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
Friday, May 29, 2009
Will telecom BPO revenue to touch $2 Billion in 2012?
The outsourcing revenues from the telecom sector in India are set to grow at a CAGR of 31 percent to nearly $2 billion in 2012, says a report by Ernst & Young in a first of a kind study on potential of domestic BPO industry. The telecom industry has been growing fast in spite of recession adding around 10 million subscribers every month with a subscriber base of 375 million in 2008-09.
In 2005, Bharti Airtel, which has been growing at a Compound Annual Growth Rate [CAGR] of 41 percent in last two years, started the trend of outsourcing its call center to other global companies like Mphasis, IBM Daksh, Teletech and HTMT at $272.2 million. Since then there is pressure on other telecom providers to do the same. "This domain (telecom) has already witnessed a couple of large outsourcing deals in recent months and the trend is expected to continue," said Ernst & Young partner Milan Sheth. In 2008, Telecom revenues added upto 50 percent of the domestic BPO revenues at $661 million.
BPO is also a huge job creator for telecom industry. According to the study, in 2008 telecom BPO hired over 1,22,440 people and by 2012 this number is expected to double. Banking is the second biggest employment generator for domestic BPOs. The banking sector employed around 70,100 people in 2008 and by 2012 this is projected to go up to 2,25,900. The two sectors contribute 80 percent of the domestic BPO revenues and is expected that revenues will reach $6 billion by 2012.
According to the report the key driver for BPOs in telecom is demand for customer care and sales and marketing services.
Agencies
In 2005, Bharti Airtel, which has been growing at a Compound Annual Growth Rate [CAGR] of 41 percent in last two years, started the trend of outsourcing its call center to other global companies like Mphasis, IBM Daksh, Teletech and HTMT at $272.2 million. Since then there is pressure on other telecom providers to do the same. "This domain (telecom) has already witnessed a couple of large outsourcing deals in recent months and the trend is expected to continue," said Ernst & Young partner Milan Sheth. In 2008, Telecom revenues added upto 50 percent of the domestic BPO revenues at $661 million.
BPO is also a huge job creator for telecom industry. According to the study, in 2008 telecom BPO hired over 1,22,440 people and by 2012 this number is expected to double. Banking is the second biggest employment generator for domestic BPOs. The banking sector employed around 70,100 people in 2008 and by 2012 this is projected to go up to 2,25,900. The two sectors contribute 80 percent of the domestic BPO revenues and is expected that revenues will reach $6 billion by 2012.
According to the report the key driver for BPOs in telecom is demand for customer care and sales and marketing services.
Agencies
Thursday, May 28, 2009
IBM funds $1 billion for APAC IT Projects
IBM announced up to $3 billion funds to finance IT initiatives in key economic stimulus projects in Europe and Asia-Pacific through IBM Global Financing, the company's lending and leasing business segment.
Specifically, it will make available up to $2 billion in financing in Europe and up to $1 billion in the Asia-Pacific region. IBM Global Financing also will extend its North American coverage to include financing for smart technology projects in Canada, according to a statement.
The stimulus financing will mainly target enterprises and municipalities looking to implement technology projects consisting of a majority portion of IBM hardware, software, and technology services components. Financing also can be applied to non-IBM technology as part of a larger IBM solution.
The financing will help organizations move ahead with IT projects in 2009, while awaiting government funding, to build the technological and environmental infrastructure of the 21st century.
The financing could be in the form of:
* Low rates and flexible financing options
* Deferred payment plans
* Enterprise financing facilities that offer structured lines of credit
* Specialized project financing packages that allow clients to align payment streams to anticipated benefits throughout the project
The recession is going to drive many organizations, public and private, to make transformational changes in their IT environment. However, without access to the correct financing offerings, a significant set of opportunities will be lost and society-wide projects, like smart grid, will be substantially delayed," said David Mitchell, SVP of UK-based IT research firm, Ovum.
It must be recalled here that IBM China Research launched a new industry solution lab in China focusing on the development of healthcare IT solutions and released four software packages that could help hospitals establish electronic patient records at reduced costs, last month. The Chinese government has announced a plan to invest CNY 850 billion over the next three years to provide every village with a medical clinic and at least one hospital for every county by 2011. The plan includes funding for electronic patient records systems that can be shared by different hospitals around the country.
CXOtoday
Specifically, it will make available up to $2 billion in financing in Europe and up to $1 billion in the Asia-Pacific region. IBM Global Financing also will extend its North American coverage to include financing for smart technology projects in Canada, according to a statement.
