After establishing itself as a major player in the international BPO market, India is now set to shift focus on the domestic market, which is projected to grow at over 30% annually.
According to a report by IT research firm IDC India, the country's domestic BPO market, with nearly 500 players, will grow at a CAGR of 33.3% to touch revenues of $6.82 billion by 2013, up from $1.62 billion in 2008.
The report said the domestic BPO industry would evolve from just running isolated processes for customers to engaging more deeply in identifying and transforming core business processes.
"Positive market indicators of an economic recovery, unbundling of mega outsourcing deals and large unaddressed white spaces such as regional language services support the current optimism," the report said.
Currently, the BFSI vertical contributes the lion's share of 37% to the domestic sector's revenues, while telecom contributes about one-fourth to it.
Other verticals like utilities and services, energy, food and hospitality, aerospace and automotives, consumer durables and government contribute 17%, while the travel segment contributes 8% to the revenue.
Agencies
Showing posts with label IDC. Show all posts
Showing posts with label IDC. Show all posts
Friday, November 13, 2009
Wednesday, September 30, 2009
Free computer security software from Microsoft released
Microsoft has released free software that people can use to protect computers against viruses, spyware and other malicious codes in arsenals of cyber criminals.
Microsoft Security Essentials is available for download at microsoft.com/security_essentials and is built on technology that the global software giant uses in computer security programs it designs for businesses.
"With Microsoft Security Essentials, consumers can get high-quality protection that is easy to get and easy to use, and it won't get in their way," said Amy Barzdukas, general manager for consumer security at Microsoft.
"Consumers have told us that they want the protection of real-time security software but we know that too many are either unwilling or unable to pay for it, and so end up unprotected."
Microsoft hopes that the free software will be broadly adopted, particularly by those who have not been vigilant about protecting computers from hackers, and thereby "increase security across the entire Windows ecosystem."
More than 90 percent of the computers worldwide run on Windows operating systems made by the US technology firm.
"Microsoft is helping to reduce some of the barriers that constrain consumers from running (anti-virus software)," said IDC security analyst Jon Crotty. "Microsoft is focused on the challenges that prevent consumers from running up-to-date anti-virus software today, particularly in emerging markets where there is a growing prevalence of malware."
Security Essentials is designed to run behind the scenes, defending machines against infection by malicious computer codes.
The real-time nature of the software means it is automatically kept up-to-date regarding viruses.
Computer security specialty firm Symantec downplayed the Microsoft offering, saying it is lightweight and isn't tuned for new forms of attack being used by hackers.
Symantec referred to Security Essentials as a stripped-down version of an old Microsoft OneCare product that got poor ratings.
"From a security perspective, this Microsoft tool offers reduced defenses at a critical point in the battle against cyber crime," Symantec said of the free offering that competes with Norton products sold by the firm.
"Unique malware and social engineering tricks fly under the radar of traditional signature-based technology alone -- which is what is employed by free security tools such as Microsoft's," it said.
Agencies
Microsoft Security Essentials is available for download at microsoft.com/security_essentials and is built on technology that the global software giant uses in computer security programs it designs for businesses.
"With Microsoft Security Essentials, consumers can get high-quality protection that is easy to get and easy to use, and it won't get in their way," said Amy Barzdukas, general manager for consumer security at Microsoft.
"Consumers have told us that they want the protection of real-time security software but we know that too many are either unwilling or unable to pay for it, and so end up unprotected."
Microsoft hopes that the free software will be broadly adopted, particularly by those who have not been vigilant about protecting computers from hackers, and thereby "increase security across the entire Windows ecosystem."
More than 90 percent of the computers worldwide run on Windows operating systems made by the US technology firm.
"Microsoft is helping to reduce some of the barriers that constrain consumers from running (anti-virus software)," said IDC security analyst Jon Crotty. "Microsoft is focused on the challenges that prevent consumers from running up-to-date anti-virus software today, particularly in emerging markets where there is a growing prevalence of malware."
Security Essentials is designed to run behind the scenes, defending machines against infection by malicious computer codes.
The real-time nature of the software means it is automatically kept up-to-date regarding viruses.
Computer security specialty firm Symantec downplayed the Microsoft offering, saying it is lightweight and isn't tuned for new forms of attack being used by hackers.
Symantec referred to Security Essentials as a stripped-down version of an old Microsoft OneCare product that got poor ratings.
"From a security perspective, this Microsoft tool offers reduced defenses at a critical point in the battle against cyber crime," Symantec said of the free offering that competes with Norton products sold by the firm.
"Unique malware and social engineering tricks fly under the radar of traditional signature-based technology alone -- which is what is employed by free security tools such as Microsoft's," it said.
Agencies
Friday, August 28, 2009
Indian firms to shift to Cloud services, says IDC report
Around 40 percent of Indian enterprises are considering the adoption of cloud services to save costs and compete in the challenging market environment reveals, an IDC report. Currently only five percent of the Indian enterprises have adopted cloud technology. "The main reason in India that is driving the interest towards cloud technologies, is its cost-cutting potential," says Surajit Sen, Director Channels, Marketing and Alliances at NetApp India, a storage and data management solutions provider.
Looking at the growing demand for cloud computing, NetApp has unveiled certain enhancements to its storage line. The company is particularly bullish on the Indian market, which is showing more interest to adopt cloud technologies.
"As the technologies supporting cloud computing have improved, the adoption is also set to grow now," said Alok Bardiya, Vice President, Managed Services and Marketing at Tata Communications, which is a cloud computing service provider in India. NetApp is the technology partner for Tata Communications, which has over a million square feet of datacenters around the globe including six datacenters in India.
NetApp unveiled the latest version of its Data ONTAP cloud platform called Data ONTAP 8. According to Sen, the Data ONTAP 8 is a combination of the earlier platforms Data ONTAP 7G and Data ONTAP GX. With this product offering, the company aims to increase the demand for cloud technologies in markets like India.
The Data ONTAP 8 comes with enhancements such as a new technology for seamlessly moving complete data volumes across multiple storage systems called Data Motion. Other enhancements include a new version of its add-on modules for increasing storage performance, an improved end to end multi-tenancy for better security and a new high-density capacity expansion device for its storage appliances.
Agencies
Looking at the growing demand for cloud computing, NetApp has unveiled certain enhancements to its storage line. The company is particularly bullish on the Indian market, which is showing more interest to adopt cloud technologies.
"As the technologies supporting cloud computing have improved, the adoption is also set to grow now," said Alok Bardiya, Vice President, Managed Services and Marketing at Tata Communications, which is a cloud computing service provider in India. NetApp is the technology partner for Tata Communications, which has over a million square feet of datacenters around the globe including six datacenters in India.
NetApp unveiled the latest version of its Data ONTAP cloud platform called Data ONTAP 8. According to Sen, the Data ONTAP 8 is a combination of the earlier platforms Data ONTAP 7G and Data ONTAP GX. With this product offering, the company aims to increase the demand for cloud technologies in markets like India.
The Data ONTAP 8 comes with enhancements such as a new technology for seamlessly moving complete data volumes across multiple storage systems called Data Motion. Other enhancements include a new version of its add-on modules for increasing storage performance, an improved end to end multi-tenancy for better security and a new high-density capacity expansion device for its storage appliances.
Agencies
Saturday, June 13, 2009
Has HP retained No 1 position in the Indian PC market?
Hewlett-Packard (HP) improved its market share in the first quarter to continue its lead in the India PC personal computer (PC) space, according to technology research firm IDC.
HP captured 18.2% of the India PC market in terms of unit shipments in the January-March period, an IDC India report said. The PC maker had a 15.6% share in the previous (October-December) quarter. HP has been numero uno in the India PC market consistently every quarter over the past four years. With a market share of 9.8% in overall PC shipments, HCL Infosystems regained the second spot, after losing out to Dell in the October-December quarter. Dell slipped back to the third spot with a share of 9.7% in the first quarter this year, IDC said in a release.
The India PC market witnessed a 7% quarter-on-quarter growth in shipments in Q1 of 2009. A total of 16.79 lakh units of desktops and laptops were shipped during the January-March quarter of 2009.
Desktop PC shipments of 12.13 lakh registered a sequential growth of 9%, while laptop shipments of 4.66 lakh units grew 3% QoQ.
The research firm said the market share, over the next two quarters, would depend on how well PC vendors capitalise on opportunities in the consumer, education and government segments in India.
In Q1 2009, fourth-placed Acer’s market share dipped marginally to 7.3%. Fifth-ranked Lenovo showed a more pronounced drop — its share came down to 4.7% in Q1 2009 from 6.6% in the previous quarter.
