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.
Friday, October 30, 2009
Recession
Recession over? GDP grows 3.5%
The U.S. economy grew more than expected in the third quarter, according to the government's initial report on gross domestic product.
The Commerce Department says GDP grew at an annual rate of 3.5 percent last quarter, the first positive quarterly growth in a year, and the largest quarterly advance since the third quarter of 2007.
GDP contracted by 0.7 percent in the second quarter.
Third quarter growth was led by double digit gains in durable goods and residential real estate, categories propped up by government stimulus programs like the first time home buyer credit and the cash for clunkers program. While that raises questions about the sustainability of growth as stimulus programs unwind, the Obama administration did not hesitate to take the credit.
"Today's numbers indicate that the tough decisions this administration made to rescue the economy from the abyss were correct," said Commerce Secretary Gary Locke in a statement. "We're headed in the right direction, and even though there are still too many Americans out of work and still much work to be done, without the action taken in the early days of this administration, the pain families are feeling today would be much worse."
The Labor Department reported Thursday that first time jobless claims totaled 530,000 last week, although the total number of Americans currently receiving unemployment benefits fell 148,000 to 5.8 million, the biggest one week decline since July.
The official declaration of the beginning and end of a recession has traditionally been given to the National Bureau of Economic Research, which has not raced to make any such declaration. Its Web site continues to mark the endpoint of the current recession with a question mark.
The Commerce Department says GDP grew at an annual rate of 3.5 percent last quarter, the first positive quarterly growth in a year, and the largest quarterly advance since the third quarter of 2007.
GDP contracted by 0.7 percent in the second quarter.
Third quarter growth was led by double digit gains in durable goods and residential real estate, categories propped up by government stimulus programs like the first time home buyer credit and the cash for clunkers program. While that raises questions about the sustainability of growth as stimulus programs unwind, the Obama administration did not hesitate to take the credit.
"Today's numbers indicate that the tough decisions this administration made to rescue the economy from the abyss were correct," said Commerce Secretary Gary Locke in a statement. "We're headed in the right direction, and even though there are still too many Americans out of work and still much work to be done, without the action taken in the early days of this administration, the pain families are feeling today would be much worse."
The Labor Department reported Thursday that first time jobless claims totaled 530,000 last week, although the total number of Americans currently receiving unemployment benefits fell 148,000 to 5.8 million, the biggest one week decline since July.
The official declaration of the beginning and end of a recession has traditionally been given to the National Bureau of Economic Research, which has not raced to make any such declaration. Its Web site continues to mark the endpoint of the current recession with a question mark.
IT market, new openings
iGate to hire 1,500 people next year
IT services player iGate has announced that it will hire 1,500 people in 2010, following a rebound in IT outsourcing contracts. iGate said the plan to increase the headcount was a reflection of the improving business environment.
Said iGate CEO Phaneesh Murthy, "We believe there is already a revival in the demand side as the companies have started spending on discretionary projects. The IT budgets are also expected to increase by 2-4 per cent, in 2010." He was in Bangalore on Thursday to inaugurate its new facility, measuring 1.15 lakh sq.ft with a seating capacity of 1,050 people.
The Nasdaq-listed company has 6,400 employees. In the fourth quarter of the present calendar (Oct-Dec 2009), iGate intends to hire 300 people, including 100 for BPO services.
Murthy said, while the pricing environment largely remained stable, the company was seeing a huge increase in the number of first time outsourcers. Of the 12 new clients iGate added during the last two quarters, 11 were first time outsourcers. "This indicates that offshoring to locations like India is expected to increase in the coming days," he added. iGate had reported revenues of $49.1 million in the September quarter.
The company is present in India in four locations including Bangalore, Hyderabad, Chennai and Noida. It has a near-shore centre in Mexico as well. Its new facility is located in iGate's 13.5 acre campus.
According to the company, special efforts were made to make the new phase green by introducing LED and solar lighting, an ozone-friendly air conditioning system, organic waste converter and a wastewater recycling system.
iGate has taken on a carbon footprint estimation study to determine the Green House Gas (GHG) inventory across all its global delivery facilities in India, Australia and Mexico.
Said iGate CEO Phaneesh Murthy, "We believe there is already a revival in the demand side as the companies have started spending on discretionary projects. The IT budgets are also expected to increase by 2-4 per cent, in 2010." He was in Bangalore on Thursday to inaugurate its new facility, measuring 1.15 lakh sq.ft with a seating capacity of 1,050 people.
The Nasdaq-listed company has 6,400 employees. In the fourth quarter of the present calendar (Oct-Dec 2009), iGate intends to hire 300 people, including 100 for BPO services.
Murthy said, while the pricing environment largely remained stable, the company was seeing a huge increase in the number of first time outsourcers. Of the 12 new clients iGate added during the last two quarters, 11 were first time outsourcers. "This indicates that offshoring to locations like India is expected to increase in the coming days," he added. iGate had reported revenues of $49.1 million in the September quarter.
