The count of Americans seeking unemployment benefits for the first time climbed unexpectedly by 17,000 to 551,000 for the week ended September 26, indicating that labour market remains strained despite easing economic conditions.
The figures come a day after official data showed that the US economy contracted less than expected at 0.7 per cent i the June quarter.
According to the US Labor Department, the number of initial claims for jobless benefits rose 17,000 to 551,000 for the week ended September 26.
In the previous week, the figure stood at 534,000. As per the data, the four-week moving average was 548,000.
However, the count of those receiving unemployment benefits dropped as much as 70,000 to 6,090,000 for the week ended September 19.
"The 4-week moving average was 6,154,500, a decrease of 39,250 from the preceding week's revised average of 6,193,750," the Labor Department said in a statement today.
Yesterday, payroll-processing firm ADP in its National Employment Report said that 254,000 jobs evaporated in the American private sector in September.
However, the report noted that the decrease was the smallest since July 2008.
Agencies
Thursday, October 1, 2009
Jobless rate in Europe touches 10 years high
The unemployment rate in the 16-nation euro zone soared to a ten-year high of 9.6 per cent in August, as the region continued to feel the tremors of the financial turmoil.
Euro zone -- a group of 16 nations that share the common currency euro -- has seen the jobless pace jump to 9.6 per cent in August, little higher than 9.5 per cent in July.
In August last year, the rate stood at 7.6 per cent. Eurostat, the official statistical agency for the European community, today said the unemployment rate is the highest since March 1999.
A staggering 15.165 million people were jobless in the region in August.
In the European Union region, the unemployment rate in August was at 9.1 per cent, the highest since March 2004. The same stood at nine per cent in July.
As many as 21.872 million people were without a job in the 27-nation European Union in August.
"Compared with August 2008, unemployment went up by 5.008 million in the EU and by 3.224 million in the euro area," Eurostat said in the statement.
Among the countries, the unemployment rate was the highest in Spain at 18.9 per cent and Latvia (18.3 per cent), while the lowest was seen in the Netherlands at 3.5 per cent.
Meanwhile, many of the major economies including France and Germany have exited recession and the region as a whole is slowly seeing signs of stabilisation.
Agencies
Euro zone -- a group of 16 nations that share the common currency euro -- has seen the jobless pace jump to 9.6 per cent in August, little higher than 9.5 per cent in July.
In August last year, the rate stood at 7.6 per cent. Eurostat, the official statistical agency for the European community, today said the unemployment rate is the highest since March 1999.
A staggering 15.165 million people were jobless in the region in August.
In the European Union region, the unemployment rate in August was at 9.1 per cent, the highest since March 2004. The same stood at nine per cent in July.
As many as 21.872 million people were without a job in the 27-nation European Union in August.
"Compared with August 2008, unemployment went up by 5.008 million in the EU and by 3.224 million in the euro area," Eurostat said in the statement.
Among the countries, the unemployment rate was the highest in Spain at 18.9 per cent and Latvia (18.3 per cent), while the lowest was seen in the Netherlands at 3.5 per cent.
Meanwhile, many of the major economies including France and Germany have exited recession and the region as a whole is slowly seeing signs of stabilisation.
Agencies
Cloud computing helps organization to remain more secure
Today the biggest challenges for CIO’s are managing and securing the exponentially growing information in the IT infrastructure that supports their business and providing centralized access to multiple data centers across the globe, said Manjunath Kashi, Director, Enterprise Computing Group, Unisys. He said a secure cloud, whether private or public, can enable them to do both more effectively. Excerpts of the interview.
1. How does cloud computing help address CIO challenges?
The biggest challenges for CIO’s today are managing and securing the exponentially growing information in the IT infrastructure that supports their business and providing centralized access to multiple data centers across the globe. A secure cloud, whether private or public, can enable them to do both more effectively.
Unisys believes that cloud computing will revolutionize the way enterprises obtain business and IT services and change the kind of payback they get from their IT investments. In a severely constrained global economy, the prospect of de-capitalizing enterprise IT, deferring and avoiding operational costs, fixing the IT bottleneck and more effectively mapping availability of IT resources to fluctuating business demands provide powerful incentives to adopt cloud computing.
