The Indian arm of General Motors (GM) Thursday said it is partnering Bangalore-based electric car maker Reva to develop and produce electric vehicles for the Indian market.
According to General Motors India managing director Karl Slym, the initiative was "in line with government objectives to reduce fossil fuel dependence".
"We are going to work closely with the central and state governments in India to develop infrastructure for electric vehicles charging and providing specific financial benefits to consumers," Slym said.
Describing electric vehicles as "a growth area around the global automotive industry", GM's president of international operations Nick Reilly said: "This cooperation with Reva in India will accelerate GM's progress to meet the emerging needs in many parts of the world."
Reilly said his company was pursuing several energy alternatives and advanced technology options to meet the changing needs of customers around the world.
"Electrically driven vehicles, based on battery and hydrogen fuel cell technology, offer the best long-term solution for providing sustainable personal transportation," he added.
The two companies have already started the feasibility study of GM's vehicle platforms to produce electric cars and are expected to announce the details shortly.
Reva had launched its electric car in 2001.
GM India, which has been unaffected by the bankruptcy proceedings of its parent in the US, is central to the company's global growth strategy.
Agencies
Showing posts with label Infrastructure. Show all posts
Showing posts with label Infrastructure. Show all posts
Friday, September 25, 2009
Thursday, September 24, 2009
Is Silicon Valley seeing shift from Chips to Bricks?
Forget microchips. Silicon Valley sees a profitable future in the humble brick thanks to a low-energy production process that illustrates the greening of the US technology capital.
Brick maker Calstar Products is backed by venture capitalists whose vision is to create buildings less expensively and in a way that saves energy. “We think it is time for a second industrial revolution,” said Paul Holland, a partner at Foundation Capital, which invested $7 million in Calstar. EnerTech Capital led another round that raised $8 million for the business.
Currently about 40% of US energy use goes toward the heating, cooling and general operation of buildings. Silicon Valley is finding high-tech ways to make ageold materials, pursuing carbon dioxide-eating concrete, windows that insulate better than walls, and wood substitutes.
The field is still new. Venture investments in green buildings have waxed and waned with the recession, but involved 45 deals worth about $350 million the past year, according to Cleantech Group LLC.
Bricks have been made pretty much the same way for 3,000 years, until Calstar’s scientists came up with their new technique, said Chief Executive Michael Kane. Ordinary bricks are fired for 24 hours at 1,100°C as part of a process that can last a week, while Calstar bricks are baked at temperatures below 100°C and take only 10 hours from start to finish, Kane said.
Lower energy costs mean higher profit, allowing the company to pay for its research and compete against large companies that have economies of scale. The new bricks — which the Brick Industry Association says are not actually bricks — will sell for the same price as traditional claybased ones.
Agencies
Brick maker Calstar Products is backed by venture capitalists whose vision is to create buildings less expensively and in a way that saves energy. “We think it is time for a second industrial revolution,” said Paul Holland, a partner at Foundation Capital, which invested $7 million in Calstar. EnerTech Capital led another round that raised $8 million for the business.
Currently about 40% of US energy use goes toward the heating, cooling and general operation of buildings. Silicon Valley is finding high-tech ways to make ageold materials, pursuing carbon dioxide-eating concrete, windows that insulate better than walls, and wood substitutes.
The field is still new. Venture investments in green buildings have waxed and waned with the recession, but involved 45 deals worth about $350 million the past year, according to Cleantech Group LLC.
Bricks have been made pretty much the same way for 3,000 years, until Calstar’s scientists came up with their new technique, said Chief Executive Michael Kane. Ordinary bricks are fired for 24 hours at 1,100°C as part of a process that can last a week, while Calstar bricks are baked at temperatures below 100°C and take only 10 hours from start to finish, Kane said.
Lower energy costs mean higher profit, allowing the company to pay for its research and compete against large companies that have economies of scale. The new bricks — which the Brick Industry Association says are not actually bricks — will sell for the same price as traditional claybased ones.
Agencies
Saturday, September 5, 2009
Can Mumbai, Bangalore emerge as the global capitals?
The Russian capital as well as Indian cities of Mumbai, Bangalore and Hyderabad have every chance of becoming global capitals on par with cities such as New York, London and Tokyo, according to the latest issue of Forbes magazine.
The influential publication assessed the rapidly changing forces driving the global economy, such as the inflow of capital and labour resources, and the pace of infrastructure development, and looked into the future, ranking the Russian capital alongside Shanghai, Beijing, Sao Paolo, Dubai and the Indian cities of Mumbai, Bangalore and Hyderabad.
"Fifteen years ago, Moscow was in the midst of a particularly grungy interlude, filled with stolid people waiting in lines for shoddy consumer goods. Today, its hotel accommodations - cheap if dinghy a quarter century ago - are among the world's most expensive.
Russia's huge energy industry, which dominates all of Europe, is the key factor driving the transformation," Forbes wrote.
The article, published Wednesday, notes that Moscow has had a radical makeover since the collapse of the Soviet Union. The city, where Moscow State University was the tallest building at 240 meters (787 feet), now has a host of skyscrapers including the three tallest buildings in Europe, the highest of which is still under construction.
"With a population of 10 million, Moscow is already Europe's most populous city and could get bigger yet, particularly if energy prices rise," the magazine said.
