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Posted on September 2, 2010 by Atul
The Brazil market is growing and vibrant. This acquisition shows the importance and potential of the Brazil market. CPM Braxis is a leading player in Brazil. This will change the competitive outlook in Brazil.
Capgemini acquires a 55% stake in CPM Braxis, the leading Brazilian IT services player | News | Capgemini Worldwide.
With a client base of major Brazilian and international companies, particularly in the financial sector, CPM Braxis expects to record 2010 revenues of around BRL 1 billion (€450 million). The deal will enable Capgemini to considerably boost its presence in Brazil an IT services market amongst those with the highest potential. The agreement will see the Group widen its client base and contributes to Capgemini’s ability to better support its international clients in their developments in Brazil. CPM Braxis will benefit from Capgemini’s assets – notably its global reach, methodologies and network of alliances – to serve its own clients, both in Brazil and around the world.
Brazil represents 47% of the Latin American IT services market, valued at $23 billion[1]. Driven by a booming economy, the Brazilian IT services market has enjoyed the highest growth rate in the region for the past five years, and yearly growth should exceed 10% until 2014.
With over 5,500 employees, CPM Braxis boasts a diversified business portfolio focused on Application Outsourcing and Enterprise Application Services, and Infrastructure Integration and Infrastructure Services, the majority of which is delivered through multi-year contracts. CPM Braxis serves over 200 clients, and is especially strong in the financial sector. Its biggest client, major Brazilian bank Bradesco, was also its biggest shareholder prior to the transaction. Capgemini will be able to draw on its expertise and knowledge of the local market. CPM Braxis is also present in the telecoms sector, as well as in manufacturing and utilities.
The company saw growth of 12% in 2009 and should grow by nearly 20% in 2010. CPM Braxis should post above-market growth over the coming years, and is also currently expected to register an Ebit margin of around 6% in 2010, which looks set to rise over the years to come.
Under the terms of the transaction, Capgemini will acquire 55% of the share of CPM Braxis, representing a total amount of BRL 517million (€233 million). The enterprise value of CPM Braxis is estimated at BRL 970 million (€437 million). The operation will be funded using the Group’s net cash position. It will comprise of a CPM Braxis share capital increase of BRL 287 million (€129 million), and a share buy-back from CPM Braxis’ existing shareholders for BRL 230 million (€104 million), all of which have decided to remain in CPM Braxis and to proportionally reduce their stake in the company.
Capgemini has an option to buy the remainder of CPM Braxis’ capital (45%), and the existing shareholders have an option to sell their remaining shares. These options can only be exercised between the 3rd and the 5th anniversary of the closing date (on the basis of an estimated price based on fair market value at the time of the exercise of these options). Capgemini will consolidate CPM Braxis in its accounts as of the transaction’s expected closing in early October 2010 and will recognize a balance sheet liability, representing the estimated value of the 45% stake in the company at the time of the exercise of the options.
For Paul Hermelin, Chief Executive Officer of Capgemini: “The acquisition of CPM Braxis – a step in line with the Group’s growth strategy – allows us to fulfill three objectives: to extend our presence in a fast-growing country; to support our global clients in the regions where they focus their investment, and to strengthen our Group with the addition of a experienced management team, and more than 5,500 dynamic employees”.
Luiz Carlos Trabuco, Chief Executive Officer of Bradesco, states: “Bradesco congratulates CPM Braxis on becoming part of one of the ten largest worldwide groups in the segment; and also Capgemini, for expanding its global activities in Brazil. We believe that this union will further broaden the competitiveness of CPM Braxis, as well as the company’s growth capacity in the vigorous Brazilian market and strengthen its capability in assisting global clients.”
José Luiz Rossi, Chief Executive Officer of CPM Braxis,explains that “Joining a group with the worldwide reach of Capgemini is a great opportunity, in the high-growth IT services market in Brazil. We will expand our client base by making our services available to Capgemini’s international clients present in Brazil, and will also be able to offer Capgemini’s global expertise to support our major Brazilian clients in their international development projects. Finally, joining Capgemini is a chance to give our employees more attractive career opportunities.”
With this deal, Capgemini reinforces its global dimension and resolutely multicultural nature. Brazil will become the Group’s sixth largest country in terms of headcount, with more than 6,200 employees.