The company is present in India in four locations including Bangalore, Hyderabad, Chennai and Noida. It has a near-shore centre in Mexico as well. Its new facility is located in iGate's 13.5 acre campus.
According to the company, special efforts were made to make the new phase green by introducing LED and solar lighting, an ozone-friendly air conditioning system, organic waste converter and a wastewater recycling system.
iGate has taken on a carbon footprint estimation study to determine the Green House Gas (GHG) inventory across all its global delivery facilities in India, Australia and Mexico.
IT market
Sasken to tie-up with US-based Ingenient Technologies
Sasken Communication Technologies on Wednesday said that it will acquire the product portfolio and certain customer contracts and assets of US-based Ingenient Technologies, a highly professional multimedia software solutions company.
Ingenient will also transfer engineering and sales teams (including some in Korea and Japan) to Sasken. Sasken did not reveal the value of the deal.
According to Sasken, the acquisition of these assets are in line with its strategy of diversifying its portfolio and expanding into market segments like consumer and automotive electronics.
The transferred set of engineering employees in the US will form the core of Sasken’s Chicago development centre.
Sasken will now have a research and development centre in the US, which will be a beachhead for new product development supported by multi-site service delivery models. Sasken will also have presence in Korea and will strengthen its existing center in Japan, both countries being epicenters for development of consumer and lifestyle products.
Founded in 2000, Ingenient is a global provider of embedded multimedia software solutions to multinational companies ranging in size from tier one original equipment manufacturers to high-tech startups. Ingenient’s software solutions enable creation, delivery, management and presentation of rich multimedia content, according to Sasken.
Utilising these software solutions, Ingenient’s customers can immediately create leading-edge multimedia products for the consumer electronics, enterprise, security and surveillance, and infrastructure markets.
Rajiv Mody, Sasken’s chairman and CEO, said, “As a company with high professional standards, Sasken has always aimed to be the supplier of choice for embedded R&D services. Ingenient’s multimedia solutions combined with Sasken’s global reach and India-based development centers will enable us to offer a compelling portfolio of value added solutions.”
Ingenient will also transfer engineering and sales teams (including some in Korea and Japan) to Sasken. Sasken did not reveal the value of the deal.
According to Sasken, the acquisition of these assets are in line with its strategy of diversifying its portfolio and expanding into market segments like consumer and automotive electronics.
The transferred set of engineering employees in the US will form the core of Sasken’s Chicago development centre.
Sasken will now have a research and development centre in the US, which will be a beachhead for new product development supported by multi-site service delivery models. Sasken will also have presence in Korea and will strengthen its existing center in Japan, both countries being epicenters for development of consumer and lifestyle products.
Founded in 2000, Ingenient is a global provider of embedded multimedia software solutions to multinational companies ranging in size from tier one original equipment manufacturers to high-tech startups. Ingenient’s software solutions enable creation, delivery, management and presentation of rich multimedia content, according to Sasken.
Utilising these software solutions, Ingenient’s customers can immediately create leading-edge multimedia products for the consumer electronics, enterprise, security and surveillance, and infrastructure markets.
Rajiv Mody, Sasken’s chairman and CEO, said, “As a company with high professional standards, Sasken has always aimed to be the supplier of choice for embedded R&D services. Ingenient’s multimedia solutions combined with Sasken’s global reach and India-based development centers will enable us to offer a compelling portfolio of value added solutions.”
IT market
SAP cuts sales forecast
SAP AG, the world’s biggest maker of business-management software, cut its sales forecast for the year as clients in emerging markets and Japan spent less than it anticipated, sending its stock to the biggest drop in a year.
SAP, which today reported a less-than-expected 12% increase in third-quarter profit, cut its sales outlook for the second time this year. Software and related service revenue will fall between 6 percent and 8 percent in 2009 at constant currencies and excluding a writedown from acquiring Business Objects SA, it said in an e-mailed statement. In July, it had predicted a drop of 4 percent to 6 percent.
“These are really disappointing figures, much worse than expected,” said Ulf Moritzen, a fund manager at Aramea Asset Management AG in Hamburg, which oversees about $1 billion, including SAP shares. “Clients are obviously still reluctant to invest in software, so cost-cutting is the only option SAP has at the moment to safeguard profitability.”
SAP, which counts Apple Inc., Coca-Cola Co. and Wal-Mart Stores Inc. among its customers, said although it’s seeing some “signs of stabilization, the market remains difficult.” Last month, SAP’s biggest rival, Oracle Corp., reported sales, including revenue from acquired companies, slid 6.6 percent to $5.06 billion in the three months to August 31.
In the third quarter, SAP faced “challenging conditions in some of the emerging markets and in Japan,” Chief Executive Officer Leo Apotheker said in an interview on Bloomberg TV today. “We adjusted our guidance because 2009 is a very peculiar year, it’s very hard to predict.”
