In a rare move, Microsoft on Friday said it would be releasing security updates on Tuesday--outside of its monthly patch cycle--for a critical vulnerability in Internet Explorer and a moderate vulnerability in Visual Studio.
The two security bulletins will address one overall issue and are being released separately "to provide the broadest protections possible to customers," Microsoft said in a statement.
The vulnerabilities affect Windows 2000, Windows XP, Vista, Windows Server 2003 and 2008, Internet Explorer 6, 7 and 8, Microsoft Visual Studio .NET 2003, Visual Studio 2005 and 2008 and Visual C++ 2005 and 2008, according to the security bulletin advance notification.
"While we can't go into specifics about the issue prior to release, we can say that the Visual Studio bulletin will address an issue that can affect certain types of applications," the statement said. "The Internet Explorer bulletin will provide defense-in-depth changes to Internet Explorer to help provide additional protections for the issues addressed by the Visual Studio bulletin."
"The Internet Explorer update will also address vulnerabilities rated as critical that are unrelated to the Visual Studio bulletin that were privately and responsibly reported," Microsoft said.
Customers who are current with their security updates are protected from known attacks related to the updates, the company said. The updates will be released through the Microsoft Update, Windows Update, and Windows Server Update services.
A Webcast to address customer questions is scheduled for Tuesday from 1 p.m. PDT to 2 p.m. at this site.
Microsoft typically releases security patches on a monthly basis, the second Tuesday of every month, and did not say why it is making this rare, out-of-cycle release.
CNet.com
Showing posts with label 2008. Show all posts
Showing posts with label 2008. Show all posts
Saturday, July 25, 2009
Tuesday, January 27, 2009
Internet users rise 17 pc in 2008, says IAMAI study
The number of active Internet users in the country has grown by nearly 17 per cent in 2008 over the same period a year ago, a study says.
According to a study by Internet & Mobile Association of India (IAMAI) and IMRB International, India has 45.3 million active users at the ended of September 2008, of which 42 million are from the urban community.
"Urban users continue to dominate Internet use contributing to 42 million of the 45 million odd users," a study by the organisations 'Internet in India' finds.
In the same period last year, the number of active users in urban India was 36 million, which shows a year-on-year growth of 16.66 per cent.
"The growth rate was alarming compared with the rest in past years as well as with some other countries notably China where the number of Internet users are more than 250 million," IAMAI President Subho Ray said.
Study defines active Internet users as those users, who have used the Internet at least once in the last one month, which is an internationally accepted benchmark for enumerating internet users
Meanwhile, the study also found that the number of "claimed" Internet users in September 2008 was 57 million compared with 48 million of last year. Claimed users are those, who have used the Internet sometime but not in the last one month.
I-Cube (Internet in India) study is conducted annually by IMRB International and Internet and Mobile Association of India (IAMAI).
Agencies
According to a study by Internet & Mobile Association of India (IAMAI) and IMRB International, India has 45.3 million active users at the ended of September 2008, of which 42 million are from the urban community.
"Urban users continue to dominate Internet use contributing to 42 million of the 45 million odd users," a study by the organisations 'Internet in India' finds.
In the same period last year, the number of active users in urban India was 36 million, which shows a year-on-year growth of 16.66 per cent.
"The growth rate was alarming compared with the rest in past years as well as with some other countries notably China where the number of Internet users are more than 250 million," IAMAI President Subho Ray said.
Study defines active Internet users as those users, who have used the Internet at least once in the last one month, which is an internationally accepted benchmark for enumerating internet users
Meanwhile, the study also found that the number of "claimed" Internet users in September 2008 was 57 million compared with 48 million of last year. Claimed users are those, who have used the Internet sometime but not in the last one month.
I-Cube (Internet in India) study is conducted annually by IMRB International and Internet and Mobile Association of India (IAMAI).
Agencies
Saturday, January 10, 2009
Canada layoffs 34,400 employees in December 2008
The Canadian economy lost 34,400 jobs in December, driving the unemployment rate to 6.6 percent, Statistics Canada said in a fresh sign of recession gripping the nation.
It was the second month of heavy job losses, after 70,600 were shed in November. The unemployment rate rose to 6.6 percent from 6.3 percent in the prior month.
The numbers were worse than most analysts's projections of 22,000 job losses and a 6.5 percent jobless rate in December.
And Finance Minister Jim Flaherty said the situation will only get worse in the short term.
"We're in for a very difficult year," Flaherty told reporters. "We regrettably are going to have to expect continuing job losses in Canada.
"We are going to have substantial job losses," he added.
December's employment decline was led by a drop in construction, one of the biggest monthly losses for that industry in the past three decades.
Some 44,000 construction jobs were lost, as housing starts decreased to their lowest level in seven years the previous month, according to the Canadian Mortgage and Housing Corporation.
This was partially offset by an increase in transportation and warehousing.
"The job market is running out of steam," said analyst Pascal Gauthier of TD Securities.
"We believe that the Canadian economy entered a recession in the fourth quarter. Or if we're not there yet, we're knocking at the door," he told the media.
Sherry Cooper, chief economist of BMO Capital Markets, echoed in a research note: "Today's dismal data offer additional strong evidence that the Canadian economy has quickly waded knee-deep into the recession swamp."
For all of 2008, Canada's employment rate increased 0.6 percent with the creation of a total 98,000 jobs, significantly slower than the 2.2 percent job growth observed the previous year.
Gauthier too commented that the dismal December figures are "indicative of what's to come."
"In a typical recession, we can expect 15,000 to 30,000 jobs being cut each month," he said.
But Canada is still faring better than its neighbor and biggest trading partner, the United States, Flaherty and analysts agreed.
The United States lost 524,000 jobs in December.
Agencies
It was the second month of heavy job losses, after 70,600 were shed in November. The unemployment rate rose to 6.6 percent from 6.3 percent in the prior month.
The numbers were worse than most analysts's projections of 22,000 job losses and a 6.5 percent jobless rate in December.
And Finance Minister Jim Flaherty said the situation will only get worse in the short term.
"We're in for a very difficult year," Flaherty told reporters. "We regrettably are going to have to expect continuing job losses in Canada.
"We are going to have substantial job losses," he added.
December's employment decline was led by a drop in construction, one of the biggest monthly losses for that industry in the past three decades.
Some 44,000 construction jobs were lost, as housing starts decreased to their lowest level in seven years the previous month, according to the Canadian Mortgage and Housing Corporation.
This was partially offset by an increase in transportation and warehousing.
"The job market is running out of steam," said analyst Pascal Gauthier of TD Securities.
"We believe that the Canadian economy entered a recession in the fourth quarter. Or if we're not there yet, we're knocking at the door," he told the media.
Sherry Cooper, chief economist of BMO Capital Markets, echoed in a research note: "Today's dismal data offer additional strong evidence that the Canadian economy has quickly waded knee-deep into the recession swamp."
For all of 2008, Canada's employment rate increased 0.6 percent with the creation of a total 98,000 jobs, significantly slower than the 2.2 percent job growth observed the previous year.
Gauthier too commented that the dismal December figures are "indicative of what's to come."
"In a typical recession, we can expect 15,000 to 30,000 jobs being cut each month," he said.
But Canada is still faring better than its neighbor and biggest trading partner, the United States, Flaherty and analysts agreed.
The United States lost 524,000 jobs in December.
Agencies
Intel assures employees: No more job cuts
Intel Corp said job cuts it made three years ago should help it ride out the economic slowdown, indicating that Chief Executive Officer Paul Otellini won’t have to eliminate a significant number of workers.
“While we haven’t made specific projections on the size of the workforce, the restructuring we did in 2006 has put us in a good position to weather the current economic environment,” Intel spokesman Tom Beermann said today in an e-mailed statement.
Intel, the world’s top chipmaker, slashed jobs in 2006 and 2007 after losing market share to Advanced Micro Devices Inc. Those cuts helped set it apart from other technology companies, which are shedding workers now. Applied Materials Inc, National Semiconductor Corp and Sun Microsystems -- all based near Intel in Santa Clara, California -- have announced cutbacks.
“They are sufficiently profitable that even in a lousy economy they can hold on to people and sustain their new-market initiatives,” said David Wu, a San Francisco-based analyst for Global Crown Capital LLC. He has a neutral rating on the shares, which he doesn’t own. “The rich can afford to do things the poor cannot.”
Earlier this week, Intel said fourth-quarter sales dropped 23 percent, more than it projected, as the global recession stifled demand for personal computers. The company plans to give its full earnings report on Jan. 15.
Intel’s headcount
Intel had 83,500 employees at the end of the third quarter, down about 20,000 from its peak in 2006. When Otellini made those cuts, he said the company was too large for its revenue opportunities. That reduction helped profit rebound 38 percent in 2007, after a 42 percent decline in 2006.
The company will report a profit of $999.5 million for last quarter, according to a Bloomberg survey of analysts. That would be the first quarterly net income below $1 billion since 2003.
Intel fell 40 cents, or 2.8 percent, to $14.15 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares lost 45 percent of their value last year.
Job cuts might have hindered Intel’s efforts to expand into new areas, Wu said. The company announced an agreement this week to get its chips into television equipment from Toshiba Corp and Samsung Electronics Co.
“They are pretty committed to going into new markets, and they don’t want to have to say, ‘Oops, a recession. Everything stop,’” Wu said. “That wastes a lot of money.”
Agencies
“While we haven’t made specific projections on the size of the workforce, the restructuring we did in 2006 has put us in a good position to weather the current economic environment,” Intel spokesman Tom Beermann said today in an e-mailed statement.
Intel, the world’s top chipmaker, slashed jobs in 2006 and 2007 after losing market share to Advanced Micro Devices Inc. Those cuts helped set it apart from other technology companies, which are shedding workers now. Applied Materials Inc, National Semiconductor Corp and Sun Microsystems -- all based near Intel in Santa Clara, California -- have announced cutbacks.
“They are sufficiently profitable that even in a lousy economy they can hold on to people and sustain their new-market initiatives,” said David Wu, a San Francisco-based analyst for Global Crown Capital LLC. He has a neutral rating on the shares, which he doesn’t own. “The rich can afford to do things the poor cannot.”
Earlier this week, Intel said fourth-quarter sales dropped 23 percent, more than it projected, as the global recession stifled demand for personal computers. The company plans to give its full earnings report on Jan. 15.
Intel’s headcount
Intel had 83,500 employees at the end of the third quarter, down about 20,000 from its peak in 2006. When Otellini made those cuts, he said the company was too large for its revenue opportunities. That reduction helped profit rebound 38 percent in 2007, after a 42 percent decline in 2006.
The company will report a profit of $999.5 million for last quarter, according to a Bloomberg survey of analysts. That would be the first quarterly net income below $1 billion since 2003.
Intel fell 40 cents, or 2.8 percent, to $14.15 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares lost 45 percent of their value last year.
