In his first overseas trip to reinforce Satyam's commitment, Satyam Computer Services' newly appointed Chief Executive Officer A.S. Murty today assured Singapore that "It's business as usual at Satyam".
Murty's trip underscored the company's ongoing commitment to Singapore, headquarters for its "Rest of the World" (RoW) operations, which include Asia-Pacific, the Middle East, India and Africa. The visit was also aimed at restoring stakeholders' confidence and ensuring business continuity in the republic where its business remains strong.
Murty also used his two-day visit to address key considerations about Satyam's operational and financial aspects. Since 2000, Singapore has been an integral part of the leading global consulting and information technology services provider's global growth strategy.
"Satyam's foundation in Singapore and the RoW region is still quite strong," Murty said. "Our customer base remains intact and all of our clients have chosen to stand by us during these challenging times. And, since the beginning of 2009, we have seen a record level of new contracts in the region, which shows the confidence our customers and the industry continue to have in us."
Assuring that Satyam has a promising future, Murty said the new Board represents some of the best management talent available and employee morale continues to be high.
"My immediate priority as CEO is to initiate and cultivate additional measures that will continue to stabilize Satyam and benefit all its stakeholders," Murty said. "Singapore plays a key role in those stabilization efforts, because it is the nerve centre of our efforts to grow our business in this critical region."
CXOtoday
Tuesday, March 3, 2009
Monday, March 2, 2009
Will HCL Tech layoff 450 employees?
IT services company HCL Technologies has asked 450 employees at its Delhi and Bangalore offices to leave. A majority of those axed were on the bench.
An HCL Technologies official, on the condition of anonymity, said that the company had sacked 400 people in Delhi and another 50 in Bangalore in the last one-two months. The firm had earlier asked those on the bench, the buffer of employees kept on the rolls for new projects, to get assigned to projects or face the prospect of being asked to leave the firm, he said.
In an email reply, a company spokeswoman didn’t comment on the number of people sacked by the company but indicated that the move was linked to the performance of employees.
“HCL follows a systematic process of performance review and development, and the expectation of the organisation is for employees to meet the stringent performance standards. This is a routine and ongoing process,” she said.
As of December 31, 2008, HCL had about 52,957 employees. The global downturn has impacted the revenues of clients of Indian IT companies, thereby dampening demand for software services.
Agencies
An HCL Technologies official, on the condition of anonymity, said that the company had sacked 400 people in Delhi and another 50 in Bangalore in the last one-two months. The firm had earlier asked those on the bench, the buffer of employees kept on the rolls for new projects, to get assigned to projects or face the prospect of being asked to leave the firm, he said.
In an email reply, a company spokeswoman didn’t comment on the number of people sacked by the company but indicated that the move was linked to the performance of employees.
“HCL follows a systematic process of performance review and development, and the expectation of the organisation is for employees to meet the stringent performance standards. This is a routine and ongoing process,” she said.
As of December 31, 2008, HCL had about 52,957 employees. The global downturn has impacted the revenues of clients of Indian IT companies, thereby dampening demand for software services.
Agencies
Infosys cuts five percent of Australia staff
Top IT firm Infosys Technologies is restructuring its Australian operations. This has created some redundancies, downsizing its workforce at Infosys Australia by around 5 per cent, a source briefed in the matter said.
The subsidiary employs 360 people, a majority of them from Expert Information Services -- the first acquisition Infosys Australia made six years ago.
Infosys board member and director for human resources Mohandas Pai confirmed that there were some separations from Infosys Australia. Responding to a mail, he said, “We have had an organisational restructuring in our Australia subsidiary and as a result, some positions have become redundant. It is the first time after the acquisition that this is being done.”
The tech leader has, however, promised that the laid-off employees would get assistance for outplacement as well as severance pay. A few months ago, Gary Ebeyan, who used to head Infosys Australia, quit the firm citing personal reasons. He was replaced by Jacqueline Korhonen, a former IBM executive. Revenues and profits of Infosys Australia have been slipping in the past three quarters of the fiscal in part due to the impact of the currency movements.