The major attributes and benefits of cloud computing are the following:
1. Multi-tenant –the capability to process the needs of multiple users with shared resources, dynamically and transparently;
2. Elastic and scalable –resources can be expanded and contracted as needed;
3. Metered/rented – to a certain extent, “pay only for what you use”;
4. Self-provisioned – “self-check-in,” at least to some degree;
5. Internet-based – accessible by using Internet technology, usually over the public Internet;
6. “X” as a service [with “X” being software or infrastructure, for example] – The details/concerns of implementation are abstracted for the customer.
Clients and prospects consistently tell Unisys that concerns about security is the major impediments to adopting cloud computing for business needs. Secure, then, is the additional benefit that differentiates Unisys’ strategy and solutions for cloud computing from other cloud offerings available in the market. The word “secure” refers to providing an overall reduction in risk due to greater security protocols and tools for data in motion (transiting the infrastructure), data at rest (in storage networks) and data in process. Unisys offers those through the Stealth data protection technology in its Secure Cloud Solution.
2. What kind of applications do you expect enterprises to host on the cloud? Why?
Most enterprises have until now been comfortable moving only test and development suites to the cloud, because they don’t involve transmission of sensitive data outside internal firewalls. Unisys Secure Cloud Solution – a managed public cloud service with an unmatched level of data protection based on unique bit-splitting technology called Stealth – enables enterprise clients to securely move conventional business applications into a managed, shared cloud service without costly, time-consuming rewrites or other alterations. Those applications often include secure or sensitive data, such as human resources, financial, customer and healthcare information. The Unisys Secure Cloud Solution can thus help clients reduce capital and operating expenditures and protect their investment in critical business applications.
3. Benefits of cloud computing to the large and small enterprises?
Cloud computing – especially as embodied in Unisys strategy and solutions portfolio – can benefit organizations of all sizes. The Unisys approach enables clients to choose the type of data center computing services that best meet their business objectives, from self-managed, automated IT infrastructures to Unisys-managed cloud services. Using Unisys services and technologies, organizations can create a private cloud within their data centers, a public cloud through secure Unisys-managed cloud solutions, or a hybrid cloud solution combining the best of both private and Unisys-managed cloud services.
Clients and prospects in organizations of all sizes tell Unisys that they see great operational and economic value in moving enterprise applications and data to the cloud. However, they have lacked the comprehensive security to make them confident in doing so.
Unisys cloud computing strategy and solutions focus on helping clients overcome those security concerns. We like to say that security is in Unisys DNA, data center transformation and application modernization are our heritage, and outsourcing services tailored to the client’s specific business needs are our forté. Unisys cloud computing strategy draws on all those core capabilities to help clients break through the barriers to adoption and gain a full range of options for cloud services while safeguarding their operations and lowering IT costs.
4. How secure are Unisys’s cloud computing offerings? What are the special features that Unisys offers on the cloud?
Most of the current cloud computing solutions lack the comprehensive security that gives clients the confidence in moving enterprise applications and data into the cloud.
Unisys’ cloud computing solutions provide the much-required extra layer of security. Underpinning our strategy is Unisys Stealth security solution, an innovative, patent-pending data protection technology, initially designed for government applications and now available to commercial clients too. The Unisys Stealth technology cloaks data through multiple levels of authentication and encryption, bit-splitting it into multiple packets so it moves invisibly across networks and stays secure in storage environments.
As I mentioned earlier, the Stealth technology also anchors Unisys Secure Cloud Solution, which is designed to provide the highest level of data security possible within a cloud environment today, while reducing clients’ upfront investments and ongoing operational costs for cloud computing. Using Stealth technology, the Unisys Secure Cloud Solution allows different clients in a multi-tenant environment to share the same IT infrastructure without the fear of exposing one client’s data to another.
In addition to the Stealth technology, clients of Unisys Secure Cloud Solution benefit from Unisys’ layered security infrastructure, which includes comprehensive capabilities, including intrusion detection and prevention service, security monitoring, advanced correlation and analytics, firewall management and logging.
