Unlike IT majors TCS, Infosys, and Wipro, MindTree Ltd, a global IT and R&D services company, will not layoff even a single employee (minds), said COO N. S. Parthasarathy.
IT companies are currently among the largest sectors impacted by the global recession resulting in layoffs and salary cuts over the last few months.
Talking to CXOtoday at 'Awaaz', an event of the Amrita School of Business (ASB), Parthasarathy said, "Till date we have not sacked any staff in the history of MindTree despite having seen some impact due to the recession." The recession has hurt MindTree especially during the fourth quarter of the last fiscal. "We have felt the impact of the slowdown in the form of pricing pressure with companies now asking for a price reduction. Also, many companies are now offshoring their jobs to cut costs," said Parthasarathy.
The closest MindTree came to layoffs was in 2001, when the company was only two years old and had a manpower of only 400 employees. "There were 35 non-performers who were listed to be sacked, but our leadership team took the decision of a pay cut rather then layoff then," said Parthasarathy.
Since then the company came out with a policy not to layoff any 'minds', as MindTree terms their staff instead of manpower or employees.
The company has grown over the years and currently has over 8,000 'minds' with the acquisition of Aztecsoft in May 2008.
MindTree is hopeful of seeing the economic slowdown improve during quarter two and three this financial year.
CXOtoday.com
Showing posts with label CXOtoday. Show all posts
Showing posts with label CXOtoday. Show all posts
Monday, April 13, 2009
Sunday, April 5, 2009
Air Deccan Gopinath proposes low-cost campaign in polls
To reach his electorate as well as keep costs within the stipulated budget of Rs 25 lakh for election campaigning, Air Deccan founder G. R. Gopinath is resorting to viral marketing, SMS messages, and e-mail.
Gopinath, who is standing as an Independent candidate from Bangalore South constituency, India's IT capital, has also launched a dedicated website with provision for suggestions, advice and feedbacks.
"We are using viral marketing techniques to keep our costs within the sum allotted by the Election Commission," said Gopinath. Viral marketing is a low-cost marketing technique that uses pre-existing social networks to increase brand awareness. It can be word-of-mouth delivered or enhanced by the network effects of the Internet, or any form of video clips, images, or even text messages.
As per Gopinath, the email blasters were done with database received from volunteers instead of buying the database. The SMSs are being sent free by service providers who are his well-wishers. Even the social networking sites like Facebook and Twitter are free sites.
Gopinath said he opted to contest these elections with the backing of Infosys Technologies' Nandan Nilekani and Mohandas Pai, Pradeep Kar of Microland; Kiran Mazumdar-Shaw of Biocon and brand guru Harish Bijoor.
CXOtoday
Gopinath, who is standing as an Independent candidate from Bangalore South constituency, India's IT capital, has also launched a dedicated website with provision for suggestions, advice and feedbacks.
"We are using viral marketing techniques to keep our costs within the sum allotted by the Election Commission," said Gopinath. Viral marketing is a low-cost marketing technique that uses pre-existing social networks to increase brand awareness. It can be word-of-mouth delivered or enhanced by the network effects of the Internet, or any form of video clips, images, or even text messages.
As per Gopinath, the email blasters were done with database received from volunteers instead of buying the database. The SMSs are being sent free by service providers who are his well-wishers. Even the social networking sites like Facebook and Twitter are free sites.
Gopinath said he opted to contest these elections with the backing of Infosys Technologies' Nandan Nilekani and Mohandas Pai, Pradeep Kar of Microland; Kiran Mazumdar-Shaw of Biocon and brand guru Harish Bijoor.
CXOtoday
Friday, March 20, 2009
AT&T Looks for Customers for Center in India
AT&T Inc., a US-based company offering advanced IP-based business communications services, is set to acquire customers from IT, ITES, manufacturing and finance service companies for its newly launched data center in India.
AT&T set up its India data center in Bangalore last December. Since then the company is looking at the growing demand from multinational customers in India for online data centers with highly resilient facilities and a wide range of IT infrastructure management services.
Talking to CXOtoday, Gopi Gopinath, chairman and chief executive officer of AT&T Global Network Services India, said, "Since the data center has just become operational, we have not got any customers in India so far, but the data center has been build to 'Green' specifications laid down by the parent company across all data centers."