From a first quarter revenue of $34 million and a net income of $3 million, its second quarter revenue slipped to $30.84 million and net income to $2.8 million. In the third quarter, revenue fell further to $26 million and net income to $1.62 million.
“The Australian dollar is weakening significantly,” explained an analyst, who said Infosys could be laying off staff in other regions such as the UK as well. In Australia, Infosys’ largest customer is Telestra, he added.
Agencies
The subsidiary employs 360 people, a majority of them from Expert Information Services -- the first acquisition Infosys Australia made six years ago.
Infosys board member and director for human resources Mohandas Pai confirmed that there were some separations from Infosys Australia. Responding to a mail, he said, “We have had an organisational restructuring in our Australia subsidiary and as a result, some positions have become redundant. It is the first time after the acquisition that this is being done.”
The tech leader has, however, promised that the laid-off employees would get assistance for outplacement as well as severance pay. A few months ago, Gary Ebeyan, who used to head Infosys Australia, quit the firm citing personal reasons. He was replaced by Jacqueline Korhonen, a former IBM executive. Revenues and profits of Infosys Australia have been slipping in the past three quarters of the fiscal in part due to the impact of the currency movements.
From a first quarter revenue of $34 million and a net income of $3 million, its second quarter revenue slipped to $30.84 million and net income to $2.8 million. In the third quarter, revenue fell further to $26 million and net income to $1.62 million.
“The Australian dollar is weakening significantly,” explained an analyst, who said Infosys could be laying off staff in other regions such as the UK as well. In Australia, Infosys’ largest customer is Telestra, he added.
Agencies
Delayed projects hold up over 160,000 job creations
India has lost the opportunity of employing more than 160,000 people with 18 major steel, power and auto projects getting delayed over land acquisition and forest and environment clearance issues, says a study by a business chamber.
According to the study by the Associated Chambers of Commerce and Industry (Assocham), "the 18 strangled projects of India Inc to the tune of Rs.244,815.5 crore (Rs.2.45 trillion) remained on papers, in the form of memorandum of understanding (MoU) and agreements over the past three-four years".
However, a smooth implementation could have created job opportunities for at least 164,000 people directly and 270,000 people indirectly, it added.
"Assocham Research Bureau has identified 18 major projects announced by India Inc in sectors such as power, steel, automotive, IT, real estate and metals and mining that are just on papers and struggling for government clearances since 2003-04 till 2008," Assocham president Sajjan Jindal said.
The delayed projects include Posco India's proposed 12 million-tonne capacity steel plant in Orissa; it has already obtained in-principle for the special economic zone status needed for getting land in August 2005, and has pumped in some Rs.1.75 billion.
But delay in land acquisition has been a major stumbling block, Assocham said, adding that a green signal could have generated employment for 35,730 people.
Tata Steel's three greenfield projects in Jharkhand, Orissa and Chhattisgarh - on a cumulative investment of Rs.820 billion - are similarly in a state of uncertainty on account of land acquisition procedures. Assocham said the three projects could have created employment for at least 2,000-3,000 people directly.
Similarly, Arcelor-Mittal's steel projects in Orissa and Jharkhand are facing peculiar situation for the past three years.
In Jharkhand, the company has got iron ore mines, but not the land, whereas in Orissa, it has land, but are yet to get mines. The planned investment in both the states are a little over Rs.43,050 crore, and is estimated to have generated direct employment for over 5,000 people and indirect employment for about 20,000.
Some mega greenfield projects in Jharkhand, if implemented, would have created nearly 9,000 jobs, Assocham said, basing its estimates on proposed investments of about Rs.40,900 crore by Essar Steel, Jindal Steel and Power and Jindal South-West.
Likewise, in the automotive sector, M&M's joint venture in Chennai with Renault and Nissan has been deferred following a delay in land acquisition; this would have created work for at least 5,000 people directly, Assocham said.
Agencies
According to the study by the Associated Chambers of Commerce and Industry (Assocham), "the 18 strangled projects of India Inc to the tune of Rs.244,815.5 crore (Rs.2.45 trillion) remained on papers, in the form of memorandum of understanding (MoU) and agreements over the past three-four years".
