Archive for April 23rd, 2009
MUMBAI: The outlook for India’s IT sector remains bleak given the lacklustre performance by its large players during the quarter ended March 31,
2009.
While analysts expect pressure on billing rates to continue in line with declining volumes, a recovery in business sentiments appears to be a few quarters away.
“Volumes have fallen in the March quarter and there is no revival in sight as of now. The companies have maintained their cautious approach implying that the scenario still remains challenging,” said India Infoline’s IT analyst, Rajiv Mehta.
For the March `09 quarter, the top four IT companies, TCS , Infosys, Wipro and HCL Technologies, reported a deceleration in revenue and profit at the aggregate level. Sales dropped marginally by 0.1%, while operating profit fell by 2.7% compared to the previous quarter. The drop in net profit was even sharper at 4.9% following losses on account of foreign exchange transactions.
“Overall, the results of the top four were in line with market expectations though the outlook has been a little worse than what was expected,” said Prabhudas Liladhar’s IT analyst, Apurva Shah. Importantly, Infosys and Wipro have provided guidance for slower growth in the next quarter. Infosys has in fact estimated a single digit revenue growth for FY10 which is in the light of a challenging business environment.
Though TCS does not issue any guidance, the company has admitted that clients have been delaying decisions and some projects may be renegotiated. The company said that they were worried about uncertainties springing up from existing client contracts rather than deals that have not yet closed.
Companies including TCS and HCL Technologies have also shown more vulnerability to currency fluctuations than others. Both the companies have taken substantial hit in their bottomline due to mounting forex losses. While TCS expects to cut its losses in the coming quarters, HCL Tech’s management thinks that the forex impact would remain for another six to seven quarters.
Wipro was the only one among the top four to report marginal improvements in billing rates in the March quarter from last year’s levels. “Wipro does not have a large exposure to capital markets and its performance has been boosted by manufacturing and healthcare. Despite the uncertain business environment, it has improved its pricing by 3-3 .5% on a year-on-year basis” said Viju George, IT analyst, Edelweiss Securities.
Mehta of India Infoline feels that Wipro lags behind its peers on the pricing curve. “Wipro’s price rise doesn’t look sustainable going ahead. Moreover, its organic dollar revenue (excluding that from Citi Technology Services) has dropped by 7% sequentially,” he said.
Source:TOI
April 23rd, 2009
NEW DELHI: With Vineet Nayyar, CP Gurnani, Sanjay Kalra and Ulhas Yargop joining the Satyam board, the stage is now set for a battle of strategi
es between India’s top IT five firms. Competitors may well have to contend with a far more aggressive player in the emerging Tech Mahindra-Satyam combine. Nayyar, Gurnani and Kalra are all former HCL group executives—an entity that is known for its aggressive growth strategy.
Already the trio, who form a key part of the executive management team at Tech Mahindra, have shown themselves to be fairly aggressive. In 2006, Tech Mahindra won a $1 billion deal from British Telecom (BT) by making an upfront payment of $110 million. The deal was then considered as a pathbreaker and helped Tech Mahindra pip Patni Computer and i-flex Solutions (now Oracle Financial Services) to become the country’s sixth largest IT exporter.
“Tech Mahindra is one of the success stories of the last five years. This team was brought in from HCL before Tech Mahindra’s IPO in August 2006,” said an analyst tracking the sector. Tech Mahindra’s revenues have grown from $210 million in FY05 to over $900 million in FY08. Much of this has come from BT which holds a 31% stake in the company. This is different from the 80s and early 90s when most of BT’s work was done by Mahindra BT as Tech Mahindra was then called. BT now has other partners such as Infosys, as well as its own captive in India.
“So far, Satyam was known as a low-cost player but that might change. We may see a few changes…. they (Tech Mahindra) might like to be more aggressive and win deals based on value-proposition rather than just on a price proposition,” said Alok Shende, principal analyst, Acsendia Consulting. According to him, among the top five IT firms, Tata Consultancy Services (TCS) is very process-driven, while HCL Technologies has more an entrepreneurial culture at the top.