The Whitefield center has a 5,000 sq ft of capacity and can expand unlimitedly. It is part of a $1 billion planned AT&T global network and portfolio investment for 2009. Data center customers will have access to a wide range of fully integrated managed hosting, application and networking services to support their data and e-commerce needs. Connectivity to the centre can be supported with AT&T's existing suite of managed data services in India.
The data center is built to the same rigid specifications consistent with AT&T's other 37 global data centers and are enabled with services that proactively manage customers' hosting solutions for predictable application performance. They are protected from intrusion and failure with the same multi-layered security, failsafe redundancy, diversity measures, and rapid response recovery measures built into each data center.
"We will be able to support multinational customers in India who turn to AT&T for integrated hosting and network solutions, allowing them to focus on running their businesses," said Gopinath.
The center is directly connected to AT&T's global MPLS backbone to offer a portfolio of hosting solutions with network performance and features. Among them are greater agility when making real-time changes to IT environments, more control to extend applications to the customer's premises or to other data centers, and the ability to include 'on network' capabilities in a customer solution.
CXotoday
AT&T set up its India data center in Bangalore last December. Since then the company is looking at the growing demand from multinational customers in India for online data centers with highly resilient facilities and a wide range of IT infrastructure management services.
Talking to CXOtoday, Gopi Gopinath, chairman and chief executive officer of AT&T Global Network Services India, said, "Since the data center has just become operational, we have not got any customers in India so far, but the data center has been build to 'Green' specifications laid down by the parent company across all data centers."
The Whitefield center has a 5,000 sq ft of capacity and can expand unlimitedly. It is part of a $1 billion planned AT&T global network and portfolio investment for 2009. Data center customers will have access to a wide range of fully integrated managed hosting, application and networking services to support their data and e-commerce needs. Connectivity to the centre can be supported with AT&T's existing suite of managed data services in India.
The data center is built to the same rigid specifications consistent with AT&T's other 37 global data centers and are enabled with services that proactively manage customers' hosting solutions for predictable application performance. They are protected from intrusion and failure with the same multi-layered security, failsafe redundancy, diversity measures, and rapid response recovery measures built into each data center.
"We will be able to support multinational customers in India who turn to AT&T for integrated hosting and network solutions, allowing them to focus on running their businesses," said Gopinath.
The center is directly connected to AT&T's global MPLS backbone to offer a portfolio of hosting solutions with network performance and features. Among them are greater agility when making real-time changes to IT environments, more control to extend applications to the customer's premises or to other data centers, and the ability to include 'on network' capabilities in a customer solution.
CXotoday
Sunday, March 15, 2009
Cut costs & beat recession with cloud computing
The global recession is taking a toll on every industry and the construction industry is no exception. However, Aurigo Software Technologies, a provider of software and solutions for the construction and real estate, is offering companies its web-based products on a cloud computing model to save on huge IT expenditure.
Established in the US in 2003, Aurigo launched its solution BRIX for the Indian market in early 2008. Aurigo has three customers in India now - RDS Projects, IDEB and Navin Housing. All three companies have opted for the cloud computing model, thereby reducing their burden in managing the IT infrastructure, investing in the server hardware and software components and also on the power that is a huge expenditure.
Talking to CXOtoday, Balaji Sreenivasan, Founder and CEO of Aurigo Software, said, "Cloud computing is becoming a necessary requirement by customers seeking to deploy IT solutions even in the construction and real estate industries and is here to stay for the long haul."
Cloud computing helps companies and end-users access solutions without the hassle of having to invest in the computing power (hardware and software) required to run that solution internally. So if you are using gmail or hotmail to access your email, you are already a cloud computing proponent.
"As customers generally do not own the infrastructure, they merely access or rent, they can avoid capital expenditure and consume resources as a service, paying instead for what they use," said Sreenivasan. Many cloud computing offerings have adopted the utility computing model, which is analogous to how traditional utilities like electricity are consumed, while others are billed on a subscription basis.
Other benefits of time-sharing style approach are low barriers to entry, shared infrastructure and costs, low management overheads and immediate access to a broad range of applications.