“Moving forward, hardware in general, and PC shipments in particular, will continue to remain under pressure. Winners would gain market share and improve profitability through the right price/volume mix and optimal exploitation of supply chain efficiencies,” IDC India country manager Kapil Dev Singh said.
Economictimes
HP captured 18.2% of the India PC market in terms of unit shipments in the January-March period, an IDC India report said. The PC maker had a 15.6% share in the previous (October-December) quarter. HP has been numero uno in the India PC market consistently every quarter over the past four years. With a market share of 9.8% in overall PC shipments, HCL Infosystems regained the second spot, after losing out to Dell in the October-December quarter. Dell slipped back to the third spot with a share of 9.7% in the first quarter this year, IDC said in a release.
The India PC market witnessed a 7% quarter-on-quarter growth in shipments in Q1 of 2009. A total of 16.79 lakh units of desktops and laptops were shipped during the January-March quarter of 2009.
Desktop PC shipments of 12.13 lakh registered a sequential growth of 9%, while laptop shipments of 4.66 lakh units grew 3% QoQ.
The research firm said the market share, over the next two quarters, would depend on how well PC vendors capitalise on opportunities in the consumer, education and government segments in India.
In Q1 2009, fourth-placed Acer’s market share dipped marginally to 7.3%. Fifth-ranked Lenovo showed a more pronounced drop — its share came down to 4.7% in Q1 2009 from 6.6% in the previous quarter.
“Moving forward, hardware in general, and PC shipments in particular, will continue to remain under pressure. Winners would gain market share and improve profitability through the right price/volume mix and optimal exploitation of supply chain efficiencies,” IDC India country manager Kapil Dev Singh said.
Economictimes
Monday, May 11, 2009
Do Indian IT firms vie for $11.4-billion domestic market?
With the IT clients in the U.S., Europe and Japan tightening their purse strings, Indian IT companies are scrambling to raise their share of the Indian software and IT services market, which industry body Nasscom values at around Rs 57,200 crore ($11.4 billion), reported Mint.
Mumbai-based TCS and Bangalore-based Infosys, India's largest and second largest IT service exporters, respectively, have set themselves the target of earning $1 billion, or around Rs.5,000 crore, in revenue from the domestic market in the next three to four years. Wipro wants to raise its India focus, as does mid-sized firm MindTree. In March, Employees' State Insurance Corporation, a government of India agency that provides health insurance to 10 million workers, had awarded a Rs.1,182 crore information-technology (IT) project to Wipro, which outbid other biggies like Infosys and Wipro to clinch this deal.
Adding allure to the domestic market is the plans by the sectors like government, energy and utilities, telecom, banking and finance to step up their IT spending. Customers in the US and Europe have traditionally made up as much as 80% of revenue earned by Indian exporters of software and related services.
A late 2008 report by research firm Gartner says that the Indian IT software and services segment, excluding business process outsourcing, is expected to grow at an annual pace of almost 20 percent to touch $13.2 billion by 2012.
TCS earns around $500 million (Rs2,500 crore), or nearly 8 percent of its total revenue, from Indian clients. "We have a base of key clients and solutions portfolio. We have made investments and have people, business and clients. We will accelerate all of this," a TCS spokesperson said.
However, the worry at TCS is that "India, like other emerging markets, is volatile and most business is project-based and not annuity based and hence there is a certain element of uncertainty," the spokesperson added.
Meanwhile, Infosys earns less than 2 percent of its revenue (or less than Rs400 crore) from the domestic market. "The market is very large, and has matured over a period of time," said Binod HR, head of the India business unit of Infosys. He said a "big challenge" is that Indian customers are very price-sensitive.
Wipro is one of the largest system integrators in India and, according to Springboard Research, has the second largest share of the domestic market after IBM.
P.K. Gopalkrishnan, Senior Vice-President and India business head IT services of Bangalore-based MindTree said the company earns up to 5 percent of its revenue from India and aims to double it by 2014.
Increasing the domestic market share would, however, not be easy. It entails competing with global technology firms such as IBM which, according to a late 2008 report by research firm IDC, commands a 10 percent share of the Indian market. IBM is the market leader and earns revenue of around Rs 5,700 crore from the Indian market.
Agencies
Mumbai-based TCS and Bangalore-based Infosys, India's largest and second largest IT service exporters, respectively, have set themselves the target of earning $1 billion, or around Rs.5,000 crore, in revenue from the domestic market in the next three to four years. Wipro wants to raise its India focus, as does mid-sized firm MindTree. In March, Employees' State Insurance Corporation, a government of India agency that provides health insurance to 10 million workers, had awarded a Rs.1,182 crore information-technology (IT) project to Wipro, which outbid other biggies like Infosys and Wipro to clinch this deal.
Adding allure to the domestic market is the plans by the sectors like government, energy and utilities, telecom, banking and finance to step up their IT spending. Customers in the US and Europe have traditionally made up as much as 80% of revenue earned by Indian exporters of software and related services.
A late 2008 report by research firm Gartner says that the Indian IT software and services segment, excluding business process outsourcing, is expected to grow at an annual pace of almost 20 percent to touch $13.2 billion by 2012.
TCS earns around $500 million (Rs2,500 crore), or nearly 8 percent of its total revenue, from Indian clients. "We have a base of key clients and solutions portfolio. We have made investments and have people, business and clients. We will accelerate all of this," a TCS spokesperson said.
However, the worry at TCS is that "India, like other emerging markets, is volatile and most business is project-based and not annuity based and hence there is a certain element of uncertainty," the spokesperson added.
Meanwhile, Infosys earns less than 2 percent of its revenue (or less than Rs400 crore) from the domestic market. "The market is very large, and has matured over a period of time," said Binod HR, head of the India business unit of Infosys. He said a "big challenge" is that Indian customers are very price-sensitive.
Wipro is one of the largest system integrators in India and, according to Springboard Research, has the second largest share of the domestic market after IBM.
P.K. Gopalkrishnan, Senior Vice-President and India business head IT services of Bangalore-based MindTree said the company earns up to 5 percent of its revenue from India and aims to double it by 2014.
Increasing the domestic market share would, however, not be easy. It entails competing with global technology firms such as IBM which, according to a late 2008 report by research firm IDC, commands a 10 percent share of the Indian market. IBM is the market leader and earns revenue of around Rs 5,700 crore from the Indian market.
Agencies
Monday, April 27, 2009
A new class of PC Netbooks 2.0 on the way
A new class of cheaper, smaller netbook computers might upset the IT establishment this year and potentially usher in new players in a hotly competitive market.
The biggest change in the new pint-sized laptops is what they won't have: Intel Corp chips or a Microsoft Corp Windows PC operating system, which dominate netbooks today.
The new netbooks, which use less energy, will run on the low-power ARM processor platform now used in nine out of 10 mobile phones, rather than Intel's x86-based Atom chip. The UK-based ARM Holdings Plc licenses the chip technology.
As many as 10 ARM-based netbook models could hit the market this year, according to ARM, which declined to identify specific manufacturers. Major PC players and Asian contract manufacturers alike are interested, analysts say.
Enderle Group analyst Rob Enderle called the new netbooks "incredibly disruptive," saying: "This is a market that puts the existing PC structure at risk."
While analysts say it's not yet clear if consumers will embrace the ARM devices, interest has been galvanized by the emphasis on power efficiency, prices as low as $200 and the promise of anywhere, anytime computing on PCs small enough to slip into a purse.
What's sacrificed is users' familiarity with PC-based interfaces and systems and sheer processing power. The current $300-$400 Atom netbooks are already mainly good for just surfing the Web and less graphics-intensive applications.
"We're right in the middle of a huge shift in the market," said Eric Openshaw, U.S. technology leader for Deloitte LLP.
Openshaw said non-Windows netbooks will need to demonstrate a simple and accessible user interface at the application level if they hope to gain traction with consumers.
Windows XP can't run on ARM, so the new netbooks will have Linux-based software, including, analysts and industry executives say, Google Inc Android, which has been used so far in smartphones.
But don't count Microsoft out just yet. Although the software giant declined to comment when asked if it is planning an operating system for the new netbooks, analysts say it could easily enter the market if it chose.
Intel pointed out there are as yet no ARM netbooks on the market and that its Atom chip has a full year's head start.
"We're not slowing down, we fully expect competition and we continue to believe that Atom is the right choice for our customers and consumer," said spokesman Bill Calder.
