- Ending Software Technology Parks of India scheme to adversely impact Indian IT
In the budget, IT’s golden goose – Software Technology Parks of India (STPI), the most successful Indian scheme copied by a number of foreign governments – was squashed prematurely . While India started its liberalisation process in 1992 with attractive tax incentives for the IT sector, the Chinese had instituted similar incentives for manufacturing in 1978.Thirty years later, in spite of conquering the manufacturing sector, China continues with its tax incentives.
- TCS, Infosys, Wipro and HCL see 5% rise in pricing on higher salary costs
For the first time since the Lehman crisis that forced customers to shelve projects and bargain for lower billing rates, Tata Consultancy Services (TCS), Infosys, Wipro and HCL are beginning to see an uptick of up to 5% in pricing, driven by higher salary costs and improved business environment.Rising wages, inflation, and attrition of key staff are some of the reasons driving up billing rates for outsourcing contracts. Most new contracts now come with clauses that address the risks of future salary hikes, foreign currency fluctuations, and inflation in countries such as India.
- Japan, M-E crisis could spell bad news for IT investment: Infy
IT major Infosys today expressed concerns that indirect impact of the Japan nuclear crisis and the unrest in the Middle-East could hit the IT industry.”Indirect impact is what we all need to think about… demand for oil will increase …oil prices could go up again. There are concerns over inflation. There are also concerns over disruption of economic activity, a lot of components for the electronic industry, automotive industry all originate from Japan,” Infosys CEO Kris Gopalakrishnan said.
- Not closing office in Japan, business will continue: Infosys
Software major Infosys on Thursday said it has not shut down its office in Japan and assured clients there that it would continue to support them.”Business will continue. The servicing given to clients will continue because they are very very important,” Infosys COO Shibulal told reporters on the sidelines of a function here.
- Accion, Michael & Susan Dell Foundation Invest In Social BPO Firm
Bangalore-based BPO Vindhya e-Infomedia (Vindhya), which employs people who are differently-abled, has raised an undisclosed amount of venture funding from social sector investors Accion International and Michael & Susan Dell Foundation. Vindhya provides data management and processing services to clients in the IT and microfinance space.Accion is making the investment through Frontier Investments Group, an early-stage equity fund that invests in breakthrough technologies and disruptive business models that can powerfully enhance the reach and scope of financial inclusion.
- CPA Global named in Global Outsourcing 100
Leading legal services outsourcing company CPA Global has been named in the International Association of Outsourcing Professionals’ (IAOP) Global Outsourcing 100 for the third year running.The prestigious top 100 listing covers the leading players in all disciplines of outsourcing, including the largest IT and business process outsourcing (BPO) companies. Companies selected for the Global Outsourcing 100 undergo a rigorously judged application process that assesses four critical characteristics: size and growth, customer references, organisational competencies, and management capabilities.
- Intelenet in 5-year outsourcing pact with Tata Teleservices
Intelenet Global Services (Intelenet) today (Mar 8) announced that it has signed a five-year outsourcing partnership with Tata group company, Tata Teleservices Limited. This partnership elevates Intelenet’s position and makes the company the first player to offer finance and accounting processes in the telecom vertical, a press release issued here stated.Intelenet will provide a spectrum of services, covering back-office processes and customer support functions, within the F&A BPO domain.
- Infosys BPO to add 500 more seats in Poland and Czech Republic
Infosys BPO today said it plans to add 500 more seats in the next fiscal in Poland and Czech Republic as part of its growth strategy.”I would think in the next fiscal between Poland and Czech Republic we should add 500 more seats”, D Swaminathan, Managing Director and CEO Infosys BPO Limited, told media on the sidelines of a function here today.
- Rural Sourcing: A Trend to Watch?
Managers thinking of establishing virtual teams may have visions of the best and brightest in New York, San Francisco and Shanghai dancing in their heads. The untapped workers of rural places and small cities like Kanab, Utah or Augusta, Ga. probably feature less often. Now the proponents of a still embryonic but expanding trend known as “rural sourcing” are trying to change that.After all, a recent study by online worker clearinghouse oDesk found that workers in tiny towns of less than 15,000 inhabitants are already online and thriving in a remote work environment.
- Budget 2011: Smaller IT cos to feel tax pinch more, take margin hit
India’s small and medium-sized IT firms will be hit hard by the decision to end tax exemption for software units and impose MAT on SEZ units, company officials and analysts said. Big exporters like Infosys and TCS will not be affected so much as they already have an effective tax rate of around 20%.The budget did not extend tax exemption for units registered under the Software Technology Parks of India (STPI) making export income taxable for them from fiscal 2012. Software units in SEZs which were exempt from Minimum Alternate Tax, have now been brought under the tax’s purview.
- Budget 2011: End to IT’s carefree ride: What it means for new economy
PCs Likely to Cost More. The levy of 5% excise duty on microprocessors as well as DVD writers is likely to make PCs costlier. AMD said that instability in policy is not good for the industry. Intel says it’s still reading the fine print, but a marginal price rise may be imminent.
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