Although Forbes expects most global capitals of the future to be outside the Western Hemisphere, it includes Calgary in Canada, Perth in Western Australia and the Texan pair of Houston and Dallas in its list.
But the article does recognise that the current centers of financial and political influence - such as Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - will not fade into the background for some time to come.
Agencies
The influential publication assessed the rapidly changing forces driving the global economy, such as the inflow of capital and labour resources, and the pace of infrastructure development, and looked into the future, ranking the Russian capital alongside Shanghai, Beijing, Sao Paolo, Dubai and the Indian cities of Mumbai, Bangalore and Hyderabad.
"Fifteen years ago, Moscow was in the midst of a particularly grungy interlude, filled with stolid people waiting in lines for shoddy consumer goods. Today, its hotel accommodations - cheap if dinghy a quarter century ago - are among the world's most expensive.
Russia's huge energy industry, which dominates all of Europe, is the key factor driving the transformation," Forbes wrote.
The article, published Wednesday, notes that Moscow has had a radical makeover since the collapse of the Soviet Union. The city, where Moscow State University was the tallest building at 240 meters (787 feet), now has a host of skyscrapers including the three tallest buildings in Europe, the highest of which is still under construction.
"With a population of 10 million, Moscow is already Europe's most populous city and could get bigger yet, particularly if energy prices rise," the magazine said.
Although Forbes expects most global capitals of the future to be outside the Western Hemisphere, it includes Calgary in Canada, Perth in Western Australia and the Texan pair of Houston and Dallas in its list.
But the article does recognise that the current centers of financial and political influence - such as Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - will not fade into the background for some time to come.
Agencies
Thursday, September 3, 2009
Lavasa to be tranformed into e-City by Wipro
Lavasa and Wipro announced their partnership for planning, implementing and managing information and communication technology (ICT) services across Lavasa city.
Wipro will support the city in the areas of city management system & services, e-governance, ICT infrastructure and value-added services, including providing intelligent home solutions and digital lifestyle. The ICT services will include voice-video-data services to various businesses operating out of Lavasa city.
According to a company release, the strategic partnership will focus on providing integrated and effective solutions for enhancing IT operations within the hill city. It will identify governance services and operating models, and define processes for delivering good governance.
Wipro will also provide the necessary infrastructure support, including technology selection, supply, installation and management of platforms, networks, data center, etc.
The estimated revenues out of this partnership from Lavasa city's first town Dasve is about $100 million over the next 10 years.
Speaking on the occasion, Rajgopal Nogja, president, Lavasa Corporation, said, "For a completely new hill city like Lavasa, technology leadership is a key driver of city development and management. Wipro has proven expertise in innovative ICT solutions and this partnership will ensure a quantum leap in not only being technologically proactive, but also realizing our vision in becoming a completely e-governed city.
Through this partnership, Wipro will also design the detailed infrastructure for telecom services for governance, and also for the residents and visitors of Lavasa city. Wipro will provide telecom-based services that will facilitate smart homes, and buildings including integrated building management systems, physical security requirements and other on-demand services.
Agencies
Wipro will support the city in the areas of city management system & services, e-governance, ICT infrastructure and value-added services, including providing intelligent home solutions and digital lifestyle. The ICT services will include voice-video-data services to various businesses operating out of Lavasa city.
According to a company release, the strategic partnership will focus on providing integrated and effective solutions for enhancing IT operations within the hill city. It will identify governance services and operating models, and define processes for delivering good governance.
Wipro will also provide the necessary infrastructure support, including technology selection, supply, installation and management of platforms, networks, data center, etc.
The estimated revenues out of this partnership from Lavasa city's first town Dasve is about $100 million over the next 10 years.
Speaking on the occasion, Rajgopal Nogja, president, Lavasa Corporation, said, "For a completely new hill city like Lavasa, technology leadership is a key driver of city development and management. Wipro has proven expertise in innovative ICT solutions and this partnership will ensure a quantum leap in not only being technologically proactive, but also realizing our vision in becoming a completely e-governed city.
Through this partnership, Wipro will also design the detailed infrastructure for telecom services for governance, and also for the residents and visitors of Lavasa city. Wipro will provide telecom-based services that will facilitate smart homes, and buildings including integrated building management systems, physical security requirements and other on-demand services.
Agencies
Did Google's Gmail really goof-up?
It's too bad the National Transportation Safety Board can't investigate Google to find out just why Gmail crashed Tuesday as Google's explanations for its outages (via its dashboard) are short and kindergarten-like.
The NTSB would seek out the root cause of the outage, hold hearings and issue a report with recommendations for fixing the problem. But Google follows the standard operating practice of cloud and SaaS (Software-as-a-Service) providers, and that is to tell customers as little as possible about an outage. They treat their customers like dumb bunnies.
A Gmail outage isn't on the scale of a contaminated food supply incident, the discovery of lead paint on children's toys, or a plane crash—all events that trigger a federal investigation and detailed reports that flesh out causes and remedies.
But what happens if Google wins contracts to provide applications and mail services for Los Angeles and other government entities?
Cloud and SaaS providers increasingly want to manage critical services for government. And in time, outages that are now annoyances may have critical implications to them. Los Angeles' IT department is recommending the city move to Google Apps and says the company's services "often exceed the current city level."
That's a plus for Google but if something goes wrong with LA's IT systems, at least there is still a clear line of accountability to the managers responsible and an opportunity to probe.
