% in the next two years. On salary hikes, John said the company had not budgeted a hike at the start of the fiscal. "But we have decided to raise salaries in the fourth quarter across the board."
"Non-performance was the reason for these separations. However, we are open to rehire some of these people who were fired by us a year ago, if they come back to us with additional skill sets. A one-year window would have been enough for them to acquire some additional skills," said Joseph John, vice-president (HR) in Wipro Infotech, the business that looks at the India and Middle-East markets.
The tech major's involuntary attrition rate has gone up by 2 percentage points in the last 16 months. Wipro Infotech said it would also resume campus hiring from January. "We are looking at hiring over 1,000 laterals during the fiscal and 1,000 freshers from campuses in January," said John.
The division, which recruited 1,000 people in the first six months of the fiscal, expects hiring numbers in the second half of the year to be more than double of that.
The additional people requirement comes with Wipro winning a slew of large projects in India and the Middle-East, and also to cater to the growing requirements of existing accounts. The company hired 200 people in Saudi Arabia and Egypt recently.
Wipro is also hiring for its Global Service Management Centre in Mysore with almost 5% jobs earmarked for differently-abled people.
Wipro Infotech is planning to raise the ratio of its women employees from 13% now to 20% in the next two years. On salary hikes, John said the company had not budgeted a hike at the start of the fiscal. "But we have decided to raise salaries in the fourth quarter across the board."
New Deals, Outsourcing, Wipro
Wipro sees strong deal pipeline
Wipro, India's No. 3 software services exporter, sees robust deal pipeline on the back of improving IT demand worldwide, a senior official said on Tuesday.
"The deal pipeline is good ... the demand environment is building up. The IT demand situation is improving," Suresh Vaswani, joint chief executive of the company's IT business, told reporters on the sidelines of the World Economic Forum.
The company last month reported a 18.76 per cent increase in its consolidated net profit at Rs 1,161.7 crore for the second quarter ended September 30, 2009.
The IT exporter had a net profit of Rs 978.2 crore in the September quarter of last fiscal.
Total income of the company rose to Rs 7,057.4 crore during the July-September quarter of the current fiscal, from Rs 6,664.8 crore in the year-ago period, as per the Indian accounting norms.
"We see more stability in volumes and pricing as well as an improving demand environment. Our broad portfolio of services and strong delivery excellence continues to position us as a partner of choice with customers, as they focus on capital conservation and cost transformation," Wipro Chairman Azim Premji said.
The country's third largest software exporter's revenue from IT services in rupee terms grew by 5 per cent to Rs 4,996 crore from the year-ago period. However, in dollar terms, the revenue fell by 4 per cent to $1,065.2 million.
"Looking ahead for the quarter ending December 31, 2009, we expect revenues from our IT Services business to be in the range of $1,092 million to $1,113 million," Premji said.
In the reported quarter, the firm added 37 new clients to its IT services business, which accounted for 72 per cent of its total revenue.
"The deal pipeline is good ... the demand environment is building up. The IT demand situation is improving," Suresh Vaswani, joint chief executive of the company's IT business, told reporters on the sidelines of the World Economic Forum.
The company last month reported a 18.76 per cent increase in its consolidated net profit at Rs 1,161.7 crore for the second quarter ended September 30, 2009.
The IT exporter had a net profit of Rs 978.2 crore in the September quarter of last fiscal.
Total income of the company rose to Rs 7,057.4 crore during the July-September quarter of the current fiscal, from Rs 6,664.8 crore in the year-ago period, as per the Indian accounting norms.
"We see more stability in volumes and pricing as well as an improving demand environment. Our broad portfolio of services and strong delivery excellence continues to position us as a partner of choice with customers, as they focus on capital conservation and cost transformation," Wipro Chairman Azim Premji said.
The country's third largest software exporter's revenue from IT services in rupee terms grew by 5 per cent to Rs 4,996 crore from the year-ago period. However, in dollar terms, the revenue fell by 4 per cent to $1,065.2 million.
"Looking ahead for the quarter ending December 31, 2009, we expect revenues from our IT Services business to be in the range of $1,092 million to $1,113 million," Premji said.
In the reported quarter, the firm added 37 new clients to its IT services business, which accounted for 72 per cent of its total revenue.
Wednesday, November 4, 2009
New Deals, Outsourcing, TCS, Wipro
TCS, Wipro eye $400 mn Target outsourcing deal
India’s top tech firms Tata Consultancy Services (TCS), Wipro and several others are pursuing Target’s captive technology centre for a potential acquisition, in what could be a transaction bundled with a long-term outsourcing contract worth $300-400 million. America’s second-biggest discount retailer Target has around 1,500 staff employed at its Bangalore centre, currently doing software development and maintenance work.
