Indian Shares

Genovate Solutions Pte Ltd of Singapore, a provider of business IT solutions today announced the establishment of five new offices in India, increasing the company's total presence to 12. Genovate's major lines of business at present includes, SAP solutions training both Instructor led and e-learning, SAP Consulting/ Implementation & Maintenance Services for Mid Markets, RapidStart (Integrated Retail and Business Management software) and Knowledge Window Asia Pacific (KWAP) Training Centre.
Revenue from International Operations are expected to contribute up to 70 to 80% of Genovate's total annual Revenues, with 40% of this from the Indian market alone. To support the growing market demand for business solutions in India, these new offices will be established in Hyderabad, Thane, Bangalore, Baroda and Lucknow, to further increase Genovate's ability to provide better information technology solutions, sales of products and services, information technology training and education, as well as consulting and implementation services in respect thereof.

 

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.

Indian software giant Infosys is reporting a 52.4% risein quarterly profits and 47% increase in revenue, on the back of strong outsourcing orders from Western firms. JC Penny recently outsourced to InfoSys as did over 40 more companies this quarter.

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

 

 

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.

It is being reported that Telstra and Optus are looking to outsource work to India from Australia to reduce costs. Optus is an Australian leader in integrated telecommunications, delivering cutting-edge communications, information technology and entertainment. Telstra provide a range of fixed phone, mobile, Internet and Pay TV solutions.

Optus is looking to increase the size of its Indian call centre and Telstra is looking sign a major deal outsourcing deal with Wipro. In 2004 Telstra outsourced parts of it's business to IBM, EDS and InfoSys.

NASSCOM have announced the top 20 IT service and computer software exporters in India for 2005-06.
During the period exports rose by 32% to US$17.3 billion.
  
The top 5 companies are:

1. TATA Consultancy Services (TCS)
2. Infosys
3. Wipro
4. Satyam Computer Services
5. HCL Technologies

See the Full NASSCOM list.

The data does not include contributions to the Indian economy by US listed companies like IBM, HP, and EDS.

To meet growth targets and manage costs Wipro is opening a new Business Process OutSourcing (BPO) centre in Vietnam. Wipro is looking to take advantage of the countires lower operating costs. Vietnam will join Romania as an international BPO center in the Wipro service portfolio.

IBM have announced that the company will be tripling it’s investment in India over the next 3 years. The company will invest a further US$ 6 in its software development, support, call centre and BPO activities in India; in addition it will use Indian talent to further its research.

• IBM Chairman and CEO Announces Plans to Triple Investment in India over Next Three Years (IBM)
  
• IBM plans big India investment (BBC)
  
• IBM plans $6B investment in India (CNN)
  

The further investment follows on from the purchase of Daksh, Indian’s third largest business outsourcer in April this year.

When thinking about India and Information Technology projects most people currently think about the projects being off shored from America and Europe to India. However with a population of 1.2 billion and a significant section of that population rapidly gaining in wealth, many Indian companies and government departments are facing similar IT projects as there European counterparts.

Research by IDC highlights the growth within the Indian Domestic IT market:

IDC India: Domestic IT Market to be Driven by Dynamic IT in the Enterprise, Space and Digital Drive the Consumer Space