- WNS plans 2 new centres next fiscal
NYSE-listed BPO player WNS said it hopes to establish centres in two new tier-2/-3 locations next fiscal.The company is evaluating potential sites in Maharashtra, Andhra Pradesh, Tamil Nadu and Gujarat, and would take a final call based on factors such as availability of manpower, infrastructure, benefits offered by the State Governments, and also its own ability to leverage ‘first mover advantage’ in these locations.
- Union Budget 2011: MAT impact on India’s $60 billion IT sector
India’s $60 billion IT sector is preparing to cope with impact of higher taxes after the finance minister proposed higher minimum alternat tax (MAT) for units operating in special economic zones (SEZ).The IT industry is expecting an impact after minimum alternate tax was introduced on special economic zones (SEZs). SEZs had a 100% tax exemption for a period of five years and 50% exemption for another five years.
- IT & BPO firms only within SEZs to get tax sops
In a bid to promote relocation of IT firms to Special Economic Zones (SEZ), the government is planning to provide tax concessions only to companies within the zones.The move, aimed at taking the sector to a higher growth trajectory and enabling it to secure bigger share of the global pie, is also likely to make SEZs viable — as majority of the zones are designed to meet requirements of the IT sector.
- L&T Infotech eyes stake in EXL Service
Investors in back office firm EXL Service are in talks with mid-sized L&T Infotech to sell their stake in the Nasdaq-listed company, at least three people familiar with the discussions said.Institutional shareholders such as Aviva Investors Global Services, Blackcock Advisors LLC, TimesSquare Capital Management, Wellington Management, with at least 12 other investors hold around 53% in the company. About 24% in the BPO firm is held by Mutual Funds.
- HCL Tech renews contract with state of Virginia
In a year when India’s top tech firms are pushing harder to gain a share of the $100-billion US government outsourcing market, HCL Technologies has renewed its contract with the state of Virginia, as more government departments seek to lower costs by giving away non-core work.Government sector contracts are being outsourced to Indian IT firms as more US states look to gain greater efficiencies and reduce costs. Experts say this could get a bigger boost as the US federal budget proposes to cut more than $61 billion from current spending levels this year.
- Mahindra Satyam BPO’ contract renewed by NAVTEQ for 2 more years
IT services company Mahindra Satyam’s today said that its business process outsourcing arm Mahindra Satyam BPO has renewed its contract with NAVTEQ, a Chicago-based global provider of digital map data, for a period of two more years.”The renewal of the contract for a further period of two years shows NAVTEQ’s confidence in our organisation,” Mahindra Satyam BPO CEO Vijay Rangineni said in a statement.
- KPO offers good opportunities for Indian entities: Gartner
Knowledge Process Outsourcing (KPO) offers good business opportunities for Indian entities , and will help them in providing high value services, according to Gartner.Estimated to be worth billions of dollars, KPO market provides varied services in areas such as marketing, legal processes, clinical trials and banking.
- Taking Sparsh BPO Private To Cost Intelenet $9.7M
Blackstone-backed BPO firm Intelenet Global will have to shell out as much as Rs 44.5 crore ($9.7 million) to take outsourcing firm Sparsh BPO Services Ltd private. The discovered price or the exit price in the reverse book building process, after shareholders tendered their shares in the delisting offer, is Rs 110 per share as compared to the minimum or floor price set at Rs 68.6 per share.Intelenet had offered to buy out 25.06% it did not own in the stock exchange-listed Sparsh BPO Services Ltd. The floor price was about 25% lower than the (then) market price while the delisting price is just about 3.5% more than the closing price of Sparsh BPO on Friday. Earlier, Intelenet had offered to buy the shares at Rs 80 each.
- Forget the gloom Indian BPO brand rules, says NASSCOM
The National Association of Software & Services Companies has released the key findings of the Indian IT-BPO sector performance for FY 2010-11. The IT-BPO industry (excluding hardware) witnessed a quick rebound in growth and is estimated to grow by 19 percent, aggregating revenues of $ 76 billion this fiscal year.
- IT sector poised to top NASSCOM growth projection: Ramadorai
The multi-billion Indian IT sector is likely to grow higher than the projection given by the apex industry NASSCOM, a top official said today.”I think we should be able to see growth that is better than NASSCOM’s projection,” S Ramadorai, TCS Vice- Chairman and Advisor to the Prime Minister on Skill Development, told reporters at the NASSCOM meet here.