About Capgemini
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business ExperienceTM. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in more than 30 countries, Capgemini reported 2009 global revenues of EUR 8.4 billion and employs 95,000 people worldwide.
More information is available at www.capgemini.com.
Rightshore® is a trademark belonging to Capgemini
About CPM Braxis
CPM Braxis is the biggest Brazilian IT services company and one of the biggest in Latin America. It offers Application Services, Infrastructure Technology Services as well as Business Process Outsourcing (BPO) to companies located in Brazil and all over the world. With a history of more than 28 years of success, 8 development centers and 5,5 thousand professionals, CPM Braxis has specialized development plants, testing and command centers for infrastructure remote management, as well as shared maintenance and support service cores for SAP solutions.
The value proposal from CPM Braxis includes mastery in specific knowledge per industry, capacity to execute parallel operations simultaneously, competitive structure of prices and scalability, as well as flexible delivery models, sturdy processes and first line methodologies. The excellence of its work is based on creativity and innovation, in the capacity of both attracting and maintaining the best talents. CPM Braxis is the only Brazilian company which is mentioned on the Black Book of Outsourcing as one of the 50 best global outsourcing companies, taking the 22nd position. It is also the first IT service company in Brazil to get the CMMI Dev 1.2 Level 5 certification. www.cpmbraxis.com
[1] Gartner, IT Services Market Metrics Worldwide Forecast, Q2 2010, 9 June 2010
Posted on August 13, 2010 by Atul
Welcome to Smart Enterprise Exchange: Outsourcing Wisdom : Tags : costa_rica.
Staffing augmentation. Labor arbitrage. India.
For many, outsourcing seems to be defined only by the above terms – people working for low compensation in locations such as India, helping a business to save significant money.
However, the recent and continuing economic downturn has upset many notions and business models that have been in place for over a decade and outsourcing is no exception. What was once considered to be the norm is now in flux and requires different responses from service providers and customers.
Read more at Smart Enterprise Exchange.
Posted on July 27, 2010 by Atul
From globalizationtoday.com.
IAOP’s Members Report a Very Important ‘Shoring’ Trend – There Is No Trend
As a global membership organization one of IAOP’ greatest resources is its ability to survey its members to capture the industry pulse – what’s hot, what’s not, and which way things are headed.
For example, as mentioned in my last column, it’s now clear from IAOP member surveys that the recent economic crisis has actually been good for outsourcing. In January 2009, 36 percent of our customer members said that their companies were actually expanding their future outsourcing programs as a result of the economic crisis. By September 2009 that number was at 47 percent. By January 2010 it was up to 56 percent. Then delegates attending the 2010 Outsourcing World Summit said that for them it was now 70 percent! A clear statement of where the industry is headed.
But when t comes to ‘shoring,’ these same customers tell us that it’s a much more fluid dynamic as opposed to a trend. In January 2009, 24 percent said that they were doing more offshoring as compared to only 9 percent who said they were doing less. By September 2009, 31 percent said they were more focused on offshoring while 33 percent said they were more focused on nearshore and onshore providers. By January 2010, the percent increasing their focus on offshoring was back down to 25 percent while the percent increasing their focus on onshore and nearshore providers was also down to 26 percent. More like a tide then a trend.
The simple fact is that everyone is getting more global. In September 2009, 47 percent of our provider members said that their firms were expanding geographically and 42 percent said the same thing in January 2010. In both surveys, about 30 percent of providers said they were establishing more local and rural centers from which to service their customers. So while it’s clear that the industry is getting more ‘global’ which ‘shore’ is shifting around a lot.
As both customers and providers become more global and distributed in their operational footprint and as the work becomes more fluid in terms of where it’s done, location distinctions are less significant in customer decision-making. Costs are becoming more blended as well in today’s virtual, cloud-like, delivery model, making a pure-play offshoring decision less of a driver for many companies than it was in the past.
Colombia: A Great Example
So, is the country of Colombia, where we just opened an IAOP Chapter, an offshore, nearshore, onshore, whatever-shore location? You bet, all the above.
