In 3 Years, Sikka Helps Buoy Infosys Profit

When Vishal Sikka took over at Infosys he was prescient about automation taking away jobs and clients shifting investment dollars into newer digital technologies.

IT Industry Stares At Jobless Growth

IT services industry is staring at jobless growth because its top employers are focusing on automation to improve productivity and deliver services while they battle shifts in technology to remain profitable.

Nasscom Pegs IT-BPM Exports Growth Rate At 7-8 Per Cent For FY17-18

Industry body Nasscom projected software export growth in fiscal 2017-18 at 7-8% in constant currency, down from 8.6% last year.

Reskilling: Indian IT Sector Starts Massive Effort To Learn New Tricks

How safe is the average Indian techie’s job? Between Donald Trump’s “Make America Great Again” push at one end and artificial intelligence-driven automation on the other, India’s most sought-after career for two decades is suddenly losing its appeal.

If Only India’s IT Companies Could Focus On Real Transformation Instead Of Appeasing Trump

On May 02, Infosys, India’s second largest information technology (IT) company, announced that it will hire 10,000 American workers over the next two years. Three days later, on May 05, Nasdaq-listed Cognizant Technology Solutions, which has a large presence in India, also revealed plans to significantly ramp up hiring in the US. if and when they do end up attracting talent, Indian IT companies may have to pay through their nose for it.

Nightmare On IT St: Thousands To Be Sacked

Infosys, Tech Mahindra and Wipro, which went on hiring frenzies when times were good, are today in the process of laying off thousands of their workers across various locations and experience levels. Industry watchers believe that more layoffs are inevitable.

Indian IT Eyes Crores Of Rupees In Revenue As Firms Rush To Get GST-Ready

India’s information technology (IT) industry is likely to benefit in a big way as the goods and services tax (GST) roll-out leads to companies spending a few thousand crores of rupees in becoming GST-ready.

Trump Visa Crackdown Prods IT To Create US Jobs

With President Donald Trump making it abundantly clear that he will curb immigrant work visas to protect domestic jobs, technology outsourcing firms such as Tata Consultancy Services, Infosys and Wipro are focusing on localisation and hiring more Americans to serve their clients in the U.S.

Realigning To New H1B Realities: Infosys Announces Hiring Plans For US

On May 2, 2017 Infosys announced plans to hire 10,000 American workers over the next two years. 

At Greyhound Research we believe, steps such as these by IT Services Providers eloquently tell a tale of the pressure they are experiencing under the new Trump administration.

Scroll below for our latest tweets on this topic. Read a more updated thread by clicking on any of the tweets from below. Lastly, please spare a moment to retweet, share and respond to this thread!

Separately, In an earlier research note on the changes to H1B visa, Greyhound Research had predicted…

…increased need for IT Services Providers to prove incremental investments and local hiring in the US.

Having said that, we also added…

…cost and complexity of doing business will increase, expect margins to take a hit. Per Greyhound Research estimates IT Services Providers will shave off margins anywhere in the range of 5-10% YoY.

Given the increased pressure and scrutiny of US headquartered organisations on outsourcing…

…IT Services Providers can expect requests from clients to renegotiate existing contracts. This might well mean smaller and more expensive contracts (on the back of increased cost of delivery) here on.

To read the detailed research note on this topic by Greyhound Research, click here.


Analyst(s):

Sanchit Vir Gogia: Sanchit is the Chief Futurist, Founder & CEO of Greyhound Knowledge Group, a Global, Award-Winning, Digital Transformation Research & Advisory Group. He also serves as Chief Analyst & CEO of Greyhound Research, an Award-Winning, Global, Independent Technology Transformation Research & Advisory firm. To read more about him, click here.

Anshoo Nandwaani:  Anshoo serves as a VP and Principal Analyst with Greyhound Research, an Award-Winning, Global, Independent Technology Transformation Research & Advisory firm. She also serves as Chief Human Resources Officer (CHRO) of Greyhound Knowledge Group, a Global, Award-Winning, Digital Transformation Research & Advisory Group. To read more about her, click here.


