Satyam Computer Services expects to garner more business in the coming months, over and above the $250-million worth of deals it bagged over the past seven weeks, said T Hari, global marketing and communication head.
The $250-million deals include a single order of $50 million and multiple orders across industry verticals, technologies and geographies. It also includes deals worth over $10 million from six customers and a few orders in the range of $5-10 million.
Tuesday, February 24, 2009
Cost cutting, severance package
Microsoft Asks Laid-off Workers to Return Overpaid Severance
Microsoft is asking some of the workers it laid off in late January to pay back money they were given in excess of their severance packages. The Redmond-based company is blaming an accounting error and expects repayments within two weeks.
After making 1400 staff redundant, Microsoft reportedly overpaid some of those former employees and underpaid others at the same time. Those who were overpaid were reportedly sent letters requesting for a refund.
After making 1400 staff redundant, Microsoft reportedly overpaid some of those former employees and underpaid others at the same time. Those who were overpaid were reportedly sent letters requesting for a refund.
HCL
Wait set to end for HCL Tech recruits
Source: BusinessLine
Mumbai, Feb. 23 In what could end several months of uncertainty for the 1500-odd campus recruits selected by HCL Technologies in their penultimate year of college (in 2007), they could now be joining the company within the next five months.
“You will be given an eight-week notice to join the organisation and the joining dates shall be communicated to everyone over the next three months as we decide city, technology and service line for each student,” the company said in an e-mail dated February 13, to its employees-in-waiting.
It added that the appointment letter with the joining details will be shared two weeks prior to the date of joining.
Business Line had reported earlier this month that about 1,500 campus recruits were groping in the dark as HCL had neither given the date of joining nor a hard copy of the offer-letter to the freshers. HCL had then said that the hard-copy of the offer letter was provided only closer to the date of joining.
Subsequently, about 50-70 recruits organised a peaceful protest in front of the HCL campus in Noida. And the company eventually wrote back to its employees-in-waiting that they would get their date to join the company in three months.
In its latest communication to the employees-in-waiting, the country’s fifth largest software exporter agreed that the challenging macro-economic environment had forced it to rethink some of its strategies for training, hiring, performance evaluation and deployment.
“Unfortunately, unlike the past few years, this year we will be unable to demonstrate any flexibility on defined norms and process,” the company said.
Due to shrinking client-spend, IT firms are going slow on recruitments. Even those freshers with a valid offer letter are being brought on board in a staggered manner. Recently, the country’s largest software company Tata Consultancy Services said the last batch from the previous year’s campus recruits (about 1,000 persons) would join the company latest by this month-end.
“Deployment at HCL is planned in a phased manner and done in batches. The first batch has already joined the organisation after completing their training and certifications, while few others are undergoing training,” the company said.
Mumbai, Feb. 23 In what could end several months of uncertainty for the 1500-odd campus recruits selected by HCL Technologies in their penultimate year of college (in 2007), they could now be joining the company within the next five months.
“You will be given an eight-week notice to join the organisation and the joining dates shall be communicated to everyone over the next three months as we decide city, technology and service line for each student,” the company said in an e-mail dated February 13, to its employees-in-waiting.
It added that the appointment letter with the joining details will be shared two weeks prior to the date of joining.
Business Line had reported earlier this month that about 1,500 campus recruits were groping in the dark as HCL had neither given the date of joining nor a hard copy of the offer-letter to the freshers. HCL had then said that the hard-copy of the offer letter was provided only closer to the date of joining.
Subsequently, about 50-70 recruits organised a peaceful protest in front of the HCL campus in Noida. And the company eventually wrote back to its employees-in-waiting that they would get their date to join the company in three months.
In its latest communication to the employees-in-waiting, the country’s fifth largest software exporter agreed that the challenging macro-economic environment had forced it to rethink some of its strategies for training, hiring, performance evaluation and deployment.
“Unfortunately, unlike the past few years, this year we will be unable to demonstrate any flexibility on defined norms and process,” the company said.
Due to shrinking client-spend, IT firms are going slow on recruitments. Even those freshers with a valid offer letter are being brought on board in a staggered manner. Recently, the country’s largest software company Tata Consultancy Services said the last batch from the previous year’s campus recruits (about 1,000 persons) would join the company latest by this month-end.
“Deployment at HCL is planned in a phased manner and done in batches. The first batch has already joined the organisation after completing their training and certifications, while few others are undergoing training,” the company said.
IT market
Indian IT cos sublease office space to tide over crisis
Source: TheEconomicTimes
As information technology companies learn to cut their coat according to their cloth in an economic downturn, many of them are looking to don the role of temporary landlords by subleasing the office space which has become surplus because of stalled expansion plans.