But along with telling customers as little as possible, hosting, cloud and SaaS providers indemnify themselves as much as possible from any business losses resulting from an outage.
In theory, the accountability is provided by the market: a customer can move to new service provider. But a migration to the cloud may be a path of no return. LA, in its assessment of cloud services, said that if it ditches its current infrastructure, "it may be cost-prohibitive to return to the city-owned and operated structure."
Today, the harm is mostly economic. When eBay Inc.'s PayPal service crashed last month, it was just something customers had to deal with it.
PayPal blamed the failure on a "back-end router" and some redundancy issues, and left it at that. That meant the companies like Sailrite Enterprises Inc., a sailing supply company, which relied exclusively on PayPal, were unlikely to learn what happened and had to suffer the loss.
But if cloud and SaaS providers manage government services then it's unlikely that an informed public will settle for incomplete explanations about outages.
If the service is critical, they will want to know what went wrong. Was the equipment upgraded, patched? Was staffing at proper levels? When was the last time someone tested the emergency generators? And so on.
Answers to fair and legitimate questions will be sought and little "dashboards" aren't going to cut it.
Agencies
The NTSB would seek out the root cause of the outage, hold hearings and issue a report with recommendations for fixing the problem. But Google follows the standard operating practice of cloud and SaaS (Software-as-a-Service) providers, and that is to tell customers as little as possible about an outage. They treat their customers like dumb bunnies.
A Gmail outage isn't on the scale of a contaminated food supply incident, the discovery of lead paint on children's toys, or a plane crash—all events that trigger a federal investigation and detailed reports that flesh out causes and remedies.
But what happens if Google wins contracts to provide applications and mail services for Los Angeles and other government entities?
Cloud and SaaS providers increasingly want to manage critical services for government. And in time, outages that are now annoyances may have critical implications to them. Los Angeles' IT department is recommending the city move to Google Apps and says the company's services "often exceed the current city level."
That's a plus for Google but if something goes wrong with LA's IT systems, at least there is still a clear line of accountability to the managers responsible and an opportunity to probe.
But along with telling customers as little as possible, hosting, cloud and SaaS providers indemnify themselves as much as possible from any business losses resulting from an outage.
In theory, the accountability is provided by the market: a customer can move to new service provider. But a migration to the cloud may be a path of no return. LA, in its assessment of cloud services, said that if it ditches its current infrastructure, "it may be cost-prohibitive to return to the city-owned and operated structure."
Today, the harm is mostly economic. When eBay Inc.'s PayPal service crashed last month, it was just something customers had to deal with it.
PayPal blamed the failure on a "back-end router" and some redundancy issues, and left it at that. That meant the companies like Sailrite Enterprises Inc., a sailing supply company, which relied exclusively on PayPal, were unlikely to learn what happened and had to suffer the loss.
But if cloud and SaaS providers manage government services then it's unlikely that an informed public will settle for incomplete explanations about outages.
If the service is critical, they will want to know what went wrong. Was the equipment upgraded, patched? Was staffing at proper levels? When was the last time someone tested the emergency generators? And so on.
Answers to fair and legitimate questions will be sought and little "dashboards" aren't going to cut it.
Agencies
Wednesday, August 26, 2009
C-DOT plans rural projects on its 25th anniversary
The Centre for Development of Telematics (C-DOT), the country's premier telecommunications research and development centre, turned 25 Tuesday.
"In all these years, C-DOT has been in the technology forefront and significantly contributed in the indigenisation of telecom technology, digitilisation, bridging the digital divide between urban and rural, establishing strong telecom manufacturing infrastructure and employment generation," said C-DOT executive director P.V. Acharya.
Added Sam Pitroda, National Knowledge Commission Chairman who founded C-DOT, "C-DOT was established as an independent society to help develop a series of digital switching products to meet Indian requirements. At that time, we had about two million phones for 750 million people."
Maintaining that C-DOT "planted the right seeds" for the an information and communication technology (ICT) revolution a quarter century ago, Pitroda told media, "The spirit of private enterprise helped it grow to a substantial industry."
C-DOT has today realigned efforts and defined its roadmap with a focus on developmental schemes for the 11th five Year Plan period.
The company plans to implement projects of national and strategic importance for rural India through the shared GSM Radio Access Network, which is currently under development and expected to give a definite fillip to business in the hinterland.
In the northeastern region, C-DOT aims to breathe fresh life into the fixed line infrastructure.
C-DOT's focus projects include the Gigabit Optical Passive Network that aims at bringing broadband and next generation network products and services to homes.
"Twenty-five years ago, the system was very resistant to new ideas. C-DOT experiment was seen with a great deal of suspicion and there were many multinational lobbying groups constantly trying to kill the initiative," Pitroda said.
"C-DOT was seen by multinational companies as a direct threat to their business interests in India. It survived due to the political will of the prime minister (the late Rajiv Gandhi) and it got accomplished simply due to the energy of the young."
According to Pitroda, the next big challenge is to benefit from the ICT revolution to improve education, health, agriculture, financial services and governance to bring growth and prosperity to the doorsteps of people at the bottom of the pyramid.