Job cuts might have hindered Intel’s efforts to expand into new areas, Wu said. The company announced an agreement this week to get its chips into television equipment from Toshiba Corp and Samsung Electronics Co.
“They are pretty committed to going into new markets, and they don’t want to have to say, ‘Oops, a recession. Everything stop,’” Wu said. “That wastes a lot of money.”
Agencies
Thursday, January 1, 2009
Is it tough times ahead for techies in 2009?
With sinking profits, eroding margins, cost-cuttings and an acquisition bid gone awry, 2008 was a year with more jeers than cheers for the country's over $50 billion IT sector, which has seen nearly a decade of uninterrupted boom.
However, as 2008 draws to a close, the sector is bracing up for a tough time ahead as the scars of global recession are showing up on the country's sunrise sector.
The sector, which has been charting a growth of over 30 per cent, had to settle for a growth rate of 20 per cent, as the global slowdown plunged the industry into unpredictable times.
In the year littered with economic disasters, the failed attempt of country's fourth largest software exporter Satyam Computer to botch up two family-promoted firms for $1.6 billion not only resulted in loss of face but also hit the reputation nurtured by the Indian IT sector over the years.
Faced with shareholder's revolt and heavy criticism over corporate governance issues, Satyam withdrew the offer within hours of making the proposal. But within a space of 24 hours, the scrip lost over 30 per cent in India and was down 55 per cent in New York Stock Exchange trade.
As a fallout, the Board size also shrank with four independent Directors resigning from the 10-Directors strong Board of the company in the wake of the fiasco.
The Satyam saga is likely to continue next year as well with the Board scheduled to meet on January 10.
If Satyam made it to the headlines for a failed deal, it was HCL Technologies, the country's fifth largest software exporter next to Satyam that made the country proud by inking the largest takeover deal in the software space overseas.
HCL piped rival country's second largest IT giant Infosys to bag UK-based SAP consulting firm Axon for $658 million. While Infosys had made 600 pence per share offer for Axon, HCL made a counter bid of 650 pence a share to acquire the UK-based firm.
The year was also some significant M&As on the IT front, such as the $13.9-billion acquisition of Electronic Data Services by HP. Back home
, Wipro acquired Citi Technology Services, Citigroup's IT arm in India, in an all-cash $127 million deal.
Earlier, TCS had bought out Citi's captive BPO arm Citigroup Global Services for about $505 million, which reiterates the strength of the Indian IT story. Another reason that will give the software services sector a reason to rejoice is the IT Amendment Bill.
The Lok Sabha passed the Information Technology (Amendment) Bill 2006 this month, which gives the government the power to tackle data theft. The bill might act as a shot in the arm for the BPO firms for whom data security is of utmost importance.
The Bill has provisions to deal with new forms of cyber crimes like publicising sexually explicit material in electronic form, video voyeurism and breach of confidentiality, leakage of data by intermediary and e-commerce frauds, among others.
The US is the world's largest technology market and accounts for between 50 per cent and 60 per cent of the revenues of the top Indian firms. Since September, however, the economic situation in the US and the rest of the world has worsened.
Country's software lobby group Nasscom had estimated that India's software and back-office services industry would grow by 21-24 per cent in the 12 months to March, but its president Som Mittal said recently that this number could be revised downward. With no signs of an early revival, all the IT biggies such as TCS, Infosys, Wipro and Satyam have revised their revenue guidance downwards.
The currency volatility has also compounded the woes of the Indian IT sector. If a rising rupee in the last fiscal had dented export earnings, the steady rise of the US dollar against the rupee, British pound and Euro during the second quarter (July-September) impacted revenue realisation in dollar terms since 30 per cent of the billing is done in these currencies.
The sector also experienced slowdown in hiring. Already, under pressure to cut cost, most of the IT biggies had to freeze their hiring in the year. Moreover, the joining dates of the new recruits were also postponed, ringing the alarm bells in the job market. The top five IT companies posted a 36 per cent decline in their rate of manpower addition in the last quarter.
As for hiring by BPOs -- for long looked upon as poor the cousins of information technology companies -- also faced the heat.
However, BPOs remained a bit sanguine, as Nasscom's figures indicate that the BPO sector recorded revenue growth of 31.6 per cent whereas IT companies grew at 28 per cent.
In 2009, as the new administration led by Barack Obama takes a look at the outsourcing story vis-a-vis India, it is the efficiency and resilience of the IT sector which can help it sail through the troubled waters.
Source: Agencies
However, as 2008 draws to a close, the sector is bracing up for a tough time ahead as the scars of global recession are showing up on the country's sunrise sector.
The sector, which has been charting a growth of over 30 per cent, had to settle for a growth rate of 20 per cent, as the global slowdown plunged the industry into unpredictable times.
In the year littered with economic disasters, the failed attempt of country's fourth largest software exporter Satyam Computer to botch up two family-promoted firms for $1.6 billion not only resulted in loss of face but also hit the reputation nurtured by the Indian IT sector over the years.
Faced with shareholder's revolt and heavy criticism over corporate governance issues, Satyam withdrew the offer within hours of making the proposal. But within a space of 24 hours, the scrip lost over 30 per cent in India and was down 55 per cent in New York Stock Exchange trade.
As a fallout, the Board size also shrank with four independent Directors resigning from the 10-Directors strong Board of the company in the wake of the fiasco.
The Satyam saga is likely to continue next year as well with the Board scheduled to meet on January 10.
If Satyam made it to the headlines for a failed deal, it was HCL Technologies, the country's fifth largest software exporter next to Satyam that made the country proud by inking the largest takeover deal in the software space overseas.
HCL piped rival country's second largest IT giant Infosys to bag UK-based SAP consulting firm Axon for $658 million. While Infosys had made 600 pence per share offer for Axon, HCL made a counter bid of 650 pence a share to acquire the UK-based firm.
The year was also some significant M&As on the IT front, such as the $13.9-billion acquisition of Electronic Data Services by HP. Back home
, Wipro acquired Citi Technology Services, Citigroup's IT arm in India, in an all-cash $127 million deal.
Earlier, TCS had bought out Citi's captive BPO arm Citigroup Global Services for about $505 million, which reiterates the strength of the Indian IT story. Another reason that will give the software services sector a reason to rejoice is the IT Amendment Bill.
The Lok Sabha passed the Information Technology (Amendment) Bill 2006 this month, which gives the government the power to tackle data theft. The bill might act as a shot in the arm for the BPO firms for whom data security is of utmost importance.
The Bill has provisions to deal with new forms of cyber crimes like publicising sexually explicit material in electronic form, video voyeurism and breach of confidentiality, leakage of data by intermediary and e-commerce frauds, among others.
The US is the world's largest technology market and accounts for between 50 per cent and 60 per cent of the revenues of the top Indian firms. Since September, however, the economic situation in the US and the rest of the world has worsened.
Country's software lobby group Nasscom had estimated that India's software and back-office services industry would grow by 21-24 per cent in the 12 months to March, but its president Som Mittal said recently that this number could be revised downward. With no signs of an early revival, all the IT biggies such as TCS, Infosys, Wipro and Satyam have revised their revenue guidance downwards.
The currency volatility has also compounded the woes of the Indian IT sector. If a rising rupee in the last fiscal had dented export earnings, the steady rise of the US dollar against the rupee, British pound and Euro during the second quarter (July-September) impacted revenue realisation in dollar terms since 30 per cent of the billing is done in these currencies.
The sector also experienced slowdown in hiring. Already, under pressure to cut cost, most of the IT biggies had to freeze their hiring in the year. Moreover, the joining dates of the new recruits were also postponed, ringing the alarm bells in the job market. The top five IT companies posted a 36 per cent decline in their rate of manpower addition in the last quarter.
As for hiring by BPOs -- for long looked upon as poor the cousins of information technology companies -- also faced the heat.
However, BPOs remained a bit sanguine, as Nasscom's figures indicate that the BPO sector recorded revenue growth of 31.6 per cent whereas IT companies grew at 28 per cent.
In 2009, as the new administration led by Barack Obama takes a look at the outsourcing story vis-a-vis India, it is the efficiency and resilience of the IT sector which can help it sail through the troubled waters.
Source: Agencies
What were the hottest tech news of 2008?
As we enter in 2009, it's time to look into the big happenings that kept made headlines in 2008. In many ways 2008 can be called an unprecedented year, history has seen collapse of corporate giants, but never has so many companies that signified the strength of the financial industry gone bust, and with them throwing the entire world economy in tailspin.
With the economy down, the fate of IT industry could have been better. The financial crisis means IT industry losing out as much as $170 billion in sales in 2009. As meltdown melted IT spending, IT companies went on a belt tightening mode: giving pink slips, extending holidays and cutting perks.
Other than the grim reality of meltdown, the year 2008 also saw several big mergers and launches. Indian telecom industry finally made its 3G leap, with MTNL launching the services in Delhi. On M&A front, the IT services giant EDS merged with HP. Indian IT cos too were no behind in the acquisition space, three big IT companies buying overseas firms to extend their global and product footprint.
Here's bringing to you all the big IT stories of 2008.
3G launch
In December, Indian telecom sector took another technological leap, with the launch of 3G services in the capital city of country, Delhi.
Mahanagar Telephone Nigam Ltd (MTNL) put India on the 3G global map with the launch of third generation (3G) mobile service 'Jaadu' in Delhi.
The 3G services will give mobile users high-quality voice transmission and access to high-end data applications on their mobile phones, including broadband Internet access, interactive gaming and download movies, video clips and music. They can also enjoy other multimedia features such as video conferencing, mobile TV etc.
For example, a user will be able to download a 3-minute song in approximately 15 seconds with 3G. This compares to 8 minutes usually required in existing mobile technologies.
This will help mobile players to offer high-end value-added services like movie downloads, mobileTV, etc to prop up their ARPUs (average realisation per user). Presently, Indian mobile operators generate only 7-10 per cent of their revenue from non-voice services, primarily dominated by SMSes.
As for the pricing, MTNL is yet to release a commercial tariff plan. The company is currently serving corporate clients and will rely on their feedback before the commercial launch.
Tech terror
The gruesome terrorists attacks that rocked several parts of the country brought to the fore the fact that the technology which makes our live simpler has also become a handy tool for terrorists. The use of technology is evident everywhere, right from providing recruiting grounds (social networking sites) to being a communication platform (Internet, mobile and satellite phones) to providing geographical details (digital maps).
The ease and frequency with which terrorists freely communicated using sat-phones, BlackBerrys and used Google maps to pin down locations, deepened the intensity of terror attacks across the country.
The recent Mumbai carnage also saw terrorists using Google Earth maps to establish locations, sat-phones for un-intercepted communication, Global Positioning Systems and VOIP (Voice over Internet Protocol).
