US-based multinational company Honeywell plans to set up a new technology centre in India with an investment of $34 million.
"The centre will also include labs for process and applications development for other specialty materials technology areas, including fluorine products and nylon materials," the company said in a release.
The centre is expected to employ 100 people in five years, it added. Honeywell will invest $34 million in an existing property to develop the centre at Gurgaon.
"This centre will allow us to conduct development closer to our end customers, while at the same time tapping the recognised engineering talent of India," said Andreas Kramvis, president and chief executive of Honeywell Specialty Materials.
Wednesday, November 25, 2009
IT market, New Deals, Satyam
TechM bags 5-year STel deal
New telecom entrant STel Ltd has awarded a five-year IT outsourcing contract to Tech Mahindra, at least two people familiar with the transaction told ET last week.
STel, which plans to compete with incumbent phone firms including Bharti Airtel and Reliance Communications, had shortlisted Tech Mahindra and Wipro for outsourcing system integration, managed services. The contract also includes maintenance of the phone firm’s business and operational support systems.
A senior STel executive confirmed the transaction, but a Tech Mahindra spokesman declined to offer any specific comments. “This contract does not include any fixed investments by STel, and is based on ‘pay as you go’ model,” another person added.
Under this model, a service provider offers different services to a customer as and when required, and charges a fee based either on number of users or number of transactions completed. This model helps customers avoid high capital expenditure in setting up their own IT infrastructure.
Chennai-based STel plans to start rolling out GSM services pan-India during the fourth quarter of the current financial year.
The company has unified access services licences and spectrum to operate in six Indian states - Bihar, Orissa, Jammu & Kashmir, Himachal Pradesh, North East and Assam. The telecom service providers in India opt to share passive infrastructure such as telecom towers and outsource non-core activities such as network and technology management, to reduce costs and roll out services faster, the second person said.
Recently, Tech Mahindra also bagged a Rs 2,000-crore deal for end-to-end outsourcing of IT applications and infrastructure from Etisalat DB Telecom, a joint venture between the UAE-based Etisalat and the Dynamix Balwas group. It also won a $500 million outsourcing contract from new telecom entrant Swan Telecom in August this year. STel had earlier applied for licences in all the 22 circles but was eventually granted a licence for only six circles.
Privately held STel is a joint venture between Bahrain Telecommunications Company (Batelco) and the Siva group. Siva Group is a $3-billion group with diversified business interests in verticals such as wind energy, shipping and logistics and hospitality, while Bahrain’s Batelco is a diversified, integrated telecommunications operator with mobile, fixed and wireless broadband, datacom and fixed line services.
STel, which plans to compete with incumbent phone firms including Bharti Airtel and Reliance Communications, had shortlisted Tech Mahindra and Wipro for outsourcing system integration, managed services. The contract also includes maintenance of the phone firm’s business and operational support systems.
A senior STel executive confirmed the transaction, but a Tech Mahindra spokesman declined to offer any specific comments. “This contract does not include any fixed investments by STel, and is based on ‘pay as you go’ model,” another person added.
Under this model, a service provider offers different services to a customer as and when required, and charges a fee based either on number of users or number of transactions completed. This model helps customers avoid high capital expenditure in setting up their own IT infrastructure.
Chennai-based STel plans to start rolling out GSM services pan-India during the fourth quarter of the current financial year.
The company has unified access services licences and spectrum to operate in six Indian states - Bihar, Orissa, Jammu & Kashmir, Himachal Pradesh, North East and Assam. The telecom service providers in India opt to share passive infrastructure such as telecom towers and outsource non-core activities such as network and technology management, to reduce costs and roll out services faster, the second person said.
Recently, Tech Mahindra also bagged a Rs 2,000-crore deal for end-to-end outsourcing of IT applications and infrastructure from Etisalat DB Telecom, a joint venture between the UAE-based Etisalat and the Dynamix Balwas group. It also won a $500 million outsourcing contract from new telecom entrant Swan Telecom in August this year. STel had earlier applied for licences in all the 22 circles but was eventually granted a licence for only six circles.
Privately held STel is a joint venture between Bahrain Telecommunications Company (Batelco) and the Siva group. Siva Group is a $3-billion group with diversified business interests in verticals such as wind energy, shipping and logistics and hospitality, while Bahrain’s Batelco is a diversified, integrated telecommunications operator with mobile, fixed and wireless broadband, datacom and fixed line services.