“We have been in discussions with them for the past few months and the dialogue is still open,” a senior executive at one of the tech firms exploring this transaction told ET on conditions of anonymity. “There is no conclusion yet about how this transaction can be structured, and it’s very early days,” he added. Both TCS and Wipro count Target as one of their top retail customers.
Some of the world’s top retailers, including UK’s Tesco and America’s speciality retailer Home Depot, have been outsourcing projects to Indian third-party service providers, including TCS and Infosys, apart from their own captive centres in order to support their existing IT systems and also develop newer applications. Tesco, for instance, saves over $100 million every year by outsourcing its IT projects to India, and primarily drives projects from its own captive in Bangalore.
“Target’s India centre could be doing at least $100 million worth of projects (revenues) every year,” another person familiar with the retailer’s India operations told ET on conditions of anonymity. Officials at Target did not reply to an email query sent by ET. TCS, Infosys and Wipro also declined to comment. Few years ago, many retailers started with an Indian captive operation as there were not many service providers who could understand their core operations better. Target entered India in 2004 through a JV with ANSRSource, a Texas-based BPO outsourcing company.
“There is a certain equity in building up the operations (captive) initially, but over the course of time, there is the objective of monetising the operations,” said Avinash Vashistha, CEO, Tholons, an offshore advisory firm.
“Once a particular process becomes commoditised, then any adding of additional resources is not justified as it adds up to the costs.”
TCS, one of Target’s Indian suppliers, supports the retailer’s operations from its delivery centres in Uruguay and Chile, apart from India. Target, which competes with Walmart Stores, reported quarterly revenues of $14.6 billion for the second quarter ended August this year.
Over the past few months, many companies have sold their technology captives in India. Divesting non-core captive operations is a strategy adopted by banks such as Citigroup and UBS for focusing better on their core operations, and also gain better outsourcing rates by bundling such transactions with a multi-year contract.
An upfront payment also helps them unlock value from non-core assets. Citibank sold its Indian back-office business to TCS for around $505 million in October last year, and Citi Technology Services for around $127 million to Wipro in December last year. Both these transactions came with assured outsourcing business of around $3 billion together for these vendors.
“We have been in discussions with them for the past few months and the dialogue is still open,” a senior executive at one of the tech firms exploring this transaction told ET on conditions of anonymity. “There is no conclusion yet about how this transaction can be structured, and it’s very early days,” he added. Both TCS and Wipro count Target as one of their top retail customers.
Some of the world’s top retailers, including UK’s Tesco and America’s speciality retailer Home Depot, have been outsourcing projects to Indian third-party service providers, including TCS and Infosys, apart from their own captive centres in order to support their existing IT systems and also develop newer applications. Tesco, for instance, saves over $100 million every year by outsourcing its IT projects to India, and primarily drives projects from its own captive in Bangalore.
“Target’s India centre could be doing at least $100 million worth of projects (revenues) every year,” another person familiar with the retailer’s India operations told ET on conditions of anonymity. Officials at Target did not reply to an email query sent by ET. TCS, Infosys and Wipro also declined to comment. Few years ago, many retailers started with an Indian captive operation as there were not many service providers who could understand their core operations better. Target entered India in 2004 through a JV with ANSRSource, a Texas-based BPO outsourcing company.
“There is a certain equity in building up the operations (captive) initially, but over the course of time, there is the objective of monetising the operations,” said Avinash Vashistha, CEO, Tholons, an offshore advisory firm.
“Once a particular process becomes commoditised, then any adding of additional resources is not justified as it adds up to the costs.”
TCS, one of Target’s Indian suppliers, supports the retailer’s operations from its delivery centres in Uruguay and Chile, apart from India. Target, which competes with Walmart Stores, reported quarterly revenues of $14.6 billion for the second quarter ended August this year.
Over the past few months, many companies have sold their technology captives in India. Divesting non-core captive operations is a strategy adopted by banks such as Citigroup and UBS for focusing better on their core operations, and also gain better outsourcing rates by bundling such transactions with a multi-year contract.
An upfront payment also helps them unlock value from non-core assets. Citibank sold its Indian back-office business to TCS for around $505 million in October last year, and Citi Technology Services for around $127 million to Wipro in December last year. Both these transactions came with assured outsourcing business of around $3 billion together for these vendors.
Friday, October 30, 2009
NRIs, Wipro
Premji assures support for affected staff in France
Wipro Chairman Azim Premji today assured the French government that the 60-odd employees working with the company’s wireless IT division in Sophia Antipolis would receive support, even as it plans to exit the wireless intelllectual property (IP) product business.