The stimulus financing will mainly target enterprises and municipalities looking to implement technology projects consisting of a majority portion of IBM hardware, software, and technology services components. Financing also can be applied to non-IBM technology as part of a larger IBM solution.
The financing will help organizations move ahead with IT projects in 2009, while awaiting government funding, to build the technological and environmental infrastructure of the 21st century.
The financing could be in the form of:
* Low rates and flexible financing options
* Deferred payment plans
* Enterprise financing facilities that offer structured lines of credit
* Specialized project financing packages that allow clients to align payment streams to anticipated benefits throughout the project
The recession is going to drive many organizations, public and private, to make transformational changes in their IT environment. However, without access to the correct financing offerings, a significant set of opportunities will be lost and society-wide projects, like smart grid, will be substantially delayed," said David Mitchell, SVP of UK-based IT research firm, Ovum.
It must be recalled here that IBM China Research launched a new industry solution lab in China focusing on the development of healthcare IT solutions and released four software packages that could help hospitals establish electronic patient records at reduced costs, last month. The Chinese government has announced a plan to invest CNY 850 billion over the next three years to provide every village with a medical clinic and at least one hospital for every county by 2011. The plan includes funding for electronic patient records systems that can be shared by different hospitals around the country.
CXOtoday
Tuesday, May 26, 2009
Is NetApp Set To Acquire Data Domain?
Storage vendor NetApp will acquire Data Domain that specializes in disk-based heterogenous back-up. Data Domain's portfolio will extend NetApp's ability to compete in the increasing number of installations wanting to minimize their reliance on tape.
Under the agreement that NetApp and Data Domain have entered into, NetApp will acquire all of the outstanding shares of Data Domain for $25 per share in cash and stock. The transaction is valued at approximately $1.5 billion.
"This combination is a great opportunity for both NetApp and Data Domain," said Dan Warmenhoven, chairman and CEO of NetApp.
"Data Domain is an innovative high-growth company with a complementary product line ideally suited for multi-vendor environments where customers want to minimize their use of tape for backup. NetApp has the distribution channels and international reach to offer Data Domain products to more customers, accelerating growth and market adoption. The combination of our two companies will increase NetApp's reputation for delivering both outstanding efficiency and operational breakthroughs to customers worldwide."
NetApp intends to operate Data Domain as a product line within NetApp's product operations organization. The Data Domain sales organization will be integrated with NetApp sales to maximize momentum and access new accounts.
"Notwithstanding the rapid record sales growth Data Domain has experienced over the past 5 years, with NetApp's distribution channel and customer base, we have an opportunity to accelerate even further," said Frank Slootman, president and CEO of Data Domain.
The Data Domain portfolio brings a complementary offering to NetApp, expanding NetApp's reach in the market for heterogeneous disk-based backup. Data Domain's portfolio will extend NetApp's ability to compete in the increasing number of installations wanting to minimize their reliance on tape. The Data Domain acquisition increases NetApp's ability to capitalize on the growth of disk-based backup adoption, especially as data deduplication gains traction.
cxotoday.com
Under the agreement that NetApp and Data Domain have entered into, NetApp will acquire all of the outstanding shares of Data Domain for $25 per share in cash and stock. The transaction is valued at approximately $1.5 billion.
"This combination is a great opportunity for both NetApp and Data Domain," said Dan Warmenhoven, chairman and CEO of NetApp.
"Data Domain is an innovative high-growth company with a complementary product line ideally suited for multi-vendor environments where customers want to minimize their use of tape for backup. NetApp has the distribution channels and international reach to offer Data Domain products to more customers, accelerating growth and market adoption. The combination of our two companies will increase NetApp's reputation for delivering both outstanding efficiency and operational breakthroughs to customers worldwide."
NetApp intends to operate Data Domain as a product line within NetApp's product operations organization. The Data Domain sales organization will be integrated with NetApp sales to maximize momentum and access new accounts.
"Notwithstanding the rapid record sales growth Data Domain has experienced over the past 5 years, with NetApp's distribution channel and customer base, we have an opportunity to accelerate even further," said Frank Slootman, president and CEO of Data Domain.
The Data Domain portfolio brings a complementary offering to NetApp, expanding NetApp's reach in the market for heterogeneous disk-based backup. Data Domain's portfolio will extend NetApp's ability to compete in the increasing number of installations wanting to minimize their reliance on tape. The Data Domain acquisition increases NetApp's ability to capitalize on the growth of disk-based backup adoption, especially as data deduplication gains traction.
cxotoday.com
Monday, May 25, 2009
Will Satyam lay off 8,000 non-IT staff from June?