Citi is supporting Spain from call centers in Bogota. Telperformance is supporting customers in Mexico. Bilateral has customers in the U.S. being supported in Spanish and English from centers in Barranquilla and Bogota. And there are many more examples, including the growing ‘onshoring’ of work for Colombian companies right there in Colombia.
So, the question is: Do we really want to keep talking ‘shore’ when we should be talking ‘solution’? Is all the talk about shore hiding what really matters – value?
Just a thought. But what do you think? Email me at michael.corbett@iaop.org with your thoughts about the affect of the recent financial crisis on outsourcing. Also, let me know about examples of thinking differently on any aspect of globalization and business that you’d like to see explored in a future column.
Michael F. Corbett is the founder, chairman, and chief strategy officer at IAOP. He believes it’s time think differently about the world we live and work in.
Posted on July 25, 2010 by Atul
Wipro Q1 net up 31% on outsourcing recovery-Earnings News-Earnings-News By Company-News-The Economic Times.
MUMBAI: Wipro delivered a thumping verdict for recovery in the outsourcing sector with a robust growth forecast and better-than-expected earnings for the first quarter to end-June as spending of clients on technology begins to swell.
The country’s third-biggest software services exporter said it expects revenues to rise between 4.1% and 6.1% in the next quarter on the back of increased spending by corporates that slashed budgets to the bone during the financial crisis.
Net profit in the first quarter grew 31% to Rs 1,319 crore on revenues of Rs 7,236 crore. Bangalore-based Wipro joins larger rivals Tata Consultancy Services and Infosys in handing out an upbeat outlook for the outsourcing industry, helping to erase some of the anxieties gnawing at it, including a sliding euro and rising wages.
Indeed, in the strongest statement made by an IT company chief yet on the demand environment, Wipro chairman Azim Premji said he does not foresee a double-dip recession.
“We are seeing traction; decision-making is on. We are now seeing reasonably sound indications that discretionary spending is back,” Mr Premji said. “We are not having any measure of concern.”
The soap-to-lighting company’s revenues from software services met expectations with a 14% rise to Rs 5,500 crore but the growth was softer than what TCS and Infosys reported earlier this month. Wipro’s revenues from IT products shot up 13% while those from consumer care and lighting were up 23%.
Wipro shares rose to Rs 433 before ending lower at Rs 412 on the Bombay Stock Exchange on Friday.
“While Wipro has a softer quarter versus TCS and Infosys in June, its 6.1% Q-on-Q revenue growth guidance for the September quarter makes amends, and indicates that demand is firmly on an uptrend,” brokerage CLSA said in a note.
“Note that Wipro has delivered around the top-end of its guidance for the last eight quarters,” CLSA added.
Wipro CFO Suresh Senapaty said the company was able to improve margins by 30 basis points sequentially because of operational improvements made in acquisitions and other efficiencies. That helped fend off cross-currency headwinds, a one-month impact of wage spikes and a higher percentage of onsite revenues.
Posted on July 2, 2010 by Atul
Pilot view: NBCs new comedy, Outsourced | Show Tracker | Los Angeles Times.
“You know something is mainstream, when it hits pop culture. This is going to be fun. The movie, Outsourced, was outstanding and if this series can carry that off, we are all looking forward to a fun series. I enjoyed working with the Producer etc. on the movie team to extend its applications to the corporate world. Loved the way the movie truly captured it all.” – Atul Vashistha
The following is from the LA Times Article
“Outsourced” is a single-camera comedy set in all-American company, Mid America Novelties, which sells anything from wallets made of bacon to whoopee cushions. Its call center has been outsourced to India, and 25-year-old Todd Dempsey has been transferred there to manage it. He quickly realizes his staff needs a crash course in all things American if they are going to help him increase sales, and he needs to learn more than a few things about India.
Who’s in it: newcomer Ben Rappaport (off-Broadway’s “The Gingerbread House”) as Todd;Rizwan Manji (“Privileged”) as Ranjiv; Sacha Dhawan (BBC’s “Five Days II”) as Manmeet;Rebecca Hazlewood (BBC’s “Doctors”) as Asha; Parvesh Cheena (“Help Me Help You”) as Gupta;Anisha Nagarajan (Broadway’s “Bombay Dreams”) as Midori; Diedrich Bader (“The Drew Carey Show”) as Charlie; and Jessica Gower (Network Ten’s “The Secret Life of Us”) as Tonya.