In fact, IDEB's cloud computing model is expected to go live within the next six months, while RDS Projects, which has multiple projects spread across six locations in the country is expected to go live in the next 8 weeks. The remotely located and managed servers belong to various server farm providers that are highly secure, ISO 9001:200 certified and are located across India with overseas backup mirror locations with a committed 99.96% uptime.
Since these projects are yet to go live it would take a minimum of six months to one year to assess the actual ROI. However, BRIX is fairly well deployed across the US and at the Oregon Department of Transportation (ODOT), which is involved in a $3 billion bridge reconstruction, they have experienced a near 40% boost in productivity. This was measured by computing the reduced time to carry out inspections, transmit the data and increased information retrieval speed after deploying BRIX. The solution has been delivered on the cloud computing model with the entire solution being hosted on a central server and accessed by all the stakeholders at ODOT.
CXOtdoday
Established in the US in 2003, Aurigo launched its solution BRIX for the Indian market in early 2008. Aurigo has three customers in India now - RDS Projects, IDEB and Navin Housing. All three companies have opted for the cloud computing model, thereby reducing their burden in managing the IT infrastructure, investing in the server hardware and software components and also on the power that is a huge expenditure.
Talking to CXOtoday, Balaji Sreenivasan, Founder and CEO of Aurigo Software, said, "Cloud computing is becoming a necessary requirement by customers seeking to deploy IT solutions even in the construction and real estate industries and is here to stay for the long haul."
Cloud computing helps companies and end-users access solutions without the hassle of having to invest in the computing power (hardware and software) required to run that solution internally. So if you are using gmail or hotmail to access your email, you are already a cloud computing proponent.
"As customers generally do not own the infrastructure, they merely access or rent, they can avoid capital expenditure and consume resources as a service, paying instead for what they use," said Sreenivasan. Many cloud computing offerings have adopted the utility computing model, which is analogous to how traditional utilities like electricity are consumed, while others are billed on a subscription basis.
Other benefits of time-sharing style approach are low barriers to entry, shared infrastructure and costs, low management overheads and immediate access to a broad range of applications.
In fact, IDEB's cloud computing model is expected to go live within the next six months, while RDS Projects, which has multiple projects spread across six locations in the country is expected to go live in the next 8 weeks. The remotely located and managed servers belong to various server farm providers that are highly secure, ISO 9001:200 certified and are located across India with overseas backup mirror locations with a committed 99.96% uptime.
Since these projects are yet to go live it would take a minimum of six months to one year to assess the actual ROI. However, BRIX is fairly well deployed across the US and at the Oregon Department of Transportation (ODOT), which is involved in a $3 billion bridge reconstruction, they have experienced a near 40% boost in productivity. This was measured by computing the reduced time to carry out inspections, transmit the data and increased information retrieval speed after deploying BRIX. The solution has been delivered on the cloud computing model with the entire solution being hosted on a central server and accessed by all the stakeholders at ODOT.
CXOtdoday
Thursday, March 12, 2009
Sanjay Sharma Joins ACME Tele Power As VP
Sanjay Sharma has joined ACME Tele Power Limited as vice president and SBU Head for IT Solutions. In addition, Sharma will also be responsible for the sales and marketing function for the company's IT Solutions business globally.
Prior to this appointment, Sharma was vice president of the IT division at Samsung India.
Talking about his new assignment, Sharma said, "The ACME business is going through an exciting growth phase, where the company is looking at significantly enhancing its presence in India and overseas through Innovative energy solutions. I am happy to be associating with ACME at this time and look forward to an exciting and rewarding experience at ACME."
ACME Tele Power Ltd. (ATPL) provides comprehensive passive infrastructure solutions to wireless telecom players both in India as well as overseas. The company focuses on innovation and R&D. ATPL has developed a range of innovative products that help provide cost-effective, energy-efficient, integrated, passive infrastructure solutions to telecom companies.
Manoj Kumar Upadhyay, managing director, ATPL, said Sharma's appointment will give a fresh impetus and a new direction to the company's IT Solutions business. The company will benefit from his rich experience in India and overseas.
Sharma brings with him over 18 years of experience in the IT industry, of which the last three years were with Samsung and the pervious nine years have been with IBM Global Services. Within IBM he worked on various assignments in the solutions sales and marketing field, for the Indian and Asia-Pacific markets. Prior to his assignment at IBM, he worked with Multi Tech Computers, handling the channel sales function there.