However, a smooth implementation could have created job opportunities for at least 164,000 people directly and 270,000 people indirectly, it added.
"Assocham Research Bureau has identified 18 major projects announced by India Inc in sectors such as power, steel, automotive, IT, real estate and metals and mining that are just on papers and struggling for government clearances since 2003-04 till 2008," Assocham president Sajjan Jindal said.
The delayed projects include Posco India's proposed 12 million-tonne capacity steel plant in Orissa; it has already obtained in-principle for the special economic zone status needed for getting land in August 2005, and has pumped in some Rs.1.75 billion.
But delay in land acquisition has been a major stumbling block, Assocham said, adding that a green signal could have generated employment for 35,730 people.
Tata Steel's three greenfield projects in Jharkhand, Orissa and Chhattisgarh - on a cumulative investment of Rs.820 billion - are similarly in a state of uncertainty on account of land acquisition procedures. Assocham said the three projects could have created employment for at least 2,000-3,000 people directly.
Similarly, Arcelor-Mittal's steel projects in Orissa and Jharkhand are facing peculiar situation for the past three years.
In Jharkhand, the company has got iron ore mines, but not the land, whereas in Orissa, it has land, but are yet to get mines. The planned investment in both the states are a little over Rs.43,050 crore, and is estimated to have generated direct employment for over 5,000 people and indirect employment for about 20,000.
Some mega greenfield projects in Jharkhand, if implemented, would have created nearly 9,000 jobs, Assocham said, basing its estimates on proposed investments of about Rs.40,900 crore by Essar Steel, Jindal Steel and Power and Jindal South-West.
Likewise, in the automotive sector, M&M's joint venture in Chennai with Renault and Nissan has been deferred following a delay in land acquisition; this would have created work for at least 5,000 people directly, Assocham said.
Agencies
Sunday, March 1, 2009
Is HCL BPO eyeing acquisition in US, UK and Australia?
HCL BPO is looking for acquisitions of platform-based BPO firms in the US, UK and Australia with revenues of up to $250 million, its chief executive said. “We want to de-link revenue growth from headcount growth. So, we want to acquire companies in English-speaking countries that derive revenues from output or outcome-based pricing and platform-led services,” HCL BPO president and CEO N Ranjit said.
Last year, the BPO arm of HCL Technologies had acquired two firms —UK-based Liberata Financial Services (LFS) and US-based Control Point Solutions. The BPO firm aims to earn revenues of $1 billion by 2010-11 and expects about 56% or $560 million to come from acquired entities.HCL BPO had revenues of about $223 million in the year-ended June 2008.
Confident of closing at least one buyout this year, Ranjit said the company’s strategy is to buy loss-making or marginally profitable entities at low prices and turning them around. So, while BPO firms typically go under the hammer at 1.5-2 times their revenues, Control Point, with revenues of $27 million, was bought for $20 million. HCL BPO paid $2 million to acquire LFS’ fixed assets and committed an investment of another $24 million. The firm is confident of turning around both acquired companies by the end of calendar year 2009.
The two acquisitions impacted the margins of the BPO firm. In the quarter ended Dec ‘08, its EBITDA margin went down to nearly 14% from 26% a year ago. “We completed the integration of Control Point and LFS in the Oct- Dec quarter. We are hopeful of achieving margins of over 25% by 2009-end ,” Ranjit said. The BPO firm’s revenues were also impacted due to the pound losing value against the dollar as about 72% of its revenues come from the UK.
The company, which only has one Indian client in a large auto maker, said it will not look at increasing its exposure to the domestic market at this stage. “Until Indian companies show willingness to pay more for value addition and information security, we will not look at the market,” Ranjit said.
Agencies
Last year, the BPO arm of HCL Technologies had acquired two firms —UK-based Liberata Financial Services (LFS) and US-based Control Point Solutions. The BPO firm aims to earn revenues of $1 billion by 2010-11 and expects about 56% or $560 million to come from acquired entities.HCL BPO had revenues of about $223 million in the year-ended June 2008.