Agencies
"In all these years, C-DOT has been in the technology forefront and significantly contributed in the indigenisation of telecom technology, digitilisation, bridging the digital divide between urban and rural, establishing strong telecom manufacturing infrastructure and employment generation," said C-DOT executive director P.V. Acharya.
Added Sam Pitroda, National Knowledge Commission Chairman who founded C-DOT, "C-DOT was established as an independent society to help develop a series of digital switching products to meet Indian requirements. At that time, we had about two million phones for 750 million people."
Maintaining that C-DOT "planted the right seeds" for the an information and communication technology (ICT) revolution a quarter century ago, Pitroda told media, "The spirit of private enterprise helped it grow to a substantial industry."
C-DOT has today realigned efforts and defined its roadmap with a focus on developmental schemes for the 11th five Year Plan period.
The company plans to implement projects of national and strategic importance for rural India through the shared GSM Radio Access Network, which is currently under development and expected to give a definite fillip to business in the hinterland.
In the northeastern region, C-DOT aims to breathe fresh life into the fixed line infrastructure.
C-DOT's focus projects include the Gigabit Optical Passive Network that aims at bringing broadband and next generation network products and services to homes.
"Twenty-five years ago, the system was very resistant to new ideas. C-DOT experiment was seen with a great deal of suspicion and there were many multinational lobbying groups constantly trying to kill the initiative," Pitroda said.
"C-DOT was seen by multinational companies as a direct threat to their business interests in India. It survived due to the political will of the prime minister (the late Rajiv Gandhi) and it got accomplished simply due to the energy of the young."
According to Pitroda, the next big challenge is to benefit from the ICT revolution to improve education, health, agriculture, financial services and governance to bring growth and prosperity to the doorsteps of people at the bottom of the pyramid.
Agencies
Friday, June 5, 2009
Aegis likely to hire 12,000 staff globally
Essar Group's back office unit Aegis said it will augment its global workforce by 12,000, summing up the total headcount to 43,000, by end of this fiscal. The company plans to hire 1,000 people every month in India and across United States, Philippines, Costa Rica and Africa where it has operations.
"We will be recruiting a thousand people every month, so this year we will add 12,000 to our workforce globally. We have already hired 3,000 people since the beginning of this fiscal," Aegis Ltd managing director and Global CEO Aparup Sengupta said.
"The Ruias-led company has earmarked a capital expenditure of $30-35 million this year, excluding cost on infrastructure," he said. Despite the global downturn, Aegis is eyeing a turnover of over $550 million and aims to grow by over 50% in 2009-10. "There is still an opportunity for outsourcing," Sengupta said.
Agencies
"We will be recruiting a thousand people every month, so this year we will add 12,000 to our workforce globally. We have already hired 3,000 people since the beginning of this fiscal," Aegis Ltd managing director and Global CEO Aparup Sengupta said.
"The Ruias-led company has earmarked a capital expenditure of $30-35 million this year, excluding cost on infrastructure," he said. Despite the global downturn, Aegis is eyeing a turnover of over $550 million and aims to grow by over 50% in 2009-10. "There is still an opportunity for outsourcing," Sengupta said.
Agencies
Friday, May 29, 2009
World Bank Allots $1 billion for Indian Infrastructure Projects
The World Bank's lending arm, International Finance Corporation (IFC) has allocated $1 billion (Rs.5000 crore approx.) for India for the coming fiscal ending June 2010. "I think we would remain at the one billion dollar figure more or less for the next one or two years," Vipul Bhagat, South Asia Manager-Infrastructure Advisory, IFC said.
It is the infrastructure projects, which will benefit the most as about 50 percent of the total IFC investment in the country will be in this sector. "Infrastructure is a focus area for IFC especially because the Indian government has told IFC to do more in that sector," he added on the sidelines of a book release function organized by the CII and IFC.
The lending body also plans to invest in agriculture and rural development among others. IFC maintains that the economic slowdown has not impacted its investment plans and it faces no liquidity problem.
Agencies
It is the infrastructure projects, which will benefit the most as about 50 percent of the total IFC investment in the country will be in this sector. "Infrastructure is a focus area for IFC especially because the Indian government has told IFC to do more in that sector," he added on the sidelines of a book release function organized by the CII and IFC.
The lending body also plans to invest in agriculture and rural development among others. IFC maintains that the economic slowdown has not impacted its investment plans and it faces no liquidity problem.
Agencies
Tuesday, April 21, 2009
India's IT export target of $50 bn will be delayed, says NASSCOM
IT industry association NASSCOM said the export revenue target of 50 billion dollar by 2010 will be delayed by 3-4 quarters due to the global economic downturn, and warned of uncertainties in the near future.
The NASSCOM-McKinsey, however, presented an ambitious scenario for the Indian IT industry for the next 11 years saying the total revenue from export is expected to expand to 175 billion dollars by 2020 and revenues from the domestic market could achieve the 50 billion dollar mark.
"This, however, needs a concerted effort by both the industry and the government to ensure swift and sustained reforms in critical areas of education and infrastructure," NASSCOM said.
On the economic scenario, the organisation said the "global economic crisis will have far-reaching and as yet uncertain impact on the industry. Near term volumes and pricing is likely to come under pressure."
Commenting on the opportunities for the industry, Som Mittal, President, Nasscom, said, "The Indian IT industry is in the midst of unprecedented times because of the current economic environment. We expect the next few quarters to be extremely challenging with companies doing everything required to effectively overcome the challenges."