5. How different are your offerings from other players in the same space?
Unisys cloud computing strategy is uniquely flexible. It draws on all the company’s core capabilities of security, data center transformation, application modernization and outsourcing services to help clients break-through the barriers to adoption and gain a full range of options for cloud services, while safeguarding their operations and lowering IT costs. As I said before, the Unisys cloud computing strategy enables clients to choose the type of data center computing services that best meet their business objectives -- from self-managed, automated IT infrastructure to Unisys-managed cloud services. Using Unisys services and technologies, organizations can create a private cloud within their datacenters, a public cloud through secure Unisys-managed cloud solutions, or a hybrid cloud solution, combining the best of both private and Unisys-managed cloud services.
The Unisys Secure Cloud Solution – a core component of Unisys cloud computing strategy – provides a global platform for delivering a full range of highly secure, managed IT infrastructure and application services available “as a service” through the cloud. This innovative solution enables enterprise clients to securely move conventional business applications – including those with secure or sensitive data, such as human resources, financial, customer and healthcare information – into a managed, shared cloud service without costly, time-consuming rewrites or other alterations. The unique Stealth technology, which delivers an unmatched level of data protection for the cloud environment, is a real differentiator for Unisys cloud computing strategy and solutions.
Also, Unisys portfolio of Cloud Transformation Services rounds out our cloud computing solutions. They provide clients a unique way to understand both how cloud computing can benefit them and what are the strategic and financial implications of adopting specific approaches.
6. What segment is Unisys targeting in India and why?
Unisys believes that our cloud computing strategy and solutions – with their unique emphasis on security – will have special appeal in market sectors such as federal government/public sector, healthcare and financial services, where data security, compliance with regulations for data management, and other security concerns are driving forces in decision-making.
In addition, industries or functions – e.g., financial reporting, benefits administration, and secure document management – that have weekly, monthly or even seasonal spikes in demand for IT resources to support business requirements could benefit from Unisys secure cloud solutions.
Unisys launched its cloud computing strategy and solutions on June 30th. We’re in the process of engaging with clients in a range of industries with our Unisys Cloud Transformation Services – a portfolio of advisory and implementation services that help clients assess potential cloud computing options and determine which option best suits their needs or financial objectives – and our Secure Cloud Solution, a managed, public-cloud service that multiple clients can share.
7. How much do you estimate the market size of cloud computing in India? What is the present growth rate?
Gartner says worldwide cloud services revenues are on a pace to surpass $56.3 billion in 2009, a 21.3 per cent increase in revenues from $46.4 billion in 2008. The market is expected to reach $150.1 billion in 2013. The Indian market, according to Springboard Research, will register a compounded annual growth rate (CAGR) of 76 per cent between 2007 and 2011 and reach $260 million (around Rs 1,300 crore) in revenue by 2011. This presents a great opportunity for Unisys cloud computing solutions.
8. Despite being an old concept, why is this space picking up at the time of recession?
In the current economic scenario, the prospects of de-capitalizing enterprise IT, deferring and avoiding operational costs, fixing the IT bottleneck and more effectively mapping availability of IT resources to fluctuating business demands provide powerful incentives for enterprises to adopt cloud computing.
1. How does cloud computing help address CIO challenges?
The biggest challenges for CIO’s today are managing and securing the exponentially growing information in the IT infrastructure that supports their business and providing centralized access to multiple data centers across the globe. A secure cloud, whether private or public, can enable them to do both more effectively.
Unisys believes that cloud computing will revolutionize the way enterprises obtain business and IT services and change the kind of payback they get from their IT investments. In a severely constrained global economy, the prospect of de-capitalizing enterprise IT, deferring and avoiding operational costs, fixing the IT bottleneck and more effectively mapping availability of IT resources to fluctuating business demands provide powerful incentives to adopt cloud computing.
