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.
He also said "Chinese belligerence is evident in its continuing propensity to project power outside its region", in turn presenting a "threat to the rules-based international order".
'These firms do not contravene provisions of Chartered Accountants Act, 1949, which bar members of the countries not allowing Indians to practice accountancy in their jurisdiction to become chartered accountants in India,' said the committee, headed by Anurag Agarwal, a joint secretary in the ministry of corporate affairs, and such Indian audit firms cannot be equated with multi-national corporations.
Squeezing growth prospects in IT services firms and higher compensation in technology centres run by global companies are the two factors driving this trend.
Indian company Zensar Technologies has formed a joint venture with a Chinese software firm in Shenzhen that will boost the latter's bid to become a major global outsourcing centre.
Leading software outsourcing firm Cognizant Technology on Tuesday reported a 15.4 per cent rise in net profit at $319.6 million in the quarter to September driven by a strong ramp up in demand for outsourcing services, up from $276.9 million a year ago.
This business could also be aided by new outsourcing opportunities in IMS from Germany, France and northern Europe
Five Indian-Americans have been named among the 400 richest people in the US by Forbes, a list topped by Microsoft co-founder Bill Gates for the 21st year in a row with a net worth of $81 billion.
The aerospace technology outsourcing market in India will touch $1 billion by 2009, according to Nasscom.
Entrepreneur-investor Ramesh Vangal is likely to team up with US-based business process outsourcing (BPO) firm Sutherland Global Services to wrest majority control in Cambridge Solutions. Vangal holds 13 per cent stake in Cambridge.
The stock of Dixon Technologies (India), the country's largest listed electronic manufacturing services (EMS) player, was up 6 per cent in 10 trading sessions, boosting the gains over the last three months to 21 per cent. The gains came following reports that Dixon will produce laptops in India in partnership with US and Chinese firms under the production-linked investment (PLI) scheme. It recently signed an agreement to make smartphones for Xiaomi India.
The norms, say industry experts, are not sufficient to weed out fly-by-night contractors.
Headstrong buy the biggest deal in Indian BPO space
Despite higher gross additions, growth in overall customer base has been tepid for these companies, says Debasis Mohapatra.
After disappointing guidances in the first quarter (Apr-Jun) of the 2023-24 financial year (Q1FY24) and valuation downgrades, the Indian IT sector could see some positive repricing as the bad news for IT maybe easing in Q2FY24. A key negative factor was weaker demand from the US financial sector and from North America in general. The latest GDP (gross domestic product) estimates and sector-specific news suggest that the demand situation may not be quite so bad with a gradual recovery in tech spending in Q2.
China-based Xi'an Service Outsourcing Development Association signed an MoU with Starting Point Competence Training Pvt Ltd and Snam Abrasive to enhance the level of certification and training required for the BPO industry. India has gained worldwide recognition in the past few years as a hub of outsourcing activity, with hundreds of English-speaking students graduating from colleges and universities every year.
Harinder Mishra in Herzliya (Israel)
The government told the Rajya Sabha on Thursday that US firms, outsourcing business services to India and other countries, were opposed to the controversial New Jersey bill that seeks to prevent cheap outsourcing from other countries.\n\n\n\n
'We will see a lot of investments from the private sector.' 'As long as we are not impacted by some global events, I think we will be in a strong place.'
However, the second quarter of FY24 is expected to be muted, and, with that, the hope of double-digit growth is now being pushed to FY25. However, analysts are expecting the momentum in the closure of record total contract values (TCVs) will continue, as has been the case over the last two quarters.
Non-voice business process outsourcing major Tricom India Ltd has acquired US-based marketing company Tricom Document Management Inc for around $20,000, and proposes to invest over $1 million in the next one-two years.
The estimated value of these two firms is around Rs 200 crore.
AirAsia India was set up as a three-way joint venture.
Indian IT-BPO firms are looking at Philipines as a viable option to build outsourcing centres.
Analysts see problem continuing as over 60% of revenue comes from North America.
Bullish on increased outsourcing by the US IT firms from India, the domestic software firms view as "positive" or of "little impact" last week's decision by the US to reduce H-1B visa issued to workers in technology industry to 65,000 from 195,000.
The US government should not only look at salary, but also focus on skills while making immigration reforms
For the first time in India, Chandigarh-based Compact Disc India Ltd (CDIL), an integrated media and entertainment company, will animate a true love story titled Eternal Love in English which will revolve around the Taj Mahal. The company has secured an animation outsourcing contract worth $15.70 million from a Los Angeles-based firm through its arm Mediaone Ventures Ltd for the film which is slated to be released in December 2009.
The richest self-made woman in America is Diane Hendricks, the owner of ABC Supply.
Taiwan-based technology firm Winstron Group is exploring the feasibility of setting up a manufacturing base in India, a top official said on Saturday.
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