Walmart Stores Inc, the world's largest retailer, has picked three IT vendors including India's Infosys Technologies for multi-year contracts worth over $600 million, the Business Standard said on Friday.
The other vendors are Cognizant Solutions and UST Global, the newspaper said, citing an unidentified source close to the development.
Initially the three vendors are expected to earn Rs 2.5 billion to Rs 3 billion ($54 million-$65 million) each annually, which will rise as Wal-Mart increases outsourcing more work.
Infosys and Cognizant, which will provide application development and support, are expected to get a larger share of the contract, the paper said. UST will be responsible for testing these applications, it said.
"What is more important is that these three vendors have now got a ticket to be in the club of Walmart's list of preferred vendors which will help them in growing this account in the long run," the paper quoted the source as saying.
"We do not comment on market speculation," a spokeswoman for Infosys told Reuters. Walmart's media relations director, John Simley, said in am emailed reply to the paper, "We have a large and growing business and productive relationship with many Indian companies. We do not comment on speculations about the nature of any business relationship."
A Cognizant spokesman also declined to comment, the paper said.
Source: IndiaTimes
Tuesday, December 8, 2009
Friday, December 4, 2009
BPO, Satyam
Tech Mahindra plans BPO unit in Philippines
Resurrecting Satyam may be dominating mindshare at Tech Mahindra ever since it acquired the firm in April, but the company is silently expanding its global footprint in the BPO space.
Tech Mahindra is mulling a brand new BPO operation in the Philippines, which will be its third offshore contact centre after Northern Ireland and the UK. If Tech Mahindra indeed dials the Philippines, it will be emulating the likes of Wipro and Infosys, who have already established BPOs to cash in on the low-operating costs in that country.
Having tapped into the outsourcing opportunities that exist in the UK and the European Union (EU) by establishing contact centres in Belfast and South Tyneside, Tech Mahindra is now tipped to set up shop in the Philippines to cater to global telecom clients in the Asia-Pacific (APAC) and North American markets.
Tech Mahindra is mulling a brand new BPO operation in the Philippines, which will be its third offshore contact centre after Northern Ireland and the UK. If Tech Mahindra indeed dials the Philippines, it will be emulating the likes of Wipro and Infosys, who have already established BPOs to cash in on the low-operating costs in that country.
Having tapped into the outsourcing opportunities that exist in the UK and the European Union (EU) by establishing contact centres in Belfast and South Tyneside, Tech Mahindra is now tipped to set up shop in the Philippines to cater to global telecom clients in the Asia-Pacific (APAC) and North American markets.
Infosys, IT market
Infosys to reduce sub-contractors, perform their work in-house
IT major Infosys plans to reduce the usage of sub-contractors and perform their work in-house particularly at cheaper offshore locations, a top company official said on Friday.
"We found during our reviews that a large number of client work had been outsourced to sub-contractors. In such cases, we decided to reduce the usage of sub-contractors and use our (own) facility," Infosys' chief mentor, NR Narayana Murthy, said on the sidelines of an industry conference in Mumbai.
The company has also taken a new concept "more from the same", which will scrutinise budgets and look after areas where previously unnoticed expenses could be eliminated, he said.
Infosys believes that this new concept will benefit the company, its shareholders and its employees. During the second quarter of FY 10, the company saw a 2.9 per cent increase in revenues from the first quarter.
"We found during our reviews that a large number of client work had been outsourced to sub-contractors. In such cases, we decided to reduce the usage of sub-contractors and use our (own) facility," Infosys' chief mentor, NR Narayana Murthy, said on the sidelines of an industry conference in Mumbai.
The company has also taken a new concept "more from the same", which will scrutinise budgets and look after areas where previously unnoticed expenses could be eliminated, he said.
Infosys believes that this new concept will benefit the company, its shareholders and its employees. During the second quarter of FY 10, the company saw a 2.9 per cent increase in revenues from the first quarter.
new openings, Satyam
Satyam to Hire 1,000 College Graduates by Mid-December
India's Satyam Computer Services Ltd., now operating under the Mahindra Satyam brand, will recruit around 1,000 college graduates by mid-December, a senior company executive said Friday.
"The need to hire some entry-level people is being felt because of attrition and to prepare for the future," Hari T, chief people officer, told Dow Jones Newswires.
Fraud-hit Satyam was acquired by Tech Mahindra Ltd. in April via a government-led auction after Satyam's founder and then chairman confessed in January to cooking the company's books.
These recruits will be among the 7,000 who received offers from Satyam before the scam came to light, Mr. Hari said.
Satyam was doubly hit by the global economic meltdown as clients canceled projects and sought price cuts as they faced pressure on profits.
In a bid to cut costs, Mahindra Satyam also cut salaries and placed staff who were not working on billable projects on forced leave.
However, the company is now recovering from the fraud and the impact of the global meltdown.
Mr. Hari said the company has already recalled about 1,500 people from the original 8,000 placed on forced leave.
"The need to hire some entry-level people is being felt because of attrition and to prepare for the future," Hari T, chief people officer, told Dow Jones Newswires.
Fraud-hit Satyam was acquired by Tech Mahindra Ltd. in April via a government-led auction after Satyam's founder and then chairman confessed in January to cooking the company's books.
