Bharat Sanchar Nigam (BSNL) is planning to outsource the management and maintenance of its towers and cable networks to compete more effectively with private players like Bharti Airtel and Reliance Communications, which dominate the booming industry and also unlock the value of its assets, reports the Economic Times.
The deal, which could be worth more than $1 billion (Rs. 5,000 crore) over the next five years, might receive stiff resistance from about three lakh employees as it will impact close to 30,000 jobs. "The company plans to train and redeploy a significant section of these employees to marketing roles," informed two executives requesting anonymity, as many employees are expected to be transferred to the IT firms that win the outsourcing deal.
Through this deal, BSNL will outsource more than 50,000 towers and over one lakh kilometers of optic fibre cable. "The telecom company is in process of finalizing tender conditions for inviting bids for the contract," said these executives.
"The move will help BSNL unlock the value from its towers and passive infrastructure as the once monopoly tries to play catch up with private rivals," said BK Syngal, Senior Principal, Dua Consulting.
"Successful bidders for this contract can share company's networks with private players for a fee and this could result in a revenue boost for BSNL," added Syngal, who is also a former Chairman of VSNL (now Tata Communications).
Reliance Communications had formed a joint venture with Franco American networks major Alcatel-Lucent last year and outsourced the management of its GSM and CDMA networks and infrastructure such as optic fibre cable in a deal worth $500 million over a five year period. The deal had crossed $750 million mark in July 2009.
Bharti Airtel also entered into a $500 million joint venture with Alcatel-Lucent to manage its landline and broadband business in April 2009. Around 4,000 Airtel employees were transferred to this new venture, which is a front runner to bag another $500 million contract from Airtel to manage and maintain its 80,000 kilometers intercity optic fibre cable network.
BSNL had recently postponed plans to hive off its towers and other related infrastructure into a separate company. The company felt it would be difficult to unlock value by merely hiving off its infrastructure and listing it due to falling valuations for the tower sector, said the executives.
Agencies/Economic Times
Showing posts with label impact. Show all posts
Showing posts with label impact. Show all posts
Wednesday, September 30, 2009
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
Monday, April 13, 2009
No Layoff Of 'Minds' At MindTree
Unlike IT majors TCS, Infosys, and Wipro, MindTree Ltd, a global IT and R&D services company, will not layoff even a single employee (minds), said COO N. S. Parthasarathy.
IT companies are currently among the largest sectors impacted by the global recession resulting in layoffs and salary cuts over the last few months.
Talking to CXOtoday at 'Awaaz', an event of the Amrita School of Business (ASB), Parthasarathy said, "Till date we have not sacked any staff in the history of MindTree despite having seen some impact due to the recession." The recession has hurt MindTree especially during the fourth quarter of the last fiscal. "We have felt the impact of the slowdown in the form of pricing pressure with companies now asking for a price reduction. Also, many companies are now offshoring their jobs to cut costs," said Parthasarathy.
The closest MindTree came to layoffs was in 2001, when the company was only two years old and had a manpower of only 400 employees. "There were 35 non-performers who were listed to be sacked, but our leadership team took the decision of a pay cut rather then layoff then," said Parthasarathy.
Since then the company came out with a policy not to layoff any 'minds', as MindTree terms their staff instead of manpower or employees.
The company has grown over the years and currently has over 8,000 'minds' with the acquisition of Aztecsoft in May 2008.
MindTree is hopeful of seeing the economic slowdown improve during quarter two and three this financial year.
CXOtoday.com
IT companies are currently among the largest sectors impacted by the global recession resulting in layoffs and salary cuts over the last few months.
Talking to CXOtoday at 'Awaaz', an event of the Amrita School of Business (ASB), Parthasarathy said, "Till date we have not sacked any staff in the history of MindTree despite having seen some impact due to the recession." The recession has hurt MindTree especially during the fourth quarter of the last fiscal. "We have felt the impact of the slowdown in the form of pricing pressure with companies now asking for a price reduction. Also, many companies are now offshoring their jobs to cut costs," said Parthasarathy.
The closest MindTree came to layoffs was in 2001, when the company was only two years old and had a manpower of only 400 employees. "There were 35 non-performers who were listed to be sacked, but our leadership team took the decision of a pay cut rather then layoff then," said Parthasarathy.
Since then the company came out with a policy not to layoff any 'minds', as MindTree terms their staff instead of manpower or employees.
The company has grown over the years and currently has over 8,000 'minds' with the acquisition of Aztecsoft in May 2008.
MindTree is hopeful of seeing the economic slowdown improve during quarter two and three this financial year.
CXOtoday.com
Saturday, February 7, 2009
Global crisis to hit China more than India, says ADB
Multilateral lending agency Asian Development Bank (ADB) on Saturday said that the impact of global financial meltdown will be much more on China than India as the Chinese economy is heavily dependent on exports.
"The extent of slowdown in China is much bigger than India because Chinese economy is more dependent on exports than Indian economy," ADB President Haruhiko Kuroda said in an interview to a news channel, adding that both China and India were not in recession.
Developing countries will have to restructure their economy and generate domestic demand besides sustaining high growth to avoid poverty, he said.