Earlier in Feburary, Lashkar-e-Taiba terrorist Fahim Ahmed Ansari, arrested by Uttar Pradesh Police with maps and details of the spots hit during the recent terror attacks, in his statement had conceded that his masters showed him the maps on Google Earth to pin-point the specific targets.
The Google Earth Map gives a bird’s eye view of the city providing detailed topography of the area in the forms of actual photographs. The details provided in the application can be useful for identifying buildings, roads, streets.
Also, unlike the mobile phones that can be easily intercepted by the security agencies to track data, sat-phones are non-interceptable in India. This is primarily because no satellite phone network operator has its centre in India. Also, since these phones are satellite driven and the operator doesn't need any interconnectivity with India's domestic network, the communication cannot be traced.
Microsoft's Yahoo chase
The year 2008 began with the software giant Microsoft proposing a $31 per share buyout to Yahoo. However, the bid was rejected by Yahoo board of directors saying it "substantially undervalues" the company. On its part, Yahoo announced an expensive severance package which made any acquisition attempt more expensive.
In May, Microsoft revised its offer to $33 a share, which was again rejected by Yahoo. This was followed by speculations that Microsoft may go for a forced deal with the company talking tough.
Yahoo reportedly tried exploring alternative deals with News Corp, Google and Time Warner unit AOL. The chief executive Jerry Yang kept waiting for the software giant to offer a better price than $47.5 billion for Yahoo. However, it never happened. Instead, Yahoo's stock started to fell and hit nearly five-year lows. Yahoo's plan 2, an advertising deal with Google too failed, after Google pulled out fearing a court battle with the US Justice Department.
In November, Yang stepped down and Yahoo, in December, overhauled its severance plan apparently hiked to discourage Microsoft's acquisition plans.
Infy loses Axon
Infosys-Axon deal was hailed as the largest outbound acquisition by an Indian IT company. The analysts termed Axon as strategic fit for Infosys.
Then came the rumours that there was competition: a rival UK security firm has quoting a price higher by 7 pence per share to counter Infosys' offer.
But the software giant was confident. MD and CEO, S Gopalakrishnan said that the company can sail through the deal with its transaction advantage of a full cash deal offer.
However, it seems the Indian IT giant underestimated its rivals, tough competition was there, and closer home. In October, HCL Technologies makes a counter offer to Infosys' Axon bid by raising the value by 8.3 per cent to seal the biggest overseas deal by an Indian firm in this space. The deal got shareholder's nod in November.
HCL beats Infy to bag Axon
The deal for the first time saw two leading Indian vendors, HCL and Infosys, used to fighting over deals, battle it out over an overseas acquisition.
Infosys had made a cash offer of 407.1 million pound for buying out Axon. The country's fifth largest software exporter, HCL Tech, raised its counter bid 441 million-pound ($811 million) to clinch the deal.
HCL Technologies recently completed the acquisition and the new entity would pursue deals worth 1.2 billion dollars.
Post-acquisition, HCL Axon is headed by Steve Cardell, the President of Axon. The independent entity have about 4,500 consultants which includes 1,700 people involved in the SAP practice in HCL.
Enterprise Application Services (EAS), the sector in which HCL AXON operates, constitutes 11 per cent of HCLs revenue. Company's Corporate Vice President and Head - Enterprise Application Services Ram Krishna said that HCL-Axon will create a business accounting for 25 per cent of HCLs revenues.
Satyam saga
The year 2008 would have ended for India's fourth largest IT company, Satyam, just like it will for most other IT cos with worries of ongoing economic gloom. However, there's much more on Satyam plate to tackle now.
The company's troubles began on December 16 when Satyam announced acquisition of Maytas Infrastructure for $1.6 billion (Rs 7658-crore). Institutional investors strongly opposed the move. Satyam's ADR lost 50 per cent on NYSE. Faced with shareholders' revolt and heavy criticism over corporate governance issues, in the early hours of December 17 the company withdrew the proposal. But the scrip lost over 30 per cent in India.
What came as the next severe blow to the Hyderabad-based IT provider facing flak from investors on its decision to acquire Maytas' was World Bank banning it for 8 years over bribery and corruption charges. Ramalinga's family loses half a billion dollars in a week as stock crashes.
Then the worst followed. Shocked by Satyam’s admission to BSE that the company’s promoters have pledged their entire shareholding to institutional investors, independent directors Vinod Dham (father of Pentium chips) and Harvard Business School professor Krishna Palepu, immediately resigned from the board. Also, Indian School of Business dean M Rammohan Rao followed suit. Another independent director, academic Managalam Srinivasan had quit earlier.
This leaves Satyam with only five directors on the board, from nine directors earlier.
Wipro buys Citi unit
India's third-ranked outsourcer, Wipro Technologies acquired Citi Technology Services Ltd, India-based captive IT unit of Citigroup Inc, for $127 million in cash and signed a six-year service agreement worth at least $500 million.
As part of the deal, Wipro and Citi will sign a master services agreement for delivery of technology infrastructure services and application development and maintenance (ADM) services for six years. Under this the banking giant will source services worth at least half a billion dollar from the Indian vendor.
Citi Technology Services is based in Mumbai and Chennai and employs around 1,650 staff servicing the bank’s offices in over 32 countries. Apart from its core focus area of technology infrastructure services, the business also specialises on ADM for cards, capital markets and corporate banking.
Citi Technology Services is expected to report revenue of $80 million in 2008, up from $53 million last year. The deal done through Wipro Technologies, the information technology arm of the New York-listed Wipro, is expected to close in March 2009.
TCS buys Citi BPO
In one of the largest deals in the Indian BPO sector, IT major Tata Consultancy Services, clinched a deal to acquire Citigroup Global Services Ltd (CGSL), a large captive BPO of Citibank operating out of India, for $505 million (around Rs 2,425 crore).
In addition to the sale, Citigroup which is shedding its non-core assets worldwide, signed an agreement with TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates for an aggregate amount of $2.5 billion over a period of 9.5 years.
Citigroup Global Services has around 12,000 employees in India and expects revenues of approximately $278m in 2008.
The acquisition broadens TCS’s portfolio of end-to-end IT and BPO services in the global banking and financial services (BFS) sector.
CGSL provides end-to-end process management across the BFS spectrum and a broad array of services to Citi’s consumer, corporate and global wealth management businesses worldwide.
Citigroup Global Services, the India back office unit, began as a business processing arm for Citi India in 1992 and expanded to serve Citi's global operations in 1998, according to its website. The unit operates out of seven facilities across Indian cities and offers back office services to Citi's consumer, corporate and global wealth management entities in 50 countries.
Pink slips scourge back
This year the ugliest face of slowdown, pink slips, came back to haunt Indian IT pros. The year that saw the slowdown hitting major IT players, many companies resorted to pink slips to beat the downturn blues. India's sunshine sector handed pink slips as the heat of global meltdown severely affected revenues and growth opportunities.
Country's largest software exporter, TCS laid off close to 500 employees and put many under performance scrutiny. Wipro too followed with 1000 employees shown door. India's fourth largest IT player, Satyam too laid off 4,500 jobs to cope up with the turbulent times. Mumbai-based Patni Computer Systems too gave pink slips to 400 employees on grounds of non-performance.
Incidentally, all companies termed the job cuts as purely performance-based. However, it came as no surprise that pink slips were a belt tightening measure from IT companies facing sagging bottomlines due to global economic turmoil.
According to the latest news on the layoff front, software giant Microsoft is reported to be planning a 10 per cent cut in its global workforce.
Bill Gates dethroned
This year tech tycoon Bill Gates not only made his exit from the company he founded, but also lost his position as the world's richest man, a title he had held since 1995. Gates' friend and investment mogul Warren Buffett, succeeded him as world's richest man according to Forbes magazine's annual ranking of the world's wealthiest people.
The magazine estimated Buffett's worth at $62 billion, and Gates' fortune not too far behind at $58 billion. But Gates didn't slipped one position down, Carlos Slim, a Mexican telecom tycoon, came in second with an estimated worth of $60 billion.
Riding the surging price of Berkshire Hathaway stock, America's most beloved investor Warren Buffett saw his fortune up $10 billion from a year ago.
The exit of Bill Gates marked an end of era. Gates retired from Microsoft, the company he co-founded with college-friend Paul Allen in 1975. In June, Gates quit as full-time chairman and software architect of the world's largest software company to work full-time at his charitable organisation Bill & Melinda Gates Foundation. Gates will remain the company's non-executive chairman.
Purse tightening begins at Google
Meltdown has left none, not even the world's top tech brand Google remains unscathed. In a cost cutting mode, the Internet search giant Google is cutting its famed `generous perks'.
Google, known for hosting the most extravagant holiday parties and pamperimg its employees with free food and drinks on the house, has gone into a strict cost saving mode.
Company's cost cutting programme include cutting new projects, ratcheting back spending, chipping away at perks and reducing employee strength. The austerity measures came in as Google's revenue growth has slowed down dramatically over the past one year.
Google also scaled back its holiday celebrations this year due to a global economic downturn and an ever-expanding workforce that had grown to 20,000 in October.
Not only this, the Web giant gave employees mobile phones instead of cash gifts this Christmas as it reins in costs during the recession. About 85 per cent Googleites got handset powered by Google’s Android operating system as a holiday gift. Last year, Google handed out $1,000 cash gifts to most employees.
Company's chief executive Eric Schmidt said that Google has adopted such necessary actions in wake of current turbulent times. He added that the company will no more give an engineer 20 people to work with on certain experimental projects.
HP-EDS merger
In the month of May, HP acquired EDS at a price of $25 per share, or an enterprise value of approximately $13.9 billion.
The deal makes HP the second-largest player behind IBM, and is HP's largest acquisition since it acquired Compaq for $20 billion six years ago.
Acquiring EDS advances HP's stated objective of strengthening its services business. The specific service offerings delivered by the combined companies are: IT outsourcing, including data center services, workplace services, networking services and managed security; business process outsourcing, including health claims, financial processing, CRM and HR outsourcing; applications, including development, modernisation and management; consulting and integration; and technology services.
The combination aims to provide extensive experience in offering solutions to customers in the areas of government, healthcare, manufacturing, financial services, energy, transportation, communications, and consumer industries and retail.
However, in the month of September HP announced that it will lay off about 24,600 employees over the next three years in an effort to streamline the company following its US$13.9 billion acquisition of Electronic Data Systems.
Source: Indiatimes Infotech
With the economy down, the fate of IT industry could have been better. The financial crisis means IT industry losing out as much as $170 billion in sales in 2009. As meltdown melted IT spending, IT companies went on a belt tightening mode: giving pink slips, extending holidays and cutting perks.
Other than the grim reality of meltdown, the year 2008 also saw several big mergers and launches. Indian telecom industry finally made its 3G leap, with MTNL launching the services in Delhi. On M&A front, the IT services giant EDS merged with HP. Indian IT cos too were no behind in the acquisition space, three big IT companies buying overseas firms to extend their global and product footprint.