“Satyam was also more of a process-driven company. We will now see a company that is not just process-driven but also entrepreneurial,” he said. Peers such as Infosys Technologies also expect to see stronger competition from Satyam. “I have to believe that together they will be stronger than before,” said Ashok Vemuri, head, banking and capital markets, Infosys Technologies.
According to lore, Nayyar who joined Tech Mahindra from HCL Technologies was spotted by Shiv Nadar and subsequently brought in at a leadership role in HCL. A former IAS officer, Nayyar was MD of HCL Corporation and vice-chairman of HCL Technologies when it went public. He and Gurnani were also associated with HCL Perot Systems, the JV between HCL and Perot Systems. Sanjay Kalra, who heads the BT relationship in Tech Mahindra was responsible for HCL’s purchase of Deutsche Software — a relationship that analysts said paid off very well for HCL.
Source:TOI
April 23rd, 2009
NOIDA: To save on the cost of training, one of the leading domestic software exporter HCL Technologies said it will hire people ‘just in time’ o
f requirement rather than maintaining a bench.
HCL has been following the policy of just in time hiring, which has paid off well for the organisation, HCL Technologies CEO Vineet Nayyar said.
Declining to give a hiring outlook for the year ahead, Nayyar said the firm is unlikely to make campus offers.
“We have hardly made any campus offers… we have moved to the lateral strategy,” he added.
The overall global headcount of the company fell by 992, to 54,026, from December to March. However, the company clarified that it has not laid off any employee.
During the quarter the company has made a gross addition of 2,298 employees. In the BPO services segment, however, the headcount has came down to 11,426 from 12,750 in December.
Commenting on the BPO business, he said the company is trying to move away from voice-based services to platform-based services. So, it is unlikely that the company would make new recruitments for voice-based services.
Source:TOI
April 23rd, 2009
Microbase technologies ( http://www.microbasetech.com )
Software Developer / Software Engineer Trainee.
Essential qualifications: MSc /MCA/BE or B. Tech
EXPERIENCE: 0-1 Year
LOCATION:CHENNAI
REFERENCE ID:MBT - SWT
YEAR OF PASS OUT:2007/2008/2009
SKILL SET:
* JAVA/J2EE, .NET, TESTING
* Excellent Communication Skills.
INTERESTED CANDIDATES CAN COME DIRECTLY TO OUR OFFICE
DATE:23-4-09 to 30-4-09 | TIMINGS: 10 AM to 4 PM
Venue:MICROBASE TECHNOLOGIES
Office No.B, E-Block, (Basement) “Dhoshi Gardens”, No 174,
Arcot Road, Vadapalani, Chennai-26.
Landmark: opp. to Vadapalani bus terminus
Name:VALARMATHY
Phone:044- 43069909/10
April 23rd, 2009
WRENCH Solutions - A Product Developement Company ( http://www.wrenchsolutions.com )
BE / BTech (CS,IT), MCA, MSC (CS,IT) graduates 2008 and 2009 passouts
30th April 2009
Outside Kerala Students Not Eligible (Keralites who studied outside are eligible)
Eligibility:
1. BE / BTech (CS,IT), MCA, MSCc(CS,IT) graduates 2008 and 2009 passouts
2. 60% plus in 10th 12th and graduation ( till now for 2009 Batch)
3. No current arrears.
Batch:2008 / 2009 passouts
Date:Thursday 30th April 2009
Venue:Await deatils
Reporting Time:As in Hall Ticket
Starting Salary:Selected Candidates will be inducted as Graduate Trainees- Product Development
The training period will extend from 6 months to 1 year depending upon their performance evaluation.
During the training period they will be paid training stipend of Rs 5000/- pm
After confirmation the salary will be revised to 1.8 lacks.
Selection process:Aptitude Test, Technical and HR Interviews
Interviews will be same day for a few candidates.For others on later dates in batches.
Interview schedule and venue will be given in SHREDS website
Exam clash will be avoided for 2009 batch interviews.( Candidates can go back after the written test)
All the candidates should bring the following.
1. Writing Pad
2. Two copies of RESUME
3. Two sets of photocopies of your mark lists
4. Three copies of passport size photographs
5. Rs.100/- to be paid to SHREDS towards examination fees
6. Gum
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YOU CAN APPLY FOR HALL TICKET HERE
April 23rd, 2009