Who made it: Robert Borden (“The Drew Carey Show” and “George Lopez”) created it and is producing it.
Thumbs up: It’s a workplace comedy with a relatable, topical bent. The cast is fresh and impressive. Rappaport is a charming lead.
Thumbs down: It hasn’t quite found its comedic rhythm, but when it’s funny, it’s funny.
Verdict: If we can’t beat the outsourcing, why not join it? Potential here.
– Maria Elena Fernandez
Posted on June 7, 2010 by Atul
Nice to be recognized! The true recognition really goes to the countries like Mexico, Brazil, Chile, Colombia, Costa Rica, Nicaragua and others where business leaders and government are working together to be attractive locations for BPO, KPO and ITO. – Atul
THE POWER 50: Architects, Advocates and Visionaries | Nearshore Americas | Independent Reporting on Outsourcing in Latin America and the Caribbean.
Some have dedicated their professional lives to attracting investment into their home countries. Others are multinational executives determined to realize a bigger vision for the professional exported services sector of the Americas. These and a host of other professionals are responsible for putting Nearshore outsourcing on the global map. We celebrate these people in our special Nearshore Americas’ Power 50 Report, shining a bright light on an increasingly influential industry which for far too long has operated in the shadows of more dominant global delivery destinations in Asia.
Despite tumultuous economic conditions around the world, Nearshore providers continue to attract more and more buyers. Analysts cite the familiar reasons: geographic proximity, time zone, large number of English speakers, costs. Clients cite technical abilities, creativity, love of innovation, and willingness to engage as partners and not simply as drones—”How about if we try this?” rather than “Tell me what to do, boss.”
But none of this would have happened were it not for the courage, leadership, hard work, creative spirit, and enthusiasm of individual human beings.
Just as the pioneers of Silicon Valley could look at a microprocessor or lines of code and see a new market or product, the pioneers of Nearshore outsourcing could look at the skills and ambitions of their fellow citizens and see a new way to create opportunity, improve the national economy, and, as Globant co-founder Martin Migoya put it, “promote the professional development of people without [them] having to emigrate from their place of birth, and thus contributing to a sustainable growth of their communities.”
Our selection process was rigorous and took into account four main criteria:
- Personal impact on the growth and visibility of outsourcing in the Americas
- Record of achievement within the candidate’s own organizations
- Dedication to raising professional standards and performance quality
- A personal willingness to put industry over self in areas like corporate social responsibility, participation in local or region trade promotion and educational development groups and stepping-up into the spotlight as a thought-leader through live events and media engagement.
In the 2010 edition of the Power 50, we have representation from 16 different countries in the Western Hemisphere, including Argentina, Brazil, Chile, Colombia, Mexico,Costa Rica, Dominican Republic, Honduras, Guatemala, the United States, Canada, El Salvador, Nicaragua, Cuba, Barbados and Jamaica.
We salute these important professionals and continue to look forward to how they will contribute to the further growth of this industry which serves the larger cause of greater prosperity throughout the Americas. (And thank you to all who submitted nominations during 2009 ).
- The Editors at Nearshore Americas
Posted on April 29, 2010 by Atul
Spend Matters: D&B Morphs and Grows Its Overall Supply Management and Risk Strategy Part 3. Author: Jason Busch
In the first two posts in this series (click here for Part 1 and Part 2),I covered the history and context behind D&B’s Supplier Risk Management toolset. This solution set includes supply risk content, predictive analytics and an underlying technology platform for monitoring the supplier lifecycle. In this post, I’ll provide details on the specific solution elements, and in a final installment of this series I’ll offer a peek into the data elements and categories D&B uses in predictive forecasting around supply risk. Let’s begin by covering the basics of D&B’s supply risk solution platform today.
D&B’s Supplier Risk Manager solution, which combines past elements of the Open Ratings solution with broader supplier management lifecycle capabilities, enables risk management across four broad process areas: certification, monitoring, analysis and mitigation. D&B Supplier Risk Manager further offers a set of seven modules that map to the four Supplier Lifecycle Risk Management process areas including: supplier locator / identification, certification, alerting, score-carding, supply base analysis, surveys and assessments. The toolset, while focused primarily on risk, has material overlap with supplier information management tools from AECSoft, Aravo, Ariba, CVM Solutions, Emptoris, and others. However, the predictive risk scoring and alerting within D&B Supplier Risk Manager appears to be fairly unique.