Sharma holds a Bachelor's degree in telecommunications (1989), master of business administration (1991) and is an active member of IEEE and other computer societies. He has undergone professional training at Harvard Business School on strategy, sales and marketing methodologies.
CXOtoday
Prior to this appointment, Sharma was vice president of the IT division at Samsung India.
Talking about his new assignment, Sharma said, "The ACME business is going through an exciting growth phase, where the company is looking at significantly enhancing its presence in India and overseas through Innovative energy solutions. I am happy to be associating with ACME at this time and look forward to an exciting and rewarding experience at ACME."
ACME Tele Power Ltd. (ATPL) provides comprehensive passive infrastructure solutions to wireless telecom players both in India as well as overseas. The company focuses on innovation and R&D. ATPL has developed a range of innovative products that help provide cost-effective, energy-efficient, integrated, passive infrastructure solutions to telecom companies.
Manoj Kumar Upadhyay, managing director, ATPL, said Sharma's appointment will give a fresh impetus and a new direction to the company's IT Solutions business. The company will benefit from his rich experience in India and overseas.
Sharma brings with him over 18 years of experience in the IT industry, of which the last three years were with Samsung and the pervious nine years have been with IBM Global Services. Within IBM he worked on various assignments in the solutions sales and marketing field, for the Indian and Asia-Pacific markets. Prior to his assignment at IBM, he worked with Multi Tech Computers, handling the channel sales function there.
Sharma holds a Bachelor's degree in telecommunications (1989), master of business administration (1991) and is an active member of IEEE and other computer societies. He has undergone professional training at Harvard Business School on strategy, sales and marketing methodologies.
CXOtoday
Saturday, March 7, 2009
Progress Software target insurance, airlines sectors in India
Progress Software Corporation is targeting the insurance, logistics, BFSI and airlines sectors that are mushrooming with many foreign players coming into India.
The provider of application infrastructure software for the development, deployment, integration and management of business applications is looking to partner with domestic consultants with large working knowledge in these sectors.
Talking to CXOtoday, Jezmynn Koh, marketing manager, Asia, of Progress Software, said, "We see a very large potential for us in these sectors and, along with the business knowledge of our partners, we expect to grow big in India. This year we see big-time growth for the BFSI, telecom and insurance sectors."
In fact, the company has already selected a partner - Hasel Fre Solutions - who have business knowledge in the insurance sector. "Likewise, we are now looking for partners in the logistics, BFSI and airlines sectors," she said.
Progress Software's OpenEdge platform enables companies like QAE and Epicor to build an ERP solution on top of it. So, several companies in the BFSI, telecom and also public-sector undertaking sectors have customized the platform as per their requirements.
OpenEdge has been the "cash cows" for Progress Software for many years and contributes almost 70% to the company's revenues.
In the telecom space, Bharat Sanchar Nigam Ltd has been managing data backend integration using Progress COBRA software so that switch-makers can integrate a totally different billing system. "With the fast growth in the telecom sector, most telecom companies face system integration challenges," said Koh.
Similarly, Steel Authority of India Ltd (SAIL) has built a customized ERP solution on top of OpenEdge software for buying, selling and distribution for the last many years..
Besides, Progress also sells through their strategic partners - Wipro, TCS, Infosys and Satyam. Regarding continuing partnership with Satyam, Koh said her company will continue to partner as long as there is a business need for different projects.
CXOtoday.com
The provider of application infrastructure software for the development, deployment, integration and management of business applications is looking to partner with domestic consultants with large working knowledge in these sectors.
Talking to CXOtoday, Jezmynn Koh, marketing manager, Asia, of Progress Software, said, "We see a very large potential for us in these sectors and, along with the business knowledge of our partners, we expect to grow big in India. This year we see big-time growth for the BFSI, telecom and insurance sectors."
In fact, the company has already selected a partner - Hasel Fre Solutions - who have business knowledge in the insurance sector. "Likewise, we are now looking for partners in the logistics, BFSI and airlines sectors," she said.
Progress Software's OpenEdge platform enables companies like QAE and Epicor to build an ERP solution on top of it. So, several companies in the BFSI, telecom and also public-sector undertaking sectors have customized the platform as per their requirements.
OpenEdge has been the "cash cows" for Progress Software for many years and contributes almost 70% to the company's revenues.