H1-B, IT market, NRIs
25,000 onsite H-1B inspections
US immigration officials are taking H-1B enforcement plan to conduct 25,000 on-site inspections of companies hiring foreign workers over this fiscal year, according to a report in ComputerWorld.
According to the report, the move marks a nearly five-fold increase in inspections over last fiscal year, when the agency conducted 5,191 site visits. The new federal fiscal year began Oct. 1.
Tougher enforcement comes in response to a US Citizenship and Immigration Services (USCIS) study (in October 2008), titled H1-B Benefit Fraud & Compliance Assessment, which found a 27% rate of fraud in the H1-B visa programme.
According to the study, there were a total of 51 cases from the sample of 246 H1-B petitions that were fraud or a technical violation of the regulations. The research primarily found two types of fraud, one, where there was 'willful misrepresentation, falsification, or omission of a material fact'; and two, where there was no willful fraud, but `there was evidence that the employer or alien beneficiary failed to comply with applicable laws and regulations.'
Some of the fraudulent activities included cases where either the business did not exist or the degrees and supporting documentation were found forged. In several cases, signatures too were found forged. USCIS study also found that 27 percent of the workers surveyed were being paid less than the prevailing wage for a particular job description and location.
According to US immigration authorities, over 11,000 H-1B visa slots are still vacant against the Congress-mandated cap of 65,000 for the fiscal 2010.
This is for the first time in several years that thousands of H-1B visas are still to be filled up. In previous years, the entire visa slots used to be grabbed on day one.
According to the report, the move marks a nearly five-fold increase in inspections over last fiscal year, when the agency conducted 5,191 site visits. The new federal fiscal year began Oct. 1.
Tougher enforcement comes in response to a US Citizenship and Immigration Services (USCIS) study (in October 2008), titled H1-B Benefit Fraud & Compliance Assessment, which found a 27% rate of fraud in the H1-B visa programme.
According to the study, there were a total of 51 cases from the sample of 246 H1-B petitions that were fraud or a technical violation of the regulations. The research primarily found two types of fraud, one, where there was 'willful misrepresentation, falsification, or omission of a material fact'; and two, where there was no willful fraud, but `there was evidence that the employer or alien beneficiary failed to comply with applicable laws and regulations.'
Some of the fraudulent activities included cases where either the business did not exist or the degrees and supporting documentation were found forged. In several cases, signatures too were found forged. USCIS study also found that 27 percent of the workers surveyed were being paid less than the prevailing wage for a particular job description and location.
According to US immigration authorities, over 11,000 H-1B visa slots are still vacant against the Congress-mandated cap of 65,000 for the fiscal 2010.
This is for the first time in several years that thousands of H-1B visas are still to be filled up. In previous years, the entire visa slots used to be grabbed on day one.
HCL, New Deals
HCL Tech bags $200-m deal from UK co
HCL Technologies said it has bagged a long-term deal worth about $200 million from UK-based insurance firm Equitable Life Assurance Society.
“The contract is ‘evergreen,’ it is for a period of 30 years. The revenue from the deal will come (mostly) in the first five to six years and decline gradually as policies decline,” HCL Technologies’ senior vice-president Stuart Drew said.
The deal has been awarded to HCL Insurance Business Services, the IT firm’s UK-based life and pensions administration business.
Currently, about 340 people are servicing the account. “We expect about 100 people will be taken in by Equitable Life, rendering about 240 people surplus. They will be relieved under suitable schemes,” Equitable Life Chief Executive Chris Wiscarson said.
“HCL will take care of the work of these 240 employees, with about 50-70 jobs being taken care of from HCL’s Chennai centre,” he added.
As part of the deal, HCL will provide complete solutions, including policy administration, finance, actuarial services, IT operational support and call centre services.
“The contract is ‘evergreen,’ it is for a period of 30 years. The revenue from the deal will come (mostly) in the first five to six years and decline gradually as policies decline,” HCL Technologies’ senior vice-president Stuart Drew said.
The deal has been awarded to HCL Insurance Business Services, the IT firm’s UK-based life and pensions administration business.
