Mar. 27 – A report by Indian Brokerage Firm Angel Broking states that Indian IT outsourcers have doubled their share in total worldwide IT spending over the past six years. Furthermore, the larger Indian IT companies have performed better than other global players in the same period.
In 2007, India’s IT companies accounted for US$31 billion, or 4.8 percent of the worldwide IT spending of US$641 billion. This year, it is estimated to have risen to US$77 billion, or 9.8 percent of the global total IT spending of US$785 billion.
The report also finds that the Indian outsourcers’ share in the total revenues of the top 13 global IT companies rose from 7.7 percent in 2007 to 14.3 percent in 2012. Meanwhile, the share of non-Indian IT multi-national corporation’s dropped from 92.3 percent to 85.7 percent. Continue reading
By Gunjan Sinha, Associate, Business Advisory Services, Dezan Shira & Associates
Mar. 11 – With the advent of high-capacity broadband telecommunication systems in India, along with constantly evolving computer processors and video compression techniques, video conferencing has become a regular and popular feature for businesses across the country.
The regular use of video-conferencing has lead to the increased involvement of people who are now able to participate in meetings and communicate via audio and video channels without the need for an intermediary or actually being physically present at the meeting. Continue reading
Jan. 9 – The Indian government has proposed significant curbs to the importation of foreign technological products. If successfully implemented, this regulation will require a large percentage of technological goods to be manufactured locally. This plan reflects the government’s strong desire to compel foreign firms to increase their manufacturing operations in India.
While the specifics of this plan are still in draft form, it is causing much anxiety among global technological companies. To comply with this regulation, foreign firms would have to quickly establish factories within India or risk losing their current business. Continue reading
By Ian Bhullar
Jul. 18 – The strong performance of Tata Consultancy Services (TCS) in the three months up to June, reported last week, are an indication of the continued potential of Indian IT outsourcing services in spite of adverse market conditions in the United States and Europe.
TCS recorded a net profit of INR32.8 billion from March to June, and revenue of INR148.7 billion, up 37.7 percent from a year ago. Over the last four quarters, the company has recorded steady volume growth of 3.3, 3.2, 6.3 and 7.4 percent respectively. Continue reading
Approval would see flow of European IT outsourcing to India
Apr. 16 – The Indian government is asking that the European Union lift restrictions on the flow of outsourcing business to India by designating it as a data secure country. India is not currently included in the list of countries considered data secure by the EU, thus preventing the flow of sensitive data (such as patient information for telemedicine) to India under EU data protection laws. The issue has been taken up by New Delhi in the bilateral free trade agreement being negotiated, which includes an extensive chapter on the free flow of services. Continue reading
Mar. 6 – Up until the crux of the Global Financial Crisis, India’s information technology (IT) sector was consistently one of the country’s strongest performers. Though augmentation rates shrank, the falling rupee provided a cushion. Therefore, the CNXIT index constantly outperformed the broader market and in fact, the IT sector was the only one to see capital gains.
In 2009-10, however, things began to change and other industries outperformed India’s celebrated IT sector. What is more, as the rupee strengthened, the IT industry’s growth rates became feebler. Last year too, the IT industry registered lower growth rates than usual and the advisories have been very watchful. Continue reading
Feb. 6 – India’s Supreme Court has put pressure on the government to commit to making a decision within four months on whether a public official can be prosecuted for corruption. If a consensus has not been reached by then, prosecution will be considered sanctioned by India’s highest court, the BBC reported.
The announcement comes after a long and highly publicized corruption scandal involving former Telecommunications Minister A. Raja. The Janata Party Leader Subramanian Swamy sought prosecution of Raja, who was one of 14 people charged over allegations of mis-selling telecom licenses, which auditors have said cost the country an estimated US$40 billion. Continue reading
Dec. 22 – The Government of India is planning to propose a hike in the maximum foreign direct investment (FDI) capital allowed in broadcasting services - such as direct-to-home (DTH) and cable TV – to a uniform portion of 74 percent.
The Finance Ministry has given its consent to a draft cabinet note which outlines the changes circulated by the Industry Ministry. In addition to DTH and cable TV, the initiative also aims to set FDI capital limit at 74 percent for mobile TV, an area of future growth. Continue reading