Copyright © 2017 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.


Note for IT Decision Makers – Join Our Exclusive Community! Greyhound Research values your opinion and invites IT Decision Makers and Business Leaders involved in IT projects to join our exclusive, invite-only Greyhound Golden Gate (GQube) Councils. If your project is exclusive and we have your permission, we will write a research note about you and share it with the larger community. Over and beyond, this also gives you access to some of our thought-leading research and analysts. Please write to us on  connect@greyhoundgroup.com and we’ll take it further from there!

Note for IT Vendors, Telecom Operators and Channel Partners – Did you see our Research Agenda? We have organised all of our insights in a way that allows you to better filter and read what works best for you. To access scores of Free, Freemium and Premium Insights please use the menu above. Please write to us on connect@greyhoundgroup.com and we’ll gladly share a copy of the research agenda with you.

IT Firms Find Ways To Counter Visa Curbs

The software industry is facing mounting challenges as countries from Australia to the United States have moved to tighten work visas to limit the influx of foreign workers.

Era Of AI: Infosys’ Mana Eliminates Need For Lawyers To Process Contracts

Infosys has deployed its artificial intelligence (AI) platform ‘Mana’ to process contracts for a bank in Asia that typically needed a team of 10-15 dedicated lawyers.

Suspension On Expedited H-1B Visa To Affect IT Cos

US’ decision to temporarily suspend the expedited premium processing of H-1B visas will lead to process delays for  IT firms too.

IT Firms Breathe Easy As Donald Trump Proposes Merit-Based Immigration

US President Donald Trump’s proposal for immigration reforms to encourage merit-based migration might help export-focused software and information technology (IT) sector.

The Metric That Indian Startups Once Swore By Is Now Being Blamed For All The Sector’s Ills

Till a few years ago, profitability received the step-child treatment from Indian e-commerce entrepreneurs.

Donald Trump’s H-1B Visa Restrictions Will Not Be A Deterrent For IT Sector; Here’s Why

Despite the impending dark overtones cast on India’s IT sector, the reality on the ground is far from anything bleak. Irrespective of the announcements from US president Donald Trump, Brexit concerns and the slowing global economy, the IT sector seems to have factored the low spell and will be only marginally impacted. The sector will likely grow 8-9 percent in FY2017E and could grow at same pace or accelerate in FY2018, according to a technology report from Kotak Instituitional Equities released a week ago.

A ‘Kshatriya’-Run Infosys Continues To Ring The Bell Despite Murthy’s Attack

Run by a kshatriya, a warrior – Vishal Sikka calls himself one – Infosys’ stocks continue to perform well despite allegation of “low corporate governance” by former chairman and co-founder NR Narayana Murthy.

Startup World Is No stranger To Boardroom Bickerings Playing Out In Infosys

The hullabaloo over former Infosys Chief Financial Officer Rajiv Bansal’s severance payout could just be the trigger for a larger war inside the IT bellwether. But the battle lines have yet to be clearly drawn. The question everyone seems to be invested in for now is: When will the warring sides come into the open and will all this destroy the company’s brand image?

Infosys: A Tata-Mistry In Making, But Vishal Sikka Is No Cyrus Mistry

It takes more than just a boardroom coup to oust a company’s chairman or chief executive, though Ratan Tata is different. It took him just one board meeting to remove Cyrus Mistry, then the chairman of Tata Sons, whose family’s firm Shapoorji Palonji holds 18.4% in the Tata Group.

Infosys Governance Row: 10 Points To Ponder

Over the last 24 hours, the Indian IT Industry and media have been abuzz with supposed corporate governance issues at Infosys. Founders have lashed out at Vishal Sikka and the board via a letter that highlights possible corporate governance issues under the new management. While no facts have been presented until now, additional news material was floated this morning with some strong commentary from none other than NR Narayana Murthy himself.