NASSCOM is of the view that the 2020 business landscape would be different from the one that was witnessed in the last decade as now it would be driven by global megatrends.
There are likely to be new verticals in the public sector, healthcare, media and utilities (which have adopted global sourcing only to a limited extent) along with new customer segments in the small and medium businesses.
"These new opportunities will result in export revenues of 175 billion dollar by 2020. On the back of these megatrends the Indian domestic industry too will experience significant growth and record a four-fold increase in revenues from 12 billion dollar in 2008 to 50 billion by 2020," it said.
"80 per cent of the incremental revenue growth by 2020 will be driven by opportunities outside of the current core markets, verticals and customer segments and the industry needs to redefine its value proposition to capture these," Mittal said.
The NASSCOM-McKinsey report said that India has been the destination for global sourcing over the last 10 years and has garnered a 51 per cent share of the industry today. India continues to be the most competitive among 25-30 low-cost locations even today.
Agencies
The NASSCOM-McKinsey, however, presented an ambitious scenario for the Indian IT industry for the next 11 years saying the total revenue from export is expected to expand to 175 billion dollars by 2020 and revenues from the domestic market could achieve the 50 billion dollar mark.
"This, however, needs a concerted effort by both the industry and the government to ensure swift and sustained reforms in critical areas of education and infrastructure," NASSCOM said.
On the economic scenario, the organisation said the "global economic crisis will have far-reaching and as yet uncertain impact on the industry. Near term volumes and pricing is likely to come under pressure."
Commenting on the opportunities for the industry, Som Mittal, President, Nasscom, said, "The Indian IT industry is in the midst of unprecedented times because of the current economic environment. We expect the next few quarters to be extremely challenging with companies doing everything required to effectively overcome the challenges."
NASSCOM is of the view that the 2020 business landscape would be different from the one that was witnessed in the last decade as now it would be driven by global megatrends.
There are likely to be new verticals in the public sector, healthcare, media and utilities (which have adopted global sourcing only to a limited extent) along with new customer segments in the small and medium businesses.
"These new opportunities will result in export revenues of 175 billion dollar by 2020. On the back of these megatrends the Indian domestic industry too will experience significant growth and record a four-fold increase in revenues from 12 billion dollar in 2008 to 50 billion by 2020," it said.
"80 per cent of the incremental revenue growth by 2020 will be driven by opportunities outside of the current core markets, verticals and customer segments and the industry needs to redefine its value proposition to capture these," Mittal said.
The NASSCOM-McKinsey report said that India has been the destination for global sourcing over the last 10 years and has garnered a 51 per cent share of the industry today. India continues to be the most competitive among 25-30 low-cost locations even today.
Agencies
Wednesday, April 8, 2009
Enterprise mobility solutions for Indian market
Sybase, a leading provider of enterprise infrastructure and mobile software, on Wednesday announced the release of its broad portfolio of industry-leading enterprise mobility offerings in the country.
The company also announced a new version of iAnywhere Mobile Office with expanded iPhone support and availability on the iPhone App Store.
"There is an increasing demand from customers and partners in India for a complete, tightly integrated platform that provides true enterprise value by mobilising business processes and applications. Our offerings are designed to help them unleash the power of information from the data center right to the mobile edge anywhere, at any time," Sybase India and sub-continent's Managing Director, Sunil Jose, told reporters here.
The new release will strengthen the companys existing enterprise mobility portfolio in field-force automation, email and application mobilization, the company said in a statement.
Enterprise mobility is expected to find dramatic levels of adoption in 2009, following companies focusing on it significantly in 2008 as a tool to optimise operational cost and efficiency in the context of the economic downturn, the statement said.
Agencies
The company also announced a new version of iAnywhere Mobile Office with expanded iPhone support and availability on the iPhone App Store.
"There is an increasing demand from customers and partners in India for a complete, tightly integrated platform that provides true enterprise value by mobilising business processes and applications. Our offerings are designed to help them unleash the power of information from the data center right to the mobile edge anywhere, at any time," Sybase India and sub-continent's Managing Director, Sunil Jose, told reporters here.
The new release will strengthen the companys existing enterprise mobility portfolio in field-force automation, email and application mobilization, the company said in a statement.
Enterprise mobility is expected to find dramatic levels of adoption in 2009, following companies focusing on it significantly in 2008 as a tool to optimise operational cost and efficiency in the context of the economic downturn, the statement said.
Agencies
Monday, March 30, 2009
Is Symphony eyeing more R&D acquisitions in India?
Symphony Services, a provider of outsourced product development, which recently acquired four captive R&D centres in India, expects the trend of captive acquisition to gain further momentum.
Symphony's four captive R&D centres are In-Reality, Intransa, CT Space and Cambridge Tech Partners in India.
Over the last decade, more than 700 product companies have embraced the offshore model and established captives in India, China, Eastern Europe and other lower cost, high talent regions.
Talking to CXOtoday, Ajay Kela, chief operating officer and managing director, Symphony Services, said, "Symphony's four acquisitions in the recent past are software companies with captive operations in India. We are currently in discussion with some of the subscale captives for acquisition and helping them turnaround, but cannot disclose the actual number."
Now with the recession sinking deeper, most parent companies are increasingly conserving cash and tend to avoid additional infrastructure expenses in a captive centre, thus giving opportunities for companies to acquire.