For the past five years, when most tech companies were growing at a frenetic pace, they would hire staff and acquire office space in anticipation of large contracts. The projects kept coming and the arrangement was working well as long as the good times lasted.
But now, with growth slowing, the office space that has already been acquired lies unused because hiring is down and new deals are few and far between. And many tech companies are looking to make the best of a bad bargain by letting out the excess space until the good times return.
“Most rental contracts today have a sub-lease clause. Companies may be thinking of making use of this clause if they are sitting on large blocks of empty spaces,” said Karun Verma, managing director (Bangalore) of real estate services provider, Jones Lang LaSalle Meghraj.
In November, business process outsourcer OPI sublet office space to Nokia in Bangalore. Other companies in India’s tech capital which may be looking at similar short-term deals are said to include Apple, Yahoo, Ernst & Young and Tishman Speyers.
Real estate consultants say the IT clusters in Bangalore, Pune, Hyderabad and Chennai are setting the subleasing trend, with negotiations underway between tenants, developers and potential occupants looking to share the office space. Firms which have over 10,000 sq ft of idle space are believed to be the ones most keen on the sub-lease option.
The CFO of one of India’s top IT companies said subleasing could even result in rent arbitrage in a number of cases. For companies looking to occupy sublet space, they have greater bargaining power.
Such deals can be sealed through tripartite contracts involving the developer and the tenants or bipartite, involving the tenants, with a ‘no-objection certificate’ from the developer. A real estate industry expert says there can be more such deals but for the restrictive rules by state governments.
As information technology companies learn to cut their coat according to their cloth in an economic downturn, many of them are looking to don the role of temporary landlords by subleasing the office space which has become surplus because of stalled expansion plans.
For the past five years, when most tech companies were growing at a frenetic pace, they would hire staff and acquire office space in anticipation of large contracts. The projects kept coming and the arrangement was working well as long as the good times lasted.
But now, with growth slowing, the office space that has already been acquired lies unused because hiring is down and new deals are few and far between. And many tech companies are looking to make the best of a bad bargain by letting out the excess space until the good times return.
“Most rental contracts today have a sub-lease clause. Companies may be thinking of making use of this clause if they are sitting on large blocks of empty spaces,” said Karun Verma, managing director (Bangalore) of real estate services provider, Jones Lang LaSalle Meghraj.
In November, business process outsourcer OPI sublet office space to Nokia in Bangalore. Other companies in India’s tech capital which may be looking at similar short-term deals are said to include Apple, Yahoo, Ernst & Young and Tishman Speyers.
Real estate consultants say the IT clusters in Bangalore, Pune, Hyderabad and Chennai are setting the subleasing trend, with negotiations underway between tenants, developers and potential occupants looking to share the office space. Firms which have over 10,000 sq ft of idle space are believed to be the ones most keen on the sub-lease option.
The CFO of one of India’s top IT companies said subleasing could even result in rent arbitrage in a number of cases. For companies looking to occupy sublet space, they have greater bargaining power.
Such deals can be sealed through tripartite contracts involving the developer and the tenants or bipartite, involving the tenants, with a ‘no-objection certificate’ from the developer. A real estate industry expert says there can be more such deals but for the restrictive rules by state governments.
Satyam
Satyam bags orders worth $250 mn
Satyam Computer Services Limited is back to winning new work, thanks largely to the efforts of the newly constituted Board to restore stakeholder confidence and ensure business continuity. The firm has bagged $250 million worth of purchase orders and work extensions since January 7.
"The recent successes include a single order of $50 million, and multiple orders from across industry verticals, technologies and geographies, reflecting an all-round positive trend. More than half of this value comes from new orders, which reinforces the confidence that customers have been sharing with us in our discussions," Chief Executive Officer A S Murthy said.
"The recent successes include a single order of $50 million, and multiple orders from across industry verticals, technologies and geographies, reflecting an all-round positive trend. More than half of this value comes from new orders, which reinforces the confidence that customers have been sharing with us in our discussions," Chief Executive Officer A S Murthy said.
Monday, February 23, 2009
Outsourcing
Top 10 Indian outsoucring companies
The International Association of Outsourcing Professionals has announced the world's best outsourcing service providers in 2008. The Global Outsourcing 100 list has 6 Indian companies among the top ten. In the global 100 ranking, Infosys is ranked third, followed by Capgemini and TCS at fifth and sixth positions, respectively.
1.Infosys
Infosys ranks first among Indian companies in terms of outsourcing and is ranked third in The International Association of Outsourcing Professionals' list.
IAOP mentions its key strength as executive leadership. IAOP, in association with Fortune magazine, inducted N. R. Narayana Murthy and Nandan M. Nilekani, co-founders, Infosys, into 'The Outsourcing Hall of Fame'.
In 2007, Infosys was ranked at No. 7 on the strength of customer testimonials.