The major attributes and benefits of cloud computing are the following:
1. Multi-tenant –the capability to process the needs of multiple users with shared resources, dynamically and transparently;
2. Elastic and scalable –resources can be expanded and contracted as needed;
3. Metered/rented – to a certain extent, “pay only for what you use”;
4. Self-provisioned – “self-check-in,” at least to some degree;
5. Internet-based – accessible by using Internet technology, usually over the public Internet;
6. “X” as a service [with “X” being software or infrastructure, for example] – The details/concerns of implementation are abstracted for the customer.
Clients and prospects consistently tell Unisys that concerns about security is the major impediments to adopting cloud computing for business needs. Secure, then, is the additional benefit that differentiates Unisys’ strategy and solutions for cloud computing from other cloud offerings available in the market. The word “secure” refers to providing an overall reduction in risk due to greater security protocols and tools for data in motion (transiting the infrastructure), data at rest (in storage networks) and data in process. Unisys offers those through the Stealth data protection technology in its Secure Cloud Solution.
2. What kind of applications do you expect enterprises to host on the cloud? Why?
Most enterprises have until now been comfortable moving only test and development suites to the cloud, because they don’t involve transmission of sensitive data outside internal firewalls. Unisys Secure Cloud Solution – a managed public cloud service with an unmatched level of data protection based on unique bit-splitting technology called Stealth – enables enterprise clients to securely move conventional business applications into a managed, shared cloud service without costly, time-consuming rewrites or other alterations. Those applications often include secure or sensitive data, such as human resources, financial, customer and healthcare information. The Unisys Secure Cloud Solution can thus help clients reduce capital and operating expenditures and protect their investment in critical business applications.
3. Benefits of cloud computing to the large and small enterprises?
Cloud computing – especially as embodied in Unisys strategy and solutions portfolio – can benefit organizations of all sizes. The Unisys approach enables clients to choose the type of data center computing services that best meet their business objectives, from self-managed, automated IT infrastructures to Unisys-managed cloud services. Using Unisys services and technologies, organizations can create a private cloud within their data centers, a public cloud through secure Unisys-managed cloud solutions, or a hybrid cloud solution combining the best of both private and Unisys-managed cloud services.
Clients and prospects in organizations of all sizes tell Unisys that they see great operational and economic value in moving enterprise applications and data to the cloud. However, they have lacked the comprehensive security to make them confident in doing so.
Unisys cloud computing strategy and solutions focus on helping clients overcome those security concerns. We like to say that security is in Unisys DNA, data center transformation and application modernization are our heritage, and outsourcing services tailored to the client’s specific business needs are our forté. Unisys cloud computing strategy draws on all those core capabilities to help clients break through the barriers to adoption and gain a full range of options for cloud services while safeguarding their operations and lowering IT costs.
4. How secure are Unisys’s cloud computing offerings? What are the special features that Unisys offers on the cloud?
Most of the current cloud computing solutions lack the comprehensive security that gives clients the confidence in moving enterprise applications and data into the cloud.
Unisys’ cloud computing solutions provide the much-required extra layer of security. Underpinning our strategy is Unisys Stealth security solution, an innovative, patent-pending data protection technology, initially designed for government applications and now available to commercial clients too. The Unisys Stealth technology cloaks data through multiple levels of authentication and encryption, bit-splitting it into multiple packets so it moves invisibly across networks and stays secure in storage environments.
As I mentioned earlier, the Stealth technology also anchors Unisys Secure Cloud Solution, which is designed to provide the highest level of data security possible within a cloud environment today, while reducing clients’ upfront investments and ongoing operational costs for cloud computing. Using Stealth technology, the Unisys Secure Cloud Solution allows different clients in a multi-tenant environment to share the same IT infrastructure without the fear of exposing one client’s data to another.
In addition to the Stealth technology, clients of Unisys Secure Cloud Solution benefit from Unisys’ layered security infrastructure, which includes comprehensive capabilities, including intrusion detection and prevention service, security monitoring, advanced correlation and analytics, firewall management and logging.
