10 Aug 2011: Service tax on foreign telecom networks to hit cash of IT, ITeS firms
The finance ministry has said use of foreign telecom networks will be liable to service tax in India, dealing a blow to the cash flows of IT, IT-enabled services and telecom companies that may have to cough up past dues.
The levy could also raise international telephony charges for domestic consumers, though telecom companies played down the impact.
The levy could also raise international telephony charges for domestic consumers, though telecom companies played down the impact.
Most business process outsourcing, IT, ITES and telecom firms lease foreign networks to provide services abroad. They will now have to pay service tax on payments made to the overseas service provider. Although the service tax paid will be eligible for credit against the tax liability, experts say companies will face cash flow issues.
10 Aug 2011: Intelenet appoints Singh as CEO of India domestic BPO biz
Business process outsourcing firm Intelenet has appointed Bhupender Singh as the Chief Executive Officer (CEO) of its new India domestic BPO business with immediate effect.
As CEO, Bhupender will be responsible for managing and growing the company's businesses in India.
As CEO, Bhupender will be responsible for managing and growing the company's businesses in India.
The creation of Intelenet's new domestic business follows the acquisition of Intelenet by Serco Group Plc earlier this year and combines the existing domestic businesses of Serco BPO and Sparsh.
The combined business will be the largest entity in the domestic India BPO market, with 26,000 employees and 27 delivery centres.
The combined business will be the largest entity in the domestic India BPO market, with 26,000 employees and 27 delivery centres.
8 Aug 2011: Citi appoints Bassam Salem as Asia Pacific CEO for private bank
Citigroup named Bassam Salem as Asia-Pacific CEO for its private bank, replacing Aamir Rahim, who will become head of Citi's public sector group for Asia Pacific.
Salem, who will begin his new role in early autumn 2011, will be based in Hong Kong and be a member of Citi's Asia Pacific Executive Committee.
Salem, who will begin his new role in early autumn 2011, will be based in Hong Kong and be a member of Citi's Asia Pacific Executive Committee.
5 Aug 2011: Nexus Venture to invest $10 mn in Druva Software
Druva Software, a Pune-based start-up that sells enterprise backup and retrieval software to customers, such as US space agency Nasa, French fashion brand Louis Vuitton and Xerox, will raise $10 million, in second round of funding, from Nexus Venture Partners.
Druva, a three-year-old start-up, will use the capital to fuel international expansion and research and development, according to a person with direct knowledge of the transaction.
Druva, a three-year-old start-up, will use the capital to fuel international expansion and research and development, according to a person with direct knowledge of the transaction.
4 Aug 2011: Genpact posts 40% rise in net, eyes 25% growth in sales
India's largest BPO, Genpact , posted 40% growth in its net profit to $39 million, for the second quarter, ended June 30, 2011. The company expects sales to increase by 25% for the year, buoyed by revenues from Headstrong - Noida-based IT company - Genpact acquired in April, this year.
"Despite ongoing concerns in the global economy we now expect good growth. We expect revenue growth of 23%-25 % this year. Though Japan and credit markets in the US continue to see lagged recovery, Europe is growing at a fast pace," said newly appointed CEO and President, Tiger Tyagarajan. Revenues from clients other than GE grew 44.1% over the second quarter of 2010 to $398 million, which includes two months of Headstrong revenues. The number of $5 million clients for Genpact grew to 56 from 40 last year.
3 Aug 2011: Noida-based BPO EXL ups sales outlook to 42%
Buoyed by strong revenue flows from recently acquired US-based Outsourced Partners International (OPI) systems and better demand outlook, Nasdaq-listed BPO firm EXL Service Holdings has revised its sales guidance upwards by $3 million to $358 million, for the year.
The Noida-based BPO now expects its revenues to grow to 42% this year, from the projected 40% earlier. Net profit for EXL jumped 73% to $8 million from last year. The company's sales jumped 40% to $85 million over last year.
"Our outsourcing business enjoyed strong revenue growth this quarter in finance, accounting and industry-vertical focused processes. EXL has closed the OPI acquisition in line with our expected timetable," president and CEO Rohit Kapoor said.
The Noida-based BPO now expects its revenues to grow to 42% this year, from the projected 40% earlier. Net profit for EXL jumped 73% to $8 million from last year. The company's sales jumped 40% to $85 million over last year.
"Our outsourcing business enjoyed strong revenue growth this quarter in finance, accounting and industry-vertical focused processes. EXL has closed the OPI acquisition in line with our expected timetable," president and CEO Rohit Kapoor said.
3 Aug 2011: IT, ITeS firms pack more employees in confined work space to save on real estate costs
Under pressure from their clients, or parent organisations, to reduce bills amid increasing rentals and employee salaries, the typical small or medium-sized IT-enabled services (ITeS) firms are taking stringent measures to cut costs. They are reducing space per employee, and decreasing the size of common areas like cafeterias and conference rooms. At a clutch of ITeS companies, office space is being shared between IT workers and the call centre workforce (as the latter work the late shift to synchronize with US timings). And a few firms have even been asking employees to work out of the library.
2 Aug 2011: Genpact strengthens US team for BFSI business
Genpact announced appointment of two key business development heads in a bid to further strengthen its presence in the US market.
The company has appointed Charles Present to head business development for banking and financial services, while Peter Cincogrono will head business development for the insurance vertical.
The company has appointed Charles Present to head business development for banking and financial services, while Peter Cincogrono will head business development for the insurance vertical.
These business development executives bring extensive industry experience to their Genpact roles and are contributing to Genpact's strategy of expanding both its US presence and successful BFSI client base.
Genpact has also hired other domain experts for the banking, financial services and insurance verticals as well.
1 Aug 2011: Genpact ventures in Brazil, to serve Astra Zeneca
Genpact Limited announced the opening of its operations in Brazil, its first location in South America.
"Like all start up operations we will start small. But given Brazil's large economy, our our operations are expected to grow very fast," said Genpact CEO and President Tiger Tyagarajan. Genpact has already begun providing finance and accounting (F&A) services to Astra Zeneca from this center. It is also providing IT services to a financial services client out of Brazil.
"Like all start up operations we will start small. But given Brazil's large economy, our our operations are expected to grow very fast," said Genpact CEO and President Tiger Tyagarajan. Genpact has already begun providing finance and accounting (F&A) services to Astra Zeneca from this center. It is also providing IT services to a financial services client out of Brazil.
1 Aug 2011: Capegemini appoints Anish Sarkar as consulting head, India
Consulting, technology and outsourcing services provider Capgemini said it has appointed Anish Sarkar as the head of consulting for India.
Sarkar will play a key role in growing Capgemini's India consulting unit, which will focus on helping Indian organisations achieve their growth ambitions, improve business processes and reduce support costs.
Sarkar will play a key role in growing Capgemini's India consulting unit, which will focus on helping Indian organisations achieve their growth ambitions, improve business processes and reduce support costs.
Sarkar has been associated with the IT firm after completing his MBA from IIM Calcutta. He was global sales officer for Capgemini India, responsible for offshore sales and account development of global clients.
1 Aug 2011: Shantanu Mitra takes over as CEO of Fullerton India
Shantanu Mitra, who was Deputy CEO overseeing risk management and the urban business at Fullerton India, took over as CEO of the company on August 1, 2011. Shantanu joined the parent company Fullerton Financial Holdings, Singapore, in early 2010 as Head of Consumer Risk Management for consumer markets across all operational entities in various countries, including India.
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