Infosys Letter: Why Can’t Founders Of Indian Cos Leave Without Looking Back, Just Like Bill Gates?

The letter sent by founders to Infosys board raising governance concerns has given rise to nagging suspicion that remote controlling of a company by former promoters may be an emerging trend in Indian corporates that are restructuring and reinventing themselves to come to terms with the new business realities.

Infosys Defends Pay Hike To Sikka, Says Decision in Company’s Interest

IT major Infosys today defended pay hike to chief executive Vishal Sikka and the severance package of two former senior executives saying all decisions were made “in the overall interest of the company”, amid reports of simmering differences between the CEO and its founders.

AI Is Evolving Quick & Vendors Are Struggling To Find The Secret Sauce

Over the last 12 months, we at Greyhound Research, the Technology Transformation arm of Greyhound Knowledge Group, carried out hundreds of end-user enquiries on various aspects of Artificial Intelligence. These enquiries have ranged from questions on benchmarking AI vendors, understanding potential use cases, use of open source among other questions. Amidst a range of topics (reach out to our Client Centricity Team if you wish to know more details), one trend particularly stood out…

…Artificial Intelligence is a top priority (for both business and technology leaders) and organisations globally are aggressively launching pilots to explore possibilities.

We at Greyhound Research believe this trend has both near-term and long-term impact on both the CIO and their respective organisation. Below are some of the latest tweets on this topic. Read a more updated thread by clicking on any of the tweets from below. Lastly, please spare a moment to retweet, share and respond to this thread!


Analyst(s):

Sanchit Vir Gogia: Sanchit is the Chief Futurist, Founder & CEO of Greyhound Knowledge Group, a Global, Award-Winning, Digital Transformation Research & Advisory Group. He also serves as Chief Analyst & CEO of Greyhound Research, an Award-Winning, Global, Independent Technology Transformation Research & Advisory firm. To read more about him, click here.

Anshoo Nandwaani:  Anshoo serves as a VP and Principal Analyst with Greyhound Research, an Award-Winning, Global, Independent Technology Transformation Research & Advisory firm. She also serves as Chief Human Resources Officer (CHRO) of Greyhound Knowledge Group, a Global, Award-Winning, Digital Transformation Research & Advisory Group. To read more about her, click here.


Copyright © 2017 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.


Note for IT Decision Makers – Join Our Exclusive Community! Greyhound Research values your opinion and invites IT Decision Makers and Business Leaders involved in IT projects to join our exclusive, invite-only Greyhound Golden Gate (GQube) Councils. If your project is exclusive and we have your permission, we will write a research note about you and share it with the larger community. Over and beyond, this also gives you access to some of our thought-leading research and analysts. Please write to us on  connect@greyhoundgroup.com and we’ll take it further from there!

Note for IT Vendors, Telecom Operators and Channel Partners – Did you see our Research Agenda? We have organised all of our insights in a way that allows you to better filter and read what works best for you. To access scores of Free, Freemium and Premium Insights please use the menu above. Please write to us on connect@greyhoundgroup.com and we’ll gladly share a copy of the research agenda with you.

H1-B Visa Restrictions: Experts Say US Too Will Feel The Heat Of Donald Trump’s Plan

Today a legislation impacting H1-B visa programme has been introduced in the US House of Representatives making it difficult for companies in the US to employ skilled foreign workers. Among other things, the bill more than doubled the minimum wage requirement of H1-B visa holders to US $130,000.

This Country Will Be Most Impacted If US Passes New H-1B Visa Bill

It may not be a good time to be a techie in America. Correction: It may not be a good time to be a non-American in Trump’s America.

What H1B Visa Reforms Mean For IT Companies

Software services industry, already facing pressures on profitability and revenue, has become the latest target of the Trump administration’s moves to protect American jobs.

