IT exporter Mahindra Satyam has been exempted from providing financial statements in bids for government projects enabling the company to participate in tenders called by government units, which have one of the highest IT spends in the domestic market. A majority of these tenders require the financial statements of the bidder to be provided as prerequisite.
Mahindra Satyam’s financials are in the process of being restated after its promoter and former chairman, Ramalinga Raju, confessed to falsifying the accounts in January this year. After the scam-hit company was taken over by Tech Mahindra, the board under the chairmanship of Kiran Karnik had sought an exemption from providing its financials, so it could be eligible to bid for government projects.
Satyam has so far lost out on a Railways contract estimated at Rs 100 crore, with the opportunity to more effectively participate in future contracts worth Rs 3,000 crore. It also lost out an enterprise resource planning implementation contract from BSNL for around Rs 250 crore to rival, HCL Infosystems.
“This directive, along with the Mahindra & Mahindra balance sheet, will help us participate in tenders by government departments and PSUs. The directive says the audited financials should not be a point of contention and we (Satyam) should be considered based on our technical proficiency,” a highly placed Mahindra Satyam official told ET.
However, the company is not likely to contest those bids that it has already lost out to rivals. “Earlier, we were not even being invited for bidding — now at least we will be able to participate in them. But there may be still some government contracts where we cannot participate if there are other criteria,” the official said.
The firm is currently participating in around 15-20 bids from public sector undertakings and government departments, said Sanjay Venkatraman, who heads the India business unit at Mahindra Satyam.
“These projects range from Rs 20 crore to Rs 100 crore and are in the areas of e-governance and citizen services,” Mr Venkataraman added.
The exemption from the ministry of corporate affairs is valid only till December this year and since the restatement of accounts are expected to take up to March, Mahindra Satyam is likely to apply for the exemption to be extended till that date. The company has created a separate division under its India business unit to focus on government projects.
Mahindra Satyam lost a Railways contract estimated at Rs 100 crore, with the opportunity to more effectively participate in future contracts worth Rs 3,000 cr.
It also lost out an enterprise resource planning implementation contract from BSNL for around Rs 250 crore to HCL Infosystems.
Mahindra Satyam is currently participating in around 15-20 bids from public sector undertakings and government departments.
Tuesday, September 29, 2009
HCL, IT market, new openings
HCL to hire 2,000 software engineers to serve new customers
India’s fourth-largest software exporter HCL Technologies plans to hire 2,000 software engineers in the next three-four months to leverage new client base and existing operations across verticals, said a top company executive.
While 30% of the new hires would be freshers, the remaining 70% will comprise experienced professionals. This will take the company’s total workforce to more than 57,000 globally.
The software major struck various IT outsourcing services deal in the past few months, which has led to an increase in demand for workforce. Till last year, the company was high on campus hiring and took 15,000 freshers and professionals on rolls.
However, the firm intends to go slow on campus hiring this year owing to overall slowdown in demand for IT services world-wide.
“We are following just-in-time model of hiring. Unlike earlier when we used to give hiring guidance 18 months in advance, it will be a quarter or two in advance, as we are yet to have a clear visibility on where the industry is heading. Focus will be on lateral hiring for core IT processes across sectors,” said HCL Technologies global head (human resources) Dilip Kumar Srivastava.
He said the company has no plans to alter the compensation package of the freshers and that variable component of the salary will solely be performance based. Early this year, the company had put a freeze on employee salaries and resorted to bonus cutbacks, citing tight demand and declining volumes in the US and Europe as the rationale.
HCL has added a couple of new clients in the past few months. The firm bagged two IT outsourcing services contracts worth $110 million from Texas-based energy companies, Energy Future Holdings and Oncor.
To support the growing business, the company will also scale up headcount in Texas over the next few months.
The company currently serves clients in sectors, such as aerospace, defence, financial services, government, retail, lifesciences and telecom.
While 30% of the new hires would be freshers, the remaining 70% will comprise experienced professionals. This will take the company’s total workforce to more than 57,000 globally.
The software major struck various IT outsourcing services deal in the past few months, which has led to an increase in demand for workforce. Till last year, the company was high on campus hiring and took 15,000 freshers and professionals on rolls.
However, the firm intends to go slow on campus hiring this year owing to overall slowdown in demand for IT services world-wide.
“We are following just-in-time model of hiring. Unlike earlier when we used to give hiring guidance 18 months in advance, it will be a quarter or two in advance, as we are yet to have a clear visibility on where the industry is heading. Focus will be on lateral hiring for core IT processes across sectors,” said HCL Technologies global head (human resources) Dilip Kumar Srivastava.
He said the company has no plans to alter the compensation package of the freshers and that variable component of the salary will solely be performance based. Early this year, the company had put a freeze on employee salaries and resorted to bonus cutbacks, citing tight demand and declining volumes in the US and Europe as the rationale.