- Global IT spending surges in 2010
The global IT market staged a healthy comeback last year, with expenditure on IT products and services rising 8 per cent from 2009 to more than USD 1.5 trillion, according to market research firm IDC’s Worldwide Black Book report released on Wednesday.The market research firm’s 2010 report indicated that the IT industry registered its fastest growth rate since 2007 during the year gone by.
- Amba Research ranks among top 3 KPOs in the world
Investment services provider Amba Research on Wednesday said it has been ranked among the top 3 KPO (Knowledge Process Outsourcing) service providers across the globe, in the Datamonitor’s annual Black Book of Outsourcing Survey for 2010.The company has also grabbed the highest slot among firms specialising in financial research, Amba Research said in a statement.
- Target Corp looking out for the millennial buyer
For India’s top technology firms chasing nearly $4-billion worth of outsourcing projects this year from some of the biggest retailers in the world, Beth Jacob, CIO of Target Corporation, has some valuable insights to offer.Target, which has a captive research centre in Bangalore — and has outsourced projects to Tata Consultancy Services , Infosys, Wipro and Accenture — is now preparing to tap the new generation of consumers: the millennial . And traditional, complex business softwares like ERP are not among the top priorities for Ms Jacob any more.
- IT, BPO export to grow 3-fold to $175-bn by 2020-end: Nasscom
With a steady recovery in major markets such as the US and Europe, Indian IT and BPO export is likely to grow three-fold to USD 175 billion in revenue by end -this decade, apex software industry Nasscom said today.However, in 2011, the IT industry will witness a flat growth at 18 percent. In 2010 revenues from software exports and BPO services stood at USD 59 billion, it said.
- India world’s best back office
India remains the favourite backoffice of the world thanks to its “first-mover advantage” and deep skill base, as per global management consulting firm AT Kearney’s ranking of the best outsourcing destinations . The top three slots in AT Kearney’s 2011 Global Services Location Index (GSLI) are occupied by three Asian countries: India, China and Malaysia.The three countries have enjoyed the top three rankings since the inception of the GLSI in 2003, demonstrating “remarkable staying power, thanks to their deep talent pools and cost advantages” .
- IT-BPO industry: How to reach $225 bn by 2020
Building higher aspirations based on detailed analysis of global opportunities is important for companies and countries alike. The higher aspirations lead to creative thinking, development of new models and creating new markets rather than only serving existing ones. It is however important that the aspirational goals are backed by concerted actions, regular reviews and course correction.
- Aegis on acquisition spree, sans India
After 16 global takeovers, the Essar Group’s BPO arm Aegis is still on the lookout for acquisitions in Africa and Europe to expand its global footprint, but will stay away from Indian companies.”We will not do acquisition in India that is for sure. It doesn’t make any sense because first of all, the assets are very heavily priced.
- Aegis to hire 11,000 people globally in FY12
Aegis, the BPO arm of USD 15-billion Essar Group , today said it plans to add about 11,000 people globally, including India , during the financial year 2011-12.Aegis has more than 50,000 employees across 11 countries. “Globally, we should add 11,000 people by March 2012,” Aegis MD and Global CEO Aparup Sengupta said here.
- IT-BPO sector will grow by 19% in current fiscal, says Nasscom
Buoyed by steady recovery in demand for technology services, the Indian IT-BPO sector is estimated to have grown 19% in 2010-11 to $76 billion in revenues, software industry lobby Nasscom said on Wednesday.“Pent-up demand for IT-BPO services and return of discretionary spending in the market were the key drivers for the industry performance,” Nasscom president Som Mittal told reporters.
- IT-BPO industry crosses $76 bn revenue in FY11: Nasscom
Buoyed by steady recovery in demand for technology services, the Indian IT-BPO sector is estimated to have grown 19 per cent in 2010-11 to USD 76 billion in revenues, software industry Nasscom today said.”Pent-up demand for IT-BPO services and return of discretionary spending in the market were the key drivers for the industry performance,” Nasscom President Som Mittal told reporters here.
- Connecticut introduces bill to prevent law firms from offshoring work to India
The US state of Connecticut has introduced a bill designed to prevent law firms and corporates from offshoring the drafting, reviewing and analysing of legal documents to workers overseas. This could impact the legal process outsourcing (LPO) sector in India. LPO players are also worried that other US states may pick up the cue from Connecticut.
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