Satyam Computer is likely to sack most of its non-billable staff of up to 8,000 working in marketing, HR and administration wings,after Tech Mahindra takes charge of the company from June 1.
A Satyam official said there is no doubt that there will be large-scale sacking mostly of the support and non-billable staff (other than hardcore software engineers) once Tech Mahindra (the new owner of the company) directors come on board from June 1.
The surplus staff is about 10,000-12,000 and the 'least painful' ways of sacking is asking the bench, non-billable and support staff to go.
The company spokesperson, when contacted, said that at the moment these are mere speculations.
Sources also said the outsourcer may opt for "virtual pool" sacking method whereby the company would ask some of the staff to take 75 per cent of its salary and take one-year off and look for a job elsewhere with the fragile assurance that they would be recalled, if required.
Tech Mahindra CEO Vineet Nayyar, who will also come on board of Satyam from June after it acquired fraud hit company last month, had said last week that Satyam has about 10,000 surplus staff and "we are looking at the least painful ways to tackle the problem."
Satyam has already called back most of its onsite staff to avoid further costs and most of them may be asked to quit, said the official.
About 3,000 people are on the bench and there is a surplus manpower even in the R&D and engineering units, sources said.
Dwindling revenues are the primary reasons for Tech Mahindra to opt for such a cost-cutting measure, Tech Mahindra official said.
Kiran Karnik, chairman of Government-appointed board of Satyam, said revenues are falling and cost-cutting measures have to be taken up. But he had ruled out lay-offs.
Agencies
A Satyam official said there is no doubt that there will be large-scale sacking mostly of the support and non-billable staff (other than hardcore software engineers) once Tech Mahindra (the new owner of the company) directors come on board from June 1.
The surplus staff is about 10,000-12,000 and the 'least painful' ways of sacking is asking the bench, non-billable and support staff to go.
The company spokesperson, when contacted, said that at the moment these are mere speculations.
Sources also said the outsourcer may opt for "virtual pool" sacking method whereby the company would ask some of the staff to take 75 per cent of its salary and take one-year off and look for a job elsewhere with the fragile assurance that they would be recalled, if required.
Tech Mahindra CEO Vineet Nayyar, who will also come on board of Satyam from June after it acquired fraud hit company last month, had said last week that Satyam has about 10,000 surplus staff and "we are looking at the least painful ways to tackle the problem."
Satyam has already called back most of its onsite staff to avoid further costs and most of them may be asked to quit, said the official.
About 3,000 people are on the bench and there is a surplus manpower even in the R&D and engineering units, sources said.
Dwindling revenues are the primary reasons for Tech Mahindra to opt for such a cost-cutting measure, Tech Mahindra official said.
Kiran Karnik, chairman of Government-appointed board of Satyam, said revenues are falling and cost-cutting measures have to be taken up. But he had ruled out lay-offs.
Agencies
Friday, May 22, 2009
Is HP set to layoff 6,400 employees in 2010?
US computer giant Hewlett-Packard reported a 17-per cent fall in quarterly net profit and said it plans to cut two per cent of its workforce, or nearly 6,400 workers, over the next year.
HP said net profit fell to $1.7 billion, or 86 cents per share, in the second quarter of its fiscal year from $2.1 billion, or 87 cents per share, a year ago, in line with the expectations of Wall Street analysts.
The Palo Alto, California-based company, the world's largest manufacturer of personal computers, said revenue was down three per cent in the quarter which ended on April 30 to $27.4 billion.
Chief financial officer Cathy Lesjak announced the planned layoffs in a conference call with analysts after the release of the results.
“We will be taking some targeted action to structurally change and improve the effectiveness of our product businesses,” she said.
“These actions will result in the elimination of approximately two per cent of the HP workforce as we further streamline and simplify our organization and supply chain. These actions will be implemented over the next 12 months.”
The only bright spot for HP in the quarter was in its services business, which notched up an operating profit of $1.17 billion in the quarter due to its purchase last year of EDS. “Our services business continued to deliver strong profitability with an increased deal pipeline and the EDS integration tracking ahead of schedule,” said HP chairman and chief executive Mark Hurd.
HP said revenue from its enterprise storage and servers division fell 28 per cent to $3.5 billion while software revenue declined 15 per cent to $880 million. Computer shipments were flat in a “challenging environment” and the division saw revenue fall 19 per cent to $8.2 billion. Revenue from laptop computers was down 13 per cent while desktop computer revenue fell 24 per cent.
Operating profit for the division fell to $374 million from $544 million a year ago. The imaging and printing group saw revenue decline by 23 per cent to $5.9 billion and operating profit fall to $1.1 billion from $1.2 billion a year earlier.
