Page 11 - It Companies
Consolidation to gather pace among domestic IT companies, says report
Scaling up and the need to build digital capabilities will lead to faster consolidation among the mid-tier information technology companies in India, domestic ratings agency Crisil said Tuesday. The IT companies' legacy businesses such as time and material contracts have become commoditised, posing significant growth and profitability challenges, it said, spelling out the reasons which will drive this consolidation. Exit by promoters of tier II firms in the past two years who are capitalising on higher valuations and better growth prospects will also drive this trend, it said. The agency said it has analysed 22 such mid-tier IT firms with turnover between Rs 1,000 - Rs 10,000 crore and found that there is a consolidation opportunity in Rs 33,000 crore worth of market capitalisation. Without taking any names like Bengaluru's Mindtree which is being acquired by L&T, it said moves entailing switch of ownership for Rs 18,000 crore are already in progress. "Such ...
Why IT giants are cutting jobs at mid, senior levels
Besides increasing their fresher's intake, IT giants are also aggressively localising their workforce in the US, from where they draw at least 65 per cent of total revenue
IT results: Top 4 perform differently in March quarter
TCS, Infosys do well but Wipro & HCL disappoint analysts; however, outlook for FY17 bullish in general
TN labour dept, NASSCOM and firms deliberate on 'mass layoffs' in IT sector
AIFITE and UNITE, the organisations that offer support to IT employees, in their letters urged the government to take steps against the alleged mass retrenchment by various IT companies
IT companies may shed up to 40,000 mid-level employees: Mohandas Pai
'It's going to happen again and again and again every five years,' said Pai
IT companies look to cut jobs at mid, senior levels in coming quarters
As hiring in US rises, with resulting cost pressure, these staffers in India are at risk; advent of digital tech another reason
Overall hiring intention of IT employers drops 5 percentage points: Survey
The report further noted that Indian IT companies intend to hire mostly freshers, up to five years experience
Whistleblower stings Infosys again; alleges irregularities in accounting
Experts say no significant diversion from past accounting practices reported by the IT firm in recent quarters
Oracle to hire 2,000 workers to expand cloud business to more countries
Jobs will be added in Oracle's software development hubs in Seattle, the San Francisco Bay Area and India
Q2 earnings: Top IT services companies likely to report steady growth
Analysts are still cautious about the outlook for the banking, financial services and insurance (BFSI) vertical
Rupee's fall may not prop up the margin of IT companies: Analysts
Higher attrition, elevated sub-contracting costs and pricing pressure are likely to negate benefits from a weak domestic currency
Rupee fall against dollar likely to spur margins of IT companies
But a weakening pound sterling may erode some of the gains
IT companies fume over double taxation avoidance treaty with Australia
India is the leading sourcing destination across the world, accounting for approximately 55 per cent market share of the $185-190 billion global services sourcing business in 2017-18
Restrictions hurting our operations in China, IT industry tells Goyal
Despite the Chinese IT services market remaining the third largest globally, investments by the Indian industry have not been able to grow owing to unique challenges faced while setting up shop
Scarcity of talent likely to hit IT companies' forecasts for FY20
Indian IT services firms such as TCS and Infosys have announced a record number of deal closures in the past couple of quarters
Stronger rupee in Q1 may spell trouble for margins of IT companies
Wage hike in April-June and rising onsite cost regarded as other headwinds to margin profile of IT companies.
Margin pressures for IT companies in March quarter as business costs rise
Revenue growth, however, is expected to be robust due to a strong deal pipeline.
Stronger rupee, slower growth likely to hit IT firms' performance in 2019
The bigger worry is the concern around slowing growth in the US and Europe - the biggest markets of IT majors - accounting for more than 75 per cent of the revenue
IT companies eye $80-billion pie as contracts up for renewal in 2019
Indian players traditionally quite active in deal renewal space
Fast-changing large IT services contracts come with strings attached
Clients want to pass on risks to vendors as they push cost optimisation