During his discussion with Christian Estrosi, ministry of industry (Paris), Premji said: “We reiterate our commitment to France, a key growth market for Wipro. We look forward to growing our presence, serving our customers effectively and creating employment opportunities in the country.”
He explained that his company had implemented exemplary social measures to support the employees at the Sophia Antipolis centre who were affected due to Wipro’s worldwide exit from the IP connectivity business. These measures include support to encourage employment and entrepreneurship, as well as financial benefits.
During the discussion, Estrosi reiterated a “strong attachment to the fact that all the employees of Sophia’s centre can find again a professional future as quickly as possible, through solutions of employee take over and/or of company creation carried by employees”.
Talking to mediapersons during the company’s quarterly results announcement this week, Wipro officials had stated that the company had come to an amicable settlement with the affected employees in France. As a part of this, Wipro had offered the IP developed at the centre to the affected employees at Sophia Antipolis free of charge. Besides, the company had offered its office space and equipment free for charge to those employees for one year.
Since the last three years, Wipro has implemented its development plan for its IT services in the French market. Christophe Martinoli, head of France, Wipro Technologies, said the company intended to double its staff base and revenues in France in the next 18 months.
During his discussion with Christian Estrosi, ministry of industry (Paris), Premji said: “We reiterate our commitment to France, a key growth market for Wipro. We look forward to growing our presence, serving our customers effectively and creating employment opportunities in the country.”
He explained that his company had implemented exemplary social measures to support the employees at the Sophia Antipolis centre who were affected due to Wipro’s worldwide exit from the IP connectivity business. These measures include support to encourage employment and entrepreneurship, as well as financial benefits.
During the discussion, Estrosi reiterated a “strong attachment to the fact that all the employees of Sophia’s centre can find again a professional future as quickly as possible, through solutions of employee take over and/or of company creation carried by employees”.
Talking to mediapersons during the company’s quarterly results announcement this week, Wipro officials had stated that the company had come to an amicable settlement with the affected employees in France. As a part of this, Wipro had offered the IP developed at the centre to the affected employees at Sophia Antipolis free of charge. Besides, the company had offered its office space and equipment free for charge to those employees for one year.
Since the last three years, Wipro has implemented its development plan for its IT services in the French market. Christophe Martinoli, head of France, Wipro Technologies, said the company intended to double its staff base and revenues in France in the next 18 months.
IT market, Wipro
Wipro to strengthen presence in France, grow job opportunities
Wipro Chairman Azim Premji has reiterated the company's commitment to France, a key growth market for the company, by growing its presence and creating employment opportunities in that country.
Premji, who met Christian Estrosi from the Ministry of Industry Paris, during a high-level delegation meeting in Paris yesterday to discuss the Wipro's IT services growth strategy for France, said the IT firm was committed to work with local authorities to encourage local employment regeneration.
During the discussion, both Estrosi and Premji also spoke about Wipro's worldwide exit from the IP connectivity activity, which implied closure of its Sophia Antipolis centre, a Wipro release said here today.
During the discussions, Wipro reiterated the measures being implemented to support the employees who will exit from the company, including providing financial benefits.
According to Christophe Martinoli, Head of France, Wipro Technologies, "With continued investment and our focus in creating a skilled talent base in France, we intend to double our staff base and revenues in the next 18 months to serve our French customers across industries such as retail, manufacturing, telecom, energy and utilities, banking and insurance"
The company said over a period of time, it had increased its headcount in France from less than 30 to 170.
Premji, who met Christian Estrosi from the Ministry of Industry Paris, during a high-level delegation meeting in Paris yesterday to discuss the Wipro's IT services growth strategy for France, said the IT firm was committed to work with local authorities to encourage local employment regeneration.
During the discussion, both Estrosi and Premji also spoke about Wipro's worldwide exit from the IP connectivity activity, which implied closure of its Sophia Antipolis centre, a Wipro release said here today.
During the discussions, Wipro reiterated the measures being implemented to support the employees who will exit from the company, including providing financial benefits.
According to Christophe Martinoli, Head of France, Wipro Technologies, "With continued investment and our focus in creating a skilled talent base in France, we intend to double our staff base and revenues in the next 18 months to serve our French customers across industries such as retail, manufacturing, telecom, energy and utilities, banking and insurance"
The company said over a period of time, it had increased its headcount in France from less than 30 to 170.
Thursday, October 29, 2009
IT market, Wipro
No downturn for Wipro employees, attrition at 14 percent
There seems to be no impact of the economic slowdown on the Wipro employees, the company has witnessed an attrition rate of 14 percent, with voluntary attrition going up to 10.5 percent and involuntary attrition to 3.1 percent in the same period.