New H-1B Visa Announcement: Skills Not Salary The Trump Card

On 31 January 2017, an announcement impacting H-1B visa programme has been made by the US House of Representatives making it difficult for companies in the US to employ skilled foreign workers. Among other things, the minimum wage requirement of H-1B visa holders has been more than doubled to USD 130,000. At Greyhound Research we believe this is a significant announcement by the newly appointed Trump administration. While changes were expected under the new President, the suddenness and the order of the announcement has surely caught IT Services Providers across the globe by surprise.

Blow For Indian IT: New US Bill Proposes Doubling Wage Limit For H1B Visa

India’s information technology (IT) sector will face temporary setback to move workers from India to the US with the bill introduced in the US House of Representatives that mandates minimum wages of H1B visa holders at $130,000, double the current limit.

Indian Techies Nervous About Stay In Donald Trump’s America; Mull Passage Back Home

Indian engineers have for long viewed the US as the land of El Dorado with its promise of riches — professional and personal. But they are now a deeply worried lot as nationalist rhetoric turns shrill in Donald Trump’s America.

Trump’s ‘Buy American-Hire American’ Pledge Unnerves Indian IT

New US President Donald Trump’s ‘Buy American-hire American’ rallying cry has put the USD 150- billion Indian IT industry on edge, which is in wait-and-watch mode to see how the new administration evolves policies around outsourcing and movement of skilled workers.

NASSCOM 2 Last

Hoping for a “business-friendly administration”, Infosys chief Vishal Sikka says Trump himself is an entrepreneur and a business leader and therefore, he “expects that this will be the case where business and innovation friendly regime.”

New H1-B Bill: Despite Vishal Sikka’s Hopes On Trump, Indian IT Margins May Take A Hit

The Donald Trump administration which will take charge on 20 January in the US has announced that it will push for legislative measures to curb misuse of H1-B and L1 work visas significantly used by Indian IT professionals.

With Growing Protectionist Sentiment, Indian IT Service Providers Face A Bumpy Road Ahead

January 20, 2017, will mark the commencement of the four-year term of Donald Trump, the 45th President of the United States. Since his presidential election win on November 8, 2016, many quarters of the global industry have been abuzz with possible outcomes of the protectionist sentiment in the US – a key pillar of Donald Tump’s campaign. Here’s what we at Greyhound Research, the Technology Transformation Research & Advisory arm of Greyhound Knowledge Group, believe will be the impact on the Indian IT Services firms.

Outlook 2017: Tech Industry Faces A Volatile Year Ahead

“2017 is going to be a volatile year for the Indian IT industry,” says Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research. “The pace of technological changes is very high and it will lead to substantial job cuts. The companies will try to be a lot leaner,” predicts Gogia.

Indian IT services companies have been facing competition from upstart players with highly specialised skill sets based in advanced markets, especially in areas such as cloud services and analytics. The cash-rich Indian IT companies are responding to this by acquiring companies overseas and thereby enhancing capabilities. Wipro spending nearly $1 billion in acquisitions last year is a case in point. In 2017, we are likely to see big boys of the Indian IT industry loosening their purse strings to make large acquisitions. “They will look at companies with sizeable revenues,” says Gogia.

[Source]

David Kennedy Exits Infosys Whilst Indian IT Service Providers Battle Protectionist Sentiment

On December 31, 2016, Infosys announced a sudden exit of its General Counsel and Chief Compliance Officer, David Kennedy. While no reasons have been cited by the company, per the terms of exit, Kennedy will receive aggregate severance payments of US$ 868,250 along with reimbursements for COBRA (insurance) continuation coverage over a period of 12 months.

Infosys’ Rs 5.9 Cr Severance Pay To Kennedy Bid To Play Safe With Trump

IT major Infosys’ Rs. 5.9 crore ($868,250) severance pay offer to outgoing General Counsel David D Kennedy is a move to play safe with  Donald Trump administration in the US, say experts.

Flashback 2016: Year Of Uncertainties For IT Sector

Information technology industry strived to find newer opportunities and markets in 2016 as geopolitical uncertainties, a challenging business climate and technological shift clouded outlook.