In the telecom space, Bharat Sanchar Nigam Ltd has been managing data backend integration using Progress COBRA software so that switch-makers can integrate a totally different billing system. "With the fast growth in the telecom sector, most telecom companies face system integration challenges," said Koh.
Similarly, Steel Authority of India Ltd (SAIL) has built a customized ERP solution on top of OpenEdge software for buying, selling and distribution for the last many years..
Besides, Progress also sells through their strategic partners - Wipro, TCS, Infosys and Satyam. Regarding continuing partnership with Satyam, Koh said her company will continue to partner as long as there is a business need for different projects.
CXOtoday.com
Tuesday, March 3, 2009
Web Abuzz with news of attack on Sri Lankan Cricket Team
Within hours of attack on the Sri Lankan cricket team near the Gaddafi cricket stadium in Lahore, Pakistan, the web was loaded with videos, links and discussions
A few gunmen attacked the Sri Lankan cricket team near the Gaddafi cricket stadium in Lahore, Pakistan. This news broke out a few hours ago and got the social media enthusiasts active over the web along with the news media.
All media was affected -- starting with news channels like IBN Live streaming a live video about the news to the micro-blogging service Twitter which was the one heavily impacted with 140 character discussions.
This attack on Sri Lankan cricket team has become one of the trending topics on Twitter. Here are a few links which lead to Sri Lankan Cricket team related news and discussions on Twitter:
keyword: Sri Lankan
keyword: #srilanka
Few of the reactions on the micro-blogging site Twitter that were noted:
SuaveRepublique: Suave is wishing that the Sri Lankan Cricketers are OK, and that cricket is never played there again.
tajdaroc: HOW is it that the attckers were able to escape having been in plain sight? The access logistics are as simple as can be #SriLanka #Pakistan
CXOtoday
A few gunmen attacked the Sri Lankan cricket team near the Gaddafi cricket stadium in Lahore, Pakistan. This news broke out a few hours ago and got the social media enthusiasts active over the web along with the news media.
All media was affected -- starting with news channels like IBN Live streaming a live video about the news to the micro-blogging service Twitter which was the one heavily impacted with 140 character discussions.
This attack on Sri Lankan cricket team has become one of the trending topics on Twitter. Here are a few links which lead to Sri Lankan Cricket team related news and discussions on Twitter:
keyword: Sri Lankan
keyword: #srilanka
Few of the reactions on the micro-blogging site Twitter that were noted:
SuaveRepublique: Suave is wishing that the Sri Lankan Cricketers are OK, and that cricket is never played there again.
tajdaroc: HOW is it that the attckers were able to escape having been in plain sight? The access logistics are as simple as can be #SriLanka #Pakistan
CXOtoday
Sunday, February 22, 2009
Is Wipro riding on the recovery wave?
The last two quarters were a bitter time for the computer industry in India. However, with a slight recovery seen in sales during January, Wipro Infotech wants to ride on the recovery wave in the notebook segment by launching its new series.
As per IDC reports, notebooks market will see a growth of 12% in India and with this expectation, Wipro has rolled out e.go, its new range of notebooks in India.
Talking to CXOtoday, Anand Sankaran, Chief Exclusive of Wipro Infotech said, “The industry has gone through a rough period during the last two quarters but we are seeing a sign of recovery since January 2009 and expect this trend to continue. We have launched our new range we reach out to the bold new Indian.”
This is Wipro’s second range of notebooks launched and will cater primarily to the Indian market. What more the e.go comes in three models and most unique one is the 7F3800 with a 10 inch ultra portable netbook priced at Rs 19,990 excusive of taxes. It comes in four vibrant colours including chrome red, ocean blue, racer yellow, autumn red and coral blue. “We are setting a new revolution by coming out with a netbook priced sub of Rs 20,000 that more ever comes with such high features,” said Ashok Tripathy, General Manager & Head, Computing Division, Wipro Infotech.
The notebooks have been designed integrating aerodynamics contours with advanced thermo dynamics to ensure perfect harmony of design and function.
The company plans to reach out to the enterprise as well as the consumer segment. “We have seen a negative growth in the enterprise segment but the consumers’ continue to show a positive trend in sales,’ said Sankaran.
