India's Infosys net profit jumps 51.5 percent as outsourcing booms
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India's second-largest software services exporter, Infosys Technologies, said quarterly net profit jumped 51.5 percent, helped by strong outsourcing demand.
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India&#39;s largest outsourcer, Tata Consultancy Services, Wednesday reported strong growth in revenue and profit, despite earlier concerns that the&#160;Indian outsourcing industry would be badly hit by a weak dollar, and a crisis in the U.S. subprime mortgage market.The company&#39;s revenue for the quarter, ended Dec. 31, was 59 billion rupees ($1.5 billion at the exchange rate on the closing day of the quarter), up by 22 percent from the same quarter in the previous year. Profit increased by 20.5 percent to 13.3 billion rupees.The company said it had improved its operating margin despite a 2.3 percent appreciation of the rupee against the dollar during the quarter, by cost-cutting and improving productivity. The rupee has gained about 12 percent over the dollar in the last year.Infosys Technologies, India&#39;s second largest outsourcer, said last week that its revenue for the quarter ended Dec. 31 increased by 32 percent, to $1.1 billion, from the same quarter in the previous year. Profit for the quarter rose by 42.2 percent to $310 million.Revenue growth rates are, however, not likely to be as high going forward, mainly because the companies already have large revenue bases, according to analysts.In the application development and maintenance market, where Indian companies are dominant players with about 36 percent market share, the opportunity to increase revenue isn&#39;t very large, said Siddharth Pai, a partner at Technology Partners International. The company is a sourcing consultancy firm in Houston.Indian companies are looking at new services lines, but it will take some time for these businesses to be key revenue earners, Pai said.Indian outsourcers also compete for staff with the Indian operations of multinational services companies like Accenture and IBM. Quality staff is increasingly harder to hire, and&#160;salaries are on the upswing.Infosys, for example, added 8,100 employees in the last quarter, taking its staff to 88,601 at the end of December. Tata added 4,037 in the quarter, giving it a headcount of staff to 108,229. The company&#39;s attrition rate at 12.2 percent was, however, higher than in the previous quarter.
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India's third-largest software exporter, Wipro, said that second quarter net profit jumped 79 percent as sales rose 44 percent, beating both the market's and the company's expectations.
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Infosys Technologies, India's second-largest software company, Friday posted a better-than-expected third quarter profit after expanding its client base in a "challenging" market.
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India&#39;s IT services market is forecast to grow to $10.73 billion by 2011, at a five-year compound annual growth rate of 23.2 percent, as outsourcing emerges as a more favored option for companies in India, according to research firm Gartner.
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A number of Indian outsourcing companies, including Wipro, Infosys Technologies and Tata Consultancy Services, have software development operations in Chennai, India.
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India's third-largest software company Wipro Ltd. said Friday that its net income for the October-December quarter rose 11 percent from a year ago due to strong outsourcing orders.
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(InfoWorld) - Indian outsourcer Infosys TechnologiesÂ is expanding its facility in Brno in the Czech Republic, to boost its ability to deliver services to its European customers. The expanded facility will have a capacity of 350 seats by January, Infosys of Bangalore said on Wednesday. Infosys has about 130 staff in Brno, who deliver business process outsourcing (BPO) services such as sales order management, finance and accounts, market research and underwriting for clients in 16 European countries. Over 80 percent of the staff at Brno are hired locally, and operations are run in 13 different languages including German, French, and Spanish, Infosys said. The company is planning to also deliver IT services such as infrastructure management and package implementations such as enterprise resource planning (ERP) and customer relationship management (CRM) from Brno once the expanded facility is in operation. A number of Indian outsourcing companies including Wipro and HCL Technologies have set up operations in Europe or acquired companies there with an eye to the European market. Currently, the U.S. and U.K. account for most of the revenue of Indian outsourcing companies. Although companies in the U.K. outsource software development and business processes to India, the rest of Europe has been comparatively slower in outsourcing to India. Continental Europe accounts for only about 12 to 13 percent of India's outsourcing revenues, according to India's National Association of Software and Service Companies (Nasscom). Infosys' revenue from Europe has grown by 60 percent year-on-year for the last three years. Europe accounted for about 25 percent of the revenue of Infosys in the last quarter, but most of that came from the U.K., according to a spokeswoman for Infosys. Besides expanding in Brno, Infosys is also setting up a development facility in Swindon in the U.K. The company also has a development center in Germany, and a center in Mauritius that is designed to address European customers because the population in Mauritius is multilingual, the spokeswoman said. Having centers in Europe helps Infosys build up capabilities in the specific European languages required by customers, and also comply with European Union regulations on data protection and privacy, which require that certain types of data should not be sent for processing outside the E.U., the spokeswoman added.ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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(InfoWorld) - When the Nasdaq stock market opens next Monday, Indian outsourcer Infosys TechnologiesÂ will become the first Indian company to be included in its prestigious list of top-100 companies. The Nasdaq-100 index is composed of the 100 largest non-financial stocks on the Nasdaq in terms of market capitalization. The inclusion of Infosys follows Nasdaq Stock Market's annual revision of the index. Among the other tech companies to be affected by the changes that take effect on Dec. 18, Level 3 CommunicationsÂ is also being added to the list, while JDS Uniphase is being dropped. Infosys, Indiaâs second largest outsourcer, became the first Indian company to be listed on the Nasdaq in 1999. It has emerged as the poster child for the Indian outsourcing industry, thanks partly to its strong revenue and profit growth, but also due to some deft brand-building in India and abroad. Other companies in the index include Google, Dell, and Microsoft. Outsourcer Cognizant Technology Solutions, of Teaneck, New Jersey, is also in the top-100. Cognizant uses India as a hub for its offshore services delivery. Infosys called its addition to the index an important milestone for the company. Over the years it has tried to break out of the mold of an Indian services provider, to establish itself as a global company on a par with competitors like Accenture and Electronic Data Systems. It has also started to offer higher-value consulting services in addition to its contract application development and business process outsourcing. Infosysâ inclusion in the Nasdaq index is one of several factors that contribute to building a brand, said Siddharth Pai, a partner at Technology Partners International, a sourcing consulting company. Ultimately, however, its continued good performance will matter the most, he said. Infosys, like other Indian outsourcers, is still far from being a true global services company, and to become one it will need to make substantial investments in new geographies and broaden its services offerings, he added.
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Infosys Technologies Ltd., India's second-largest software services company, posted its biggest quarterly profit jump in three years on increased outsourcing by telecoms and financial companies.
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MARKET RESEARCH firm IDC said that revenues in the worldwide server market grew by 5.5 per cent in the third quarter of this year, valued at $11.5 billion.
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Intel Corp.  on Tuesday said quarterly profit rose 15 percent, helped by record sales in Asia and stronger demand for notebook and server computer chips, and gave an outlook that reassured jittery investors that it could grow despite tough market conditions.
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Indian outsourcers already have a large share of outsourced application development and maintenance and are dominant in business process outsourcing. The country is now targeting a larger share of the market for remote infrastructure management services (IMS), and is planning to more than double revenue from these services to $15 billion by 2013.
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Intel Corp.'s profit leaped 51 percent as sales of microprocessors accelerated in the fourth quarter, but its shares plummeted on signs that the world's largest semiconductor maker is feeling the pinch of an ailing U.S. economy.
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Indian firms are increasing their IT budgets an average of 13 percent this year, far more than the global average of 3.3 percent, research company Gartner said Wednesday.
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IBM Corp. expects about $1 billion in revenue from India, as the company&#39;s hardware and services business in the local market soars.The company made $700 million in revenue from India last year, said a company spokesman Monday. In the first three quarters of this year, the company posted revenue growth of 39 percent over the previous year. &quot;At the current growth rates, we expect revenue of $1 billion for the year,&quot; the spokesman added.Unlike Indian outsourcers who have mainly focused on more lucrative contracts abroad, multinational services companies like IBM have focused on the growing Indian outsourcing market.IBM India&#39;s contribution to IBM&#39;s global revenue is higher if the revenues from services delivered from India to global customers are also included. These are higher than domestic revenue and growing faster, said the IBM spokesman who did not give exact figures. This is however included in the revenue of the country in which the services have been contracted, and are not reflected in IBM&#39;s India revenues, he added.India is a key hub for the global delivery of services by IBM, as the company takes advantage of the country&#39;s large pool of skilled manpower.Reports, including in The Wall Street Journal, quoted an IBM official in the U.S. as saying that the company has increased its staff in India to 73,000 this year. The IBM India spokesman was unable to confirm this data immediately, but he confirmed that the company had 53,000 staff in the country at the end of last year.Although the company does not break down the number of staff it has in offshore software development and services in India, most of the new additions are likely to have been made in the company&#39;s outsourcing operations based in India, with the rest of the additions in sales and marketing.The expansion by IBM in India comes even as staff availability there has gotten tighter and salaries are on the increase. India is still attractive to foreign companies to set up software development and services subsidiaries or outsource work, as salaries are still competitive and the talent pool is large, said Siddharth Pai, a partner at outsourcing consultancy firm Technology Partners International Inc (TPI) in Houston, in an interview last month.
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LOS ANGELES - Defense contractor Northrop Grumman Corp.&#39;s third-quarter earnings rose 51 percent due to strength from its mission systems, integrated systems and ships and space technology segments.