NEXT WAVE
The still-evolving netbook market is growing thick with players from all over the tech sector. Wireless carriers such as AT&T Inc are helping lead the charge, while graphics chipmaker Nvidia Corp, wireless chipmaker Qualcomm Inc and Freescale Semiconductor Inc have all designed ARM-based processors that can be used in netbooks.
The netbook phenomenon took off in 2008 to the tune of 11.7 million units, led by companies such as Acer Inc and Asustek Computer Inc that were quick into the market. Nearly every PC vendor offers an Intel Atom-based netbook, including Hewlett-Packard Co and Dell Inc.
Analysts forecast 20 million to 30 million netbooks will be sold this year, making up an ever larger part of overall laptop sales and marking one of few tech sectors still experiencing robust revenue growth.
"It's definitely going to be a different sort of device than today's netbooks," said Phil Solis of ABI Research, who expects ARM netbooks to make up 15 percent of the overall netbook market in 2010.
IDC analyst Richard Shim said the first wave of netbooks brought a PC feel to bridge the gap between laptops and smartphones. ARM netbooks, he said, represent a push from the opposite direction.
"The smartphones are now moving up," he added.
It is widely expected that the Computex trade fair in Taiwan in June will see a number of announcements about ARM-based netbooks. With less expensive ARM chips and free or very cheap operating systems, the netbooks could sell for even less than $200 if, as expected, wireless carriers subsidize purchases bundled with a data plan.
Tech blogs were recently buzzing about a prototype netbook built by Taiwan contract laptop maker Wistron Corp shown at the recent CTIA show in Las Vegas. The device was based on Qualcomm's ARM-based Snapdragon platform.
Agencies
Netbooks 2.0, PC,cheaper, smaller,computers,IT,laptops,Intel,Microsoft,ARM,analysts,technology,Nvidia, Qualcomm,Freescale,Asustek,HP, Dell,IDC,
The biggest change in the new pint-sized laptops is what they won't have: Intel Corp chips or a Microsoft Corp Windows PC operating system, which dominate netbooks today.
The new netbooks, which use less energy, will run on the low-power ARM processor platform now used in nine out of 10 mobile phones, rather than Intel's x86-based Atom chip. The UK-based ARM Holdings Plc licenses the chip technology.
As many as 10 ARM-based netbook models could hit the market this year, according to ARM, which declined to identify specific manufacturers. Major PC players and Asian contract manufacturers alike are interested, analysts say.
Enderle Group analyst Rob Enderle called the new netbooks "incredibly disruptive," saying: "This is a market that puts the existing PC structure at risk."
While analysts say it's not yet clear if consumers will embrace the ARM devices, interest has been galvanized by the emphasis on power efficiency, prices as low as $200 and the promise of anywhere, anytime computing on PCs small enough to slip into a purse.
What's sacrificed is users' familiarity with PC-based interfaces and systems and sheer processing power. The current $300-$400 Atom netbooks are already mainly good for just surfing the Web and less graphics-intensive applications.
"We're right in the middle of a huge shift in the market," said Eric Openshaw, U.S. technology leader for Deloitte LLP.
Openshaw said non-Windows netbooks will need to demonstrate a simple and accessible user interface at the application level if they hope to gain traction with consumers.
Windows XP can't run on ARM, so the new netbooks will have Linux-based software, including, analysts and industry executives say, Google Inc Android, which has been used so far in smartphones.
But don't count Microsoft out just yet. Although the software giant declined to comment when asked if it is planning an operating system for the new netbooks, analysts say it could easily enter the market if it chose.
Intel pointed out there are as yet no ARM netbooks on the market and that its Atom chip has a full year's head start.
"We're not slowing down, we fully expect competition and we continue to believe that Atom is the right choice for our customers and consumer," said spokesman Bill Calder.
NEXT WAVE
The still-evolving netbook market is growing thick with players from all over the tech sector. Wireless carriers such as AT&T Inc are helping lead the charge, while graphics chipmaker Nvidia Corp, wireless chipmaker Qualcomm Inc and Freescale Semiconductor Inc have all designed ARM-based processors that can be used in netbooks.
The netbook phenomenon took off in 2008 to the tune of 11.7 million units, led by companies such as Acer Inc and Asustek Computer Inc that were quick into the market. Nearly every PC vendor offers an Intel Atom-based netbook, including Hewlett-Packard Co and Dell Inc.
Analysts forecast 20 million to 30 million netbooks will be sold this year, making up an ever larger part of overall laptop sales and marking one of few tech sectors still experiencing robust revenue growth.
"It's definitely going to be a different sort of device than today's netbooks," said Phil Solis of ABI Research, who expects ARM netbooks to make up 15 percent of the overall netbook market in 2010.
IDC analyst Richard Shim said the first wave of netbooks brought a PC feel to bridge the gap between laptops and smartphones. ARM netbooks, he said, represent a push from the opposite direction.
"The smartphones are now moving up," he added.
It is widely expected that the Computex trade fair in Taiwan in June will see a number of announcements about ARM-based netbooks. With less expensive ARM chips and free or very cheap operating systems, the netbooks could sell for even less than $200 if, as expected, wireless carriers subsidize purchases bundled with a data plan.
Tech blogs were recently buzzing about a prototype netbook built by Taiwan contract laptop maker Wistron Corp shown at the recent CTIA show in Las Vegas. The device was based on Qualcomm's ARM-based Snapdragon platform.
Agencies
Netbooks 2.0, PC,cheaper, smaller,computers,IT,laptops,Intel,Microsoft,ARM,analysts,technology,Nvidia, Qualcomm,Freescale,Asustek,HP, Dell,IDC,
Tuesday, April 21, 2009
Is HP top PC maker in US?
Global shipments of personal computers fell 7.1 percent in the first three months of the year, but the decline was smaller than expected and research group IDC on Wednesday said the industry could turn around by the end of the year.
A second research group, Gartner Inc, calculated first-quarter PC shipments fell 6.5 percent from the same period in 2008. The two groups use different methods to track PC shipments.
IDC had predicted worldwide shipments would fall 8.2 percent in the quarter. The US market was also much stronger than IDC forecast, with PC shipments falling 3.1 percent from a year ago, compared with an expected 8.9 percent drop. By Gartner's count, US shipments dipped less than one percent.
"Based on the U..being the center of the financial crisis, and looking at trends of last recession, we were concerned that demand and growth would continue to decline," said Loren Loverde, an IDC program director.
Instead, the US PC market, which took a beating in the fourth quarter, benefited from intense price competition among PC makers as well as the growing demand for netbooks, or small, cheap, low-powered laptops.
Both groups reported that Hewlett-Packard Co used the trend to overtake Dell Inc as the top PC maker in the US HP's lower prices and more established brand among shoppers helped push its market share to 27.6 percent. Dell's share fell to 26.3 percent as it struggled to reorganize its consumer business, according to IDC.
Taiwan's Acer Inc, the No 3 PC maker in the US and a force in the netbook market, snagged 10.5 percent of the market. Apple Inc's share edged up to 7.6 percent, and Japan-based Toshiba Corp, the fifth-largest, took 6.6 percent.
Worldwide, HP's market share crept up to 20.5 percent while Dell's slipped a few points to 13.6 percent, IDC reported. HP's shipments rose 2.9 percent as Dell's plunged 16.7 percent.
No 3 Acer captured 11.6 percent of PC shipments worldwide. China's Lenovo Group's share was flat at 7 percent, and Toshiba's share edged up to 5.4 percent.
Chipmaker Intel Corp. on Tuesday said personal computer sales "bottomed out" in the first quarter. Neither IDC nor Gartner wanted to match Intel's bold assessment, but IDC took a more optimistic stance.
"I don't think Intel's comment was meant to say we're going to come roaring back next quarter," Loverde said. "It's likely we won't see growth deteriorate from here."
Before the release of Wednesday's numbers, IDC had forecast an 8.4 percent decline in the second quarter and a 4.5 percent drop in the third before seeing growth in the fourth quarter.
George Shiffler, research director at Gartner, said in a statement that retailers may be restocking inventory, but "this restocking should not be interpreted as a recovery in PC end-user demand. It's still unclear if the global PC market has hit the bottom."
Agencies
A second research group, Gartner Inc, calculated first-quarter PC shipments fell 6.5 percent from the same period in 2008. The two groups use different methods to track PC shipments.
IDC had predicted worldwide shipments would fall 8.2 percent in the quarter. The US market was also much stronger than IDC forecast, with PC shipments falling 3.1 percent from a year ago, compared with an expected 8.9 percent drop. By Gartner's count, US shipments dipped less than one percent.