These recruits will be among the 7,000 who received offers from Satyam before the scam came to light, Mr. Hari said.
Satyam was doubly hit by the global economic meltdown as clients canceled projects and sought price cuts as they faced pressure on profits.
In a bid to cut costs, Mahindra Satyam also cut salaries and placed staff who were not working on billable projects on forced leave.
However, the company is now recovering from the fraud and the impact of the global meltdown.
Mr. Hari said the company has already recalled about 1,500 people from the original 8,000 placed on forced leave.
HCL, New Deals
HCL Tech Inks $200-Mln Pact With UK-Based Insurance Co
India’s fourth largest software exporter, HCL Technologies, Nov 23 said it has bagged a $200 million contract from the UK-based insurance firm Equitable Life Assurance Society.
HCL would provide complete solution to the company, including policy administration, finance, IT operational support and call center services, a HCL statement said.
The deal is expected to help Equitable Life save about eight million pounds in costs in the first year.
“Future savings and predictability of costs mean Equitable Life can reduce its provision for future costs by an amount in excess of 100 million pound, the statement added.
HCL Insurance Business Services Ltd, a part of HCL Tech has signed the deal.
The contract, which comes into effect in March 2011, will deliver substantial cost benefits to Equitable Life’s policyholders through the transfer of core processing and support activities, HCL said.
Equitable Life has over 8 billion pound under management on behalf of over 500,000 policyholders and members of group pension schemes.
“This is a major win for HCL IBS since the acquisition of Liberata Financial Services in 2008 and reflects our position as a leader in transforming our clients’ Life and Pensions operations,” HCL Senior Vice-President Stuart Drew said.
HCL would provide complete solution to the company, including policy administration, finance, IT operational support and call center services, a HCL statement said.
The deal is expected to help Equitable Life save about eight million pounds in costs in the first year.
“Future savings and predictability of costs mean Equitable Life can reduce its provision for future costs by an amount in excess of 100 million pound, the statement added.
HCL Insurance Business Services Ltd, a part of HCL Tech has signed the deal.
The contract, which comes into effect in March 2011, will deliver substantial cost benefits to Equitable Life’s policyholders through the transfer of core processing and support activities, HCL said.
Equitable Life has over 8 billion pound under management on behalf of over 500,000 policyholders and members of group pension schemes.
“This is a major win for HCL IBS since the acquisition of Liberata Financial Services in 2008 and reflects our position as a leader in transforming our clients’ Life and Pensions operations,” HCL Senior Vice-President Stuart Drew said.
H1-B, NRIs, Recession
Demand for US H-1B visas on the rise
Applications for H-1B visas increased rapidly since October, indicating growing demand for skilled foreign staff from US companies
Demand for US H-1B visas has grown dramatically in the past month and a half, according to a report on Computerworld.com.
Figures released by the US Citizenship and Immigration Service showed a spike in applications, after a quiet summer, indicating that US companies are again looking for foreign workers to fill skilled positions.
The demand seen in the past six to eight weeks has driven up the number of visa petitions to 58,900, approaching the 65,000 cap for financial year 2010.
The demand spike may also be down to companies switching existing foreign temporary workers on L-1B visas to the more stable H-1B visa, and demand for visas for students who have recently graduated with technical qualifications.
If the level cap is reached, which is expected to happen possibly by the start of next year, visas would then be allocated on a lottery basis, which is also fuelling the rush for visas as companies push through applications for staff.
The H-1B visa allows US employers to temporarily employ foreign workers in specialty occupations, and has been widely used by the IT and technology sectors to secure skilled employees.
Many non-US offshoring companies also rely on H-1B to be able to place their staff with customers in the US.
The system is controversial however, with opponents saying that jobs should go to American citizens first. There is currently legislation proposed to the US Senate which would prevent any company that has already laid off 50 or more workers from hiring guest workers, which could potentially affect a large number of technology firms that have laid off large numbers of workers but continue hiring to fill other roles.
Demand for US H-1B visas has grown dramatically in the past month and a half, according to a report on Computerworld.com.
Figures released by the US Citizenship and Immigration Service showed a spike in applications, after a quiet summer, indicating that US companies are again looking for foreign workers to fill skilled positions.
The demand seen in the past six to eight weeks has driven up the number of visa petitions to 58,900, approaching the 65,000 cap for financial year 2010.
The demand spike may also be down to companies switching existing foreign temporary workers on L-1B visas to the more stable H-1B visa, and demand for visas for students who have recently graduated with technical qualifications.
If the level cap is reached, which is expected to happen possibly by the start of next year, visas would then be allocated on a lottery basis, which is also fuelling the rush for visas as companies push through applications for staff.
The H-1B visa allows US employers to temporarily employ foreign workers in specialty occupations, and has been widely used by the IT and technology sectors to secure skilled employees.
Many non-US offshoring companies also rely on H-1B to be able to place their staff with customers in the US.
The system is controversial however, with opponents saying that jobs should go to American citizens first. There is currently legislation proposed to the US Senate which would prevent any company that has already laid off 50 or more workers from hiring guest workers, which could potentially affect a large number of technology firms that have laid off large numbers of workers but continue hiring to fill other roles.
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