HCL has added a couple of new clients in the past few months. The firm bagged two IT outsourcing services contracts worth $110 million from Texas-based energy companies, Energy Future Holdings and Oncor.
To support the growing business, the company will also scale up headcount in Texas over the next few months.
The company currently serves clients in sectors, such as aerospace, defence, financial services, government, retail, lifesciences and telecom.
IBM, IT market
IBM part of failed UK security project
IBM was the main supplier in a failed project by British intelligence to upgrade its communications system so various organizations and agents in different locations could share information, a report said.
The Register, an online technology publication, said IBM's failure to meet deadlines, as well as security concerns, led the Cabinet Office to scrap the project last year after years of development and write off 24.4 million pounds ($39 million).
IBM declined to comment.
The report said IBM was the lead contractor in the second phase of the SCOPE project, which aimed to bolster collaboration among the branches of British intelligence including the MI5 Security Service, MI6 Secret Intelligence Service, the Government Communications Headquarters, and the Foreign Office.
The UK Intelligence and Security Committee said in its last annual report, presented to Parliament in March, that phase 2 of the SCOPE program had been delayed numerous times and had finally been abandoned.
Courtesy: indiatimes
The Register, an online technology publication, said IBM's failure to meet deadlines, as well as security concerns, led the Cabinet Office to scrap the project last year after years of development and write off 24.4 million pounds ($39 million).
IBM declined to comment.
The report said IBM was the lead contractor in the second phase of the SCOPE project, which aimed to bolster collaboration among the branches of British intelligence including the MI5 Security Service, MI6 Secret Intelligence Service, the Government Communications Headquarters, and the Foreign Office.
The UK Intelligence and Security Committee said in its last annual report, presented to Parliament in March, that phase 2 of the SCOPE program had been delayed numerous times and had finally been abandoned.
Courtesy: indiatimes
Friday, September 25, 2009
Satyam
GE deal to stay with Mahindra Satyam for 3 yrs
The US-based conglomerate General Electric (GE) has extended its multi-million dollar contract with Mahindra Satyam for three years starting January 1, 2010, giving a boost to the IT firm, which has started winning new outsourcing deals.
Mahindra Satyam, which also counts Citigroup, GlaxoSmithKline (GSK), Cisco Systems and Nissan, among its clients, is one of the top three vendors for GE. Its contract with GE has been for over a decade now in specialised areas of development, maintenance, business intelligence and engineering services.
Around 1,500 employees will work on the GE deal. “GE recognises the support extended over the years by Mahindra Satyam, and their commitment to delivery excellence, even during trying times,” said Steve Morrison, GDC leader of GE.
GE has signed a similar contract with 11 other vendors. “The extension is a testimony to the commitment our associates have demonstrated and truly symbolises the value we have been able to add through our services,” said Arvind Malhotra, global account executive of Mahindra Satyam.
Harit Shah, IT analyst Angel Broking, sees GE’s decision to extend the contract as a vote of confidence on the new management at Mahindra Satyam. Two months ago, global pharma major GSK extended its contract with Mahindra Satyam for five years to provide SAP and other critical systems support. Satyam had been working with GSK since 2002 in providing IT services.
The US-based OC Tanner — a human resource consulting and services company — followed suit. Last week, the firm renewed its contract with Mahindra Satyam to providing application development services to the US-based company.
Over the past four months, Mahindra Satyam, earlier known as Satyam Computers, is reported to have gained over 32 new customers, including some large clients. It has around 430 clients now.
Satyam was acquired by Pune-based IT services firm Tech Mahindra in April, after the firm’s defamed founder B Ramalinga Raju confessed to perpetrating India’s biggest corporate fraud. Customer confidence took a knock after Raju’s confession. The company is now attempting to regain contracts to turnaround, even as its accounts are in the process of being re-stated.
Shares of Mahindra Satyam fell 1.7% to close at Rs 116.70 on the Bombay Stock Exchange on Thursday.
Mahindra Satyam, which also counts Citigroup, GlaxoSmithKline (GSK), Cisco Systems and Nissan, among its clients, is one of the top three vendors for GE. Its contract with GE has been for over a decade now in specialised areas of development, maintenance, business intelligence and engineering services.
Around 1,500 employees will work on the GE deal. “GE recognises the support extended over the years by Mahindra Satyam, and their commitment to delivery excellence, even during trying times,” said Steve Morrison, GDC leader of GE.
GE has signed a similar contract with 11 other vendors. “The extension is a testimony to the commitment our associates have demonstrated and truly symbolises the value we have been able to add through our services,” said Arvind Malhotra, global account executive of Mahindra Satyam.