"Based on the U..being the center of the financial crisis, and looking at trends of last recession, we were concerned that demand and growth would continue to decline," said Loren Loverde, an IDC program director.
Instead, the US PC market, which took a beating in the fourth quarter, benefited from intense price competition among PC makers as well as the growing demand for netbooks, or small, cheap, low-powered laptops.
Both groups reported that Hewlett-Packard Co used the trend to overtake Dell Inc as the top PC maker in the US HP's lower prices and more established brand among shoppers helped push its market share to 27.6 percent. Dell's share fell to 26.3 percent as it struggled to reorganize its consumer business, according to IDC.
Taiwan's Acer Inc, the No 3 PC maker in the US and a force in the netbook market, snagged 10.5 percent of the market. Apple Inc's share edged up to 7.6 percent, and Japan-based Toshiba Corp, the fifth-largest, took 6.6 percent.
Worldwide, HP's market share crept up to 20.5 percent while Dell's slipped a few points to 13.6 percent, IDC reported. HP's shipments rose 2.9 percent as Dell's plunged 16.7 percent.
No 3 Acer captured 11.6 percent of PC shipments worldwide. China's Lenovo Group's share was flat at 7 percent, and Toshiba's share edged up to 5.4 percent.
Chipmaker Intel Corp. on Tuesday said personal computer sales "bottomed out" in the first quarter. Neither IDC nor Gartner wanted to match Intel's bold assessment, but IDC took a more optimistic stance.
"I don't think Intel's comment was meant to say we're going to come roaring back next quarter," Loverde said. "It's likely we won't see growth deteriorate from here."
Before the release of Wednesday's numbers, IDC had forecast an 8.4 percent decline in the second quarter and a 4.5 percent drop in the third before seeing growth in the fourth quarter.
George Shiffler, research director at Gartner, said in a statement that retailers may be restocking inventory, but "this restocking should not be interpreted as a recovery in PC end-user demand. It's still unclear if the global PC market has hit the bottom."
Agencies
Wednesday, March 11, 2009
What is hot in the memory chip sector?
Taiwan is setting up a new company to pull together six struggling computer memory chip makers and bring in technology from Japan's Elpida or US-based Micron in a sector suffering from its worst ever slump.
The government expects the move to fend off the industry's dominant players, Samsung Electronics and Hynix Semiconductor of South Korea.
Following are answers to key questions about the market for DRAM or dynamic random access memory:
What does this mean for the global industry?
The consolidation led by Taiwan will leave the $25 billion sector with four major DRAM makers globally -- Samsung, Hynix, "Taiwan Memory Co" and one other company that would be left out of the Taiwan consolidation (either Micron or Elpida).
The reshaped landscape might help Taiwanese suppliers -- which make nearly a quarter of all the world's DRAM memory chips -- to get a stronger grip on output, especially after companies recklessly built up output in the last many years. Elpida may need funds before the Taiwan plan can be implemented.
What is the outlook for Taiwanese chipmakers?
There's likely to be no impact in the short term because it will take about six months to set up the new company, while chipmakers, including ProMOS and Powerchip are still strapped for funds.
The government did not give any specifics on how the new company can bring local DRAM makers together, but any de-listing of a company in such a consolidation could face opposition from shareholders.
In the long term, some analysts say this move might force some of the debt-ridden chipmakers to consolidate their capacity into the new company. Taiwan Memory Co could become a centralised foundry and DRAM makers would diversify into sales and marketing.
The six chipmakers to be involved in the plan are: Powerchip, Nanya Technology, ProMOS, Inotera Memories -- joint venture between Nanya and Micron -- and Rexchip, unlisted joint venture between Powerchip and Elpida.
Is this a chance or threat for Samsung, Hynix?
Benefiting from more advanced production technologies, Korean makers such as Samsung and Hynix could further tighten their grip on the industry, while Taiwan Memory struggles to slowly integrate several companies and technologies into one entity.
Taiwan Memory could end up becoming a formidable threat to No. 2 Hynix, which may have to seek more funding for technology investments. Still, analysts say whether Taiwan's government can inject more funds into Taiwan Memory remains a question.
What is the outlook for DRAM prices?
Even after the government's move, any significant recovery in memory chip prices is unlikely in the short term. So far this year, memory chip prices have been flat but slumped about 50 per cent in the fourth quarter of last year as a global economic slowdown hurt spending on personal computers and other gadgets that use memory chips to store data.
Analysts' forecasts for global PC shipments in 2009 vary, but many expect sales to fall. Research firm IDC expects PC shipments to drop 4.5 per cent this year.
Agencies
The government expects the move to fend off the industry's dominant players, Samsung Electronics and Hynix Semiconductor of South Korea.
Following are answers to key questions about the market for DRAM or dynamic random access memory:
What does this mean for the global industry?
The consolidation led by Taiwan will leave the $25 billion sector with four major DRAM makers globally -- Samsung, Hynix, "Taiwan Memory Co" and one other company that would be left out of the Taiwan consolidation (either Micron or Elpida).
The reshaped landscape might help Taiwanese suppliers -- which make nearly a quarter of all the world's DRAM memory chips -- to get a stronger grip on output, especially after companies recklessly built up output in the last many years. Elpida may need funds before the Taiwan plan can be implemented.
What is the outlook for Taiwanese chipmakers?
There's likely to be no impact in the short term because it will take about six months to set up the new company, while chipmakers, including ProMOS and Powerchip are still strapped for funds.
The government did not give any specifics on how the new company can bring local DRAM makers together, but any de-listing of a company in such a consolidation could face opposition from shareholders.
In the long term, some analysts say this move might force some of the debt-ridden chipmakers to consolidate their capacity into the new company. Taiwan Memory Co could become a centralised foundry and DRAM makers would diversify into sales and marketing.
The six chipmakers to be involved in the plan are: Powerchip, Nanya Technology, ProMOS, Inotera Memories -- joint venture between Nanya and Micron -- and Rexchip, unlisted joint venture between Powerchip and Elpida.
Is this a chance or threat for Samsung, Hynix?
Benefiting from more advanced production technologies, Korean makers such as Samsung and Hynix could further tighten their grip on the industry, while Taiwan Memory struggles to slowly integrate several companies and technologies into one entity.
Taiwan Memory could end up becoming a formidable threat to No. 2 Hynix, which may have to seek more funding for technology investments. Still, analysts say whether Taiwan's government can inject more funds into Taiwan Memory remains a question.
What is the outlook for DRAM prices?
Even after the government's move, any significant recovery in memory chip prices is unlikely in the short term. So far this year, memory chip prices have been flat but slumped about 50 per cent in the fourth quarter of last year as a global economic slowdown hurt spending on personal computers and other gadgets that use memory chips to store data.
Analysts' forecasts for global PC shipments in 2009 vary, but many expect sales to fall. Research firm IDC expects PC shipments to drop 4.5 per cent this year.
Agencies
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.
Monday, January 19, 2009
Computer sales across Asia drop
Sales of computers in the Asia Pacific region outside Japan fell for the first time in a decade during the fourth quarter, as the global meltdown hit consumer spending, a study said on Monday.
Preliminary figures showed 17.2 million desktop computers and laptops were sold in the December quarter, down 14 per cent from the previous quarter and 5 per cent lower than a year ago, global market intelligence firm IDC said.
The figures marked the first year-on-year decline since the third quarter of 1998 when the region was grappling with the Asian financial crisis, it added.
"This quarter was quite a jaw-dropper" not just in China but also in India, said Bryan Ma, regional director for personal systems research with IDC.
"The clouds are darkening in 2009, although there might be some pockets of shelter in the region's public sector."
For 2008, struggling Chinese computer giant Lenovo was the region's number one vendor with market share of 18.3 percent, followed by US rival Hewlett Packard which had 14.1 per cent, and Dell at 9.1 per cent, IDC said.
Taiwanese computer firm Acer was fourth with market share of 7.5 per cent and China's Founder ranked fifth, with 4.0 per cent.
Agencies
Preliminary figures showed 17.2 million desktop computers and laptops were sold in the December quarter, down 14 per cent from the previous quarter and 5 per cent lower than a year ago, global market intelligence firm IDC said.
The figures marked the first year-on-year decline since the third quarter of 1998 when the region was grappling with the Asian financial crisis, it added.
"This quarter was quite a jaw-dropper" not just in China but also in India, said Bryan Ma, regional director for personal systems research with IDC.
"The clouds are darkening in 2009, although there might be some pockets of shelter in the region's public sector."
