MAY 28,2012 :IT COS MAY NOT PROFIT FROM RUPEE’S FALL
Falling rupee normally attracts investors to stocks
of IT outsourcing companies. But this
time around, the great fall of the Indian rupee has not excited investors to
buy IT stocks.
This is mainly because of two reasons: One, the dollar-denominated revenue outlook of most IT companies for fiscal 2013 is unimpressive and, two, although most of the dollar earnings of these companies are hedged, such hedges are capped and they do not cover the full depreciation of the rupee.
This is mainly because of two reasons: One, the dollar-denominated revenue outlook of most IT companies for fiscal 2013 is unimpressive and, two, although most of the dollar earnings of these companies are hedged, such hedges are capped and they do not cover the full depreciation of the rupee.
Most IT companies
reported significant growth during fiscals 2010 and 2011 and a relatively flat
growth during fiscal 2012, but the outlook for FY13 is extremely bleak.
The US
and Europe, the two largest markets for Indian software exporters, remain
uncertain and volatile, and large global clients are deferring their
discretionary spends on IT.
MAY 25, 2012: LARGE IT
COMPANIES LIKE INFOSYS MAY STRUGGLE TO GROW AT 20% UNLESS IT BUDGETS RAMP UP:
KOTAK SECURITIES
Large IT Indian
providers such as Infosys, Tata Consultancy Services and Wipro may
struggle to grow at 20% unless IT budgets ramp up.
Some of the reasons for this include an already existing high penetration into large US banking and telecom clients in traditional services, less generous doses of large deals, and slower than expected acceleration in Europe revenues, brokerage firm Kotak Securities said in a report.
Some of the reasons for this include an already existing high penetration into large US banking and telecom clients in traditional services, less generous doses of large deals, and slower than expected acceleration in Europe revenues, brokerage firm Kotak Securities said in a report.
MAY 24, 2012: ADITYA
BIRLA NUVO REVIVES PLANS FOR STAKE SALE IN BPO ARM
Aditya Birla Group flagship , Aditya Birla Nuvo Limited, has
revived plans to sell a stake in its BPO arm, Aditya Birla Minacs, after it
received an expression of interest for the business from buyout fund Advent
International, a person with knowledge of the matter said on condition of
anonymity.
Adity Birla Nuvo owns an 88% stake in the BPO arm and may divest its entire stake if it receives an attractive valuation. The company is seeking $400 million for its stake in Aditya Birla Minacs.
Aditya Birla Minacs has annual revenues of around Rs. 2000 crore and EBITDA of roughly Rs. 200 crore. A bulk of it business comes from offering voice-based outsourcing services to clients in Canada and North America.
Aditya Birla Nuvo was reported to be in talks to sell a stake in its BPO business two years ago but did not follow through with the plan due to poor valuations.
MAY 23, 2012: AHEAD OF
PRESIDENTIAL POLLS, WNS OPENS CENTRE IN US
NYSE-listed Indian
business process outsourcing firm NS Global Services on Tuesday announced the
opening of its first US delivery centre in South Carolina, where it will employ
about 300 staff.
WNS joins other India-based IT/BPO firms such as EXL, HCL Technologies, Infosys and Ge npact in raising their employee presence in the US, where in the run up to the November presidential elections, political rhetoric over outsourcing is rising.
Last week, US President Barack Obama's campaign team held Republican rival Mitt Romney as being guilty of allowing jobs to be outsourced to call centres in Mexico and India. South Carolina faces a high unemployment rate of 8.8%, marginally higher than the national average of 8.1%.
"WNS's decision to launch its first US delivery centre in our state signifies a big win for the State of South Carolina," said Nikki Haley, the Governor of South Carolina. WNS currently earns about 30% of its $474-million (Rs 2,607 crore) annual sales from North America, and about 68% from Europe.
MAY 22, 2012: “INDIAN IT SPEND TO GROW BY 16% TO RS 1.9
TRILLION IN 2012”-GARTNER
Indian enterprises will spend an estimated Rs
1.91trillion ($35 billion) on information technology and related services in
2012, up 16.4% from a year ago, according to latest data from market research
and advisory firm Gartner.
Last year, Indian firms spent Rs1.64trillion ($30billion) Gartner data showed. A weakening rupee is expected to act as a tailwind driving the actual spends from last year. On Tuesday, the local currency was trading at 55.35 against the dollar.
An increasing number of Indian companies becoming more globalized is driving the need to spend more on technology to support such growth, according to Gartner.
Last year, Indian firms spent Rs1.64trillion ($30billion) Gartner data showed. A weakening rupee is expected to act as a tailwind driving the actual spends from last year. On Tuesday, the local currency was trading at 55.35 against the dollar.
An increasing number of Indian companies becoming more globalized is driving the need to spend more on technology to support such growth, according to Gartner.
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