IT/ITES News Update

APRIL 23, 2012: CAPGEMINI EYES IT SERVICES MARKET

European consulting major Capgemini is bracing for a major play in the domestic information technology services market in India 

The French company, which reported $13.5 billion in revenues in 2011, is pitching for transformational projects in India, backed by its consulting capabilities that have been Capgemini's forte globally, according to Salil Parekh, a top executive.

The Paris-headquartered entity is now planning to introduce some of its globally-successful technology services in India, says Parekh, Capgemini's CEO (application services business) for North America, UK and Asia Pacific), and also heading its global financial services. 

Given the company's understanding of the requirements of the Indian customers, the 1967-founded Capgemini has identified energy and utility, financial services and telecom as the major focus areas.

APRIL 20, 2012: INFOSYS INVESTORS CONCERNED OVER COMPANY'S PERFORMANCE

The whispers surrounding Infosys performance are getting louder. Institutional investors, who have invested over $15 billion in the company, are concerned over the deteriorating financial performance of the company.

Questions are also being raised over Infosys rational to maintain high margins, especially in a difficult macro environment when competition is focused on gaining market share. Infosys has close to 600 investors.

The company, which announced its fourth quarter number earlier this week, missed its March 2012 guidance by 1.9-2.2 per cent.

More importantly it's guidance of 8-10 per cent growth in FY13 shocked the street, as it was lower than IT industry body Nasscom's estimate of 11-13 per cent. 

APRIL 19, 2012:TECHNOLOGY BUYERS REVIEW IT BUDGETS QUARTERLY

Technology buyers from Eurozone and the US have started reviewing their annual IT budgets on a quarterly basis.

Customers lack market visibility today and therefore budget review frequencies are getting even shorter to monthly levels, say industry watchers.

Practice head of Tata Strategic Management Group, K Raman, says IT budgets are reviewed quite frequently today with uncertainty still looming large.

Customers are extremely cautious and are keen to get a maximum return on their investments. So goals are set and reviewed on a quarterly/ monthly basis from the earlier annual basis. 

APRIL 18, 2012 :TECHNOLOGY BUYERS REVIEW IT BUDGETS QUARTERLY

Technology buyers from Eurozone and the US have started reviewing their annual IT budgets on a quarterly basis.

Customers lack market visibility today and therefore budget review frequencies are getting even shorter to monthly levels, say industry watchers.

Practice head of Tata Strategic Management Group, K Raman, says IT budgets are reviewed quite frequently today with uncertainty still looming large.

Customers are extremely cautious and are keen to get a maximum return on their investments. So goals are set and reviewed on a quarterly/ monthly basis from the earlier annual basis. 

APRIL 17, 2012 :BPO MAJOR GENPACT TO ACQUIRE ACCOUNTING PLAZA

BPO major Genpact today said it will acquire Accounting Plaza, a provider of finance and accounting (F&A) and human resources (HR) services, for an undisclosed sum.

Founded in 2000, Accounting Plaza provides F&A, HR and PeopleSoft ERP services to the world's sixth largest retailer Ahold and other clients in retail, wholesale, banking and healthcare industries.

It has about 600 full-time employees working out of its centers in the Netherlands, Poland and Czech Republic.

"This acquisition will significantly expand Genpact's domain expertise in the retail industry in addition to its service delivery footprint in Europe," Genpact said in a statement. 

APRIL 16, 2012 :COGNIZANT INSTITUTIONAL INVESTOR LACERA WANTS DIRECTORS TO BE ELECTED ANNUALLY, NOT THREE-YEAR TERM

 A tug of war between minority shareholders and the board of directors is brewing at Cognizant Technology Solutions, India's third-largest software outsourcing company.

In Cognizant's upcoming June 5 annual shareholder meeting, institutional investor Los Angeles County Employee Retirement Association, or Lacera, which manages $39 billion in assets, is putting to vote a proposal at the shareholder meeting on June 5 to make it mandatory for all board directors to be elected annually, as against a three-year term at present. Cognizant has recommended that all shareholders vote against the proposal.

In its response to the proposal, Cognizant's board said that its present policy for election of directors provides stockholders a meaningful role to hold them accountable for their actions or failure to act. It also safeguards against a hostile acquirer who may want to replace most directors with its own nominees at a single annual meeting.