For 2008, struggling Chinese computer giant Lenovo was the region's number one vendor with market share of 18.3 percent, followed by US rival Hewlett Packard which had 14.1 per cent, and Dell at 9.1 per cent, IDC said.
Taiwanese computer firm Acer was fourth with market share of 7.5 per cent and China's Founder ranked fifth, with 4.0 per cent.
Agencies
Thursday, January 1, 2009
IT sector likely to grow 31.4 percent in '09
The domestic IT- ITeS market is likely to grow 13.4% in 2009, the slowest since 2003, as per market research firm IDC India. The market which includes hardware, software and services, grew 17.3% in 2008 to generate revenue worth Rs 1,01,031 crore.
India is likely to witness a slower growth in the coming five years, IDC said. The domestic IT-ITeS market is expected to record an average growth rate of 16.4% in 2009-13, against 24.3% during 2003-08. The slower growth will see enhanced competition, leading to a change in strategy and continuous market re-alignment on the part of players, it said.
"The issues in the short run, more pronounced throughout 2009, will be productivity, cost savings and customer retention. This would eventually pave way for innovative services by leveraging the existing infrastructure and aligning it with emerging opportunities," IDC India country manager Kapil Dev Singh.
The research firm said global IT-ITeS market is expected to grow only 2.6% in 2009, against 5% in 2008 and much slower than 7% in 2007. Despite a lower growth rate, India will continue to be the fastest-growing IT market in Asia Pacific, followed by China, Vietnam, Thailand and Philippines.
In the domestic market, the product categories expected to grow faster than the average include collaborative applications, storage software, system and network management software. Within IT services, segments likely to outgrow the average include desktop management, information systems outsourcing, network management and application management. Solutions such as virtualisation, unified communications and business continuity services will also grow faster on account of enterprises' focus on cost savings.
Among emerging technologies, cloud computing services such as software as a service (SaaS) will be tested and adopted on a larger scale and will perform even better than in 2008. IDC said the economic slowdown will further increase and accelerate the adoption of outsourcing services by the Indian enterprises, while consumer spending on IT will moderate. There will also be increased consolidation among outsourcing vendors.
Source: Economic Times
India is likely to witness a slower growth in the coming five years, IDC said. The domestic IT-ITeS market is expected to record an average growth rate of 16.4% in 2009-13, against 24.3% during 2003-08. The slower growth will see enhanced competition, leading to a change in strategy and continuous market re-alignment on the part of players, it said.
"The issues in the short run, more pronounced throughout 2009, will be productivity, cost savings and customer retention. This would eventually pave way for innovative services by leveraging the existing infrastructure and aligning it with emerging opportunities," IDC India country manager Kapil Dev Singh.
The research firm said global IT-ITeS market is expected to grow only 2.6% in 2009, against 5% in 2008 and much slower than 7% in 2007. Despite a lower growth rate, India will continue to be the fastest-growing IT market in Asia Pacific, followed by China, Vietnam, Thailand and Philippines.
In the domestic market, the product categories expected to grow faster than the average include collaborative applications, storage software, system and network management software. Within IT services, segments likely to outgrow the average include desktop management, information systems outsourcing, network management and application management. Solutions such as virtualisation, unified communications and business continuity services will also grow faster on account of enterprises' focus on cost savings.
Among emerging technologies, cloud computing services such as software as a service (SaaS) will be tested and adopted on a larger scale and will perform even better than in 2008. IDC said the economic slowdown will further increase and accelerate the adoption of outsourcing services by the Indian enterprises, while consumer spending on IT will moderate. There will also be increased consolidation among outsourcing vendors.
Source: Economic Times
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.
Saturday, December 6, 2008
Will the slowdown benefit BPO industry?
Indian industry will feel the real impact of the current meltdown in the US and other developed economies in the first quarter of 2009, with the business process industry likely to see job losses of up to a quarter of a million, said Samir Chopra, President, Business Process Industry Association of India (BPIAI).
Addressing delegates at a session on 'Surviving US Recession- Developing & Transforming Policies', Chopra, however, saw a silver lining in the ongoing recession for the BPO sector, saying that it would compel more companies in the US and Europe to look at outsourcing as a way cut their costs and improve efficiencies.
He said that urgent government measures were needed to boost the domestic business process industry, specially the medium and small enterprises. These included both fiscal and administrative measures, like extending the tax relief for the IT sector for another 5-10 years and export promotion steps, including a market development fund. The session was organised here today by BPIAI in association with Confederation of Indian Industry (CII).
According to him, the current situation had been impacted further by the recent terrorist carnage in Mumbai, which had hit sentiments across the board. "It has led to widespread cancellations of visit and even forthcoming international events. The government must now take suitable remedial steps to boost homeland security and the emergency response system."
For Anand Pillai, the current meltdown was an opportunity for the Indian BPO sector to add value to its services. This, he said, was important if they were to retain and expand their client base. Taking an optimistic view of the current slowdown, he said that a positive response and attitude would help shorten the recession cycle. "For this, it was important workplaces should engender learning, preparing employees for the turnaround, when it happens.
Citing the example of his company, HCL Technologies Ltd, Pillai said that "the core asset in any IT industry were its staff and cost-cutting through retrenchments was not the right policy to follow. The savings resulting from such job cuts are miniscule when compared to the damage they cause in terms of employee satisfaction and service delivery."
Disagreeing with Chopra that the current slowdown was temporary, Praveen Sengar, Head-Software, Services & Industry (Vertical Reserach), IDC India Ltd, said recovery from the last slowdown in 2001 had taken six quarters when the sectors affected were much less. "This time, I see a recovery only around the first half or the third quarter of 2010."
According to Sengar, the current slowdown was likely to slowdown expansion in the BPO industry, with the time taken for signing up new clients taking a longer period of time. "It will also result in greater consolidation and promote diversification into areas hitherto considered as non-core activities."
On his part, S N Zindal, former Director-General, Software Technology Parks of India, said that "it was not true that the Indian IT industry was in recession, though he agreed that there could be substantial decline in its growth rate. This is a period when the Indian IT industry, specially the BPO units, should build on their advantage by improving manpower, developing suitable infrastructure and having the right government policies in place."
Agreeing that the SMEs were the most vulnerable to any downturn, Zindal said that the right policies could help such units move up the value chain. He said that even as the slowdown continued in the US and other developed countries; such units could help tide over the crisis by expanding the domestic market.
Emphasizing the need for more reforms, Kiron Prabhakar, Partner, PAV Law Offices, said that amendments had been proposed several times to the Information Technology Act 2000, "but these are yet to see the light of the day". According to her, the other areas needing reform were Incomes Tax Act and the Stamp Duty Act apart from changes in the immigration laws.
Prabhakar also advocated doing away with the cap on royalty and knowhow fees, saying that were impeding technology transfer to Indian companies.Industry has been seeking a change in the labour regulations for quite some time and the government must ensure that these promote outsourcing, she added.
Proposing the vote of thanks, Deepak Ohlyan, Managing Committee Member, BPIAI, and Director, Dell International Services BPO, said that the recent terrorist incidents in Mumbai were a matter of great concern to Indian industry. He said that it was time for the domestic BPO industry to consolidate on its recent growth and prepare for the turnaround by upgrading both staff and services.
A panel discussion on the impact of the recent terrorist attacks on the business process industry was also organized on occasion, with participants seeking stronger government action and greater political will to tackle the situation.
Some participants in the discussion like Col K C Goswami, Consultant, Special Projects, G4S Security Services; Sanjog Gupta of NDTV, and Arjun Wallia, Founder & Chairman, Managing Director, Walsons -- A Securitas Partner Company, felt that the attacks were a wake-up call for the Indian industry to take immediate steps to improve physical security of their establishments. There was no time for complacency, they added.
Other speakers like Srinivas Pingali, EVP, Quatrro BPO Solutions Pvt Ltd, said that the BPO industry had been directly impacted by the attacks and "any such attack in the future could severely dent the prospects of the domestic industry. The immediate business impact has also been minimized by the forthcoming Christmas and New Year holidays."
Responding to a suggestion, Chopra agreed on the need for the association to come out with its own security standards for the BPO sector. This, he said, would reassure potential overseas investors and clients, even as they would enable domestic companies to be prepared for ongoing security audits and checks.
Source: Times of India
Addressing delegates at a session on 'Surviving US Recession- Developing & Transforming Policies', Chopra, however, saw a silver lining in the ongoing recession for the BPO sector, saying that it would compel more companies in the US and Europe to look at outsourcing as a way cut their costs and improve efficiencies.