Here's bringing to you all the big IT stories of 2008.
3G launch
In December, Indian telecom sector took another technological leap, with the launch of 3G services in the capital city of country, Delhi.
Mahanagar Telephone Nigam Ltd (MTNL) put India on the 3G global map with the launch of third generation (3G) mobile service 'Jaadu' in Delhi.
The 3G services will give mobile users high-quality voice transmission and access to high-end data applications on their mobile phones, including broadband Internet access, interactive gaming and download movies, video clips and music. They can also enjoy other multimedia features such as video conferencing, mobile TV etc.
For example, a user will be able to download a 3-minute song in approximately 15 seconds with 3G. This compares to 8 minutes usually required in existing mobile technologies.
This will help mobile players to offer high-end value-added services like movie downloads, mobileTV, etc to prop up their ARPUs (average realisation per user). Presently, Indian mobile operators generate only 7-10 per cent of their revenue from non-voice services, primarily dominated by SMSes.
As for the pricing, MTNL is yet to release a commercial tariff plan. The company is currently serving corporate clients and will rely on their feedback before the commercial launch.
Tech terror
The gruesome terrorists attacks that rocked several parts of the country brought to the fore the fact that the technology which makes our live simpler has also become a handy tool for terrorists. The use of technology is evident everywhere, right from providing recruiting grounds (social networking sites) to being a communication platform (Internet, mobile and satellite phones) to providing geographical details (digital maps).
The ease and frequency with which terrorists freely communicated using sat-phones, BlackBerrys and used Google maps to pin down locations, deepened the intensity of terror attacks across the country.
The recent Mumbai carnage also saw terrorists using Google Earth maps to establish locations, sat-phones for un-intercepted communication, Global Positioning Systems and VOIP (Voice over Internet Protocol).
Earlier in Feburary, Lashkar-e-Taiba terrorist Fahim Ahmed Ansari, arrested by Uttar Pradesh Police with maps and details of the spots hit during the recent terror attacks, in his statement had conceded that his masters showed him the maps on Google Earth to pin-point the specific targets.
The Google Earth Map gives a bird’s eye view of the city providing detailed topography of the area in the forms of actual photographs. The details provided in the application can be useful for identifying buildings, roads, streets.
Also, unlike the mobile phones that can be easily intercepted by the security agencies to track data, sat-phones are non-interceptable in India. This is primarily because no satellite phone network operator has its centre in India. Also, since these phones are satellite driven and the operator doesn't need any interconnectivity with India's domestic network, the communication cannot be traced.
Microsoft's Yahoo chase
The year 2008 began with the software giant Microsoft proposing a $31 per share buyout to Yahoo. However, the bid was rejected by Yahoo board of directors saying it "substantially undervalues" the company. On its part, Yahoo announced an expensive severance package which made any acquisition attempt more expensive.
In May, Microsoft revised its offer to $33 a share, which was again rejected by Yahoo. This was followed by speculations that Microsoft may go for a forced deal with the company talking tough.
Yahoo reportedly tried exploring alternative deals with News Corp, Google and Time Warner unit AOL. The chief executive Jerry Yang kept waiting for the software giant to offer a better price than $47.5 billion for Yahoo. However, it never happened. Instead, Yahoo's stock started to fell and hit nearly five-year lows. Yahoo's plan 2, an advertising deal with Google too failed, after Google pulled out fearing a court battle with the US Justice Department.
In November, Yang stepped down and Yahoo, in December, overhauled its severance plan apparently hiked to discourage Microsoft's acquisition plans.
Infy loses Axon
Infosys-Axon deal was hailed as the largest outbound acquisition by an Indian IT company. The analysts termed Axon as strategic fit for Infosys.
Then came the rumours that there was competition: a rival UK security firm has quoting a price higher by 7 pence per share to counter Infosys' offer.
But the software giant was confident. MD and CEO, S Gopalakrishnan said that the company can sail through the deal with its transaction advantage of a full cash deal offer.
However, it seems the Indian IT giant underestimated its rivals, tough competition was there, and closer home. In October, HCL Technologies makes a counter offer to Infosys' Axon bid by raising the value by 8.3 per cent to seal the biggest overseas deal by an Indian firm in this space. The deal got shareholder's nod in November.
HCL beats Infy to bag Axon
The deal for the first time saw two leading Indian vendors, HCL and Infosys, used to fighting over deals, battle it out over an overseas acquisition.
Infosys had made a cash offer of 407.1 million pound for buying out Axon. The country's fifth largest software exporter, HCL Tech, raised its counter bid 441 million-pound ($811 million) to clinch the deal.
HCL Technologies recently completed the acquisition and the new entity would pursue deals worth 1.2 billion dollars.
Post-acquisition, HCL Axon is headed by Steve Cardell, the President of Axon. The independent entity have about 4,500 consultants which includes 1,700 people involved in the SAP practice in HCL.
Enterprise Application Services (EAS), the sector in which HCL AXON operates, constitutes 11 per cent of HCLs revenue. Company's Corporate Vice President and Head - Enterprise Application Services Ram Krishna said that HCL-Axon will create a business accounting for 25 per cent of HCLs revenues.
Satyam saga
The year 2008 would have ended for India's fourth largest IT company, Satyam, just like it will for most other IT cos with worries of ongoing economic gloom. However, there's much more on Satyam plate to tackle now.
The company's troubles began on December 16 when Satyam announced acquisition of Maytas Infrastructure for $1.6 billion (Rs 7658-crore). Institutional investors strongly opposed the move. Satyam's ADR lost 50 per cent on NYSE. Faced with shareholders' revolt and heavy criticism over corporate governance issues, in the early hours of December 17 the company withdrew the proposal. But the scrip lost over 30 per cent in India.
What came as the next severe blow to the Hyderabad-based IT provider facing flak from investors on its decision to acquire Maytas' was World Bank banning it for 8 years over bribery and corruption charges. Ramalinga's family loses half a billion dollars in a week as stock crashes.
Then the worst followed. Shocked by Satyam’s admission to BSE that the company’s promoters have pledged their entire shareholding to institutional investors, independent directors Vinod Dham (father of Pentium chips) and Harvard Business School professor Krishna Palepu, immediately resigned from the board. Also, Indian School of Business dean M Rammohan Rao followed suit. Another independent director, academic Managalam Srinivasan had quit earlier.
This leaves Satyam with only five directors on the board, from nine directors earlier.
Wipro buys Citi unit
India's third-ranked outsourcer, Wipro Technologies acquired Citi Technology Services Ltd, India-based captive IT unit of Citigroup Inc, for $127 million in cash and signed a six-year service agreement worth at least $500 million.
As part of the deal, Wipro and Citi will sign a master services agreement for delivery of technology infrastructure services and application development and maintenance (ADM) services for six years. Under this the banking giant will source services worth at least half a billion dollar from the Indian vendor.
Citi Technology Services is based in Mumbai and Chennai and employs around 1,650 staff servicing the bank’s offices in over 32 countries. Apart from its core focus area of technology infrastructure services, the business also specialises on ADM for cards, capital markets and corporate banking.
Citi Technology Services is expected to report revenue of $80 million in 2008, up from $53 million last year. The deal done through Wipro Technologies, the information technology arm of the New York-listed Wipro, is expected to close in March 2009.
TCS buys Citi BPO
In one of the largest deals in the Indian BPO sector, IT major Tata Consultancy Services, clinched a deal to acquire Citigroup Global Services Ltd (CGSL), a large captive BPO of Citibank operating out of India, for $505 million (around Rs 2,425 crore).
In addition to the sale, Citigroup which is shedding its non-core assets worldwide, signed an agreement with TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates for an aggregate amount of $2.5 billion over a period of 9.5 years.
Citigroup Global Services has around 12,000 employees in India and expects revenues of approximately $278m in 2008.
The acquisition broadens TCS’s portfolio of end-to-end IT and BPO services in the global banking and financial services (BFS) sector.
CGSL provides end-to-end process management across the BFS spectrum and a broad array of services to Citi’s consumer, corporate and global wealth management businesses worldwide.
Citigroup Global Services, the India back office unit, began as a business processing arm for Citi India in 1992 and expanded to serve Citi's global operations in 1998, according to its website. The unit operates out of seven facilities across Indian cities and offers back office services to Citi's consumer, corporate and global wealth management entities in 50 countries.
Pink slips scourge back
This year the ugliest face of slowdown, pink slips, came back to haunt Indian IT pros. The year that saw the slowdown hitting major IT players, many companies resorted to pink slips to beat the downturn blues. India's sunshine sector handed pink slips as the heat of global meltdown severely affected revenues and growth opportunities.
Country's largest software exporter, TCS laid off close to 500 employees and put many under performance scrutiny. Wipro too followed with 1000 employees shown door. India's fourth largest IT player, Satyam too laid off 4,500 jobs to cope up with the turbulent times. Mumbai-based Patni Computer Systems too gave pink slips to 400 employees on grounds of non-performance.
Incidentally, all companies termed the job cuts as purely performance-based. However, it came as no surprise that pink slips were a belt tightening measure from IT companies facing sagging bottomlines due to global economic turmoil.
According to the latest news on the layoff front, software giant Microsoft is reported to be planning a 10 per cent cut in its global workforce.
Bill Gates dethroned
This year tech tycoon Bill Gates not only made his exit from the company he founded, but also lost his position as the world's richest man, a title he had held since 1995. Gates' friend and investment mogul Warren Buffett, succeeded him as world's richest man according to Forbes magazine's annual ranking of the world's wealthiest people.
The magazine estimated Buffett's worth at $62 billion, and Gates' fortune not too far behind at $58 billion. But Gates didn't slipped one position down, Carlos Slim, a Mexican telecom tycoon, came in second with an estimated worth of $60 billion.
Riding the surging price of Berkshire Hathaway stock, America's most beloved investor Warren Buffett saw his fortune up $10 billion from a year ago.
The exit of Bill Gates marked an end of era. Gates retired from Microsoft, the company he co-founded with college-friend Paul Allen in 1975. In June, Gates quit as full-time chairman and software architect of the world's largest software company to work full-time at his charitable organisation Bill & Melinda Gates Foundation. Gates will remain the company's non-executive chairman.
Purse tightening begins at Google
Meltdown has left none, not even the world's top tech brand Google remains unscathed. In a cost cutting mode, the Internet search giant Google is cutting its famed `generous perks'.
Google, known for hosting the most extravagant holiday parties and pamperimg its employees with free food and drinks on the house, has gone into a strict cost saving mode.
Company's cost cutting programme include cutting new projects, ratcheting back spending, chipping away at perks and reducing employee strength. The austerity measures came in as Google's revenue growth has slowed down dramatically over the past one year.