Confident of closing at least one buyout this year, Ranjit said the company’s strategy is to buy loss-making or marginally profitable entities at low prices and turning them around. So, while BPO firms typically go under the hammer at 1.5-2 times their revenues, Control Point, with revenues of $27 million, was bought for $20 million. HCL BPO paid $2 million to acquire LFS’ fixed assets and committed an investment of another $24 million. The firm is confident of turning around both acquired companies by the end of calendar year 2009.
The two acquisitions impacted the margins of the BPO firm. In the quarter ended Dec ‘08, its EBITDA margin went down to nearly 14% from 26% a year ago. “We completed the integration of Control Point and LFS in the Oct- Dec quarter. We are hopeful of achieving margins of over 25% by 2009-end ,” Ranjit said. The BPO firm’s revenues were also impacted due to the pound losing value against the dollar as about 72% of its revenues come from the UK.
The company, which only has one Indian client in a large auto maker, said it will not look at increasing its exposure to the domestic market at this stage. “Until Indian companies show willingness to pay more for value addition and information security, we will not look at the market,” Ranjit said.
Agencies
Indian IT sector may be significantly hurt by global crisis
The Indian IT industry is likely to be impacted significantly by the global financial crisis due to the loss of overseas markets as well as protectionist trends, according to PM's special envoy Shyam Saran.
Saran further said that the sector has been focused on the export market so far. It has not looked at the domestic market as a significant business opportunity.
"Now could be the time to do this. More competitive conditions in both domestic as well as external markets require Indian industry to be more efficient and productive," he told at a seminar on 'GeoPolitical Consequences of Current Financial and Economic Crisis: Implications for India'.
This is where the country's IT industry can play a significant role, but this will require the dynamic sectors of economy, the services and the manufacturing sector, to come together to deliver a major punch, once the global economy settles down into a new and altered landscape, he said.
He suggested that there should be a willingness in business and industry to think through and come up with an ambitious and potentially winning strategy.
They should seek government support for delivering on such a strategy rather than looking only for short-term relief, added Saran.
Agencies
Saran further said that the sector has been focused on the export market so far. It has not looked at the domestic market as a significant business opportunity.
"Now could be the time to do this. More competitive conditions in both domestic as well as external markets require Indian industry to be more efficient and productive," he told at a seminar on 'GeoPolitical Consequences of Current Financial and Economic Crisis: Implications for India'.
This is where the country's IT industry can play a significant role, but this will require the dynamic sectors of economy, the services and the manufacturing sector, to come together to deliver a major punch, once the global economy settles down into a new and altered landscape, he said.
He suggested that there should be a willingness in business and industry to think through and come up with an ambitious and potentially winning strategy.
They should seek government support for delivering on such a strategy rather than looking only for short-term relief, added Saran.
Agencies
Saturday, February 28, 2009
Mobile number portability licences to be granted in March
The list of companies that will be granted licences for mobile number portability (MNP) - a technology that enables cellphone users to retain their phone numbers when changing operators - will be announced next month, the government said Thursday.
"The successful bidders for grant of mobile number portability service licences will be announced by March 5," Communications and Information Technology Minister A. Raja said in Rajya Sabha.
The letter of intent will also be issued the same day, Raja said, adding that the implementation of MNP has not been delayed.
The government had issued guidelines for award of MNP service licences Jan 1 this year.
As per the guidelines, MNP is to be implemented in all metro and category 'A' service areas within six months of the award of the licence, and in rest of the service areas within one year.
Agencies
"The successful bidders for grant of mobile number portability service licences will be announced by March 5," Communications and Information Technology Minister A. Raja said in Rajya Sabha.
The letter of intent will also be issued the same day, Raja said, adding that the implementation of MNP has not been delayed.
The government had issued guidelines for award of MNP service licences Jan 1 this year.
As per the guidelines, MNP is to be implemented in all metro and category 'A' service areas within six months of the award of the licence, and in rest of the service areas within one year.
Agencies
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