He said that urgent government measures were needed to boost the domestic business process industry, specially the medium and small enterprises. These included both fiscal and administrative measures, like extending the tax relief for the IT sector for another 5-10 years and export promotion steps, including a market development fund. The session was organised here today by BPIAI in association with Confederation of Indian Industry (CII).
According to him, the current situation had been impacted further by the recent terrorist carnage in Mumbai, which had hit sentiments across the board. "It has led to widespread cancellations of visit and even forthcoming international events. The government must now take suitable remedial steps to boost homeland security and the emergency response system."
For Anand Pillai, the current meltdown was an opportunity for the Indian BPO sector to add value to its services. This, he said, was important if they were to retain and expand their client base. Taking an optimistic view of the current slowdown, he said that a positive response and attitude would help shorten the recession cycle. "For this, it was important workplaces should engender learning, preparing employees for the turnaround, when it happens.
Citing the example of his company, HCL Technologies Ltd, Pillai said that "the core asset in any IT industry were its staff and cost-cutting through retrenchments was not the right policy to follow. The savings resulting from such job cuts are miniscule when compared to the damage they cause in terms of employee satisfaction and service delivery."
Disagreeing with Chopra that the current slowdown was temporary, Praveen Sengar, Head-Software, Services & Industry (Vertical Reserach), IDC India Ltd, said recovery from the last slowdown in 2001 had taken six quarters when the sectors affected were much less. "This time, I see a recovery only around the first half or the third quarter of 2010."
According to Sengar, the current slowdown was likely to slowdown expansion in the BPO industry, with the time taken for signing up new clients taking a longer period of time. "It will also result in greater consolidation and promote diversification into areas hitherto considered as non-core activities."
On his part, S N Zindal, former Director-General, Software Technology Parks of India, said that "it was not true that the Indian IT industry was in recession, though he agreed that there could be substantial decline in its growth rate. This is a period when the Indian IT industry, specially the BPO units, should build on their advantage by improving manpower, developing suitable infrastructure and having the right government policies in place."
Agreeing that the SMEs were the most vulnerable to any downturn, Zindal said that the right policies could help such units move up the value chain. He said that even as the slowdown continued in the US and other developed countries; such units could help tide over the crisis by expanding the domestic market.
Emphasizing the need for more reforms, Kiron Prabhakar, Partner, PAV Law Offices, said that amendments had been proposed several times to the Information Technology Act 2000, "but these are yet to see the light of the day". According to her, the other areas needing reform were Incomes Tax Act and the Stamp Duty Act apart from changes in the immigration laws.
Prabhakar also advocated doing away with the cap on royalty and knowhow fees, saying that were impeding technology transfer to Indian companies.Industry has been seeking a change in the labour regulations for quite some time and the government must ensure that these promote outsourcing, she added.
Proposing the vote of thanks, Deepak Ohlyan, Managing Committee Member, BPIAI, and Director, Dell International Services BPO, said that the recent terrorist incidents in Mumbai were a matter of great concern to Indian industry. He said that it was time for the domestic BPO industry to consolidate on its recent growth and prepare for the turnaround by upgrading both staff and services.
A panel discussion on the impact of the recent terrorist attacks on the business process industry was also organized on occasion, with participants seeking stronger government action and greater political will to tackle the situation.
Some participants in the discussion like Col K C Goswami, Consultant, Special Projects, G4S Security Services; Sanjog Gupta of NDTV, and Arjun Wallia, Founder & Chairman, Managing Director, Walsons -- A Securitas Partner Company, felt that the attacks were a wake-up call for the Indian industry to take immediate steps to improve physical security of their establishments. There was no time for complacency, they added.
Other speakers like Srinivas Pingali, EVP, Quatrro BPO Solutions Pvt Ltd, said that the BPO industry had been directly impacted by the attacks and "any such attack in the future could severely dent the prospects of the domestic industry. The immediate business impact has also been minimized by the forthcoming Christmas and New Year holidays."
Responding to a suggestion, Chopra agreed on the need for the association to come out with its own security standards for the BPO sector. This, he said, would reassure potential overseas investors and clients, even as they would enable domestic companies to be prepared for ongoing security audits and checks.
Source: Times of India
Friday, December 5, 2008
Recession times, HP freezes on pay hike!
Hewlett-Packard, the world’s largest personal-computer maker, is freezing salaries as part of chief executive officer Mark Hurd’s efforts to contain costs, people familiar with the plan said.
Employees have been notified by e-mail that they won’t receive a salary increase in fiscal 2009, which began in November, according to two people who asked not be identified because the message was confidential. The only exceptions will be in countries where pay freezes are illegal, the two people said.
Hurd has cut jobs, closed offices and merged data centers to lift profit, even as he expands through acquisitions. Hewlett-Packard also is limiting travel, curtailing hiring and eliminating favorite science projects to save on research costs in 2009, chief financial officer Cathie Lesjak said last month on a conference call. Hewlett-Packard, which has 3,20,000 employees, declined to confirm the salary freeze.
In this difficult macroeconomic environment, we believe it is prudent and responsible to reduce costs where possible, said spokeswoman Emma McCulloch. HP has a longstanding and disciplined approach to managing costs in order to invest in the company’s growth.
Hurd, who became CEO in 2005, received $25.3 million in total compensation in fiscal 2007. Worldwide technology spending growth will slow to 2.6% next year, less than half the rate initially predicted, research firm IDC said last month. Growth in the US will decelerate to 0.9%, the Framingham, Massachusetts-based company estimated.
Hewlett-Packard’s PC sales, which account for about a third of revenue, rose 10% to $11.2 billion last quarter, beating some estimates. Demand for notebooks offset declining printer sales in a shrinking economy. Last month, Hurd forecast a rise in profit to as much as $4.03 a share this fiscal year, more than the $3.89 anticipated by analysts in a Bloomberg survey. Investors took that as a sign the company is prepared to squeeze more profit out of sales as customers reduce spending.
It will be a challenging environment and were planning on such, Hurd, 51, said on a November 23 conference call with reporters. We can only control the things we can control, which is our cost structure and the competitiveness of our products.
Also in India
A HP employee in Bangalore said that employees in India too had received a mail from the company saying there wouldn’t be any salary increase in fiscal 2009. Salary increases in India’s technology sector have been amongst the highest in the world in the past few years. If HP does not hike salaries in fiscal 2009, this would be the first time in many years that a major technology company in India would be avoiding a salary increment.
Source: Agencies
Employees have been notified by e-mail that they won’t receive a salary increase in fiscal 2009, which began in November, according to two people who asked not be identified because the message was confidential. The only exceptions will be in countries where pay freezes are illegal, the two people said.
Hurd has cut jobs, closed offices and merged data centers to lift profit, even as he expands through acquisitions. Hewlett-Packard also is limiting travel, curtailing hiring and eliminating favorite science projects to save on research costs in 2009, chief financial officer Cathie Lesjak said last month on a conference call. Hewlett-Packard, which has 3,20,000 employees, declined to confirm the salary freeze.
In this difficult macroeconomic environment, we believe it is prudent and responsible to reduce costs where possible, said spokeswoman Emma McCulloch. HP has a longstanding and disciplined approach to managing costs in order to invest in the company’s growth.
Hurd, who became CEO in 2005, received $25.3 million in total compensation in fiscal 2007. Worldwide technology spending growth will slow to 2.6% next year, less than half the rate initially predicted, research firm IDC said last month. Growth in the US will decelerate to 0.9%, the Framingham, Massachusetts-based company estimated.
Hewlett-Packard’s PC sales, which account for about a third of revenue, rose 10% to $11.2 billion last quarter, beating some estimates. Demand for notebooks offset declining printer sales in a shrinking economy. Last month, Hurd forecast a rise in profit to as much as $4.03 a share this fiscal year, more than the $3.89 anticipated by analysts in a Bloomberg survey. Investors took that as a sign the company is prepared to squeeze more profit out of sales as customers reduce spending.
It will be a challenging environment and were planning on such, Hurd, 51, said on a November 23 conference call with reporters. We can only control the things we can control, which is our cost structure and the competitiveness of our products.
Also in India
A HP employee in Bangalore said that employees in India too had received a mail from the company saying there wouldn’t be any salary increase in fiscal 2009. Salary increases in India’s technology sector have been amongst the highest in the world in the past few years. If HP does not hike salaries in fiscal 2009, this would be the first time in many years that a major technology company in India would be avoiding a salary increment.
