"These are unforeseen events and we do not see any further impact from other clients. We are in talks with both the seller and the purchaser, as the seller has mentioned our name in the list of critical services suppliers. The situation will be clear in a week," said P D Mundhra, executive director, eClerx Services.
As enterprises halt ongoing projects or cancel them, all staffers working on such projects are placed on the bench. In some cases, IT firms have to reduce billable staffers in a project as clients ask for scaling down support, leading to rise in reserved employees.
The combined entity's headquarters will be in California, US.
A seasonally-strong quarter, with no immediate impact of the second wave and continued acceleration of digital transformation will allow the IT services sector to report a robust Q1 this financial year. However, key metrics to look out for will be attrition rate and margin lever as they will be impacted by salary hikes. Analysts expect growth for the quarter to be broad-based, with sectors like banking, financial services and insurance (BFSI), retail, manufacturing, hi-tech and life sciences driving revenue growth. Analysts across brokerage houses are pegging revenue growth in the range of 1.5 per cent to 4.5 per cent.
The controversy over visas for high-skilled workers from abroad is about to get hotter. H-1B visa program was set up to allow firms in US to import the best in technology, engineering, and other fields when such workers are in short supply in America. But data released by the federal government show that offshore outsourcing firms, particularly from India, dominate the list of companies awarded H-1B visas in 2007.
A growing number of US companies are looking to India's outsourcing firms to cut the cost and time needed to comply with a US corporate governance law that calls for timely and accurate reporting of financial accounts.
They are acoustics pioneer Amar Bose, Google founder director Kavitark Shriram, venture capitalist Vinod Khosla and Bharat Desai, CEO of an info-tech outsourcing firm.
Infosys BPO (formerly Progeon) and media company TV18 have entered into a strategic alliance to launch Source18, a media process outsourcing company that will offer a range of services to media and entertainment companies globally.
Chennai-based business process outsourcing firm in human resources services, Secova eServices plans to ramp up its operations by hiring 165 people in the next one year, its co-founder V Chandrasekaran said.
Infowavz International, a Mumbai-based business process outsourcing firm, has signed a strategic partnership with London-based Contact Power Inc for offshore BPO services into the United Kingdom.\n\n\n\n
Operating Income crosses $ 1 billion; Q4 revenues at $1.2 billion; up 8% Q-o-Q.
Already 15-20 per cent of the workforce, earlier used to be procured from staffing firms and subcontractors, are replaced by freelancers tapped from platforms like Topcoder, GitHub, and Upwork.
India, which constituted over 13 per cent of Accenture's global headcount of 115,000, is its second largest geography in terms of the number of people employed after the United States.
In the last couple of months, top Indian IT services providers, including TCS, Infosys, Wipro and HCL Tech have announced setting up cyber threat management centres in the US and Europe.
GTCR Golder Rauner LLC (GTCR), a US-based private equity company, has acquired majority stake in Zenta, a business process outsourcing firm with operations in the city and committed $100 million for the deal.
Simplilearn said the pandemic had accelerated demand for skills in areas such as artificial intelligence, cloud computing, data science and cybersecurity.
'MNCs now recognise India's capacity for innovation and its pivotal role in substantive contributions to global product development.'
Global private equity firm The Carlyle Group has invested $4 million in Worldzen Holdings Ltd, a Bangalore-based firm that specialises in business process outsourcing in the financial services, insurance and healthcare industries.\n\n\n\n
"India is the best market right now in the world with the digital initiatives the government has implemented
The Business Process Outsourcing companies in India appear to be handling the impact of the global economic crisis much better than IT firms
The deal was inked at an enterprise value of 42.9 million euros and will be financed by the Capgemini Group's net cash, it said in a statement here. The contract was signed with conditional approval from the Italian anti-trust authorities.
'We are also conducting ongoing training and grooming at the branch level to pre-empt such cyberattacks.'
Outsource Partners International, a business process outsourcing company that provides finance and accounting services to clients in the US and UK through offshore resource centres in India, plans to target Indian global firms to scale up business.
Top Indian IT firms, such as TCS, Infosys, and Wipro, have signalled taking aggressive cost take-out measures, including reduction in sub-contracting costs, travel expenses, freeze in salary hikes, and holding back variable payments, among others.
A total of 12 Indian companies made it to the third annual Forbes Asia Fabulous 50 List, followed by Taiwan with 10 and China with seven, Forbes Asia said in a press release.
Plus Vision Corporation the $1.7 billion Japanese company said on Monday that it planned to outsource software from Indian IT firms, which would be integrated in its advanced products.\n\n
To be able to manage any such uptick, Indian IT services players are hiring more locals, and relying on hybrid work models.
Lehman Brothers' bankruptcy filing may well prove to be the last straw for Indian IT firms, which were expecting the second half of FY09 to be better. As a result of the United States' financial market crisis, analysts do not expect Indian IT firms to sign any significant contracts in the banking, financial services and insurance space in the months to come.
Capgemini, which has a good presence in India, is a provider of consulting, technology and outsourcing services.