Even if the global economy recovers from the worst recession, global economic structure will be changed considerably and particularly Asian countries cannot rely on exports, he said.
Emerging economies will slowdown with negative impact on poor and Countries will have to sustain high growth to avoid poverty, Kuroda said.
The global downturn may be deeper and the recovery take longer than earlier expected, he said adding, developing Asia would not have miracle growth and further slowdown this year will be inevitable. However, Indian economy was expected to grow at around 7 per cent.
The Bank plans issuing 9-10 billion dollar bonds in the market this year. "In the next 12 months we can easily raise 9 to 10 billion dollar from capital markets Recently we issued one billion dollar bond and market response was very good", Kuroda said.
ADB yesterday announced stepping up its lending operations by several billion dollars to help Asian nations tide over the crisis.
In addition, the bank would increase the size of trade facilitation programme from $150 million to $1 billion in 2009.
The Manila-based bank facing resource constraint, however, has requested shareholders for an immediate and substantial capital increase for steps to mitigate the severity of the economic crisis in the region.
Agencies
"The extent of slowdown in China is much bigger than India because Chinese economy is more dependent on exports than Indian economy," ADB President Haruhiko Kuroda said in an interview to a news channel, adding that both China and India were not in recession.
Developing countries will have to restructure their economy and generate domestic demand besides sustaining high growth to avoid poverty, he said.
Even if the global economy recovers from the worst recession, global economic structure will be changed considerably and particularly Asian countries cannot rely on exports, he said.
Emerging economies will slowdown with negative impact on poor and Countries will have to sustain high growth to avoid poverty, Kuroda said.
The global downturn may be deeper and the recovery take longer than earlier expected, he said adding, developing Asia would not have miracle growth and further slowdown this year will be inevitable. However, Indian economy was expected to grow at around 7 per cent.
The Bank plans issuing 9-10 billion dollar bonds in the market this year. "In the next 12 months we can easily raise 9 to 10 billion dollar from capital markets Recently we issued one billion dollar bond and market response was very good", Kuroda said.
ADB yesterday announced stepping up its lending operations by several billion dollars to help Asian nations tide over the crisis.
In addition, the bank would increase the size of trade facilitation programme from $150 million to $1 billion in 2009.
The Manila-based bank facing resource constraint, however, has requested shareholders for an immediate and substantial capital increase for steps to mitigate the severity of the economic crisis in the region.
Agencies
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.
Monday, December 1, 2008
No global impact; ACS to hire 1,000 in India
Amid gloomy scenario in the global job markets, hiring in India is continuing at a strong pace with world's largest business process ou tsourcing firm Affiliated Computer Services planning to recruit 1,000 people in the next 6-8 months in the country.
"We are looking to increase our headcount by 1,000 employees in India in the next 6-8 months, out of which about 500 would be employed in our new facility at Noida, which is in the process of being set up," ACS India Country Head and Vice President Aman Mustafa said.
The company is in the process of setting up a new facility in Noida, while it already has offices in Bangalore, Kochi and Chennai and the total employee strength of the company is around 5,000 in the country. Bangalore operation has a capacity of about 2,800 people and around 1,800 people are stationed in Kochi.
"Despite the global economic crisis our business has not been affected and our existing and new clients have been approaching us for services to reduce their costs," Mustafa said.
Mustafa further said that ACS Inc's balance sheet is stable with strong cash flows amid the economic downturn, even as its shares have taken a beating at the New York Stock Exchange. The global firm has a market capitalisation of over 3.86 billion dollar.
Recently, a host of firms, including Metlife India, Deloitte Touche Tohmatsu, State Bank of India, Larsen and Toubro are planning to recruit over 70,000 people in the country.
"We are looking to increase our headcount by 1,000 employees in India in the next 6-8 months, out of which about 500 would be employed in our new facility at Noida, which is in the process of being set up," ACS India Country Head and Vice President Aman Mustafa said.
The company is in the process of setting up a new facility in Noida, while it already has offices in Bangalore, Kochi and Chennai and the total employee strength of the company is around 5,000 in the country. Bangalore operation has a capacity of about 2,800 people and around 1,800 people are stationed in Kochi.
"Despite the global economic crisis our business has not been affected and our existing and new clients have been approaching us for services to reduce their costs," Mustafa said.
Mustafa further said that ACS Inc's balance sheet is stable with strong cash flows amid the economic downturn, even as its shares have taken a beating at the New York Stock Exchange. The global firm has a market capitalisation of over 3.86 billion dollar.
Recently, a host of firms, including Metlife India, Deloitte Touche Tohmatsu, State Bank of India, Larsen and Toubro are planning to recruit over 70,000 people in the country.
Thursday, November 27, 2008
Is Wipro facing impact of global woes?
Wipro in India sees the impact of the financial crisis in the form of lower demand output.
This is the view of Wipro CFO Suresh Senapaty during a television interview at the Reuters India Investment summit in Bangalore.
To check out the video interview...click on the video below:
http://in.reuters.com/news/video?videoId=94456&videoChannel=104
This is the view of Wipro CFO Suresh Senapaty during a television interview at the Reuters India Investment summit in Bangalore.
To check out the video interview...click on the video below:
http://in.reuters.com/news/video?videoId=94456&videoChannel=104
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