Google also scaled back its holiday celebrations this year due to a global economic downturn and an ever-expanding workforce that had grown to 20,000 in October.
Not only this, the Web giant gave employees mobile phones instead of cash gifts this Christmas as it reins in costs during the recession. About 85 per cent Googleites got handset powered by Google’s Android operating system as a holiday gift. Last year, Google handed out $1,000 cash gifts to most employees.
Company's chief executive Eric Schmidt said that Google has adopted such necessary actions in wake of current turbulent times. He added that the company will no more give an engineer 20 people to work with on certain experimental projects.
HP-EDS merger
In the month of May, HP acquired EDS at a price of $25 per share, or an enterprise value of approximately $13.9 billion.
The deal makes HP the second-largest player behind IBM, and is HP's largest acquisition since it acquired Compaq for $20 billion six years ago.
Acquiring EDS advances HP's stated objective of strengthening its services business. The specific service offerings delivered by the combined companies are: IT outsourcing, including data center services, workplace services, networking services and managed security; business process outsourcing, including health claims, financial processing, CRM and HR outsourcing; applications, including development, modernisation and management; consulting and integration; and technology services.
The combination aims to provide extensive experience in offering solutions to customers in the areas of government, healthcare, manufacturing, financial services, energy, transportation, communications, and consumer industries and retail.
However, in the month of September HP announced that it will lay off about 24,600 employees over the next three years in an effort to streamline the company following its US$13.9 billion acquisition of Electronic Data Systems.
Source: Indiatimes Infotech
Top Citi bosses like Pandit to forego 2008 bonuses
Citigroup Inc.'s Indian American chief executive Vikram Pandit and chairman Win Bischoff would forego bonuses for 2008, the ailing banking giant announced as it formalised its bailout agreement with the US government.
Bonuses for other top executives will be "reduced substantially," Pandit said in a memo to Citigroup employees Wednesday.
Citigroup has received $45 billion in federal capital infusions and a government-financed arrangement to insulate it from hundreds of billions of dollars in potential losses after the bank lost three-quarters of its market value.
"The harsh realities of 2008, primarily our earnings results, mean that our bonus pool is dramatically lower," Pandit said.
Citigroup, the biggest recipient of US bailout funds, completed an agreement for a $20 billion government investment, Pandit said in the memo. That was on top of an earlier $25 billion and a US guarantee on $306 billion in troubled assets.
Pandit is cutting 52,000 jobs worldwide after four straight quarters of losses tied to bad loans and failed investments with the last quarter alone accounting for a loss of 2.8 billion dollars.
Citigroup expects "major challenges" to continue into 2009, Pandit said, describing the proposed actions as part of a major overhaul of executive compensation to confront the problems for the company and banking sector.
The new plan may also include "clawbacks" to "recoup executive compensation that over time proves to be based on inaccurate financial or other information," according to the memo.
"The most senior leaders should be affected the most," Pandit said. "Win and I believe this is fair, in light of the challenges of the year and the need for compensation elsewhere in the organization."
The memo said bonuses for the "senior leadership committee "will be reduced substantially." Members of Citi's executive committee would see bonuses "cut even more" and in some cases given as deferred compensation.
Pandit said the principles to guide the company's executive pay would include "pay for performance" and "meritocracy," adding that "compensation will vary based on each person's performance - again, relative to the overall performance of the company."
Severance compensation will be subject to "significant new limitations" for executives and that the top five executives "no longer can receive severance," said Pandit, who became Citigroup CEO in December 2007.
Those affected executives are Pandit, Bischoff, Chief Financial Officer Gary Crittenden and Vice Chairmen Lewis Kaden and Stephen Volk.
Pandit noted that former treasury secretary Robert Rubin, an advisor to the company who has no direct management responsibilities, "has elected to take no bonus for the second consecutive year."
"The overall objective for all of us at Citi is to build shareholder value, serve our clients and customers superbly well and create growth opportunities for our employees," he said.
"Adherence to the principles of compensation outlined above is fundamental to achieving these goals."
Pandit, 51, received 1 million shares from Citigroup as part of a "sign-on" bonus in January, in addition to a $2.5 million "retention equity award," the company said in March. He was paid $250,000 in salary in 2007.
Pandit got $165 million from Citigroup in 2007 when he sold Old Lane Partners LP, the hedge fund he co-founded and ran. Citigroup closed New York-based Old Lane in June and took a $202 million writedown on its $800 million investment.
Source: Agencies
Bonuses for other top executives will be "reduced substantially," Pandit said in a memo to Citigroup employees Wednesday.
Citigroup has received $45 billion in federal capital infusions and a government-financed arrangement to insulate it from hundreds of billions of dollars in potential losses after the bank lost three-quarters of its market value.
"The harsh realities of 2008, primarily our earnings results, mean that our bonus pool is dramatically lower," Pandit said.
Citigroup, the biggest recipient of US bailout funds, completed an agreement for a $20 billion government investment, Pandit said in the memo. That was on top of an earlier $25 billion and a US guarantee on $306 billion in troubled assets.
Pandit is cutting 52,000 jobs worldwide after four straight quarters of losses tied to bad loans and failed investments with the last quarter alone accounting for a loss of 2.8 billion dollars.
Citigroup expects "major challenges" to continue into 2009, Pandit said, describing the proposed actions as part of a major overhaul of executive compensation to confront the problems for the company and banking sector.
The new plan may also include "clawbacks" to "recoup executive compensation that over time proves to be based on inaccurate financial or other information," according to the memo.
"The most senior leaders should be affected the most," Pandit said. "Win and I believe this is fair, in light of the challenges of the year and the need for compensation elsewhere in the organization."
The memo said bonuses for the "senior leadership committee "will be reduced substantially." Members of Citi's executive committee would see bonuses "cut even more" and in some cases given as deferred compensation.
Pandit said the principles to guide the company's executive pay would include "pay for performance" and "meritocracy," adding that "compensation will vary based on each person's performance - again, relative to the overall performance of the company."
Severance compensation will be subject to "significant new limitations" for executives and that the top five executives "no longer can receive severance," said Pandit, who became Citigroup CEO in December 2007.
Those affected executives are Pandit, Bischoff, Chief Financial Officer Gary Crittenden and Vice Chairmen Lewis Kaden and Stephen Volk.
Pandit noted that former treasury secretary Robert Rubin, an advisor to the company who has no direct management responsibilities, "has elected to take no bonus for the second consecutive year."
"The overall objective for all of us at Citi is to build shareholder value, serve our clients and customers superbly well and create growth opportunities for our employees," he said.
"Adherence to the principles of compensation outlined above is fundamental to achieving these goals."
Pandit, 51, received 1 million shares from Citigroup as part of a "sign-on" bonus in January, in addition to a $2.5 million "retention equity award," the company said in March. He was paid $250,000 in salary in 2007.
Pandit got $165 million from Citigroup in 2007 when he sold Old Lane Partners LP, the hedge fund he co-founded and ran. Citigroup closed New York-based Old Lane in June and took a $202 million writedown on its $800 million investment.
Source: Agencies
Friday, December 26, 2008
Techies bidding farewell in 2008
It's time to bid adieu to the year 2008, the year which witnessed the farewells of some of the biggest names in the technology world -- some of the marking the end of an era.
While most of these were ceremonious exits with some moving to take up their passions or philanthropy, others in pursuit of greener pastures. There were also some unceremonious exits, where some CEOs were made to resign penalising them for falling revenues and constant battering of their company's stocks at the bourses.
Here's looking into some of the most high-profile exits of 2008:
Arun Sarin, Vodafone
One of the most successful CEOs of British telecom giant Vodafone, Arun Sarin, quit the company in the July 2008 to don a new challenge.
During his five year tenure at the world's largest mobile firm, Sarin is credited for acquiring a controlling stake in one of India's biggest mobile phone companies, Hutchison Essar. Under him Vodafone posted group revenue of 35.5 billion pounds for the year ending March 31, an increase of 14.1 per cent, and organic growth of 4.2 per cent. This came in marginally higher than market consensus, provided by the company, of 35.2 billion to 35.4 billion pounds.
Under Sarin, Vodafone expanded aggressively into emerging markets, including Romania, the Czech Republic and Turkey. Sarin visited India before his exit along with his successor to participate in Vodafone-Essar board meeting, triggering speculation that he may join Tatas, but officials of the Indian conglomerate debunked any such report.
Post-exit Sarin planned a trekking trip to Himalayas before settling in California. Recently, Sarin, 53, who quit Vodafone at the pinnacle of his career, was speculated to be the most sought-after contender for the position of Yahoo CEO, after the Jerry Yang's exit.
Sarin, however, said he was not keen on the position. Sarin is looking at alternative roles at other US public companies as well as at a private equity firm, the Financial Times wrote recently.
The India-born US citizen is an IIT Kharagpur alumnus and has an MBA degree from University of California, Berkley.
Bill Gates, Microsoft
This was surely the biggest farewell of 2008. The exit of Bill Gates marked an end of era. Gates retired from Microsoft, the company he co-founded with college-friend Paul Allen in 1975.
In June, Gates quit as full-time chairman and software architect of the world's largest software company to work full-time at his charitable organisation Bill & Melinda Gates Foundation. Gates will remain the company's non-executive chairman.
A Harvard College drop out, Gates has been a permanent fixture in the Forbes Richest people list, holding the numero uno slot for 15 years in a row between 1993 and 2007. In 2008, Gates was topped by investor Warren Buffett and Mexico's telecom tycoon Carlos Slim in the world's wealthiest list.
Bill Gates' key creation is Microsoft, a company with sales of $51 billion as of June 2007 with 78,000 employees across 105 countries. Almost 90 per cent of the estimated 1 billion computers (desktop and laptop) in the world run on Microsoft's Windows and Office. The company has products across the layers network, operating system, database, middleware, application software.
Gates departure comes at a time when Microsoft is engaged in an escalating rivalry with Google and other competitors who are using the internet to chip away at its software dominance.
During his recent visit to India, Gates launched a major initiative for India’s public healthcare with a special focus on eradicating polio.
Jerry Yang, Yahoo
After a rocky tenure at Yahoo, co-founder Jerry Yang stepped down as chief executive this November.
Among the Silicon Valley dotcom billionaires, Yang was named CEO in June 2007 after Terry Semel exit. As CEO, Yang struggled to turn around the company's dwindling fortunes. The rejection of Microsoft offer and a failed advertising deal with Google marred his brief tenure.
Earlier this year, Yang rejected a $33 per share offer by Microsoft for Yahoo worth a total of more than $47 billion. Microsoft CEO Steve Ballmer later withdrew the offer after Yang sought $37 per share. The negotiating breakdown triggered a shareholder revolt led by billionaire investor Carl Icahn, who called for Yang's ouster in July. Since then Yahoo has been trading at between $10-12 a share.