According to a report by Forrester, titled "Shattering the Offshore Captive Center Myth", about 60% of captives are struggling as they fail to meet expectations. There are several common reasons for failure: a poor delivery track record, operational problems, lack of scale, poor morale and high attrition, and escalating costs.
The challenges that captives are facing is resulting in a significant decrease in the number of new captives that are being introduced. According to Management Consulting company Zinnov, the number of new captives started in India over the last few years has declined from 76 to 15. Also, service providers are expected to outpace the growth of captives by more than 300% over the next four years.
Symphony acquisitions have been of different types - from outright purchase or acquisition of a captive to captive transfer where the deals did not have significant monetary implications, but captive transfers of its employees and operations to be run by Symphony.
In a 'captive transfer' employees of the captive entity become Symphonians and both the management teams collaborate to manage the operations and ensure product research and development for the parent company, Kela said.
"Over the last few years, there has been a trend of many subscale captives (manpower of less than 500 people) exploring alternative strategies like transferring their captive operations to services providers for managing their global product engineering operations because it no longer makes economic sense for them to run their own captive centre," said Kela.
Also, most software companies cannot afford to dramatically increase R&D expenditures by moving resources back onshore. Hence transferring their captive to a provider is a viable option for software companies and continues to leverage from the offshoring model, he said.
CXOtoday
Symphony's four captive R&D centres are In-Reality, Intransa, CT Space and Cambridge Tech Partners in India.
Over the last decade, more than 700 product companies have embraced the offshore model and established captives in India, China, Eastern Europe and other lower cost, high talent regions.
Talking to CXOtoday, Ajay Kela, chief operating officer and managing director, Symphony Services, said, "Symphony's four acquisitions in the recent past are software companies with captive operations in India. We are currently in discussion with some of the subscale captives for acquisition and helping them turnaround, but cannot disclose the actual number."
Now with the recession sinking deeper, most parent companies are increasingly conserving cash and tend to avoid additional infrastructure expenses in a captive centre, thus giving opportunities for companies to acquire.
According to a report by Forrester, titled "Shattering the Offshore Captive Center Myth", about 60% of captives are struggling as they fail to meet expectations. There are several common reasons for failure: a poor delivery track record, operational problems, lack of scale, poor morale and high attrition, and escalating costs.
The challenges that captives are facing is resulting in a significant decrease in the number of new captives that are being introduced. According to Management Consulting company Zinnov, the number of new captives started in India over the last few years has declined from 76 to 15. Also, service providers are expected to outpace the growth of captives by more than 300% over the next four years.
Symphony acquisitions have been of different types - from outright purchase or acquisition of a captive to captive transfer where the deals did not have significant monetary implications, but captive transfers of its employees and operations to be run by Symphony.
In a 'captive transfer' employees of the captive entity become Symphonians and both the management teams collaborate to manage the operations and ensure product research and development for the parent company, Kela said.
"Over the last few years, there has been a trend of many subscale captives (manpower of less than 500 people) exploring alternative strategies like transferring their captive operations to services providers for managing their global product engineering operations because it no longer makes economic sense for them to run their own captive centre," said Kela.
Also, most software companies cannot afford to dramatically increase R&D expenditures by moving resources back onshore. Hence transferring their captive to a provider is a viable option for software companies and continues to leverage from the offshoring model, he said.
CXOtoday
Sunday, December 7, 2008
Rs 300,000cr package to boost Indian economy
The government on Sunday announced major tax cuts across the board to boost demand and allocated additional funds and incentives for exports, housing, textile and infrastructure to stimulate the economy, hit by the global financial crisis.
"The government has been concerned about the impact of global financial crisis on the Indian economy
and a number of steps have been taken to deal with this problem," an official statement said.
The package, coming on the back of fresh monetary measures announced by the RBI on Saturday, includes a four per cent cut in ad-valoram duty across the board, to boost additional spending, besides enhanced credit for exporters, along with a Rs 10,000 crore mop up for India Infrastructure Finance Company.
The measures include additional plan expenditure up to Rs 20,000 crore in current year; total spending in four months till March expected at Rs 300,000 crore. A series of steps to boost exports; Rs 350 crore additional funds for export incentives; back-up guarantee to ECGC for up to Rs 350 crore; to be allowed refund of services in some areas.
The package also includes import duty on Naptha for use in power sector as well as export duty on iron ore to be eliminated. India Infrastructure Finance Company to raise Rs 10,000 crore through tax-free bonds by March 2009. PSU banks to soon announce package for borrowers of home loans upto Rs 20 lakh. An across-the-board cut on ad valorem rate to encourage additional spending; additional Rs 1,400 crore for textile sector.
Source: Agencies
"The government has been concerned about the impact of global financial crisis on the Indian economy
and a number of steps have been taken to deal with this problem," an official statement said.
The package, coming on the back of fresh monetary measures announced by the RBI on Saturday, includes a four per cent cut in ad-valoram duty across the board, to boost additional spending, besides enhanced credit for exporters, along with a Rs 10,000 crore mop up for India Infrastructure Finance Company.
The measures include additional plan expenditure up to Rs 20,000 crore in current year; total spending in four months till March expected at Rs 300,000 crore. A series of steps to boost exports; Rs 350 crore additional funds for export incentives; back-up guarantee to ECGC for up to Rs 350 crore; to be allowed refund of services in some areas.