Harit Shah, IT analyst Angel Broking, sees GE’s decision to extend the contract as a vote of confidence on the new management at Mahindra Satyam. Two months ago, global pharma major GSK extended its contract with Mahindra Satyam for five years to provide SAP and other critical systems support. Satyam had been working with GSK since 2002 in providing IT services.
The US-based OC Tanner — a human resource consulting and services company — followed suit. Last week, the firm renewed its contract with Mahindra Satyam to providing application development services to the US-based company.
Over the past four months, Mahindra Satyam, earlier known as Satyam Computers, is reported to have gained over 32 new customers, including some large clients. It has around 430 clients now.
Satyam was acquired by Pune-based IT services firm Tech Mahindra in April, after the firm’s defamed founder B Ramalinga Raju confessed to perpetrating India’s biggest corporate fraud. Customer confidence took a knock after Raju’s confession. The company is now attempting to regain contracts to turnaround, even as its accounts are in the process of being re-stated.
Shares of Mahindra Satyam fell 1.7% to close at Rs 116.70 on the Bombay Stock Exchange on Thursday.
Satyam
Satyam to lift freeze on promotions, selectively
Mahindra Satyam is lifting the freeze on promotions, even though they will be on a selective basis. This follows similar moves made by IT majors Cognizant, Wipro and Infosys and is indicative of an improved environment, say analysts.
Mukund Menon, head of business HR worldwide, Mahindra Satyam, told Financial Chronicle that while no pay hikes are planned this year, there will be promotions for star performers.
The Hyderabad-based firm has also decided to reinstate the variable portion of salary and other benefits for associates across all levels, effective from October 2009.
Cognizant and Wipro were among the first to give promotions to selected personnel in FY10.
According to industry trackers, multinational firms such as Accenture and IBM have also given promotions and hikes to top performers.
Infosys and TCS are also comtemplating promotions and hikes this year. These firms had earlier said that they will not give any promotions and salary hikes in FY10 considering the present market environment.
Company officials suggest that the initiative by these firms is due to the improving business scenario. Some HR analysts, however, say that it’s not just a better demand scenario that is driving companies to give promotions and hikes. Kris Lakshmikanth, CEO of Head Hunters India, says that selective increments have primarily been at the project manager and above levels even while several companies have decreased their salary package offerings at fresher levels.
Mukund Menon, head of business HR worldwide, Mahindra Satyam, told Financial Chronicle that while no pay hikes are planned this year, there will be promotions for star performers.
The Hyderabad-based firm has also decided to reinstate the variable portion of salary and other benefits for associates across all levels, effective from October 2009.
Cognizant and Wipro were among the first to give promotions to selected personnel in FY10.
According to industry trackers, multinational firms such as Accenture and IBM have also given promotions and hikes to top performers.
Infosys and TCS are also comtemplating promotions and hikes this year. These firms had earlier said that they will not give any promotions and salary hikes in FY10 considering the present market environment.
Company officials suggest that the initiative by these firms is due to the improving business scenario. Some HR analysts, however, say that it’s not just a better demand scenario that is driving companies to give promotions and hikes. Kris Lakshmikanth, CEO of Head Hunters India, says that selective increments have primarily been at the project manager and above levels even while several companies have decreased their salary package offerings at fresher levels.
H1-B, Layoffs in USA, NRIs
US tech industry lost 115K jobs in H1
Seems Indian techies have been luckier than their counterparts in the US. According to a study by TechAmerica Foundation, US technology industry cut 115,000 jobs in the first half of 2009, compared to the 72,900 tech jobs added in the same period in 2008.
However, in the US too, the tech sector seems better than other industry verticals. While between June 2008 to June 2009, tech lost 224,100 jobs, a 3.7% decline; the US private sector shed jobs at a higher pace of 5.1%.
The Washington-based non-profit foundation also said that high-tech manufacturing in the US continues to shed jobs, having lost 69,500 from January to June 2009. The high-tech services sectors shed 45,500 jobs from January to June 2009, a 1% drop.
The report also said that for the first time in its 5-year history, all three services sectors saw losses: engineering and tech services lost 21,500 jobs, while communications services shed 13,600 jobs. In software services the job cuts stood at 10,400.
However, in the US too, the tech sector seems better than other industry verticals. While between June 2008 to June 2009, tech lost 224,100 jobs, a 3.7% decline; the US private sector shed jobs at a higher pace of 5.1%.
The Washington-based non-profit foundation also said that high-tech manufacturing in the US continues to shed jobs, having lost 69,500 from January to June 2009. The high-tech services sectors shed 45,500 jobs from January to June 2009, a 1% drop.
The report also said that for the first time in its 5-year history, all three services sectors saw losses: engineering and tech services lost 21,500 jobs, while communications services shed 13,600 jobs. In software services the job cuts stood at 10,400.
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