The Supplier Risk Manager Alerts module — which falls under the “monitoring” phase of the supplier lifecycle — provides real-time alerting based on changes in a variety of underlying data elements. User customization allows companies to “set thresholds on over 25 data elements,” including D&B’s Supplier Stability Indicator (SSI), designed to predict near-term “90-120 day financial and operational stability” in suppliers, as well as their Supplier Evaluation Risk (SER) rating that “predicts the likelihood that a company will obtain legal relief from creditors or cease operations without paying creditors in full over the next 12 months.” Other configurable alerts include special claims indicators (e.g., operations, liens and claims, natural disasters), EPA, OFAC and debarment indicators/OSHA incidents, supplier performance benchmarks and deviations and government control lists. In addition, the Alerting components enable companies to look at their portfolio of risk distribution based on all monitored suppliers identified by the company, showing “the risk distribution of all the suppliers on [a] watch-list compared to the benchmark.”
Outside of the alerting component, D&B provides additional core functionality, which begins to show increasing overlap with other companies (including D&B channels/competitors in the procurement and supplier information management arena, such as Ariba). For example, D&B’s Supplier Risk Manager Certification module provides a scalable means to certify and onboard suppliers in a manner that is closer to industry leaders like Aravo than to what original supplier portals looked like years ago. Specifically, the Certification component lets companies collect information from suppliers in a self-service, manage-by-exception manner. It also lets users customize questionnaires and the requested information from the suppliers, as well as upload documents (e.g., around supplier diversity, insurance certification, quality certification / metrics, etc.). Other capabilities tied to Certification (or ongoing supplier development process) include an Assessments Module that lets companies gather information, for example, on supplier lean manufacturing processes, and then conduct, in D&B’s words, “a gap analysis methodology that compares the supplier against industry best practices.”
D&B’s Supplier Risk Manager Supply Base Analysis module provides added capability to analyze different risk factors across and within the supply base — and to take mitigating steps as a result. The Supply Base Analysis module provides specific views such as risk, diversity, file analysis and corporate hierarchy. It can help companies answer questions such as: what am I buying, and what activity is taking place within a BU? Trending features help track supplier risk and spend over time and can pinpoint specific areas of focus.
Companies wishing to dive deeper into historical analysis and those that require additional sophisticated analysis should evaluate SAP Spend Performance Management; this solution enables true part / line-item level analysis tied to a variety of risk elements (e.g., inventory information, historic performance, supplier financial viability, etc.). The D&B solution does not go this far. Yet, as an extension of the alerting and supplier management capabilities of the rest of the suite, D&B’s Supplier Risk Manager Supply Base Analysis module compares favorably to other capabilities in the market outside of SAP, many of which also lack line-item level visibility tied to various risk elements for query and analysis.
Overall, D&B Supplier Risk Manager provides one of the more flexible and robust supply risk management solutions in the market when it comes to monitoring supplier financial and operational risk. While not a killer application in the broader supplier information management sector, nor a replacement for other spend analysis and analytical tools, for companies looking to gain a handle on supply risk, it should appear on the shortlist of solutions. And for some, it may suffice from a broader capability standpoint as well. Moreover, based on D&B’s agnostic approach that lets companies decide whether or not they want a buyer-funded or supplier-funded model for supply risk management and supplier monitoring, it should provide a level of flexibility that focused, software-only solutions in the sector often fail to achieve.
