Wipro has won a large technology outsourcing contract, potentially valued at close to $ 500 million (Rs 2,900 crore) from Citigroup, according to people familiar with the development.
The large contract comes at a time when such multi-hundred-million dollar technology contracts have become few and far between. Large corporations in the United States and Europe have been cautious on technology spending and following a practice of breaking up outsourced contracts into smaller projects, which are given out to multiple service providers.
Tuesday, June 25, 2013
Outsourcing
Rupee depreciation: Indian IT cos like Infosys, TCS and Wipro finally have something to cheer about
The Indian technology sector, hobbled by concerns over the US immigration bill, margin pressure due to rising employee and visa cost, lower growth, and deprecation of the rupee, may finally have something to cheer.
The rupee has depreciated 9.87%, or Rs 5.35, against the dollar since April this year. According to analysts, this might translate into gains in operating profit by 100 to 250 basis points for the Indian technology companies.
The rupee has depreciated 9.87%, or Rs 5.35, against the dollar since April this year. According to analysts, this might translate into gains in operating profit by 100 to 250 basis points for the Indian technology companies.
TCS
Former employees say TCS abused Australia visa
Former employees have accused Tata Consultancy Services (TCS) of abusing Australia's migrant worker visa designed to import talent to fill skills shortages.
According to a report Friday by the Australian Broadcast Corporation (ABC), TCS, which is India's biggest outsourcer by revenues, flouted rules outlined under the 457 visa scheme and imported cheap, foreign workers without first attempting to recruit local talent.
An anonymous former TCS employee told the ABC that if the Indian company needed a new developer, they would not perform the required step to advertise for an Australian worker. "We just contacted the local area manager and he would send a developer on the next plane from Mumbai," the employee said.
TCS, which holds multi-million dollar contracts with Australia's biggest companies, refused to comment on the allegations.
Another former employee of TCS, Hasan Mahboob, said the 457 visa scheme was overused.
"I'd certainly seen heavy use of 457 visa, starting from the very top management-level people, ro relationship managers, account managers, service delivery managers, project managers, program managers, and business analysts--all of which I question should be done by 457 visa," Mahboob said.
Sources:
http://www.zdnet.com/in/former-employees-say-tcs-abused-australia-visa-7000017191/
http://www.abc.net.au/news/2013-06-20/workers-accuse-indian-it-giant-of-457-visa-abuse/4769482
According to a report Friday by the Australian Broadcast Corporation (ABC), TCS, which is India's biggest outsourcer by revenues, flouted rules outlined under the 457 visa scheme and imported cheap, foreign workers without first attempting to recruit local talent.
An anonymous former TCS employee told the ABC that if the Indian company needed a new developer, they would not perform the required step to advertise for an Australian worker. "We just contacted the local area manager and he would send a developer on the next plane from Mumbai," the employee said.
TCS, which holds multi-million dollar contracts with Australia's biggest companies, refused to comment on the allegations.
Another former employee of TCS, Hasan Mahboob, said the 457 visa scheme was overused.
"I'd certainly seen heavy use of 457 visa, starting from the very top management-level people, ro relationship managers, account managers, service delivery managers, project managers, program managers, and business analysts--all of which I question should be done by 457 visa," Mahboob said.
Sources:
http://www.zdnet.com/in/former-employees-say-tcs-abused-australia-visa-7000017191/
http://www.abc.net.au/news/2013-06-20/workers-accuse-indian-it-giant-of-457-visa-abuse/4769482
HCL
HCL Tech gains after multi-year engagement with Vestas Wind Systems
Vestas is a global leader in manufacturing, selling, installing, and servicing of wind turbine power-plants.
HCL will provide application development and management and IT-consultancy services to applications run by Vestas as part of this engagement. The services will be delivered to Vestas primarily from India, but also from the Philippines and across locations in Denmark. Besides cost reduction, Vestas IT expects to gain increased flexibility in terms of skills, scale, knowledge and experience and achieve higher quality by using the HCL's best in class processes and services.
HCL will provide application development and management and IT-consultancy services to applications run by Vestas as part of this engagement. The services will be delivered to Vestas primarily from India, but also from the Philippines and across locations in Denmark. Besides cost reduction, Vestas IT expects to gain increased flexibility in terms of skills, scale, knowledge and experience and achieve higher quality by using the HCL's best in class processes and services.
H1-B
Expanding the H1B Foreign Work Visa Quota Would Help Small Businesses Most
A sweeping immigration reform bill was introduced to the Senate in April, and legislators are poised to begin debate over one of the most contentious issues in the country.
Besides the most important issue of illegal immigration, another key provision of the bill is the expansion in the number of H1B temporary work visas for workers with college degrees or in skilled occupations from the current cap of 65,000 a year to 110,000.
As is true of illegal immigration, the issue of legal work immigration is contentious, with many voices supporting the plan to expand the number of H1B visas granted each year, and many others opposing it.
Read more at http://www.minyanville.com/business-news/politics-and-regulation/articles/Expanding-the-H1B-Foreign-Work-Visa/6/12/2013/id/50294#ixzz2XBNPHkqy
Besides the most important issue of illegal immigration, another key provision of the bill is the expansion in the number of H1B temporary work visas for workers with college degrees or in skilled occupations from the current cap of 65,000 a year to 110,000.
As is true of illegal immigration, the issue of legal work immigration is contentious, with many voices supporting the plan to expand the number of H1B visas granted each year, and many others opposing it.
Read more at http://www.minyanville.com/business-news/politics-and-regulation/articles/Expanding-the-H1B-Foreign-Work-Visa/6/12/2013/id/50294#ixzz2XBNPHkqy
Infosys, jobs, Salaries
Narayana Murthy effect: Infosys plans high salary for top performers
Infosys is drawing up plans to tilt the scales in favour of top performers, part of efforts to revitalise the workforce after NR Narayana Murthy returned as its chairman on June 1.
According to company executives briefed about Murthy's thinking, the emphasis on employee performance as a vital differentiator is linked to a broader effort to revive a culture of meritocracy in the company that has underperformed the industry for two years. "The differential between high-performers and non-performers will increase. Variable pay will be one mechanism through which this will be achieved," said a person aware of Murthy's plans.
Murthy, 66, returned as executive chairman of Infosys following a request from the company's board, which was under pressure from investors and analysts fretting about the company's troubles. Infosys grew at half the pace of the broader industry in 2012-13 and has admitted that it will lag rivals this year too.
At present, employees with the top ratings receive 50-90% of their variable salary while the lowest-rated ones get only up to 30%. Typically, 10-25% of an executive's compensation can be variable, depending on seniority.
Besides individual performance, the relative performance of the business unit also becomes a key deciding factor.
According to company executives briefed about Murthy's thinking, the emphasis on employee performance as a vital differentiator is linked to a broader effort to revive a culture of meritocracy in the company that has underperformed the industry for two years. "The differential between high-performers and non-performers will increase. Variable pay will be one mechanism through which this will be achieved," said a person aware of Murthy's plans.
Murthy, 66, returned as executive chairman of Infosys following a request from the company's board, which was under pressure from investors and analysts fretting about the company's troubles. Infosys grew at half the pace of the broader industry in 2012-13 and has admitted that it will lag rivals this year too.
At present, employees with the top ratings receive 50-90% of their variable salary while the lowest-rated ones get only up to 30%. Typically, 10-25% of an executive's compensation can be variable, depending on seniority.
Besides individual performance, the relative performance of the business unit also becomes a key deciding factor.
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