Infosys Technologies Ltd was started in 1981 by 7 people with just $250. Today, the company has revenues of over $4 billion.
2. TCS
TCS is ranked 2nd among Indian companies and is at the sixth position globally. The company's strength lies in employee management.
TCS has over 130,300 trained IT consultants in 42 countries offering IT and IT-enabled services. The company generated consolidated revenues of US $5.7 billion for fiscal year ended 31 March 2008.
S. Ramadorai, Chief Executive Officer and Managing Director for TCS.
3.Wipro
Wipro ranks third in the list. It is ranked 7th in the world's top outsourcing providers' list. Its key strength is employee management.
Headquartered in Bangalore, the company has a client base of Fortune 1000 and Global 500 companies. With combined revenues of US $5 billion, core areas of business include global IT services, infrastructure solutions, professional services and business solutions in India and the Asia Pacific region.
Wipro employs over 100,000 people. Azim H Premji is the chairman of Wipro.
4. Genpact
Genpact is ranked 4th among Indian companies and is ranked 9th in the world. It key strength is executive leadership.
Genpact began in 1997 as the India-based business process services operation for GE Capital.
In 2005, with equity investments from General Atlantic and Oak Hill Capital Partners, it became an independent company and was rebranded Genpact.
The company reported a net income of $125.1 million for 2008, up 122 per cent over 2007, while the revenue rose 26 per cent.
Genpact manages services from a global network of more than 31 operations centers in ten countries. Pramod Bhasin is the president and CEO.
5. Tech Mahindra
Tech Mahindra is ranked 5th among Indian companies and is ranked 10th in the world. Its key strength is outsourcing experience.
Tech Mahindra was incorporated as a joint venture between Mahindra & Mahindra and BT plc in 1986 under the name of 'Mahindra-British Telecom'.
Later, the name was changed to 'Tech Mahindra'. The company reported a 12 per cent growth in quarterly net profit at Rs 222.90 crore (Rs 2.22 billion) and revenues for the Mahindra group company rose by 17 per cent to Rs 1,132.20 crore (Rs 11.32 billion). Tech Mahindra reported a 12 per cent growth in quarterly net profit at Rs 222.90 crore in the quarter ended December.
Vineet Nayyar is the managing director & CEO of the company.
6. HCL Tech
HCL comes next at 6th position and its world ranking is 11.
Its key strength is outsourcing experience.
HCL Technologies focuses on software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO.
HCL has a network of offices in 19 countries offering sevices in financial services, manufacturing, aerospace & defense, telecom, retail, life sciences & healthcare, media and entertainment, travel, etc.
HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 2.0 billion (Rs 8,974 crore), as on 31st December 2008.
Vineet Nayar is the CEO of the $2.0 billion HCL Technologies.
7. HOV Services
HOV services is ranked 7th among Indian companies.
It's ranked 15th in the world. Its key strength is outsourcing experience. HOV Services Limited one of the largest end-to-end BPO company headquartered in Chennai, India.
It offers finance and accounting services in the BFSI, healthcare, government, telco, publishing, retail, commercial and industrial manufacturing industries.
Its clients include over 50 per cent of the Fortune 100 companies across key verticals such as financial services, telecommunications, healthcare, insurance, construction, publishing, finance and accounting and government.
The company has more than 12,000 employees. The company's total income for the third quarter ended December 31, 2008 has increased to Rs 23,586 crore (Rs 235.86 billion). Suresh Yannamani is the president of the company.
8. Mastek
Mastek bags the 8th position while it's ranked 16th in the world.
Its key strength lies in customer testimonials. Ashank Desai, R. Sundar and Ketan Mehta established Mastek in Mumbai in 1982.
Mastek, is a Rs 916 crore (US $227 million) publicly held, leading IT player providing enterprise solutions to insurance, government, and financial services organizations worldwide. Mastek operates across the US, Europe, Japan and Asia Pacific regions.
9. Hexaware Technologies
Hexaware Technologies is at 9th position. The company ranked is 22nd in the world and its key strength lies in competency certification.
Hexaware is a global provider of IT and process outsourcing services. Founded in 1990, Hexaware has 6 development centres - three in India and one each in Germany, USA and Mexico, and offices in North America, Europe and Asia Pacific, and employs around 5500 workers globally. In 2008, Hexaware generated over $262 million in revenue.
Atul Nishar is the founder and executive chairman of the company.
10. ITC Infotech
ITC Infotech comes next in the list, it is ranked at 40 globally and its key strength is competency certification.
ITC Infotech, a global IT services company, is a fully-owned subsidiary of ITC Limited.
Headquartered in Bangalore, India, with subsidiaries in UK and USA, ITC Infotech services Fortune-listed customers across North America and Europe. Sanjiv Puri is managing director of ITC Infotech India Ltd.
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