Besides the range also comes with all ‘Green’ features that are eco-friendly and have all RoHS complaint features installed that can be recycled without causing any damage to the environment.
In fact, Wipro recorded a 60-70% jump in notebook sales during the last year but due to the present global scenario doesn’t permit similar growth this year, said Sankaran.
Wipro will target the consumers segment by selling its new desktops at Reliance Digital, Next and Pantaloon’s E Zone outlets across the country. “We expect to add more retailers in the coming months,’ said Tripathy.
Wipro has a manufacturing capacity of 1.5 million units from its two units at Pondicherry and at Uttaranchal. However, they did not disclose if the plant is utilizing its full capacity at it two units or not.
As per IDC reports, notebooks market will see a growth of 12% in India and with this expectation, Wipro has rolled out e.go, its new range of notebooks in India.
Talking to CXOtoday, Anand Sankaran, Chief Exclusive of Wipro Infotech said, “The industry has gone through a rough period during the last two quarters but we are seeing a sign of recovery since January 2009 and expect this trend to continue. We have launched our new range we reach out to the bold new Indian.”
This is Wipro’s second range of notebooks launched and will cater primarily to the Indian market. What more the e.go comes in three models and most unique one is the 7F3800 with a 10 inch ultra portable netbook priced at Rs 19,990 excusive of taxes. It comes in four vibrant colours including chrome red, ocean blue, racer yellow, autumn red and coral blue. “We are setting a new revolution by coming out with a netbook priced sub of Rs 20,000 that more ever comes with such high features,” said Ashok Tripathy, General Manager & Head, Computing Division, Wipro Infotech.
The notebooks have been designed integrating aerodynamics contours with advanced thermo dynamics to ensure perfect harmony of design and function.
The company plans to reach out to the enterprise as well as the consumer segment. “We have seen a negative growth in the enterprise segment but the consumers’ continue to show a positive trend in sales,’ said Sankaran.
Besides the range also comes with all ‘Green’ features that are eco-friendly and have all RoHS complaint features installed that can be recycled without causing any damage to the environment.
In fact, Wipro recorded a 60-70% jump in notebook sales during the last year but due to the present global scenario doesn’t permit similar growth this year, said Sankaran.
Wipro will target the consumers segment by selling its new desktops at Reliance Digital, Next and Pantaloon’s E Zone outlets across the country. “We expect to add more retailers in the coming months,’ said Tripathy.
Wipro has a manufacturing capacity of 1.5 million units from its two units at Pondicherry and at Uttaranchal. However, they did not disclose if the plant is utilizing its full capacity at it two units or not.
Friday, February 6, 2009
iGATE Pulls Out of Race to Acquire Satyam
With Satyam's financial statement still not available and government yet to cap its liabilities, iGATE has all but given up its interest in Satyam.
With Satyam's financial statement still not available and government yet to cap its liabilities, iGATE has all but given up its interest in buying stake in Satyam. The new Satyam board has recently appointed a new CEO and CFO.
The company had earlier said it was waiting for the new financial statement before deciding its next step, as the Satyam board had ruled out any part buy option.
Talking to CXOtoday, Phaneesh Murthy. CEO of iGATE, said, "Our interest in Satyam is weaning now. If a portion of the company is not being sold, then it does not attract me."
Over the last few weeks, reports indicate that Satyam has lost several of its top employees and many clients are also moving away, thereby making the value proposition no longer interesting for iGATE. "I believe that delay in decisions will erode the value of the company because of migration of customers and employees," said Murthy.
It is believed that iGATE was keenly looking at acquiring the manufacturing and EPR verticals of Satyam that were dominant over the years. But with the board not likely to issue Satyam's financial restatement in the near future, many of the other suitors are likely to pull out as well.
iGATE was among the early prospects, along with Larson & Turbo (L&T) and Essar, to express interest in acquiring the fourth largest software service provider. Since then the board has received three Expressions of Interest (EoI) from Mahindra Group, Hindujas and Spice Communications.
CXOtoday.com
With Satyam's financial statement still not available and government yet to cap its liabilities, iGATE has all but given up its interest in buying stake in Satyam. The new Satyam board has recently appointed a new CEO and CFO.
The company had earlier said it was waiting for the new financial statement before deciding its next step, as the Satyam board had ruled out any part buy option.