Wipro on Tuesday projected an earning of $1.11 billion from IT services for third quarter (October-December) of this fiscal (2009-10), as revenue for second quarter (July-September) at $1.06 billion was higher than the guidance of $1.03 billion.
"We expect revenues from our IT services business to be in the range of $1.09-1.11 billion in the third quarter, as we see more stability in volumes and pricing," Wipro Chairman Azim Premji said in a statement here.
In a regulatory filing earlier, the IT bellwether said net profit for the second quarter increased by 19 percent year-on-year (YoY) to Rs.11.62 billion, as per the Indian accounting standard.
The net profit is higher than the projection of Rs.10.6 billion by analysts who keep track of Indian blue chip firms in the technology space.
But consolidated revenue for the quarter under review (Q2) increased modestly by six percent YoY to Rs.69.17 billion, as per the Indian accounting standard.
According to the International Financial Regulatory Standard (IFRS), the company's net income at $243 million increased by 21 percent YoY, while total revenue increased by six percent YoY to $1.44 billion.
Revenue from IT services at $.106 billion was, however, four percent lower YoY though sequentially higher by 3.2 percent, as per the IFRS.
"Our broad portfolio of services and strong delivery excellence continue to position us as a partner of choice with customers," Premji noted.
Operating margins for IT services increased by 143 basis points to 23.8 percent sequentially and 279 basis points on annualized basis.
In rupee terms, revenue from IT services at Rs.49.96 billion is an increase of five percent YoY and 3.5 percent sequentially.
"Our unwavering commitment to operational improvements continues to pay dividend, resulting in double-digit sequential growth in net profit," Wipro chief financial officer Suresh Senapaty said in the statement.
The IT services business added 37 clients during the quarter.
The company's IT products business recorded 18 percent YoY growth to Rs.11.83 billion, while consumer care and lighting grew by 11 percent YoY to Rs.5.87 billion.
With voluntary attrition marginally increasing to 10.5 percent from 8.4 percent in the first quarter (April-June) and involuntary attrition to 3.1 percent from 1.9 percent in the same period this fiscal, the headcount for IT services business decreased by 630 people to 97,891 from 98,521 sequentially.
On annualised basis, the headcount has increased by 330 people from 97,552 in the second quarter of last fiscal.
Wipro on Tuesday projected an earning of $1.11 billion from IT services for third quarter (October-December) of this fiscal (2009-10), as revenue for second quarter (July-September) at $1.06 billion was higher than the guidance of $1.03 billion.
"We expect revenues from our IT services business to be in the range of $1.09-1.11 billion in the third quarter, as we see more stability in volumes and pricing," Wipro Chairman Azim Premji said in a statement here.
In a regulatory filing earlier, the IT bellwether said net profit for the second quarter increased by 19 percent year-on-year (YoY) to Rs.11.62 billion, as per the Indian accounting standard.
The net profit is higher than the projection of Rs.10.6 billion by analysts who keep track of Indian blue chip firms in the technology space.
But consolidated revenue for the quarter under review (Q2) increased modestly by six percent YoY to Rs.69.17 billion, as per the Indian accounting standard.
According to the International Financial Regulatory Standard (IFRS), the company's net income at $243 million increased by 21 percent YoY, while total revenue increased by six percent YoY to $1.44 billion.
Revenue from IT services at $.106 billion was, however, four percent lower YoY though sequentially higher by 3.2 percent, as per the IFRS.
"Our broad portfolio of services and strong delivery excellence continue to position us as a partner of choice with customers," Premji noted.
Operating margins for IT services increased by 143 basis points to 23.8 percent sequentially and 279 basis points on annualized basis.
In rupee terms, revenue from IT services at Rs.49.96 billion is an increase of five percent YoY and 3.5 percent sequentially.
"Our unwavering commitment to operational improvements continues to pay dividend, resulting in double-digit sequential growth in net profit," Wipro chief financial officer Suresh Senapaty said in the statement.
The IT services business added 37 clients during the quarter.
The company's IT products business recorded 18 percent YoY growth to Rs.11.83 billion, while consumer care and lighting grew by 11 percent YoY to Rs.5.87 billion.
With voluntary attrition marginally increasing to 10.5 percent from 8.4 percent in the first quarter (April-June) and involuntary attrition to 3.1 percent from 1.9 percent in the same period this fiscal, the headcount for IT services business decreased by 630 people to 97,891 from 98,521 sequentially.
On annualised basis, the headcount has increased by 330 people from 97,552 in the second quarter of last fiscal.