With a fortune estimated at $2.23 billion, some shareholders accused Yang of putting his personal affection for the company he created over the interests of its shareholders. After squandering the opportunity to sell to Microsoft, Yang tried to boost Yahoo's profit by forging an advertising partnership with Google. But this backup plan too fell when Google walked away from the deal to avoid a court battle with the US Justice Department, which concluded that the partnership may throttle competition in the online advertising market.
Sanjay Jha, Qualcomm
Indian engineering whizkid Sanjay Jha left Qualcomm CDMA Technologies (QCT) group as COO and president this year to join beleaguered US telecom major Motorola as CEO of Mobile Devices.
At Motorola, Jha holds a key task to pull the American cellphone pioneer which slipped to the fourth position in global handset sales and the downslide has been quite sharp.
What top's Jha's priorities is reversing the fortunes of the company’s loss-making handset business -- comprising over one third of Motorola’s total business worth $36.6 billion.
Forty five-year-old Jha started as a senior engineer at Qualcomm VLSI (very large scale integration) group in 1994 and was promoted as senior vice-president of engineering in 1998.
He was elevated as the president of QCT in 2003 when the chipset and software division was started at Qualcomm. For the past five years, this division of Qualcomm has been ranked among the world's largest fabless semiconductor producers, and was rated as being ahead of the leader Texas Instruments last year. Qualcomm had sold its own CDMA cell phone business to Kyocera in February 2000.
Neelam Dhawan, Microsoft
Ending her three-and-a-half years stint as MD Microsoft India, Neelam Dhawan joined Hewlett-Packard India as its managing director in June.
At HP, 48-year-old Neelam holds key tasks of driving overall strategy, revenues and profitability for HP India. Currently she reports to Balu Doraisamy, MD, HP Asia Pacific & Japan.
During her tenure at Microsoft, she looked into the strategic focus and improved company's operating efficiency and execution, as well as its financial performance and customer focus.
Prior to Microsoft, Neelam worked with Compaq as head (Enterprise Sales) and HP as vice president (Customer Solutions Group). Under her leadership the Rs 16,000-crore Hewlett-Packard recently won a multi-million dollar Godrej outsourcing deal.
An economics graduate from St Stephen’s College Delhi, Neelam holds a masters in Business Administration from the Faculty of Management Studies, Delhi University.
Lee Kun-hee, Samsung
In one of the most sensational and controversial exits of the year, Samsung Group chairman Lee Kun-hee, resigned following an indictment on tax evasion charges after a counsel investigation.
Known to be the most powerful Korean tycoon, Lee was charged with $133m tax evasion and breach of trust during his 20-year tenure at Samsung. Lee was also charged with damaging the interest of other shareholders. He was accused of forcing Samsung subsidiaries to sell shares to his son at unfairly low prices.
However, the company was cleared of the most serious allegation that it raised money to bribe influential citizens and ministers in its native South Korea.
Joining Lee in stepping down were Vice Chairman Lee Hak-soo and Lee Jae-yong, the chairman's son and heir apparent to the Samsung throne. Nine other senior executives also left Samsung following the charges.
Sixty six-year old Lee is credited of having built $160-billion Samsung Group which is Korea Inc's pride, accounting for roughly 21 per cent of the country's total exports.
Ben Verwaayen, British Telecom
British Telecom Group, one of the largest telecommunications companies in Europe, saw the departure of its CEO Ben Verwaayen in the month of April.
Having served BT for almost six years, Verwaayen headed back to the US to take up a position with a venture capital firm. Verwaayen joined BT in January 2002 after quitting his job from US equipment vendor Lucent.
During his tenure at BT, Verwaayen initiated a complete broadband overhaul of BT's aging infrastructure. He mended fences with Ofcom, the UK's version of the FCC.
Fifty-six year old Dutch national was also awarded an honorary knighthood for services to the communications industry. Verwaayen helped BT buy a slew of US-based companies including Infonet, Radianz, Counterpane and INS pushing the telecom giant into a number of emerging markets.
Ian Livingston, who was chief executive of BT Retail, succeeded Verwaayen.
Farewell in the wings: Steve Jobs?
Apple recently announced that its Chief Executive Steve Jobs will not deliver the keynote address at the Macworld trade show next month. The announcement once again revived investors' concerns about the state of his health and sent the company's shares down.
Apple spokesman, however, denied that Jobs was missing the show due to health issues. Instead of Jobs, Philip Schiller, the senior vice president of worldwide product marketing, will deliver the keynote.
However, Samuel Wilson, an analyst at JMP Securities, said Jobs' absence at the event was important. "It's like the first time in a long time he hasn't spoken in Macworld. Why is he not speaking this year would be the question."
Investors have been concerned Jobs health after he was diagnosed with cancer some years back. In 2004, Jobs, 53, said he had undergone successful surgery to remove a rare type of pancreatic cancer. In September, Jobs, who is often perceived as irreplaceable as Apple's leader, appeared thin but jaunty as he introduced new iPod digital music players.
Macworld is a cultural event that draws thousands of Apple fans and technology aficionados to San Francisco, where they have been treated to major announcements from Jobs in past years, including the launch of the iPhone in 2007.
Source: Indiatimes Infotech
While most of these were ceremonious exits with some moving to take up their passions or philanthropy, others in pursuit of greener pastures. There were also some unceremonious exits, where some CEOs were made to resign penalising them for falling revenues and constant battering of their company's stocks at the bourses.
Here's looking into some of the most high-profile exits of 2008:
Arun Sarin, Vodafone
One of the most successful CEOs of British telecom giant Vodafone, Arun Sarin, quit the company in the July 2008 to don a new challenge.
During his five year tenure at the world's largest mobile firm, Sarin is credited for acquiring a controlling stake in one of India's biggest mobile phone companies, Hutchison Essar. Under him Vodafone posted group revenue of 35.5 billion pounds for the year ending March 31, an increase of 14.1 per cent, and organic growth of 4.2 per cent. This came in marginally higher than market consensus, provided by the company, of 35.2 billion to 35.4 billion pounds.
Under Sarin, Vodafone expanded aggressively into emerging markets, including Romania, the Czech Republic and Turkey. Sarin visited India before his exit along with his successor to participate in Vodafone-Essar board meeting, triggering speculation that he may join Tatas, but officials of the Indian conglomerate debunked any such report.
Post-exit Sarin planned a trekking trip to Himalayas before settling in California. Recently, Sarin, 53, who quit Vodafone at the pinnacle of his career, was speculated to be the most sought-after contender for the position of Yahoo CEO, after the Jerry Yang's exit.
Sarin, however, said he was not keen on the position. Sarin is looking at alternative roles at other US public companies as well as at a private equity firm, the Financial Times wrote recently.
The India-born US citizen is an IIT Kharagpur alumnus and has an MBA degree from University of California, Berkley.
Bill Gates, Microsoft
This was surely the biggest farewell of 2008. The exit of Bill Gates marked an end of era. Gates retired from Microsoft, the company he co-founded with college-friend Paul Allen in 1975.
In June, Gates quit as full-time chairman and software architect of the world's largest software company to work full-time at his charitable organisation Bill & Melinda Gates Foundation. Gates will remain the company's non-executive chairman.
A Harvard College drop out, Gates has been a permanent fixture in the Forbes Richest people list, holding the numero uno slot for 15 years in a row between 1993 and 2007. In 2008, Gates was topped by investor Warren Buffett and Mexico's telecom tycoon Carlos Slim in the world's wealthiest list.
Bill Gates' key creation is Microsoft, a company with sales of $51 billion as of June 2007 with 78,000 employees across 105 countries. Almost 90 per cent of the estimated 1 billion computers (desktop and laptop) in the world run on Microsoft's Windows and Office. The company has products across the layers network, operating system, database, middleware, application software.
Gates departure comes at a time when Microsoft is engaged in an escalating rivalry with Google and other competitors who are using the internet to chip away at its software dominance.
During his recent visit to India, Gates launched a major initiative for India’s public healthcare with a special focus on eradicating polio.
Jerry Yang, Yahoo
After a rocky tenure at Yahoo, co-founder Jerry Yang stepped down as chief executive this November.
Among the Silicon Valley dotcom billionaires, Yang was named CEO in June 2007 after Terry Semel exit. As CEO, Yang struggled to turn around the company's dwindling fortunes. The rejection of Microsoft offer and a failed advertising deal with Google marred his brief tenure.
Earlier this year, Yang rejected a $33 per share offer by Microsoft for Yahoo worth a total of more than $47 billion. Microsoft CEO Steve Ballmer later withdrew the offer after Yang sought $37 per share. The negotiating breakdown triggered a shareholder revolt led by billionaire investor Carl Icahn, who called for Yang's ouster in July. Since then Yahoo has been trading at between $10-12 a share.
With a fortune estimated at $2.23 billion, some shareholders accused Yang of putting his personal affection for the company he created over the interests of its shareholders. After squandering the opportunity to sell to Microsoft, Yang tried to boost Yahoo's profit by forging an advertising partnership with Google. But this backup plan too fell when Google walked away from the deal to avoid a court battle with the US Justice Department, which concluded that the partnership may throttle competition in the online advertising market.
Sanjay Jha, Qualcomm
Indian engineering whizkid Sanjay Jha left Qualcomm CDMA Technologies (QCT) group as COO and president this year to join beleaguered US telecom major Motorola as CEO of Mobile Devices.
At Motorola, Jha holds a key task to pull the American cellphone pioneer which slipped to the fourth position in global handset sales and the downslide has been quite sharp.
What top's Jha's priorities is reversing the fortunes of the company’s loss-making handset business -- comprising over one third of Motorola’s total business worth $36.6 billion.
Forty five-year-old Jha started as a senior engineer at Qualcomm VLSI (very large scale integration) group in 1994 and was promoted as senior vice-president of engineering in 1998.
He was elevated as the president of QCT in 2003 when the chipset and software division was started at Qualcomm. For the past five years, this division of Qualcomm has been ranked among the world's largest fabless semiconductor producers, and was rated as being ahead of the leader Texas Instruments last year. Qualcomm had sold its own CDMA cell phone business to Kyocera in February 2000.
Neelam Dhawan, Microsoft
Ending her three-and-a-half years stint as MD Microsoft India, Neelam Dhawan joined Hewlett-Packard India as its managing director in June.
At HP, 48-year-old Neelam holds key tasks of driving overall strategy, revenues and profitability for HP India. Currently she reports to Balu Doraisamy, MD, HP Asia Pacific & Japan.
During her tenure at Microsoft, she looked into the strategic focus and improved company's operating efficiency and execution, as well as its financial performance and customer focus.
Prior to Microsoft, Neelam worked with Compaq as head (Enterprise Sales) and HP as vice president (Customer Solutions Group). Under her leadership the Rs 16,000-crore Hewlett-Packard recently won a multi-million dollar Godrej outsourcing deal.