Source: Agencies
Friday, October 31, 2008
Financial crisis hits mobile phone market
According to IDC, third quarter shipment growth drops to 3.2 percent The worldwide mobile phone industry felt the impact of the global financial crisis in the third quarter of 2008 (3Q08) as total handset shipments were down significantly over previous quarters.
Mobile phone manufacturers shipped a total of 299.0 million handsets in 3Q08, up 3.2 percent from last year, and down -0.4 percent over 2Q08. The third quarter of the year has historically been a ramp-up quarter as manufacturers load their sales channels with handsets in preparation for the holiday season, producing year-over-year growth rates as high as 20 percent as a result.
This year has not witnessed a similar ramp up, largely due to the current economic situation.
Ryan Reith, senior research analyst, IDC's Quarterly Mobile Phone Tracker, said: "Handset vendors felt the pressures of the dismal economy in the third quarter of 2008, and as a result, shipments and revenues were down almost across the board. There were two signs of hope from two major players during third quarter earnings. First, as highly anticipated and now confirmed, Apple reported an extremely successful quarter and noted it is on pace to surpass its initial 2008 shipment estimates. Second Nokia's CEO Olli-Pekka Kallasvuo announced a positive outlook for 2008 despite a tough third quarter. This offers reassurance to all industry players as Nokia has been a clear leader in the mobile phone space for quite some time."
Looking forward to the holiday season, mobile phone average selling prices have already begun to drop and marketing campaigns are ramping up, and competition for buyers will remain high as spending will be a concern to consumers. IDC expects tight economic conditions will make 2009 slower and more competitive as well.
Ramon T. Llamas, senior research analyst, IDC's Mobile Devices Technology and Trends, said: "While the overall mobile phone market registered small growth compared to last year, the market for converged mobile devices (commonly known as smartphones) posted strong gains. The worldwide release of the Apple iPhone 3G earlier this summer marked a major step not only for Apple, but also raised the profile of converged mobile devices as a whole."
"Add on top of that the attention generated by the Google-powered G1, and the converged mobile device suddenly finds itself as the device sought by both seasoned and first-time users," he adds.
Friday, October 17, 2008
Wipro among top three in desktops segment by 2008
Computer major Wipro Infotech, a division of the $3.47-billion Wipro Limited, having rolled-out its new range of environment-friendly desktops in the Indian market, is now eyeing to be among the top three in the Enterprise and SMB desktop segment by 2008. Ashutosh Vaidya, vice-president – Personal Computing Division, Wipro Infotech in an interview with Manu Sharma, spoke on wide range of issues ranging from their foray into eco-friendly computers to future plans.
CIOL: What is Greenware range of desktops and laptops? What prompted Wipro to launch these products?
Ashutosh Vaidya: Wipro has been addressing the issue of increasing e-waste and in this connection launched eco-friendly range of products as part of its responsibility towards cleaner environment. This provides a compelling proposition to our customers to adopt eco-friendly, high performance and feature-rich computing products in their enterprise.
CIOL: Where does Wipro stand in the computer market and how does it plan to grow?
AV: After having registered sales of 150,000 units in 2006 (IDC report), Wipro is now looking to achieve a target of 225,000 units in 2007. In the Enterprise/SMB segment, the company occupied number five slot with sales of 70,000 last year and is now eyeing to reach 70,000 units in 2007, thus move up among the top three. HP leads this segment followed by HCL, Dell, Lenovo and Acer. We are targeting at state banks, government agencies to reach our target.
CIOL: What are RoHS compliance products and mention its importance?
AV: RoHS or (Restriction of Hazardous Substances) is a directive from the European Union to reduce substantial e-waste in the environment. A lot of e-waste such as Brominated Flame Retardants (BFR), PVCs and heavy metals like lead, cadmium and mercury are used by computer manufacturers. Now Wipro has set up its e-waste management process called Wipro Green Computing, which spans across its product lifecycle – from designing, manufacturing right up to the final disposal.
CIOL: How does Wipro plan to reduce e-waste in India?
AV: Wipro is among the first computer manufacturing companies to launch these products in India. We will also not procure non-RoHS components from our global vendors. Besides we will roll out only RoHS compliant products by the end of this fiscal. Presently, we have eight products including four desktops and three notebooks that are 100 per cent RoHS compliant. We also have 16 centers across the country where customers can come and surrender their old computers and we will handle the disposal.
CIOL: In what way is Greenpeace involved in this project?
AV: Greenpeace, a global NGO has been at the forefront of the campaign for clean production and safe recycling. Greenpeace wants the electronics industry to design products that are free from hazardous substances, easy to recycle, and do not expose workers to health risks during production or recycling. Greenpeace is convincing individual producer responsibility (IPR) for full take-back of their products at their end of life, and go beyond the EU RoHS directive in eliminating all hazardous chemicals.
CIOL: What is Greenware range of desktops and laptops? What prompted Wipro to launch these products?
Ashutosh Vaidya: Wipro has been addressing the issue of increasing e-waste and in this connection launched eco-friendly range of products as part of its responsibility towards cleaner environment. This provides a compelling proposition to our customers to adopt eco-friendly, high performance and feature-rich computing products in their enterprise.
CIOL: Where does Wipro stand in the computer market and how does it plan to grow?
AV: After having registered sales of 150,000 units in 2006 (IDC report), Wipro is now looking to achieve a target of 225,000 units in 2007. In the Enterprise/SMB segment, the company occupied number five slot with sales of 70,000 last year and is now eyeing to reach 70,000 units in 2007, thus move up among the top three. HP leads this segment followed by HCL, Dell, Lenovo and Acer. We are targeting at state banks, government agencies to reach our target.
CIOL: What are RoHS compliance products and mention its importance?
AV: RoHS or (Restriction of Hazardous Substances) is a directive from the European Union to reduce substantial e-waste in the environment. A lot of e-waste such as Brominated Flame Retardants (BFR), PVCs and heavy metals like lead, cadmium and mercury are used by computer manufacturers. Now Wipro has set up its e-waste management process called Wipro Green Computing, which spans across its product lifecycle – from designing, manufacturing right up to the final disposal.
CIOL: How does Wipro plan to reduce e-waste in India?
AV: Wipro is among the first computer manufacturing companies to launch these products in India. We will also not procure non-RoHS components from our global vendors. Besides we will roll out only RoHS compliant products by the end of this fiscal. Presently, we have eight products including four desktops and three notebooks that are 100 per cent RoHS compliant. We also have 16 centers across the country where customers can come and surrender their old computers and we will handle the disposal.
CIOL: In what way is Greenpeace involved in this project?
AV: Greenpeace, a global NGO has been at the forefront of the campaign for clean production and safe recycling. Greenpeace wants the electronics industry to design products that are free from hazardous substances, easy to recycle, and do not expose workers to health risks during production or recycling. Greenpeace is convincing individual producer responsibility (IPR) for full take-back of their products at their end of life, and go beyond the EU RoHS directive in eliminating all hazardous chemicals.
Thursday, October 16, 2008
Indian BPO industry to reach $50 bn by 2012?
A joint study conducted by National Association of Software and Service Companies (Nasscom) and the Everest Group, a global strategy consulting firm reveals that the $11 billion Indian BPO industry in its current momentum is poised to touch $30 billion by 2012. However, with accelerated growth to capture the addressable spend in the international and domestic market could take the industry to $50 billion by 2012. Som Mittal, president of Nasscom spoke to Manu Sharma of CIOL Bureau on how the Indian BPO industry is shaping up.
CIOL: What was this study all about?
Som Mittal: The Nasscon-Everest India BPO study began in August 2007 to provide a comprehensive fact-based view of capabilities of sector, opportunities and growth imperatives for Indian BPO industry and its stakeholders. We found that the Indian BPO sector has evolved tremendously since its inception, not only in its size but also in terms of maturity - service lines, service delivery capability and footprint.
CIOL: Does India's BPO have the potential to touch the $50 billion mark?
SM: I strongly feel that the aspired target for the BPO industry is very much achievable however stakeholders will need to act on a number of initiatives to accelerate growth individually as well as collectively.
CIOL: What are the steps needed by the industry/government to achieve the $50 billion mark?
SM: The study highlights an eight point action themes for the Indian BPO industry to realize its potential and accelerate its growth. We will share the study with the industry and also the various governments. Some of the themes include: Protect India's cost advantage to ensure buyer interest; Create BPO hubs to drive this industry deeper within India; Increase employment and access untapped talent pools by creating greater linkages between the current education system and the needs of the BPO industry and Facilitating the development of BPO-specific education models.