Talking to CXOtoday, Phaneesh Murthy. CEO of iGATE, said, "Our interest in Satyam is weaning now. If a portion of the company is not being sold, then it does not attract me."
Over the last few weeks, reports indicate that Satyam has lost several of its top employees and many clients are also moving away, thereby making the value proposition no longer interesting for iGATE. "I believe that delay in decisions will erode the value of the company because of migration of customers and employees," said Murthy.
It is believed that iGATE was keenly looking at acquiring the manufacturing and EPR verticals of Satyam that were dominant over the years. But with the board not likely to issue Satyam's financial restatement in the near future, many of the other suitors are likely to pull out as well.
iGATE was among the early prospects, along with Larson & Turbo (L&T) and Essar, to express interest in acquiring the fourth largest software service provider. Since then the board has received three Expressions of Interest (EoI) from Mahindra Group, Hindujas and Spice Communications.
CXOtoday.com
Tuesday, January 20, 2009
Mobile players focus on MVAS to increase ARPU
With Mobile Value Added Services (MVAS) touching Rs 7,510 crore in 2008 and expected to touch Rs 9,760 crore in 2009 and Rs 16,520 by 2010, mobile players are aggressively rolling out new services to increase the average revenue per user (ARPU).
Talking to CXOtoday at the Forum Nokia Developer Conference 2009, Deepak Halan, Group Business Director of IMRB International eTech said, “In the wake of changing industry markets, telecom operators are looking at MVAS as the next wave of growth, and a large chunk of revenues is expected to flow from VAS in the near future. Our report indicated that this market is growing at 70% annually.”
While the growing subscriber base has positively impacted industry revenues, operator margins have shrunk, pulling down ARPU. “As ARPU declines and voice gets commoditized, the challenge is to retain customers, develop alternative revenue streams, and create a basis for differentiation in high-churn markets that is why telecom operators are looking at MVAS as the next wave of growth,” said Halan.
Presently the mobile market has about 12-15 major players besides a number of new licences issued to Etisalat, Unitech and Reliance (GSM) that is likely to take MVAS to all time high.
Among MVAS, the most popular service was downloaded mobile music, although voice portals were swiftly taking over, said Halan. SMS-based infotainment services are largely divided among the big players. A TRAI reports indicates that out of the 375 million users, one out of every five users have a GPRS-enabled mobile across India but not many services are available making then passive users, which is a deterrent factor.
However, the new 3G initiative give a fresh pipe for data and video tracks that could be downloaded without interruptions and also mobile TV with a lot more services like video on demand will is possible, said Halan.
Srikanth Raju, Director, Head of Product Marketing Forum Nokia said, “MVAS has seen a huge market in India and now with 3G being rolled out, will further help video downloaded and a lot more development on MVAS.”
Talking to CXOtoday at the Forum Nokia Developer Conference 2009, Deepak Halan, Group Business Director of IMRB International eTech said, “In the wake of changing industry markets, telecom operators are looking at MVAS as the next wave of growth, and a large chunk of revenues is expected to flow from VAS in the near future. Our report indicated that this market is growing at 70% annually.”
While the growing subscriber base has positively impacted industry revenues, operator margins have shrunk, pulling down ARPU. “As ARPU declines and voice gets commoditized, the challenge is to retain customers, develop alternative revenue streams, and create a basis for differentiation in high-churn markets that is why telecom operators are looking at MVAS as the next wave of growth,” said Halan.
Presently the mobile market has about 12-15 major players besides a number of new licences issued to Etisalat, Unitech and Reliance (GSM) that is likely to take MVAS to all time high.
Among MVAS, the most popular service was downloaded mobile music, although voice portals were swiftly taking over, said Halan. SMS-based infotainment services are largely divided among the big players. A TRAI reports indicates that out of the 375 million users, one out of every five users have a GPRS-enabled mobile across India but not many services are available making then passive users, which is a deterrent factor.
However, the new 3G initiative give a fresh pipe for data and video tracks that could be downloaded without interruptions and also mobile TV with a lot more services like video on demand will is possible, said Halan.
Srikanth Raju, Director, Head of Product Marketing Forum Nokia said, “MVAS has seen a huge market in India and now with 3G being rolled out, will further help video downloaded and a lot more development on MVAS.”
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