An economics graduate from St Stephen’s College Delhi, Neelam holds a masters in Business Administration from the Faculty of Management Studies, Delhi University.
Lee Kun-hee, Samsung
In one of the most sensational and controversial exits of the year, Samsung Group chairman Lee Kun-hee, resigned following an indictment on tax evasion charges after a counsel investigation.
Known to be the most powerful Korean tycoon, Lee was charged with $133m tax evasion and breach of trust during his 20-year tenure at Samsung. Lee was also charged with damaging the interest of other shareholders. He was accused of forcing Samsung subsidiaries to sell shares to his son at unfairly low prices.
However, the company was cleared of the most serious allegation that it raised money to bribe influential citizens and ministers in its native South Korea.
Joining Lee in stepping down were Vice Chairman Lee Hak-soo and Lee Jae-yong, the chairman's son and heir apparent to the Samsung throne. Nine other senior executives also left Samsung following the charges.
Sixty six-year old Lee is credited of having built $160-billion Samsung Group which is Korea Inc's pride, accounting for roughly 21 per cent of the country's total exports.
Ben Verwaayen, British Telecom
British Telecom Group, one of the largest telecommunications companies in Europe, saw the departure of its CEO Ben Verwaayen in the month of April.
Having served BT for almost six years, Verwaayen headed back to the US to take up a position with a venture capital firm. Verwaayen joined BT in January 2002 after quitting his job from US equipment vendor Lucent.
During his tenure at BT, Verwaayen initiated a complete broadband overhaul of BT's aging infrastructure. He mended fences with Ofcom, the UK's version of the FCC.
Fifty-six year old Dutch national was also awarded an honorary knighthood for services to the communications industry. Verwaayen helped BT buy a slew of US-based companies including Infonet, Radianz, Counterpane and INS pushing the telecom giant into a number of emerging markets.
Ian Livingston, who was chief executive of BT Retail, succeeded Verwaayen.
Farewell in the wings: Steve Jobs?
Apple recently announced that its Chief Executive Steve Jobs will not deliver the keynote address at the Macworld trade show next month. The announcement once again revived investors' concerns about the state of his health and sent the company's shares down.
Apple spokesman, however, denied that Jobs was missing the show due to health issues. Instead of Jobs, Philip Schiller, the senior vice president of worldwide product marketing, will deliver the keynote.
However, Samuel Wilson, an analyst at JMP Securities, said Jobs' absence at the event was important. "It's like the first time in a long time he hasn't spoken in Macworld. Why is he not speaking this year would be the question."
Investors have been concerned Jobs health after he was diagnosed with cancer some years back. In 2004, Jobs, 53, said he had undergone successful surgery to remove a rare type of pancreatic cancer. In September, Jobs, who is often perceived as irreplaceable as Apple's leader, appeared thin but jaunty as he introduced new iPod digital music players.
Macworld is a cultural event that draws thousands of Apple fans and technology aficionados to San Francisco, where they have been treated to major announcements from Jobs in past years, including the launch of the iPhone in 2007.
Source: Indiatimes Infotech
Saturday, December 20, 2008
Mobile phone sales set to slide in 2009!
An IDC report Says the impact of economic crisis on mobile phone market may not continue past 2009.
Technology research firm IDC said in a report that the global mobile phone sales are set to slide for the first time since 2001 as a result of the global economic crisis.
The report forecasts that total mobile phone volumes would be 1.9 per cent lower in 2009 than the 2008 levels, said a press release.
In 2001, the shipments had declined 2.3 per cent. Over the past several years, the mobile phone market has enjoyed double-digit annual growth due to an increased emphasis on emerging markets.
However, emerging market growth has been steadily slowing as these markets mature, the release said. IDC now expects worldwide growth to be just 7.1 per cent in 2008 before slipping into negative growth in 2009.
A number of major industry players, including component suppliers, handset makers, and operators have announced their concerns about handset volumes in 2009.
Most have indicated that they expect a year-over-year decrease due to the flagging global economy, the release added.
The report stated that it did not expect the downturn to continue past 2009, with the market in 2010 showing signs of revival as the economic recovery takes effect. "Converged mobile devices remain a much sought-after option for many consumers," noted Ramon Llamas, senior analyst, Mobile Devices Technology and Trends.
He added that users have come to realize what these devices can do beyond voice telephony, especially when it comes to running applications. In response, handset vendors have been building the product and applications portfolios to catch this wave of opportunity.
Technology research firm IDC said in a report that the global mobile phone sales are set to slide for the first time since 2001 as a result of the global economic crisis.
The report forecasts that total mobile phone volumes would be 1.9 per cent lower in 2009 than the 2008 levels, said a press release.
In 2001, the shipments had declined 2.3 per cent. Over the past several years, the mobile phone market has enjoyed double-digit annual growth due to an increased emphasis on emerging markets.
However, emerging market growth has been steadily slowing as these markets mature, the release said. IDC now expects worldwide growth to be just 7.1 per cent in 2008 before slipping into negative growth in 2009.
A number of major industry players, including component suppliers, handset makers, and operators have announced their concerns about handset volumes in 2009.
Most have indicated that they expect a year-over-year decrease due to the flagging global economy, the release added.
The report stated that it did not expect the downturn to continue past 2009, with the market in 2010 showing signs of revival as the economic recovery takes effect. "Converged mobile devices remain a much sought-after option for many consumers," noted Ramon Llamas, senior analyst, Mobile Devices Technology and Trends.
He added that users have come to realize what these devices can do beyond voice telephony, especially when it comes to running applications. In response, handset vendors have been building the product and applications portfolios to catch this wave of opportunity.
Finally bailout approved: Automakers to get $17.4 bn
Citing danger to the national economy, the Bush administration approved an emergency bailout of the US auto industry on Friday, offering $17.4 billion in rescue loans in exchange for concessions from the deeply troubled carmakers and their workers.
The government will have the option of becoming a stockholder in the companies, much as it has with major banks, in effect partially nationalizing the industry.
At the same time, Treasury Secretary Henry Paulson said Congress should release the second $350 billion from the financial rescue fund that it approved in October to bail out huge financial institutions. Tapping the fund for the auto industry basically exhausts the first half of the $700 billion total, he said.
President Bush said, "Allowing the auto companies to collapse is not a responsible course of action." Bankruptcy, he said, would deal "an unacceptably painful blow to hardworking Americans" across the economy.
One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
Bush's plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama.
Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.
If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.
"The time to make hard decisions to become viable is now, or the only option will be bankruptcy," Bush said. "The automakers and unions must understand what is at stake and make hard decisions necessary to reform."
He said the companies' workers should agree to wage and work rules that are competitive with foreign automakers by the end of next year.
And he called for elimination of a "jobs bank" program — negotiated by the United Auto Workers and the companies — under which laid-off workers receive unemployment benefits and supplemental pay from their companies for 48 weeks. If they remain laid off beyond that, they move to a jobs bank in which the company provides about 95% of their pay and benefits. Until the most recent contract, people could remain in the jobs bank for years. Early this month, the UAW agreed to suspend the program.
Under terms of the loan, GM and Chrysler must provide the government with stock warrants giving it the option to buy GM and Chrysler stock at a specific price.
In addition, the automakers would be required to agree to limits on executive pay and eliminate some perks such as corporate jets.
Paulson said that with the help for the carmakers, the government will have allocated the first half of the largest government bailout program in history.
He said he was confident that the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. have the resources to address a significant market crisis if one should occur before Congress approves the use of the second half of the rescue fund.
Paulson said he would discuss the process with congressional leaders and Obama's transition team "in the near future.
Source: Agencies
The government will have the option of becoming a stockholder in the companies, much as it has with major banks, in effect partially nationalizing the industry.
At the same time, Treasury Secretary Henry Paulson said Congress should release the second $350 billion from the financial rescue fund that it approved in October to bail out huge financial institutions. Tapping the fund for the auto industry basically exhausts the first half of the $700 billion total, he said.
President Bush said, "Allowing the auto companies to collapse is not a responsible course of action." Bankruptcy, he said, would deal "an unacceptably painful blow to hardworking Americans" across the economy.
One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
Bush's plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama.
Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.
If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.
"The time to make hard decisions to become viable is now, or the only option will be bankruptcy," Bush said. "The automakers and unions must understand what is at stake and make hard decisions necessary to reform."
He said the companies' workers should agree to wage and work rules that are competitive with foreign automakers by the end of next year.
And he called for elimination of a "jobs bank" program — negotiated by the United Auto Workers and the companies — under which laid-off workers receive unemployment benefits and supplemental pay from their companies for 48 weeks. If they remain laid off beyond that, they move to a jobs bank in which the company provides about 95% of their pay and benefits. Until the most recent contract, people could remain in the jobs bank for years. Early this month, the UAW agreed to suspend the program.
Under terms of the loan, GM and Chrysler must provide the government with stock warrants giving it the option to buy GM and Chrysler stock at a specific price.
In addition, the automakers would be required to agree to limits on executive pay and eliminate some perks such as corporate jets.
Paulson said that with the help for the carmakers, the government will have allocated the first half of the largest government bailout program in history.
He said he was confident that the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. have the resources to address a significant market crisis if one should occur before Congress approves the use of the second half of the rescue fund.
Paulson said he would discuss the process with congressional leaders and Obama's transition team "in the near future.
Source: Agencies
Sunday, December 7, 2008
Rs 300,000cr package to boost Indian economy
The government on Sunday announced major tax cuts across the board to boost demand and allocated additional funds and incentives for exports, housing, textile and infrastructure to stimulate the economy, hit by the global financial crisis.
"The government has been concerned about the impact of global financial crisis on the Indian economy
and a number of steps have been taken to deal with this problem," an official statement said.
The package, coming on the back of fresh monetary measures announced by the RBI on Saturday, includes a four per cent cut in ad-valoram duty across the board, to boost additional spending, besides enhanced credit for exporters, along with a Rs 10,000 crore mop up for India Infrastructure Finance Company.
The measures include additional plan expenditure up to Rs 20,000 crore in current year; total spending in four months till March expected at Rs 300,000 crore. A series of steps to boost exports; Rs 350 crore additional funds for export incentives; back-up guarantee to ECGC for up to Rs 350 crore; to be allowed refund of services in some areas.
The package also includes import duty on Naptha for use in power sector as well as export duty on iron ore to be eliminated. India Infrastructure Finance Company to raise Rs 10,000 crore through tax-free bonds by March 2009. PSU banks to soon announce package for borrowers of home loans upto Rs 20 lakh. An across-the-board cut on ad valorem rate to encourage additional spending; additional Rs 1,400 crore for textile sector.
Source: Agencies
"The government has been concerned about the impact of global financial crisis on the Indian economy
and a number of steps have been taken to deal with this problem," an official statement said.