5. How different are your offerings from other players in the same space?
Unisys cloud computing strategy is uniquely flexible. It draws on all the company’s core capabilities of security, data center transformation, application modernization and outsourcing services to help clients break-through the barriers to adoption and gain a full range of options for cloud services, while safeguarding their operations and lowering IT costs. As I said before, the Unisys cloud computing strategy enables clients to choose the type of data center computing services that best meet their business objectives -- from self-managed, automated IT infrastructure to Unisys-managed cloud services. Using Unisys services and technologies, organizations can create a private cloud within their datacenters, a public cloud through secure Unisys-managed cloud solutions, or a hybrid cloud solution, combining the best of both private and Unisys-managed cloud services.
The Unisys Secure Cloud Solution – a core component of Unisys cloud computing strategy – provides a global platform for delivering a full range of highly secure, managed IT infrastructure and application services available “as a service” through the cloud. This innovative solution enables enterprise clients to securely move conventional business applications – including those with secure or sensitive data, such as human resources, financial, customer and healthcare information – into a managed, shared cloud service without costly, time-consuming rewrites or other alterations. The unique Stealth technology, which delivers an unmatched level of data protection for the cloud environment, is a real differentiator for Unisys cloud computing strategy and solutions.
Also, Unisys portfolio of Cloud Transformation Services rounds out our cloud computing solutions. They provide clients a unique way to understand both how cloud computing can benefit them and what are the strategic and financial implications of adopting specific approaches.
6. What segment is Unisys targeting in India and why?
Unisys believes that our cloud computing strategy and solutions – with their unique emphasis on security – will have special appeal in market sectors such as federal government/public sector, healthcare and financial services, where data security, compliance with regulations for data management, and other security concerns are driving forces in decision-making.
In addition, industries or functions – e.g., financial reporting, benefits administration, and secure document management – that have weekly, monthly or even seasonal spikes in demand for IT resources to support business requirements could benefit from Unisys secure cloud solutions.
Unisys launched its cloud computing strategy and solutions on June 30th. We’re in the process of engaging with clients in a range of industries with our Unisys Cloud Transformation Services – a portfolio of advisory and implementation services that help clients assess potential cloud computing options and determine which option best suits their needs or financial objectives – and our Secure Cloud Solution, a managed, public-cloud service that multiple clients can share.
7. How much do you estimate the market size of cloud computing in India? What is the present growth rate?
Gartner says worldwide cloud services revenues are on a pace to surpass $56.3 billion in 2009, a 21.3 per cent increase in revenues from $46.4 billion in 2008. The market is expected to reach $150.1 billion in 2013. The Indian market, according to Springboard Research, will register a compounded annual growth rate (CAGR) of 76 per cent between 2007 and 2011 and reach $260 million (around Rs 1,300 crore) in revenue by 2011. This presents a great opportunity for Unisys cloud computing solutions.
8. Despite being an old concept, why is this space picking up at the time of recession?
In the current economic scenario, the prospects of de-capitalizing enterprise IT, deferring and avoiding operational costs, fixing the IT bottleneck and more effectively mapping availability of IT resources to fluctuating business demands provide powerful incentives for enterprises to adopt cloud computing.
Go multilingual in 51 languages using Google gadgets
Google on Wednesday released free software that lets website operators automatically translate online pages into any of 51 languages.
A "translator gadget" powered by Google Translate offers to transform pages for visitors if the language settings in their browsers are different from the language of a particular website, according to Google product manager Jeff Chin.
"Automatic translation is convenient and helps people get a quick gist of the page," Chin said in a blog post.
"However, it's not a perfect substitute for the art of professional translation."
In August the Internet giant added automatic translation to Google Docs allowing users to translate documents into 42 languages.
The "Tools" menu on Google Docs now includes a "Translate Document" feature which provides a list of the various languages offered, which run from Albanian to Icelandic to Vietnamese.
The Mountain View, California-based company has already built automatic translation features into its popular email program Gmail and into services such as its blog reader.
Agencies
A "translator gadget" powered by Google Translate offers to transform pages for visitors if the language settings in their browsers are different from the language of a particular website, according to Google product manager Jeff Chin.
"Automatic translation is convenient and helps people get a quick gist of the page," Chin said in a blog post.
"However, it's not a perfect substitute for the art of professional translation."
In August the Internet giant added automatic translation to Google Docs allowing users to translate documents into 42 languages.