CIOL: How will the BPO growth impacted the Indian economy?
SM: The five-fold growth in the Indian BPO market will bring huge payoffs to India's economy and employment. It contributes about 2.5 percent to India's GDP from export earnings and provides employment to over 2 million people that is expected to grow by 2-3 times. Besides growth in tier 2 and tier 3 cities and towns will see a six-fold growth in the number of delivery centers.
CIOL: In terms of employment where does it stand today?
SM: This US$ 11 billion industry today employs more that 700,000 people across 25 countries and accounts for approximately 40 percent of the global BPO offshore market thereby creating huge job opportunities and impacting the economy.
CIOL: Has the industry been able to penetrate into smaller towns across India?
SM: The industry has today expanded to tier 2 and tier 3 cities and towns and delivers services from over 30 cities with in India. In addition, the industry has acquiring global services delivery footprint with operations in over 75 cities across 25 countries.
CIOL: How has the BPO industry growth over the years?
SM: India has emerged as the destination of choice for offshore delivery of business processes. Today the BPO industry has touched $11 billion and growing annually at 35 percent over the past last five years. Earlier the IT industry involved only the engineers and technical people but now the fresh graduates are entering this industry.
CIOL: What are the areas of potential growth in this industry?
SM: About 30 percent of the opportunity will be in the under-penetrated industries such as telecom, retail, media and energy and so it is needless to say that the traditionally large areas such as banking, insurance, financial services and manufacturing will offer large opportunities as well. Today North America continues to be the largest BPO market for India. However, untapped opportunities in UK, Continental Europe and Asia-Pacific will offer larger outsourced opportunities as well.
CIOL: What is the Future of BPO industry in India?
SM: Our figures indicate that the global BPO industry is estimated at about $250-$280 billion. But presently only less than 4-5 percent of the industry is actually tapped. But we see a huge potential in the future in terms of growth and also employment in India.
CIOL: What was this study all about?
Som Mittal: The Nasscon-Everest India BPO study began in August 2007 to provide a comprehensive fact-based view of capabilities of sector, opportunities and growth imperatives for Indian BPO industry and its stakeholders. We found that the Indian BPO sector has evolved tremendously since its inception, not only in its size but also in terms of maturity - service lines, service delivery capability and footprint.
CIOL: Does India's BPO have the potential to touch the $50 billion mark?
SM: I strongly feel that the aspired target for the BPO industry is very much achievable however stakeholders will need to act on a number of initiatives to accelerate growth individually as well as collectively.
CIOL: What are the steps needed by the industry/government to achieve the $50 billion mark?
SM: The study highlights an eight point action themes for the Indian BPO industry to realize its potential and accelerate its growth. We will share the study with the industry and also the various governments. Some of the themes include: Protect India's cost advantage to ensure buyer interest; Create BPO hubs to drive this industry deeper within India; Increase employment and access untapped talent pools by creating greater linkages between the current education system and the needs of the BPO industry and Facilitating the development of BPO-specific education models.
CIOL: How will the BPO growth impacted the Indian economy?
SM: The five-fold growth in the Indian BPO market will bring huge payoffs to India's economy and employment. It contributes about 2.5 percent to India's GDP from export earnings and provides employment to over 2 million people that is expected to grow by 2-3 times. Besides growth in tier 2 and tier 3 cities and towns will see a six-fold growth in the number of delivery centers.
CIOL: In terms of employment where does it stand today?
SM: This US$ 11 billion industry today employs more that 700,000 people across 25 countries and accounts for approximately 40 percent of the global BPO offshore market thereby creating huge job opportunities and impacting the economy.
CIOL: Has the industry been able to penetrate into smaller towns across India?
SM: The industry has today expanded to tier 2 and tier 3 cities and towns and delivers services from over 30 cities with in India. In addition, the industry has acquiring global services delivery footprint with operations in over 75 cities across 25 countries.
CIOL: How has the BPO industry growth over the years?
SM: India has emerged as the destination of choice for offshore delivery of business processes. Today the BPO industry has touched $11 billion and growing annually at 35 percent over the past last five years. Earlier the IT industry involved only the engineers and technical people but now the fresh graduates are entering this industry.
CIOL: What are the areas of potential growth in this industry?
SM: About 30 percent of the opportunity will be in the under-penetrated industries such as telecom, retail, media and energy and so it is needless to say that the traditionally large areas such as banking, insurance, financial services and manufacturing will offer large opportunities as well. Today North America continues to be the largest BPO market for India. However, untapped opportunities in UK, Continental Europe and Asia-Pacific will offer larger outsourced opportunities as well.
CIOL: What is the Future of BPO industry in India?
SM: Our figures indicate that the global BPO industry is estimated at about $250-$280 billion. But presently only less than 4-5 percent of the industry is actually tapped. But we see a huge potential in the future in terms of growth and also employment in India.
Lawson to make a dent in the Indian ERP market
Lawson Software, the Minnesota-based third largest ERP company has entered the Indian market as part of the strategy to attract regional partners to serve customers.
According to a Gartner reports, India's ERP market is pegged at $143 million and is growing at 14-15 percent on a yearly basis. With more companies emerging in the infrastructure space, Lawson has opened an office in New Delhi to expand in the region. It has also appointed Kamal Sharma as its regional head for Lawson South Asia.
Talking to CIOL, Harry Debes, president & CEO of Lawson Software said, "we were predominantly a US-based company but have gone global since and have presence in about 33 countries. We see huge opportunities in India and other BRIC countries and expect to grow at a steady pace."
The company is already serving customers in India and Sri Lanka through partnerships with Symphony Services and ETP International and plans to draw on the expertise of more local partners and provide sales and marketing support via its India office.
"Even though ERP major Lawson opens India office have had their presence in India for several years, still we are sure of gaining a sizeable market share in the coming years through our partnership," remarks Debes.
In fact, the company entered India way back in 1994 and has about 25 customers existing in India and hopes to now focus on the mid-level customers. "Walmart, the leading global retail giants is one of Lawson's big corporate customers, so not necessarily targeting only on mid-sized or big corporates but will remain focused on new companies in fashion, F&B, healthcare, public sector verticals in India," says Sharma.
But on specific verticals like the healthcare segment where in Lawson claims to have about a 60 percent market share in the USA, the company is looking for active partners in the healthcare industry mainly for back office. Likewise, it has already signed up with ITC, Reliance Retail, PTEX in the fashion and garment vertical and KPIT Cummins in the equipment service and retail segments. It also has TBA in the food & beverages (F&B), Symphony in the distribution & manufacturing and likely to enter in the other segments also shortly.
The company plans to employ four initially at its Delhi office and grow over the years. On the global front, the company is expected to grow its headcount by 15 percent in 2008.
Lawson currently has offices in China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan and also in Thailand.
According to a Gartner reports, India's ERP market is pegged at $143 million and is growing at 14-15 percent on a yearly basis. With more companies emerging in the infrastructure space, Lawson has opened an office in New Delhi to expand in the region. It has also appointed Kamal Sharma as its regional head for Lawson South Asia.
Talking to CIOL, Harry Debes, president & CEO of Lawson Software said, "we were predominantly a US-based company but have gone global since and have presence in about 33 countries. We see huge opportunities in India and other BRIC countries and expect to grow at a steady pace."
The company is already serving customers in India and Sri Lanka through partnerships with Symphony Services and ETP International and plans to draw on the expertise of more local partners and provide sales and marketing support via its India office.
"Even though ERP major Lawson opens India office have had their presence in India for several years, still we are sure of gaining a sizeable market share in the coming years through our partnership," remarks Debes.
In fact, the company entered India way back in 1994 and has about 25 customers existing in India and hopes to now focus on the mid-level customers. "Walmart, the leading global retail giants is one of Lawson's big corporate customers, so not necessarily targeting only on mid-sized or big corporates but will remain focused on new companies in fashion, F&B, healthcare, public sector verticals in India," says Sharma.
But on specific verticals like the healthcare segment where in Lawson claims to have about a 60 percent market share in the USA, the company is looking for active partners in the healthcare industry mainly for back office. Likewise, it has already signed up with ITC, Reliance Retail, PTEX in the fashion and garment vertical and KPIT Cummins in the equipment service and retail segments. It also has TBA in the food & beverages (F&B), Symphony in the distribution & manufacturing and likely to enter in the other segments also shortly.
The company plans to employ four initially at its Delhi office and grow over the years. On the global front, the company is expected to grow its headcount by 15 percent in 2008.
Lawson currently has offices in China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan and also in Thailand.
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