Currently, about 340 people are servicing the account. “We expect about 100 people will be taken in by Equitable Life, rendering about 240 people surplus. They will be relieved under suitable schemes,” Equitable Life Chief Executive Chris Wiscarson said.
“HCL will take care of the work of these 240 employees, with about 50-70 jobs being taken care of from HCL’s Chennai centre,” he added.
As part of the deal, HCL will provide complete solutions, including policy administration, finance, actuarial services, IT operational support and call centre services.
IT market, new openings
Juniper to invest $400 mn in India
IT and computer networking firm Juniper Networks today said it plans to invest 400 million dollar in India in the next five years.
"Juniper plans to invest 400 million dollar in India in total operations, including sales and research and development in the next five years," Sanjay Jotshi, Director of Enterprise and Channels, India and SAARC, Juniper Networks, told PTI.
"As we see revenue growth, we will thoughtfully begin investing more in areas that will continue to drive growth for the company," he said.
He said it was viewing India as a strategic market with focus on BFSI (banking, financial, services, insurance) governments and telecom sectors.
"India is a strategic market for us. BFSI, government and telecom sectors are our vital markets," he said.
Jotshi said the company has invested 200 million dollar to date in its Bangalore R and D facility. This includes infrastructure, equipment for labs and salaries, he said.
"The India engineering centre is a crucial part of Juniper success story. Any products shipped by Juniper has some contribution from R and D centre in Bangalore. Twenty five per cent of Juniper's engineers are based out of the Bangalore R and D facility," he said.
"Juniper plans to invest 400 million dollar in India in total operations, including sales and research and development in the next five years," Sanjay Jotshi, Director of Enterprise and Channels, India and SAARC, Juniper Networks, told PTI.
"As we see revenue growth, we will thoughtfully begin investing more in areas that will continue to drive growth for the company," he said.
He said it was viewing India as a strategic market with focus on BFSI (banking, financial, services, insurance) governments and telecom sectors.
"India is a strategic market for us. BFSI, government and telecom sectors are our vital markets," he said.
Jotshi said the company has invested 200 million dollar to date in its Bangalore R and D facility. This includes infrastructure, equipment for labs and salaries, he said.
"The India engineering centre is a crucial part of Juniper success story. Any products shipped by Juniper has some contribution from R and D centre in Bangalore. Twenty five per cent of Juniper's engineers are based out of the Bangalore R and D facility," he said.
Recession
Nokia to cut 220 R&D jobs
Nokia, the world's biggest mobile phone maker, said today it would cut around 220 jobs in Japan as part of its plans to streamline its vast research and development operations.
"As part of its global efforts to align its research and development (R&D) operations to be in line with its focused portfolio of future products, Nokia will be reducing its R&D activities in Japan," the Finnish company said in a statement.
Last week Nokia announced that about 330 employees at its research and development units in Denmark and Finland would be made redundant.
The company employs about 17,000 people in research and development worldwide.
It said that despite the planned reductions, it would continue to have "significant sourcing activities in Japan."
"Vertu, Nokia's exclusive line of handcrafted mobile phones for the luxury market, will also continue operations in Japan unaffected by today's announcement," it noted.
The mobile phone giant launched a cost-cutting programme last January, after its earnings fell as consumers cut back on buying handsets amid the global financial crisis.
The programme aims to generate more than USD 1.0 billion in annual savings.
Before today, Nokia had announced about 4,000 job reductions since January, including around 1,300 voluntary redundancy packages.
"As part of its global efforts to align its research and development (R&D) operations to be in line with its focused portfolio of future products, Nokia will be reducing its R&D activities in Japan," the Finnish company said in a statement.
Last week Nokia announced that about 330 employees at its research and development units in Denmark and Finland would be made redundant.
The company employs about 17,000 people in research and development worldwide.
It said that despite the planned reductions, it would continue to have "significant sourcing activities in Japan."
"Vertu, Nokia's exclusive line of handcrafted mobile phones for the luxury market, will also continue operations in Japan unaffected by today's announcement," it noted.
The mobile phone giant launched a cost-cutting programme last January, after its earnings fell as consumers cut back on buying handsets amid the global financial crisis.
The programme aims to generate more than USD 1.0 billion in annual savings.
Before today, Nokia had announced about 4,000 job reductions since January, including around 1,300 voluntary redundancy packages.
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