The package also includes import duty on Naptha for use in power sector as well as export duty on iron ore to be eliminated. India Infrastructure Finance Company to raise Rs 10,000 crore through tax-free bonds by March 2009. PSU banks to soon announce package for borrowers of home loans upto Rs 20 lakh. An across-the-board cut on ad valorem rate to encourage additional spending; additional Rs 1,400 crore for textile sector.
Source: Agencies
Thursday, December 4, 2008
40pc of large businesses cut their IT budgets
More than 40 percent of large businesses have cut their IT budgets this year due to the global economic slowdown, according to a new survey by Forrester Research. The Forrester Business Data Services report surveyed nearly 950 senior IT managers across North America and Europe regarding their IT services spending and overall services strategies and priorities.
The economy’s affect on IT spending is evident in some specific data points contained in the report: Forty-three percent of firms have already cut their overall IT budgets in 2008 in reaction to the slow down in the global economy, while 24 percent of firms have put discretionary spending on hold. Twenty-eight percent of respondents said the economy has had no impact on their IT budgets.
Asked how the economy will affect IT services spending, 70 percent of respondents said they will likely negotiate lower rates with suppliers, and 16 percent said they have already cut their IT services spending.
IT departments in the financial services industry were hit hardest — 49 percent of IT shops in the financial services sector have cut their budgets. At the other end of the spectrum is the media, entertainment, and leisure industry, where only 39 percent of respondents said they have had to reduce spending.
IT departments in North America have been affected by the economy more than their European counterparts: 49 percent of North American firms have cut their IT budgets compared with 31 percent of respondents in Europe; although it should be noted that the Forrester survey was fielded in Q2 2008 prior to the deteriorating economic conditions in Europe.
“This is not an across-the-board spending slowdown; the impact of the economy on IT budgets varies widely by industry and geography,” said Forrester Research vice president and principal analyst John C. McCarthy, who is in India at present for a workshop. “With regard to the services sector, the slowdown has firms renegotiating rates, being more selective in choosing vendors, and examining spending plans more thoroughly, but they are still expecting to pay more for services. The demand for enterprise IT services has not dropped significantly.”
Regarding the state of spending on enterprise IT services, the report illustrates a number of trends: The demand for services holds steady. Forty-five percent of firms plan to increase their use of applications outsourcing, while 43 percent of firms are increasing their use of infrastructure outsourcing. Forty-three percent of respondents said they are moving more work offshore.
Infrastructure outsourcing expects to grow. Convergent telecommunications and network management is a hot area of growth as 20 percent of firms will outsource this service in 2008.
Few firms have fully tapped into offshore resources. Only 9 percent of firms use offshore resources wherever and whenever possible. A growing number of firms are interested in exploring more offshore work, with 14 percent ramping up use, 19 percent piloting, and 22 percent not using offshore but actively tracking developments. Of those firms not sending work offshore, a majority cite the questionable quality of the work done.
Satisfaction with outsourcing remains low. While overall firms are satisfied with their decision to use a third party, 52 percent say their biggest challenge with existing IT services and outsourcing relationships is that cost savings are lower than expected. Other noteworthy challenges include inconsistent or poor service quality (40 percent) and the inability of the vendor or contract structure to respond rapidly to changing business needs (35 percent).
The economy’s affect on IT spending is evident in some specific data points contained in the report: Forty-three percent of firms have already cut their overall IT budgets in 2008 in reaction to the slow down in the global economy, while 24 percent of firms have put discretionary spending on hold. Twenty-eight percent of respondents said the economy has had no impact on their IT budgets.
Asked how the economy will affect IT services spending, 70 percent of respondents said they will likely negotiate lower rates with suppliers, and 16 percent said they have already cut their IT services spending.
IT departments in the financial services industry were hit hardest — 49 percent of IT shops in the financial services sector have cut their budgets. At the other end of the spectrum is the media, entertainment, and leisure industry, where only 39 percent of respondents said they have had to reduce spending.
IT departments in North America have been affected by the economy more than their European counterparts: 49 percent of North American firms have cut their IT budgets compared with 31 percent of respondents in Europe; although it should be noted that the Forrester survey was fielded in Q2 2008 prior to the deteriorating economic conditions in Europe.
“This is not an across-the-board spending slowdown; the impact of the economy on IT budgets varies widely by industry and geography,” said Forrester Research vice president and principal analyst John C. McCarthy, who is in India at present for a workshop. “With regard to the services sector, the slowdown has firms renegotiating rates, being more selective in choosing vendors, and examining spending plans more thoroughly, but they are still expecting to pay more for services. The demand for enterprise IT services has not dropped significantly.”
Regarding the state of spending on enterprise IT services, the report illustrates a number of trends: The demand for services holds steady. Forty-five percent of firms plan to increase their use of applications outsourcing, while 43 percent of firms are increasing their use of infrastructure outsourcing. Forty-three percent of respondents said they are moving more work offshore.
Infrastructure outsourcing expects to grow. Convergent telecommunications and network management is a hot area of growth as 20 percent of firms will outsource this service in 2008.
