Private Equity Firms See Gold In Mid-Size Indian IT Firms

Indian IT firms, especially in the mid-tier segment, have seen a rise of private equity firms placing stakes on them. While faster technology at mid-size IT services companies have attracted PE firms such as Blackstone, Carlyle, ChrysCap, Bain Capital, The Baring Asia and others to invest in the sector; PE-backed companies have seen faster growth at a time when their large listed peers slowed down due to uncertain market.

Ideal If New CEO Is Close To Murthy

A replacement for Vishal Sikka, the first non-founder to become the CEO and MD of Infosys, must be an internal candidate who has risen up the ranks and is favoured by co-founder N.R. Narayana Murthy, industry analysts said.

Tech Mahindra Delays Appraisals For Senior Staff As Trump Heat Adds To Worries

India’s famed multi-billion dollar information technology (IT) industry has been facing challenging times over the past 6-12 months with top-notch IT companies already facing earnings pressures in recent quarters due to tough business environment prevailing in their most lucrative US and European markets.

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-Wary IT Body Nasscom To Meet US Policy Makers Soon

Amid widespread concerns over impending policies of Donald Trump, who is set to take charge as US President from Friday, Nasscom is planning a visit to the US in the next few weeks to reach out to American policymakers and lawmakers.

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.

How the TCS-Epic case could impact the IT services sector

Indian IT services companies with software platforms could be forced to rethink their operational set up after the massive fine imposed by a Wisconsin federal jury against TCS.

While TCS has denied the allegations of stealing healthcare software from American company Epic Systems, analysts say that it’s time for Indian tech firms to legally and physically separate their software divisions.

“IT firms need to be at an arm’s length from their software divisions and create a separate legal entity for them. Not only does the software unit require to be a separate legal entity, but the company should also ensure that the employees and management are also totally independent. Unless, that happens, such allegations cannot be ruled out,” said Sanchit Gogia, Chief Analyst & CEO of Greyhound Research.

Not many IT services companies currently follow this practice. Infosys separated its software product company, which remains a fully-owned subsidiary, in 2014.

Source: Hindu Business Line

Are Indian Techies Safe Abroad?

In this era of globalization, competition is increasing in every field. In India, jobs in IT sector are multiplying day by day and the craze among the employees to go abroad is on a high note.

Nasscom rejects Murthy’s ‘immigration agents’ comment on Indian IT firms

The National Association of Software and Services Companies (Nasscom) rejected NR Narayana Murthy’s comment wherein he called Indian IT firms as behaving like “immigration agents.”

Startups find a perfect match in desi app makers

The startup boom in the country is propelling a parallel IT services industry. While established technology companies such as Infosys and TCS largely cater to overseas customers, upcoming firms are focusing on India, quenching the domestic demand for mobile-era solutions.

Charges Of Over-Billing Apple Cost Infosys BPO’s CFO His Job

Infosys has sacked its BPO unit CFO Abraham Mathews and will fire some others senior executives for allegedly overcharging Apple Inc for IT support services.

Charges Of Over-Billing Apple Cost Infosys BPO’s CFO His Job

Infosys has sacked its BPO unit CFO Abraham Mathews and will fire some others senior executives for allegedly overcharging Apple Inc for IT support services.

Like India, Infosys Needs A Shot In The Arm (and Now)!

India has only recently finished the most significant federal elections witnessed in the past few decades. Not only did the elections bring out the clear winner in Narendra Modi, it has also worked like a shot in the arm for country’s economy.  A recent study by ASSOCHAM confirmed that this new wave of leadership for India is expected to double foreign investments to US$ 60 billion. This is surely a major boost from the distressed condition of the Indian economy under the previous Government.