Industry Updates : IT Sector

9 Aug 2011: Hexaware, MindTree, UST Global, Syntel and Tech Mahindra raking in more money from large clients like Airbus, American Express and Walmart for bigger gains

Small IT service firms are mining more from their major offshore clients like Airbus, American Express and Walmart as they move back to top of the deal table, where the Big 5 tech firms rule the roost. 

This shift is very clear in the way mid-sized companies are approaching business - focus on breadth is giving way to greater focus on existing accounts. Hexaware, MindTree, UST Global, Syntel and Tech Mahindra are among mid-tier firms raking in more money from large clients. 
And to boot, they are winning deals from larger clients given that some major customers are not-to-happy with the top outsourcing firms.

7 Aug 2011: Indian IT companies including Infosys, TCS confident of withstanding US-led downturn

Even though industries across the country have expressed concerns over the debt crisis in the US, aggravated after the downgrading of its sovereign rating by S&P, Indian IT industry remains confident of withstanding another downturn. 

While most IT companies have expressed caution in the past few months on the European debt crisis and high unemployment in the US, they also remain confident of being able to maintain their growth momentum. 

6 Aug 2011: TCS, Singapore Management University to collaborate in cloud-based IT solution

TCS has entered into a collaboration with the Singapore Management University (SMU) for a new R&D facility for cloud-based IT solutions for cities worldwide. 

The lab is said to be the first of its kind in Asia-Pacific for integrating cloud technology with the relevant business-know-how to create urban management IT solutions.

 6 Aug 2011: IT will be badly hit if US slips into recession again

A turbulent US market means trouble for the Indian outsourcing sector, for which the US market accounts for close to 60% of revenues. It will put pressure on the toplines of companies as clients postpone investments and renegotiate contracts to cut cost. But industry bigwigs say it's too early to make any predictions. 

Phaneesh Murthy, CEO of iGate Patni, says the US economy is so uncertain that it is becoming difficult to do even a one-month prediction on macro factors.

Pankaj Sharma, chief trustee of the Centre for Transforming India, a thinktank, however believes a double dip is inevitable, impacting Indian IT. 

Gaurav Gupta, managing partner of outsourcing consultancy Everest Group, said the long term impact of the US situation is not yet clear. 

2 Aug 2011:  IT companies' revenue growth at 25% in FY11 exceeds pre-crisis level

Led by Infosys, Wipro, HP and Cognizant, the top 200 IT companies in India posted 25 per cent revenue growth in 2010-11-- the highest in four years-- to take combined turnover to to USD 84 billion (Rs 3,84,250 crore), said a study. 

It further said that top 20 companies have contributed over 64 per cent to the combined revenue. 
The top 10 companies in terms of revenue were Tata Consultancy Services, Infosys, Wipro, HP India, Cognizant, IBM India, HCL Technologies, HCL Infosystems, Ingram Micro India and Redington India. 

2 Aug 2011: Cognizant overtakes Wipro as third largest software exporter

Cognizant Technology Solutions Corp continued its scorching pace of growth and forecast a strong third quarter, at a time when rival Indian IT services exporters have warned of slowing technology spending. 

Cognizant's quarterly revenue, which grew 34.4 percent to $1.49 billion, outpaced India's No.3 software services exporter Wipro's IT services revenue of $1.41 billion.

 2 Aug 2011: MphasiS buys US-based insurance solution provider Wyde

HP-owned IT services provider MphasiS has acquired US-based insurance solution provider Wyde Corp. With the buyout of the $30-million company, MphasiS will shore up its insurance business with an opportunity to marry its applications and BPO business with Wyde's software platform Wynsure.