Few firms have fully tapped into offshore resources. Only 9 percent of firms use offshore resources wherever and whenever possible. A growing number of firms are interested in exploring more offshore work, with 14 percent ramping up use, 19 percent piloting, and 22 percent not using offshore but actively tracking developments. Of those firms not sending work offshore, a majority cite the questionable quality of the work done.
Satisfaction with outsourcing remains low. While overall firms are satisfied with their decision to use a third party, 52 percent say their biggest challenge with existing IT services and outsourcing relationships is that cost savings are lower than expected. Other noteworthy challenges include inconsistent or poor service quality (40 percent) and the inability of the vendor or contract structure to respond rapidly to changing business needs (35 percent).
Friday, October 17, 2008
Business does not stop due to non-availability of IT
The seriousness of IT in the real estate industry is still at a nascent stage in India Despite the seriousness of IT in the real estate industry being at a nascent stage, the Mumbai-based Lavasa Corporation Limited, a leading property deveoper undertaking large-scale lifestyle development in India has deveoped a new urbanism principle towards IT. In a discussion with Manu Sharma of CIOL Bureau, Vinod Vyas, Head – Information Systems of Lavasa Corporation Limited spoke about the new communications sytems implemented and also on what are the challenges he forsees in the future.
CIOL: What are the major challenges faced by you in your organization?
Vinod Vyas: The seriousness towards IT in Real Estate industry is still less because of simple reason that business does not stop due to non-availability of IT. However, certain organizational necessities cannot be avoided such as office automation, finance & accounts, sales and MIS. Thus major challenge is to aware users to use IT for automation where traditionally they are completely manual such as construction, projects, land department etc.
CIOL: Does your organization link IT budget with the company's performance/growth? If yes please elobrate?
Vinod Vyas: No. Our management has a strong conviction that IT is critical to the business of Lavasa and hence IT is viewed as a critical investment.
CIOL: Can you cite any specific areas where IT has come up as an accomplishment in your stint?
Vinod Vyas: Introducing integration of conventional communication methodologies with new IP based communication systems such as IPPBX, VoIP etc.
CIOL: Going forward, what are the challenges that you foresee?
Vinod Vyas: Change Management (User's acceptance to automation and revised business processes.)
CIOL: How far have you come as regards to adopting 'Green IT technologies'? Vinod Vyas: We are concerned about the global warming. The initiatives are at planning stage.
CIOL: What will be the IT budget for the new fiscal year? What is the growth rate over last year?
Vinod Vyas: The budget is significantly more than the previous year.
CIOL: Name the top 5 items that you expect to spent during the fiscal year?
Vinod Vyas: Some of the major IT items that we invested during the last fiscal include: Infrastructure & Telecom and also in ERP.
CIOL: Do you feel the amount allocated for IT is sufficient if yes why? If not why not? How much should you be spending?
Vinod Vyas: The amount is decided by Head – IT and COO together and its sufficient as per business need.
CIOL: Has the prices of the IT products (hardware/software) been on the decline due to the current stronger rupee against the US dollar in 2007?
Vinod Vyas: Not much
CIOL: Since the rupee is growing stronger against the dollar in 2007, don't you thing it is the right time to purchase IT products both hardware/software?
Vinod Vyas: It effects when the purchases are huge in quantity.
CIOL: How big is the IT staff in your organization?
Vinod Vyas: The strength in our organization is presently ten.
CIOL: What are the major challenges faced by you in your organization?
Vinod Vyas: The seriousness towards IT in Real Estate industry is still less because of simple reason that business does not stop due to non-availability of IT. However, certain organizational necessities cannot be avoided such as office automation, finance & accounts, sales and MIS. Thus major challenge is to aware users to use IT for automation where traditionally they are completely manual such as construction, projects, land department etc.
CIOL: Does your organization link IT budget with the company's performance/growth? If yes please elobrate?
Vinod Vyas: No. Our management has a strong conviction that IT is critical to the business of Lavasa and hence IT is viewed as a critical investment.
CIOL: Can you cite any specific areas where IT has come up as an accomplishment in your stint?
Vinod Vyas: Introducing integration of conventional communication methodologies with new IP based communication systems such as IPPBX, VoIP etc.
CIOL: Going forward, what are the challenges that you foresee?
Vinod Vyas: Change Management (User's acceptance to automation and revised business processes.)
CIOL: How far have you come as regards to adopting 'Green IT technologies'? Vinod Vyas: We are concerned about the global warming. The initiatives are at planning stage.
CIOL: What will be the IT budget for the new fiscal year? What is the growth rate over last year?
Vinod Vyas: The budget is significantly more than the previous year.
CIOL: Name the top 5 items that you expect to spent during the fiscal year?
Vinod Vyas: Some of the major IT items that we invested during the last fiscal include: Infrastructure & Telecom and also in ERP.
CIOL: Do you feel the amount allocated for IT is sufficient if yes why? If not why not? How much should you be spending?
Vinod Vyas: The amount is decided by Head – IT and COO together and its sufficient as per business need.
CIOL: Has the prices of the IT products (hardware/software) been on the decline due to the current stronger rupee against the US dollar in 2007?
Vinod Vyas: Not much
CIOL: Since the rupee is growing stronger against the dollar in 2007, don't you thing it is the right time to purchase IT products both hardware/software?
Vinod Vyas: It effects when the purchases are huge in quantity.
CIOL: How big is the IT staff in your organization?
Vinod Vyas: The strength in our organization is presently ten.
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