Posted on April 21, 2010 by Atul
Costa Rica Is an Attractive Destination for Multi-Functional OperationsPLEASANTON, Calif., April 20 /PRNewswire/ — IBM, HP, P&G, Amazon, Sykes, Emerson, Amway, Schematic and many others have decided on Costa Rica as the near-shore location for their successful Shared Services, Back-office, Engineering, Media & Entertainment, Software Development, Architecture & Design, and Contact Center operations to serve North and South America as well as the rest of the world.Bilingual labor pool. World-class education system. Cost savings. Safety. Political and economic stability. Cultural affinity. Real time collaboration… Costa Ricas comprehensive value proposition has attracted companies globally for the establishment of their strategic services centers.Join us in this webinar on May 4th, 2010, at 2 p.m. ET / 11:00 a.m. PT to obtain firsthand insights of the opportunities Costa Rica offers, from experts who have evaluated and experienced its potential.We will feature Align Technologies case study as an example of the countrys proven track record, through this industry leaders direct experience with their right-shore, multidisciplinary captive operation in Costa Rica. Ted Callaghan, Vice President & General Manager – Customer Facing Operations, will share his experiences and answer questions. Ted joined Align Technology in July 2003. He is responsible for ensuring operational excellence and continuous improvement at the Customer Facing Operations Facility in Costa Rica. Over the past 7 years Ted has built a solid operational team and has led the organization to consistently exceed the performance goals. In 2009, Ted led the successful effort to expand the operation in Costa Rica to include several customer-facing functions.We will also feature the globally renowned author, speaker and consultant, Atul Vashistha. Consulting Magazine named Atul as one of the “Top 25 Most Influential Consultants” in 2006 and “Top 6 IT Powerbrokers” in 2004. HRO Today named him a HR Outsourcing Superstar five years in a row from 2004 through 2010, and FAO Today named him a Superstar from 2007 through 2009. Atul is the Founder & CEO of Neo Advisory Formerly neoIT and Neo Group. He is also the author of the bestsellers, Outsourcing Wisdom, Globalization Wisdom and The Offshore Nation.”Despite the ongoing economic crisis, the outlook for outsourcing remains optimistic. Organizations continue to adopt outsourcing as a business strategy and an effective optimization and transformation lever to help them mitigate the current financial and competitive challenges. As a consequence of increased adoption of outsourcing, the global sourcing landscape has been undergoing changes and many global locations are evolving to serve specific needs of organizations that embark on their globalization journey or evolve as mature globalizers. Costa Rica is in an envious position and its rich talent and proven infrastructure make it an attractive destination for services operations,” says Atul Vashistha, Founder and CEO at Neo Advisory, Best Outsourcing Jobs and Neo Group.This webinar is sponsored by CINDE, the Costa Rican Investment Promotion Agency.About CINDEThe Costa Rican Investment Promotion Agency CINDE is a private, non-profit and apolitical organization. During its 25 years, CINDE has attracted more than 200 companies to Costa Rica, including worldwide leaders such as Intel, Western Union and many others.To register for the webinar, please go to: https://www1.gotomeeting.com/register/700815224″Near Shore Location: Costa Rica”Attractive Destination for Multifunctional OperationsMay 4th at 2pm ET/11am PTMedia ContactsClaudia Trujillo, +506 2201.2851, ctrujillo@cinde.orgAtul Vashistha, 415.462.0569, atul@neoadvisory.com
via CINDE & Neo Advisory to Hold a Webinar on Near Shore Destination: Costa Rica May… — PLEASANTON, Calif., April 20 /PRNewswire/ –.
Posted on April 20, 2010 by Atul
They’re back. The growth for offshore players is coming back.
We have been advising a number of firms and see growth definitely coming back for the offshore leaders. Think it’ll still be a little bumpy for the Tier 2 players but it’s back.