Tuesday, October 27, 2009
IT market, Wipro
Wipro Q2 net up 19% at Rs 1,161 cr
Software firm Wipro today reported 18.76 per cent increase in its consolidated net profit at Rs 1,161.7 crore for the second quarter ended September 30, 2009.
The IT exporter had a net profit of Rs 978.2 crore in the September quarter of last fiscal, Wipro said in a filing to the Bombay Stock Exchange.
Total income of the company rose to Rs 7,057.4 crore during the July-September quarter of the current fiscal, from Rs 6,664.8 crore in the year-ago period, as per the Indian accounting norms.
"We see more stability in volumes and pricing as well as an improving demand environment. Our broad portfolio of services and strong delivery excellence continues to position us as a partner of choice with customers, as they focus on capital conservation and cost transformation," Wipro Chairman Azim Premji said.
The country's third largest software exporter's revenue from IT services in rupee terms grew by 5 per cent to Rs 4,996 crore from the year-ago period.
However, in dollar terms, the revenue fell by 4 per cent to $1,065.2 million.
"Looking ahead for the quarter ending December 31, 2009, we expect revenues from our IT Services business to be in the range of $1,092 million to $1,113 million," Premji said.
In the reported quarter, the firm added 37 new clients to its IT services business, which accounted for 72 per cent of its total revenue.
The IT exporter had a net profit of Rs 978.2 crore in the September quarter of last fiscal, Wipro said in a filing to the Bombay Stock Exchange.
Total income of the company rose to Rs 7,057.4 crore during the July-September quarter of the current fiscal, from Rs 6,664.8 crore in the year-ago period, as per the Indian accounting norms.
"We see more stability in volumes and pricing as well as an improving demand environment. Our broad portfolio of services and strong delivery excellence continues to position us as a partner of choice with customers, as they focus on capital conservation and cost transformation," Wipro Chairman Azim Premji said.
The country's third largest software exporter's revenue from IT services in rupee terms grew by 5 per cent to Rs 4,996 crore from the year-ago period.
However, in dollar terms, the revenue fell by 4 per cent to $1,065.2 million.
"Looking ahead for the quarter ending December 31, 2009, we expect revenues from our IT Services business to be in the range of $1,092 million to $1,113 million," Premji said.
In the reported quarter, the firm added 37 new clients to its IT services business, which accounted for 72 per cent of its total revenue.
Monday, October 26, 2009
New Deals, Outsourcing, Wipro
Wipro bags 10-yr IGI deal
IT major Wipro said it has entered into a 10-year IT outsourcing agreement with Delhi International Airport Ltd (DIAL) for providing IT infrastructure and services for IGI Airport here.
As part of the agreement, both the companies will form a joint venture (JV), to be named as Wipro Airport IT Services Ltd, with Wipro holding 74 per cent stake in the JV and DIAL the remaining 26 per cent stake, Wipro said in a statement.
The JV would be the innovation partner for DIAL and focus on emerging business models and technologies for airports as well as build competencies in airport specific applications, it added.
DIAL is a joint venture, comprising infrastructure major GMR Group, Airports Authority of India, Fraport and Malaysian Airports.
As per the agreement, Wipro would be responsible for end-to-end IT management in the IGI airport's new integrated terminal (T3), which will be one of the largest terminals in the world, for 10 years.
"We are delighted to have a strong partner like Wipro with proven capabilities in delivering superior business value as our partner in realising that vision for us," GMR Group Chairman (Airports) Kiran Kumar Grandhi said.
Wipro Joint CEO and member of the board Suresh Vaswani said, "This partnership will create new industry standards in modern airport management based on world class IT and business processes powered by innovation."
As part of the agreement, both the companies will form a joint venture (JV), to be named as Wipro Airport IT Services Ltd, with Wipro holding 74 per cent stake in the JV and DIAL the remaining 26 per cent stake, Wipro said in a statement.
The JV would be the innovation partner for DIAL and focus on emerging business models and technologies for airports as well as build competencies in airport specific applications, it added.
DIAL is a joint venture, comprising infrastructure major GMR Group, Airports Authority of India, Fraport and Malaysian Airports.
As per the agreement, Wipro would be responsible for end-to-end IT management in the IGI airport's new integrated terminal (T3), which will be one of the largest terminals in the world, for 10 years.
"We are delighted to have a strong partner like Wipro with proven capabilities in delivering superior business value as our partner in realising that vision for us," GMR Group Chairman (Airports) Kiran Kumar Grandhi said.
Wipro Joint CEO and member of the board Suresh Vaswani said, "This partnership will create new industry standards in modern airport management based on world class IT and business processes powered by innovation."
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