Building front-end and stitching it with back-end is a task that IT firms are learning the hard way, finds Raghu Krishnan.
Essar Global Fund, the Ruia company that invested $1.3 billion in telecommunications, towers and business process outsourcing over the years, made $6.5 billion, a five-fold return, when it flipped these businesses, according to discussions the group has had with merchant bankers.
Large enterprises fuelled by the boom in IT and outsourcing services will drive the demand for telecom services in India, but the country must improve the quality of its corporate data services, IT research firm Gartner said.
Every technology-related job in the US would be moved to overseas destinations within a decade as relocation of jobs to countries like India would enable firms to cut costs, a top American businesswomen has said.
Shortage of skilled manpower in the information technology and business process outsourcing-ITeS sector is fuelling a hike in employee salaries, which have been posting a 10-40% growth during the last couple of years, according to Gartner.
However, the IT firms will get some benefits, as software exports from their Chinese campuses will yield more in local currency
Under GST, the small and medium industries would have to handle things on their own, says V S Krishnan.
Buoyed by stellar earnings in the September quarter, IT firm Cognizant said it will offer promotions for its employees at all levels up to managers.
NIIT Ltd has planned to focus on expanding its knowledge solutions business in the US and European markets by cashing in on the growing trend of outsourcing the services of customised content development and training of workforce.
Zoniac, a US-based professional services automation firm, said on Thursday that it would set up its Indian arm in Chennai, which would undertake and provide global product development and support.
Of the 3.9 million the sector employs, HR experts say at least 100,000 are likely to lose their jobs by the end of this financial year. Ayan Pramanik and Raghu Krishnan report.
Backlash in the United States against contracting of jobs to foreign service providers will not significantly affect business process outsourcing trends, IT research and advisory firm Gartner Inc has said.\n\n\n\n
Research firm Gartner Dataquest said on Thursday that while there would be occasional backlash on outsourcing towards Indian IT companies, no long-term damage was anticipated due to these "temporary anomalies".
Global corporations which offshore IT and BPO work to countries like India not just looking at short-term gains, but on how outsourcing gives returns over a 10-year period, an IT industry official said.
Havell's India Ltd, the power distribution equipment maker, on Monday said it has bagged two orders worth $6.5 million from a British and a Spanish company.
The study pointed relationship health checker against the negative pointers that can hamper the evolution of trade.
Indian property market and its regulations need to be reformed further to attract foreign direct investment while the demand for space for business process outsourcing is expected to cross over two crore square feet in the next three-five years.
Nokia, that has already begun manufacturing of 5G equipment at its Chennai plant, is also readying for exporting the products to several key markets like the US.
As Americans fret about cheap labour abroad, the real issue has become not one of lower price but quality and scale - India is on the move to outmaneuver its US competitors on a stunning array of fronts, says a new book.
India could emerge as hub for apparel outsourcing but will have to undertake reforms in key areas like labour, according to McKinsey.
The Indian IT sector, which is doing exceedingly well going by the July-Sept quarter results, can sustain the momentum in the coming quarters as Indian IT firms enter new markets and gain business, experts say.
Close on the heels of US retailer J C Penney's announcement to enhance outsourcing from India, domestic apparel exporters have firmed up plans to hold a mega garment show in Dallas and New York.
This (the rubbishing of Indian call centres) is coming from the unions. UK has a non-protectionist stance, the government is not there to stop businesses doing business, says Morrell.
The IT services company is building underlying tech for connected cars
Exult Inc, a US-based firm that provides human resources services to companies, is setting up a business process outsourcing unit in Mumbai to service overseas clients, a senior official said.
Indian software giant Infosys Technologies Ltd is taking in more entry-level engineers this quarter to cope with rising outsourcing business, matching the record hiring in the preceding three months, analysts said.
