He may make a comeback as co-chairman at India's second largest software exporter.
Top Indian IT companies such as Infosys, TCS and Wipro, which are mainly into software services business, could be toppled by lesser known firms in the outsourced (software) product development business in the coming years, according to industry offi
The company has been at the centre of an outcry over visa abuse.
Most of the 250 freshers Infosys hired from US campuses last year would be deployed in sales
Even as high attrition rates continue to haunt Infosys, the country's second-largest IT services firm is confident of bringing it down to 12-14 per cent in the next two quarters as it gets back to the growth trajectory.
The transformation will be driven by the number of initiatives the company has identified.
After startups and Big Tech, the layoff season may have begun at the $245 billion Indian information-technology (IT) industry. Bengaluru-based IT major Wipro is looking to cut hundreds of jobs, targeting mid-level employees working onsite as the company looks to improve margins, according to a media report, citing two sources. The company has said it is aligning its business and talent to the changing market environment.
Pravin Rao says firms with revenue of $600-700 millon will be preferred.
H-1B workers have minimal skills, says Infosys whistleblower
With Infosys reportedly increasing the pay packages of senior executives, including executive vice-presidents and a few vice-presidents, threefold, the Indian information technology (IT) services space might well get a new benchmark.
S&P Global Ratings on Thursday said about half of the Indian companies that it rates are getting a boost in their core profitability from rupee depreciation. "Much of our rated India corporate portfolio has sizable US-dollar linked revenue and, therefore, is not exposed to rupee depreciation. "This encompasses entities in the IT, metals, and chemicals sectors. About half of the firms we rate are getting an EBITDA boost from currency weakening," the US-based rating agency said in a report.
Among the Sensex firms, Tech Mahindra, Wipro, Infosys, Tata Consultancy Services, HCL Technologies, Larsen & Toubro, ITC, Sun Pharma, NTPC and Titan were the major gainers. Nestle, Axis Bank, Tata Motors, ICICI Bank, HDFC Bank and Bharti Airtel were the laggards.
IT services firms' revenue growth in the fourth quarter will be affected by macro-driven headwinds, lower working-days, and the fact of the three-month period being low season. Analysts are expecting FY24 growth to be muted. Revenue growth will decline 600-700 basis points to 10-12 per cent for FY24, said a CRISIL Ratings report. The 10-12 per cent growth rate is a fall from the 18-20 per cent expected in FY23 and around 19 per cent growth in FY22, the highest in eight years, said the CRISIL Ratings report.
Most of the large Indian IT services players, such as TCS, Infosys, Wipro, and HCL Tech, have signalled increased offshoring efforts and opting for local hires in the US, primarily to address the immigration-related challenges.
Among the Sensex firms, Tata Motors jumped over 3 per cent. Tech Mahindra, Infosys, HCL Technologies, Axis Bank, Mahindra & Mahindra, ICICI Bank, UltraTech Cement and Kotak Mahindra Bank were the other major gainers. NTPC, Asian Paints, Titan and Power Grid were among the laggards.
In a major relief to Indian information technology (IT) companies operating in Australia, Canberra has agreed to amend its domestic laws to stop taxing offshore income of such Indian companies, as part of the free trade deal inked. This may lead to savings up to $200 million each year for over 100 Indian IT companies operating in Australia. "The Government of Australia has agreed to amend the domestic taxation law to stop the taxation of offshore income of Indian firms providing technical services to Australia. "This will resolve the issue that the Indian government has raised about the double taxation avoidance agreement (DTAA) between the two governments for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income," said a commerce ministry official.
Instead the Chinese IT firms focussed more on the local markets where they are well entrenched.
The 30-share Sensex is down 359 points at 26,378 and the Nifty has dropped 78 points to trade at 7,883
Byju's, India's most-valued startup, has decided to put two of its key assets -- Epic and Great Learning -- on the block to generate $800 million-$1 billion in cash, with an aim to meet the edtech firm's various commitments, including repaying the entire $1.2 billion term loan B (TLB) within six months, according to sources. The cash-strapped company has proposed repaying $300 million of the $1.2 billion loan in the next three months, depending on whether the lenders accept Byju's amendment proposal, said the people familiar with the development. "This loan repayment proposal has been submitted to the lenders and conversations are going in the right direction," said a person in the know.
To be able to manage any such uptick, Indian IT services players are hiring more locals, and relying on hybrid work models.
TCS, Infosys ramp up onshore hiring; Infosys committed to hire 25,000 over 5 years.
With automation taking place at a much faster pace across industries especially in the tech space, domestic software firms that employee over 16 million are set to slash headcounts by a massive 3 million by 2022, which will help them save a whopping $100 billion mostly in salaries annually, says a report. The domestic IT sector employs around 16 million, of them around 9 million are employed in low-skilled services and BPO roles, according to Nasscom. Of these 9 million low-skilled services and BPO roles, 30 per cent or around 3 million will be lost by 2022, principally driven by the impact of robot process automation or RPA. Roughly 0.7 million roles are expected to be replaced by RPA alone and the rest due to other technological upgrades and upskilling by the domestic IT players, while it the RPA will have the worst impact in the US with a loss of almost 1 million jobs, according to a Bank of America report on Wednesday.
While for clients it has led to increased outsourcing, they are no more worried about which shore the service providers are executing the project in - offshore, onshore or near-shore - because remote working has become the standard norm in the industry, giving rise to a "no shore" kind of model.
Hiring Americans can strain margins of IT firms operating in US.
While revenue growth of 10-20% is possible in 2013, valuations may trend lower on margin pressure.
5,565 contracts, valued at $201 billion are up for rebids across geographies and verticals by 2018.
Thierry Delaporte's pay package would be around 34 per cent higher than the total compensation that Wipro CEO Abidali Neemuchwala received in financial year 2019-20 (FY20). It also brings the Wipro CEO's salary on par with other top IT firms such as Infosys and Cognizant.
In Parekh, an IIT-Bombay and Cornell University alumnus, Infosys may have finally found a person who will grab the market opportunity with good execution.
Partly an answer to downturn, political pressure; trend should shift again, say analysts.
Firm's dented image following Sikka's exit could bring down revenues in the margin rich US market and force Infy to hire fewer Americans, as hiring locals in developed markets comes at a cost.
Sikka pays 4 business heads million-dollar salaries as incentive to reach the company's revenue target of $20 billion by 2020.
Infosys moves closer to its clientsand its U.S. competitors.
Global banking major ABN Amro has signed a Euro 1.8 billion ($2.22 billion) contract with five IT vendors: Tata Consultancy Services, Infosys, Patni Computers, IBM, and Accenture.
Tier-II and tier-III towns have a reason to rejoice.
Tata Consultancy Services (TCS) is likely to maintain its leadership position over the next three years backed by a strong and satisfied client base.
Having carved a niche for itself as a global outsourcing hub for services, India should now look at becoming the world's preferred manufacturing destination, Infosys chief mentor N R Narayana Murthy said on Thursday.
With infrastructure outsourcing gaining ground globally, the new services space of infrastructure management services (IMS) and independent validation services (IVS) offers tremendous potential.
The IT companies are not getting clarity about clients' IT budgets because of this uncertainty.
After Infosys, hike in other IT companies also seen in 6-9% range.
In the past two years, Sikka has brought in new measures by putting project managers to pitch how they cut time, saved costs and improved productivity
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