The "Tools" menu on Google Docs now includes a "Translate Document" feature which provides a list of the various languages offered, which run from Albanian to Icelandic to Vietnamese.
The Mountain View, California-based company has already built automatic translation features into its popular email program Gmail and into services such as its blog reader.
Agencies
Where is the $23-bn telecom Bharti-MTN merger heading?
The $23-billion deal for the merger of Bharti Airtel and South African giant MTN, which would have been the world's largest in the telecom sector, today fell through.
Sunil Mittal-led Bharti called off discussions with MTN citing the South African government's rejection of the proposed merger structure, which would have created the world's third largest telecom company with combined revenues of over $20 billion annually and a subscriber base of over 200 million.
The issue of dual listing of MTN to maintain its identity in the merged company appears to have been the deal-breaker during the tough negotiations lasting well over four months.
Prime Minister Manmohan Singh had strongly backed the deal which he took up with South African President Jacob Zuma at the G-20 Summit in Pittsburgh last week.
While announcing the calling off of the talks, Bharti in a statement expressed the hope that the South African government "will review its position in the future and allow both companies an opportunity to re-engage".
This is the second time in just over a year when Bharti has been forced to abandon talks for amalgamation of the two organisations in a complex deal that also hinged on Indian government's clearance for dual listing.
"This transaction would have been the single largest FDI into South Africa and one of the largest outbound FDIs from India," Bharti statement said, adding "the structure needed an approval from the government of South Africa, which has expressed its inability to accept it in the current form".
Senior management of Bharti, including Sunil Mittal, could not be reached immediately for comments as they are on a annual off-site, most likely in Pataya, Thailand.
After Bharti had called off negotiations with MTN last year accusing the South African entity of reneging on its commitment and presenting a different structure, Anil Ambani-led RCom had entered into negotiations with MTN for a deal.
This was also called off after Anil's elder brother Mukesh Ambani asserted the first right of refusal and
threatened a legal action. As per the proposed structure, Bharti would have acquired 49 per cent shareholding in MTN and in turn MTN and its shareholders would acquire about 36 per cent economic interest in Bharti.
The South African government had demanded dual listing of MTN in order to protect the character of MTN as a South African entity.
While starting the negotiations for the second time in May this year, Sunil Mittal had said "we see real power in the combination and we will work hard to unleash it for all our shareholders."
India Inc feels let down by deal failure Corporate India today felt let down by the failure of the $23-billion proposed merger deal between telecom giants Bharti Airtel and South Africa's MTN but said the south-south co-operation was still alive.
"In this particular proposed deal they (South African government) could have said they will make an exception in their law in terms of dual listing norms," Ficci secretary general Amit Mitra said.
He, however, said there was still scope in South Africa where Indian companies are preferred by "black administration" which today controls the country.
Assocham President Sajjan Jindal described the development as "the most unfortunate". He said the merger between Bharti and MTN would have provided a "golden opportunity" for India Inc to spread its wings in the global business space.
"It is most unfortunate. The MTN deal has been called off despite full support from the Indian government. It was a golden opportunity for India to globalise its wings," he said.
In a consolatory tone, CII director general Chandrajit Banerjee said the MTN deal not going through should not be seen as a dampener.
"India Inc has had many success in the past and in future too we can hope to see some large merger and acquisitions by Indian companies, including the likes of Bharti," he added.
PHDCCI president Satish Bagrodia, however, said: "Indian industry is quite disappointed with the proposed deal being called off. In future Indian companies will be over cautious."
Agencies
Sunil Mittal-led Bharti called off discussions with MTN citing the South African government's rejection of the proposed merger structure, which would have created the world's third largest telecom company with combined revenues of over $20 billion annually and a subscriber base of over 200 million.
The issue of dual listing of MTN to maintain its identity in the merged company appears to have been the deal-breaker during the tough negotiations lasting well over four months.
Prime Minister Manmohan Singh had strongly backed the deal which he took up with South African President Jacob Zuma at the G-20 Summit in Pittsburgh last week.
While announcing the calling off of the talks, Bharti in a statement expressed the hope that the South African government "will review its position in the future and allow both companies an opportunity to re-engage".