HP said revenue grew nine per cent in the Americas to $12.1 billion and declined by 11 per cent in Europe, the Middle East and Africa to $10.6 billion. Revenue fell 10 per cent in Asia Pacific to $4.7 billion.
HP said it expects third quarter revenue to be flat and full fiscal year revenue to decline by four per cent to five per cent with full-year earnings per share of between $3.76 to $3.88.
Agencies
HP said net profit fell to $1.7 billion, or 86 cents per share, in the second quarter of its fiscal year from $2.1 billion, or 87 cents per share, a year ago, in line with the expectations of Wall Street analysts.
The Palo Alto, California-based company, the world's largest manufacturer of personal computers, said revenue was down three per cent in the quarter which ended on April 30 to $27.4 billion.
Chief financial officer Cathy Lesjak announced the planned layoffs in a conference call with analysts after the release of the results.
“We will be taking some targeted action to structurally change and improve the effectiveness of our product businesses,” she said.
“These actions will result in the elimination of approximately two per cent of the HP workforce as we further streamline and simplify our organization and supply chain. These actions will be implemented over the next 12 months.”
The only bright spot for HP in the quarter was in its services business, which notched up an operating profit of $1.17 billion in the quarter due to its purchase last year of EDS. “Our services business continued to deliver strong profitability with an increased deal pipeline and the EDS integration tracking ahead of schedule,” said HP chairman and chief executive Mark Hurd.
HP said revenue from its enterprise storage and servers division fell 28 per cent to $3.5 billion while software revenue declined 15 per cent to $880 million. Computer shipments were flat in a “challenging environment” and the division saw revenue fall 19 per cent to $8.2 billion. Revenue from laptop computers was down 13 per cent while desktop computer revenue fell 24 per cent.
Operating profit for the division fell to $374 million from $544 million a year ago. The imaging and printing group saw revenue decline by 23 per cent to $5.9 billion and operating profit fall to $1.1 billion from $1.2 billion a year earlier.
HP said revenue grew nine per cent in the Americas to $12.1 billion and declined by 11 per cent in Europe, the Middle East and Africa to $10.6 billion. Revenue fell 10 per cent in Asia Pacific to $4.7 billion.
HP said it expects third quarter revenue to be flat and full fiscal year revenue to decline by four per cent to five per cent with full-year earnings per share of between $3.76 to $3.88.
Agencies
AT&T outlets to sell netbooks across USA
AT&T Inc plans to expand sales of netbook computers to all its stores in an effort to expand wireless services beyond cell
phones.
Ralph de la Vega, the head of AT&T's consumer business, said on Tuesday that the US phone company would directly sell netbooks from Dell Inc, Acer Inc and Lenovo Group Ltd starting this summer.
Until now, only AT&T stores in Atlanta and Philadelphia, and consumer electronics retailers RadioShack Corp and Costco, have been selling the netbooks, which come with AT&T mobile data connections.
"We're taking broadband and really making it mobile," de la Vega said at the Reuters Global Technology Summit in New York.
While sales of netbooks are expected to be boosted by promotions from carriers, some analysts have said that consumer enthusiasm could be muted by the requirement to sign up for two-year wireless service contracts and the $60-a-month data connection fees that come with the devices.
AT&T said in April it was testing a $40-per-month fee for 200 megabytes of data downloads to netbooks, or about 1/25th of the downloads allowed under the $60 service.
AT&T's bigger mobile rival Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc, started selling netbook computers from Hewlett-Packard Co earlier this week.
Agencies
phones.
Ralph de la Vega, the head of AT&T's consumer business, said on Tuesday that the US phone company would directly sell netbooks from Dell Inc, Acer Inc and Lenovo Group Ltd starting this summer.
Until now, only AT&T stores in Atlanta and Philadelphia, and consumer electronics retailers RadioShack Corp and Costco, have been selling the netbooks, which come with AT&T mobile data connections.
"We're taking broadband and really making it mobile," de la Vega said at the Reuters Global Technology Summit in New York.
While sales of netbooks are expected to be boosted by promotions from carriers, some analysts have said that consumer enthusiasm could be muted by the requirement to sign up for two-year wireless service contracts and the $60-a-month data connection fees that come with the devices.
AT&T said in April it was testing a $40-per-month fee for 200 megabytes of data downloads to netbooks, or about 1/25th of the downloads allowed under the $60 service.
AT&T's bigger mobile rival Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc, started selling netbook computers from Hewlett-Packard Co earlier this week.
Agencies
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