The package, coming on the back of fresh monetary measures announced by the RBI on Saturday, includes a four per cent cut in ad-valoram duty across the board, to boost additional spending, besides enhanced credit for exporters, along with a Rs 10,000 crore mop up for India Infrastructure Finance Company.
The measures include additional plan expenditure up to Rs 20,000 crore in current year; total spending in four months till March expected at Rs 300,000 crore. A series of steps to boost exports; Rs 350 crore additional funds for export incentives; back-up guarantee to ECGC for up to Rs 350 crore; to be allowed refund of services in some areas.
The package also includes import duty on Naptha for use in power sector as well as export duty on iron ore to be eliminated. India Infrastructure Finance Company to raise Rs 10,000 crore through tax-free bonds by March 2009. PSU banks to soon announce package for borrowers of home loans upto Rs 20 lakh. An across-the-board cut on ad valorem rate to encourage additional spending; additional Rs 1,400 crore for textile sector.
Source: Agencies
Monday, November 17, 2008
GlobalLogic records impressive growth in 2008
GlobalLogic, the global leader in product development has announced that it continued to experience solid momentum and growth during the third quarter (the company’s fiscal second quarter) ending September adding 25 new technology clients representing the mobile, healthcare, consumer and enterprise software product verticals.
The company’s revenue increased 40% through the first six months of its fiscal year, with GlobalLogic exceeding $100M in revenue for the first time. In addition, GlobalLogic grew its employee base nearly 20% during the quarter, reaching 3,000 employees worldwide. Despite the global economic slowdown, its business outlook remains promising and robust. GlobalLogic expects to continue its quarter over quarter growth.
“Considering the current downturn in the economy and its potential effects on global markets, GlobalLogic’s specialization in full software product development lifecycle services is a relatively strong sector to be in,” explained GlobalLogic CEO Peter Harrison. “Our technology clients, both early stage and established, are able to utilize their GlobalLogic partnership to attain product quality, economy and time-to-market benefits through access to our product engineering centers in the US, India, Ukraine and China.”
Other key milestones for GlobalLogic in the first half of its fiscal year, April-September, 2008 included:
* Expansion including Ukraine, where GlobalLogic is the largest technology employer, China and Israel
* Significant new client wins with Microsoft, Yahoo, Qualcomm, JDSU, Genband and Avid
* Industry recognition for GlobalLogic’s Agile-based Version 1.0 service at innovation conferences such as Demofall2008; Dataquest and Hewitt Associates for Top Employer in India and Ukraine; and Microsoft partner of the year in Central and Eastern Europe
* World-class, public markets experienced executive team additions including CFO Wayne Grubbs, and President Shashank Samant
The company’s revenue increased 40% through the first six months of its fiscal year, with GlobalLogic exceeding $100M in revenue for the first time. In addition, GlobalLogic grew its employee base nearly 20% during the quarter, reaching 3,000 employees worldwide. Despite the global economic slowdown, its business outlook remains promising and robust. GlobalLogic expects to continue its quarter over quarter growth.
“Considering the current downturn in the economy and its potential effects on global markets, GlobalLogic’s specialization in full software product development lifecycle services is a relatively strong sector to be in,” explained GlobalLogic CEO Peter Harrison. “Our technology clients, both early stage and established, are able to utilize their GlobalLogic partnership to attain product quality, economy and time-to-market benefits through access to our product engineering centers in the US, India, Ukraine and China.”
Other key milestones for GlobalLogic in the first half of its fiscal year, April-September, 2008 included:
* Expansion including Ukraine, where GlobalLogic is the largest technology employer, China and Israel
* Significant new client wins with Microsoft, Yahoo, Qualcomm, JDSU, Genband and Avid
* Industry recognition for GlobalLogic’s Agile-based Version 1.0 service at innovation conferences such as Demofall2008; Dataquest and Hewitt Associates for Top Employer in India and Ukraine; and Microsoft partner of the year in Central and Eastern Europe
* World-class, public markets experienced executive team additions including CFO Wayne Grubbs, and President Shashank Samant
Monday, November 10, 2008
Why is Obama the best man to lead USA?
What makes Barack Obama the best man for the post of US President? Apart from being first Black to adorn the White House, what are the other attributes that make him fit for the prestigious post?
A latest survey conducted by InspireOne, a people, organization and leadership development firm based in India points to some interesting aspects of the man called Obama.
According to the survey done by InspireOne in association with Centre for High Performance Development (www.chpd.com), it is the critical thinking skills in Obama that makes him different.
The analysis participated in the survey predicts that Obama will be able to perform to a higher level at times of high 'VUCAD' (volatility, uncertainty, complexity, ambiguity and delayed feedback), said a press release.
The analysis conducted a week before the Presidential Elections, reveals the instinctive characteristics and decision making skills that Obama possessed as a leader in the making.
The three primary levels of thought and action assessed are related to the skills of Differentiation, Integration and Crisis, the survey points out.
A latest survey conducted by InspireOne, a people, organization and leadership development firm based in India points to some interesting aspects of the man called Obama.
According to the survey done by InspireOne in association with Centre for High Performance Development (www.chpd.com), it is the critical thinking skills in Obama that makes him different.
The analysis participated in the survey predicts that Obama will be able to perform to a higher level at times of high 'VUCAD' (volatility, uncertainty, complexity, ambiguity and delayed feedback), said a press release.
The analysis conducted a week before the Presidential Elections, reveals the instinctive characteristics and decision making skills that Obama possessed as a leader in the making.
The three primary levels of thought and action assessed are related to the skills of Differentiation, Integration and Crisis, the survey points out.
Monday, November 3, 2008
Ten Emerging Technologies of 2008
Technology Review presents its annual list of the 10 most exciting technologies.
Each year, Technology Review publishes its list of 10 emerging technologies that its editors believe will be particularly important over the next few years. This is work ready to emerge from the lab, in a broad range of areas: energy, computer hardware and software, biological imaging, and more.
Two of the technologies--cellulolytic enzymes and atomic magnetometers--are efforts by leading scientists to solve critical problems, while five--surprise modeling, connectomics, probabilistic CMOS, reality mining, and offline Web applications--represent whole new ways of looking at problems. And three--graphene transistors, nanoradio, and wireless power--are amazing feats of engineering that have created something entirely new.
See All 10 Emerging Technologies 2008
Each year, Technology Review publishes its list of 10 emerging technologies that its editors believe will be particularly important over the next few years. This is work ready to emerge from the lab, in a broad range of areas: energy, computer hardware and software, biological imaging, and more.
Two of the technologies--cellulolytic enzymes and atomic magnetometers--are efforts by leading scientists to solve critical problems, while five--surprise modeling, connectomics, probabilistic CMOS, reality mining, and offline Web applications--represent whole new ways of looking at problems. And three--graphene transistors, nanoradio, and wireless power--are amazing feats of engineering that have created something entirely new.
See All 10 Emerging Technologies 2008
Friday, October 17, 2008
A ‘prolonged’ recession would impact IT industry
The on-going recession would mean several quarters of declines in IT purchases…Software and IT services vendors will start to feel the pinch.
Forrester Research, an independent research firm has outlined an IT spending scenario for a long and deep recession for technology companies. According to this latest Forrester scenario, “A prolonged recession would mean several quarters of declines in IT purchases, not just two or three quarters with little or no growth in late 2008 and first half 2009.” This is the first time Forrester has outlined the possibility that the economic crisis could spark a short-term contraction in IT spending as opposed to a slowdown in growth.
The latest Forrester report offering this scenario - What The Financial Crisis Means To The Tech Market, by Andrew Bartels (VP & Principal Analyst, Forrester Research), states that on a full year 2009 basis, a sustained recession could lead to annual US IT spending growth of 2-3% and global IT spending growth of 3-4%. Says Bartels, “This is just a scenario as an acute financial crisis has hit not only the US but also countries in Europe and Asia.”
In his Sept’08 review of the US IT market, Bartels had predicted a distinct slowdown in growth for US business and government purchases of technology goods and services due to an assumed recession starting in the third quarter. Elaborates Bartels, “We continue to estimate global IT spending growth in 2009 being 7-8%, and we are still sticking to our forecast of a sharp decline in growth – instead of a contraction – for US tech purchases. Why? Our tech market forecast already presumes the recession that is actually happening… Still, with the financial crisis now spreading around the world, risks have grown that the US and other major countries will experience a longer and deeper recession than we had expected.
This scenario will help technology vendors to be prepared, and to mould their strategy, according to the economic environment.” He further adds, “The Software and IT services vendors will anyways – with or without the said scenario – start to feel the pain though sales of these products and services have so far avoided much slowdown in 2008. They will be hit hard in the next three quarters. Still, "hit hard" is relative — vendors in these categories will have on average 3% to 5% growth instead of the 9% to 12% growth they've seen earlier in 2008.” Stating that the rules for technology vendors’ success have changed, Bartels recommends, especially to the US based vendors, to refocus on the US market as it (US market) is likely to recover from a global slowdown sooner and stronger than other markets.
Forrester Research, an independent research firm has outlined an IT spending scenario for a long and deep recession for technology companies. According to this latest Forrester scenario, “A prolonged recession would mean several quarters of declines in IT purchases, not just two or three quarters with little or no growth in late 2008 and first half 2009.” This is the first time Forrester has outlined the possibility that the economic crisis could spark a short-term contraction in IT spending as opposed to a slowdown in growth.
The latest Forrester report offering this scenario - What The Financial Crisis Means To The Tech Market, by Andrew Bartels (VP & Principal Analyst, Forrester Research), states that on a full year 2009 basis, a sustained recession could lead to annual US IT spending growth of 2-3% and global IT spending growth of 3-4%. Says Bartels, “This is just a scenario as an acute financial crisis has hit not only the US but also countries in Europe and Asia.”
In his Sept’08 review of the US IT market, Bartels had predicted a distinct slowdown in growth for US business and government purchases of technology goods and services due to an assumed recession starting in the third quarter. Elaborates Bartels, “We continue to estimate global IT spending growth in 2009 being 7-8%, and we are still sticking to our forecast of a sharp decline in growth – instead of a contraction – for US tech purchases. Why? Our tech market forecast already presumes the recession that is actually happening… Still, with the financial crisis now spreading around the world, risks have grown that the US and other major countries will experience a longer and deeper recession than we had expected.
This scenario will help technology vendors to be prepared, and to mould their strategy, according to the economic environment.” He further adds, “The Software and IT services vendors will anyways – with or without the said scenario – start to feel the pain though sales of these products and services have so far avoided much slowdown in 2008. They will be hit hard in the next three quarters. Still, "hit hard" is relative — vendors in these categories will have on average 3% to 5% growth instead of the 9% to 12% growth they've seen earlier in 2008.” Stating that the rules for technology vendors’ success have changed, Bartels recommends, especially to the US based vendors, to refocus on the US market as it (US market) is likely to recover from a global slowdown sooner and stronger than other markets.
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