This is the second time in just over a year when Bharti has been forced to abandon talks for amalgamation of the two organisations in a complex deal that also hinged on Indian government's clearance for dual listing.
"This transaction would have been the single largest FDI into South Africa and one of the largest outbound FDIs from India," Bharti statement said, adding "the structure needed an approval from the government of South Africa, which has expressed its inability to accept it in the current form".
Senior management of Bharti, including Sunil Mittal, could not be reached immediately for comments as they are on a annual off-site, most likely in Pataya, Thailand.
After Bharti had called off negotiations with MTN last year accusing the South African entity of reneging on its commitment and presenting a different structure, Anil Ambani-led RCom had entered into negotiations with MTN for a deal.
This was also called off after Anil's elder brother Mukesh Ambani asserted the first right of refusal and
threatened a legal action. As per the proposed structure, Bharti would have acquired 49 per cent shareholding in MTN and in turn MTN and its shareholders would acquire about 36 per cent economic interest in Bharti.
The South African government had demanded dual listing of MTN in order to protect the character of MTN as a South African entity.
While starting the negotiations for the second time in May this year, Sunil Mittal had said "we see real power in the combination and we will work hard to unleash it for all our shareholders."
India Inc feels let down by deal failure Corporate India today felt let down by the failure of the $23-billion proposed merger deal between telecom giants Bharti Airtel and South Africa's MTN but said the south-south co-operation was still alive.
"In this particular proposed deal they (South African government) could have said they will make an exception in their law in terms of dual listing norms," Ficci secretary general Amit Mitra said.
He, however, said there was still scope in South Africa where Indian companies are preferred by "black administration" which today controls the country.
Assocham President Sajjan Jindal described the development as "the most unfortunate". He said the merger between Bharti and MTN would have provided a "golden opportunity" for India Inc to spread its wings in the global business space.
"It is most unfortunate. The MTN deal has been called off despite full support from the Indian government. It was a golden opportunity for India to globalise its wings," he said.
In a consolatory tone, CII director general Chandrajit Banerjee said the MTN deal not going through should not be seen as a dampener.
"India Inc has had many success in the past and in future too we can hope to see some large merger and acquisitions by Indian companies, including the likes of Bharti," he added.
PHDCCI president Satish Bagrodia, however, said: "Indian industry is quite disappointed with the proposed deal being called off. In future Indian companies will be over cautious."
Agencies
Wednesday, September 30, 2009
Will $1-b BSNL outsourcing deal impact 30,000 jobs?
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
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
Increase of IT spending by 20-25%, says GE
General Electric (GE) may increase its IT spending by about 20-25 percent for 2010-11, a step that can turn out to be a boon for several Indian information technology (IT) vendors.
Software firms like Tata Consultancy Services (TCS), HCL Technologies, Patni Computer Systems and iGate, who generate a significant amount of revenue from GE, are likely to benefit most from the increase in its IT budget.
A person close to this development said, "GE has allotted an additional $500-600 million for its IT budget during 2010-11. The firm may be looking to extend contracts with vendors like iGate and Polaris by three to four years and significantly increase its spending with large capital firms like TCS and HCL going forward."
GE has already extended its IT contract with Birlasoft, estimated to be worth $50 million and $100 million and with Mahindra Satyam, worth $100 million by three years. The existing contracts for iGate, Polaris Software Lab and Birlasoft will end in December this year.
Agencies
Software firms like Tata Consultancy Services (TCS), HCL Technologies, Patni Computer Systems and iGate, who generate a significant amount of revenue from GE, are likely to benefit most from the increase in its IT budget.
A person close to this development said, "GE has allotted an additional $500-600 million for its IT budget during 2010-11. The firm may be looking to extend contracts with vendors like iGate and Polaris by three to four years and significantly increase its spending with large capital firms like TCS and HCL going forward."
GE has already extended its IT contract with Birlasoft, estimated to be worth $50 million and $100 million and with Mahindra Satyam, worth $100 million by three years. The existing contracts for iGate, Polaris Software Lab and Birlasoft will end in December this year.
Agencies
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