Indian Shares

In a detailed article on Multinationals investing in India and the growing variety of service which can be performed from India the BBC highlight some interesting facts.

• More than 500 major international companies have IT operations in Bangalore alone
• India, exports $25bn per year worth of BPO services, a figure that is expected to rise to $60bn by 2010
• Foreign IT investments in India over $1bn during 2006 were made by IBM, Intel, SAP, Accenture, Cisco Systems, AMD, Microsoft and Dell

Read the full BBC article here and here.

The demand for skilled IT professionals in India is so high that companies are starting to find it hard to find suitable recruits. Infact some India companies (such as Intel) are setting up programmes to attract Indian's working abroad back to India. Software industry body Nasscom has warned that India faces a shortfall of half a million skilled workers by 2010

 

 

New research has found that shares in the major India-based IT services providers have vastly outperformed their western rivals so far this year, despite falling sharply in May and starting from valuations based on much higher multiples of earnings and revenues.

Full Article

Indian IT companies such as Infosys, Wipro, and TCS are having to respond to the increase rate of staff turnover by increasing salaries by upto 20%. The trigger being the likes of IBM and EDS investing heavily in India and luring staff to new positions. Some analysts are predicting that India will see more and more work move to countries like China and Vietnam as the wages of Indian IT staff increase.

Andy Mukherjee at Bloomberg takes a closer look at the issue.

IBM is looking to provide small and medium businesses with pre-packaged solutions which have a fixed price and quality driven. IBM will be providing the following packages:

• IBM e-Mail Security Services
• IBM Security Assessment Service
• IBM Site Assessment Services

IBM has launched the latest version of its DB2 database product, and Version 9 contains a significant input from IBM India. IBM India Software Labs is acknowledged as having made a significant contribution to the 5 year development of DB2 9 (aka Viper) and in particular the products testing.

IBM DB2 V9 is a major update to provide further capabilities for handling XML data and building SOA environments.