SAP, which today reported a less-than-expected 12% increase in third-quarter profit, cut its sales outlook for the second time this year. Software and related service revenue will fall between 6 percent and 8 percent in 2009 at constant currencies and excluding a writedown from acquiring Business Objects SA, it said in an e-mailed statement. In July, it had predicted a drop of 4 percent to 6 percent.
“These are really disappointing figures, much worse than expected,” said Ulf Moritzen, a fund manager at Aramea Asset Management AG in Hamburg, which oversees about $1 billion, including SAP shares. “Clients are obviously still reluctant to invest in software, so cost-cutting is the only option SAP has at the moment to safeguard profitability.”
SAP, which counts Apple Inc., Coca-Cola Co. and Wal-Mart Stores Inc. among its customers, said although it’s seeing some “signs of stabilization, the market remains difficult.” Last month, SAP’s biggest rival, Oracle Corp., reported sales, including revenue from acquired companies, slid 6.6 percent to $5.06 billion in the three months to August 31.
In the third quarter, SAP faced “challenging conditions in some of the emerging markets and in Japan,” Chief Executive Officer Leo Apotheker said in an interview on Bloomberg TV today. “We adjusted our guidance because 2009 is a very peculiar year, it’s very hard to predict.”
IT market
Cisco's revenues inch closer to $1b mark
As Cisco, the world’s largest computer networking equipment maker, approaches around $1 billion in revenues from India, the company is hoping that increased government spending on technology will keep the momentum going.
Cisco has already won three contracts awarded by State Electricity Boards (SEBs) for computerization, each being worth around Rs 200-500 crore. These projects are part of the government’s bigger agenda for computerisation of the power sector by investing nearly Rs 10,000 crore.
"Government and PSUs were the top revenue earners for us, replacing IT services customers who were the biggest until slowdown happened," said Naresh B Wadhwa, managing director of Cisco India. Cisco also won the networking portion of Rs 1,200 crore ESIC contract along with Wipro.
Cisco does not give out its revenues from the Indian market, but according to Voice and Data, the company’s India revenues were around Rs 4,500 crore last year. "There are many markets that are still in the making, such as traffic management, water management and security. Transport is also a big opportunity," said Mr Wadhwa.
An expert tracking Cisco’s Indian wins said many tenders specify Cisco switches, which works to the company’s advantage. "Some of the tenders specify Cisco switches instead of a more generic specification," he said.
Some of Cisco’s competitors for high-end services are Nortel and Avaya and in networking, switches players such as DAX and Chinese vendor, ZTE. "Nortel’s filing of Chapter 11 has not impacted its business in India much and large firms such as Reliance continue to use its products," the expert added.
Cisco is also participating in state-wide area network (SWAN) contracts for wiring state and district headquarters in Gujarat, Punjab, Haryana, Tamil Nadu, Jharkhand, Sikkim, and bidding for contracts for setting up state data centres (SDCs).
Around 18 states are coming out with tenders for setting up SDCs. Mr Wadhwa expects that following SWAN contracts, there will be contracts to network with state departments like revenue, police and health. "Once you have the infrastructure, you add more applications and keep building on top of it," he said.
Cisco has already won three contracts awarded by State Electricity Boards (SEBs) for computerization, each being worth around Rs 200-500 crore. These projects are part of the government’s bigger agenda for computerisation of the power sector by investing nearly Rs 10,000 crore.
"Government and PSUs were the top revenue earners for us, replacing IT services customers who were the biggest until slowdown happened," said Naresh B Wadhwa, managing director of Cisco India. Cisco also won the networking portion of Rs 1,200 crore ESIC contract along with Wipro.
Cisco does not give out its revenues from the Indian market, but according to Voice and Data, the company’s India revenues were around Rs 4,500 crore last year. "There are many markets that are still in the making, such as traffic management, water management and security. Transport is also a big opportunity," said Mr Wadhwa.
An expert tracking Cisco’s Indian wins said many tenders specify Cisco switches, which works to the company’s advantage. "Some of the tenders specify Cisco switches instead of a more generic specification," he said.
Some of Cisco’s competitors for high-end services are Nortel and Avaya and in networking, switches players such as DAX and Chinese vendor, ZTE. "Nortel’s filing of Chapter 11 has not impacted its business in India much and large firms such as Reliance continue to use its products," the expert added.
Cisco is also participating in state-wide area network (SWAN) contracts for wiring state and district headquarters in Gujarat, Punjab, Haryana, Tamil Nadu, Jharkhand, Sikkim, and bidding for contracts for setting up state data centres (SDCs).
Around 18 states are coming out with tenders for setting up SDCs. Mr Wadhwa expects that following SWAN contracts, there will be contracts to network with state departments like revenue, police and health. "Once you have the infrastructure, you add more applications and keep building on top of it," he said.
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