TCS earnings jump 47% – The Telegraph – Calcutta
Chandrasekaran in Mumbai on Monday. AFPMumbai, April 19: Tata Consultancy Services TCS — the country’s largest software exporter — today beat analyst estimates by posting a 47 per cent growth in net profits for the fourth quarter ended March 31, 2010.Net profits of the country’s largest IT service provider rose to Rs 1,931 crore compared with Rs 1,314 crore in the corresponding period in the previous year.Analysts had forecast that the company would report net profits in the region of Rs 1,800 crore.In US GAAP terms, TCS reported revenues of Rs 7,736.5 crore, higher than Rs 7,171.8 crore in the corresponding period last year.In 2009-10, net profits were placed at Rs 6,872.9 crore Rs 5,171.8 crore even as it achieved a major milestone when revenues peaked at Rs 30,028.9 crore.The sparkling results came in the face of margin pressures on account of currency movements. During the period, the rupee gained against the US dollar and other currencies. Analysts say a 1 per cent appreciation in the rupee’s value can hit margins of IT companies by 50 basis points.Addressing a press conference soon after unveiling the results, S. Mahalingam, chief financial officer and executive director of TCS, admitted that the exchange rate had a negative impact on the company’s margins.However, on a sequential basis, the company was successful in improving its margins by 51 basis points as it focused on productivity improvement even as it pared costs.N. Chandrasekaran, chief executive officer and managing director, explained that there were various reasons behind the good performance. He said all verticals and all geographies contributed to the robust performance.The company was also successful in winning large deals. For instance, a European government agency awarded it a $500-million contract and the company won another multi-year contract worth $100 million. Among the verticals, financial services, retail and life sciences led from the front, while sectors such as telecom and manufacturing lagged.Chandrasekaran, however, had a positive outlook for the months ahead. “Traction is happening across the board. Emerging markets are picking up, there is a broad-based growth across verticals. We see growth being led by the US and emerging markets, followed by the UK and Europe,” he added.Ajoy Mukherjee, vice-president and head of global human resources, said the company was raising salaries for its employees both here and overseas. The salaries of its Indian workforce had been raised by 13 per cent. He added that TCS has made 20,000 campus offers in the current fiscal.
via The Telegraph – Calcutta Kolkata | Business | TCS earnings jump 47%.
Posted on March 13, 2010 by Atul
12 Mar 2010 09:05 GMT – IAOP Survey Finds Corporate Social Responsibility Increasingly Important in Outsourcing Contracts POUGHKEEPSIE, N.Y., March 10 – Corporate social responsibility (CSR) will increasingly become a more important factor to companies in awarding outsourcing contracts, show results from a survey conducted by the International Association of Outsourcing Professionals(R) < /span>(IAOP(R)). The newly released electronic survey of IAOP's global membership found that 71 percent of respondents view CSR as becoming more or much more important in deciding future outsourcing contracts by companies in all industries around the world. On a five point scale, both outsourcing providers and buyers rated the importance of CSR at 3.9. In addition, 70 percent of outsourcing customers and providers said they plan to increase their CSR activity in the next three years, with small- and medium-size providers having the strongest intentions to increase CSR. Other key findings of the IAOP 2009 CSR Survey include: Ø Many leading service providers have a CSR emphasis encompassing activities in human resources, community involvement and the environment. Ø Significant percentages of outsourcing buyers may consider the CSR capability of a service provider when making an outsourcing decision. Ø Outsourcing buyers consider employee practices as the more important CSR criteria, putting labor, fair operating practices and human rights higher than consumer, environmental and community involvement. Ø India was ranked as the most popular developing region of the world that companies outsource to as a social responsibility, followed by Southeast Asia. "The growing importance of CSR cannot be ignored," said IAOP Chairman Michael Corbett, who heads the CSR subcommittee of IAOP's Advocacy & Outreach Committee. "If companies want to win in outsourcing deals, they have to be focusing on CSR practices that are good for people, the community and the environment." The survey results also suggest that the outsourcing industry is already a leader in CSR. An earlier study by Bill Hefley, Ph.D., found that leading outsourcing service providers named to IAOP's prestigious Global Outsourcing 100(R) list have a significantly stronger emphasis on CSR than other applicants. The full survey results were released at the association's annual conference, The 2010 Outsourcing World Summit(R), where socially responsible outsourcing was a well-received educational track among the 550-plus professionals attending. The research was led by Bill Hefley, CDP, Certified Outsourcing Professional(R) (COP), clinical associate professor, University of Pittsburgh and Director, ITSqc LLC; and Ron Babin, associate director and assistant professor, Ted Rogers School of IT Management, Ryerson University. A research white paper with the findings and case studies is availa ble at IAOP's online knowledge center, Firmbuilder.com. About IAOP The International Association of Outsourcing Professionals (IAOP) is the global, standard-setting organization and advocate for the outsourcing profession. With more than 100,000 members and affiliates worldwide, IAOP helps companies increase their outsourcing success rate, improve their outsourcing ROI, and expand the opportunities for outsourcing across their businesses. www.outsourcingprofessional.org. Contact: Kimberly Maneeley +1.845.452.0600, ext.104kim.maneeley@iaop.org
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