Indian export-oriented information technology (IT) and business process outsourcing (BPO) firms may be grappling with an appreciating rupee and clouds of doubt looming over the extension of tax sops for the sector beyond 2009. An Everest-Nasscom study points out that the domestic BPO market, with a growth rate of 50 per cent over the last five years, has grown faster than the overall Indian BPO market to reach nearly $1.6 billion (Rs 6,400 crore) by end of FY2008.
The fourth quarter of financial year ending March 31, 2008, may hold a mixed bag of results for Indian information technology (IT) companies. On the one hand, IT firms - which hedged themselves taking the view that the Indian rupee would continue rising against the US dollar - will have to bear a negative impact on the portfolio that has been hedged so far. On the other, their top line as well as operating margins (EBIDTA) will get a boost since the rupee has depreciated.
The emerging markets strategic business unit of the country's largest IT services provider Tata Consultancy Services aims to touch the revenues of $2 billion by 2011-2012. The SBU targets regions such as Eastern Europe, West Asia, South Africa and Latin America. The company is also planning to have strategic development centres that will cater to these regions, beginning with Egypt & Russia. Emerging Markets offer great opportunity for TCS as IT sector there is growing at 8%.
The tax holiday awarded by the Union Budget to healthcare and IT sectors has been greeted with enthusiasm. Major hospital chains had already announced plans to expand in tier 2 cities. The tax holiday has proved to be an added incentive. India needs 3.1 million new hospital beds in the next 10 years. The tax-holiday benefits are available for all new hospital projects except the ones coming up in cities like Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore & Ahmedabad.
The next time you buy a shirt or trouser that claims to be stain- and wrinkle-free, thank nanotechnology for it. The Indian government has allocated Rs 1,500 crore (Rs 15 billion) for the development of nanotechnology which involves studying and working with matter on an ultra-small scale. The nanotech market globally is expected to cross $1 trillion by 2010. In India, the maximum research in nanotechnology is taking place in the biotechnology and medicine segments.
Global information technology giant Hewlett-Packard (HP) is set to launch its special lines of products, targeting women and the youth in India.
Information technology firms appear to have lost their appeal at the Indian Institutes of Technology. Campus recruitment figures by major Indian and foreign IT firms have dipped this year, raising further concerns of an industry slowdown.
S Venkatramani, who will head the Indian operations, is already bullish about the opportunity the domestic market offers. Venkatramani takes over after the recent rejig announced by TCS in its organisational structure.
The Indian IT companies, which have been hitherto providing back office services (claims processing and others), are now planning to provide actuarial valuations. Genpact, one of the largest players in the property and casualty space has been in actuarial services since the last five years.
"Valentine's Day is an established gifting occasion in India today and for many working people, shopping online especially for unique products allows them the opportunity to make the occasion special for their loved one," says Ambareesh Murty, director, Marketing & Operations, eBay India.
Reliance Retail has tied up with Microsoft to launch the concept of connected homes.
Anti-virus and anti-spyware technologies, which are packaged as 'blacklist' solutions, are gradually giving way to what security experts claim is a far more effective IT security technology based on 'whitelist' solutions.
Employees who forward office documents and emails to personal email accounts pose the greatest security risk to an organisation, according to a report by Websense.
The required skills have become higher, creating opportunities for a more specialised workforce in this sector. For long, a job with a business process outsourcing (BPO) company has been looked upon as a stepping stone to another, longer-lasting career. Such has been the attrition in the industry.
IT vendors make hay on robust demand for managed security software applications.
Last week, Reliance Entertainment signed up with Manchester United for an exclusive, global three-year game development deal, which reports estimated at $100 million. Rajesh Sawhney, president, Reliance Entertainment, talked to Business Standard about the company's plans in the gaming, animation and home entertainment space.
Better marketing, more recyclers needed, say hardware makers.
All low-cost laptops and desktops come pre-loaded with a Linux OS or a DOS version (obsolete on desktops). The installation of a legal Microsoft operating system (OS) and office suite (for word, excel, etc) will increase the price of the desktop or laptop by 20 to 35 per cent.
Logix, a company dealing in automative e-retailing solutions, is negotiating the acquisition of a US firm.
In the last three months, attrition of the company has come down by 25 per cent. The company's attrition on an average ranges from 38 to 58 per cent annually.
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