By Narayan Ammachchi
India’s top five IT service providers – TCS, Cognizant, Infosys, Wipro and HCL – managed to increase their revenue by more than 13 percent in 2012, yet their growth has slowed down considerably for the first time in the past five years, says the research firm Gartner.
“Cognizant experienced the highest growth rate among the top five providers with an increase of 20.1 percent in 2012,” said Arup Roy, research director at Gartner. “TCS closed in on the top 10 worldwide market share leader, with less than $1.5 billion separating it from the 10th ranked provider, Hitachi.”
The growth rate of India-based providers has been slowing for some years, but in 2012 this trend was more pronounced, stated the …
By Paul McDougall
It is one thing for investment agencies and Nearshore vendors to promote Latin America sourcing but when buyers start to become vocal champions, it’s a good idea to hear their rationale. “People tend to have a myopic view about outsourcing, we only think about India,” said Anthony Porter, director of IT Vendor Management, Procurement, Legal and Strategy at U.S. health insurance provider Humana.
By Narayan Ammachchi
India’s biggest IT company Tata Consultancy Services (TCS) has agreed to acquire French IT group Alti SA for US$97 million. Analysts say this is the biggest deal TCS has ever struck in Europe, whose IT services market is valued at $40 billion.
For TCS, the acquisition provides a strong foothold in Europe’s outsourcing industry and provides access to big name companies in sectors including financial services, retail and utilities.
Paris-based Alti SA – owned by CM-CIC LBO Partners and IDI – reported $164 million in annual revenue last year. The French company, TCS says, is regarded as one of the top five system integrators of enterprise solutions in France and has more than 1,200 employees in Europe.
“This acquisition underlines our long-term, strategic commitment to France, which is the third largest IT services market in Europe. I am confident that this acquisition …
By STAFF REPORT
India-headquartered outsourcing firm Hexaware Technologies has launched one more delivery center in Mexico, further expanding its footprint in the Latin American region.
The new center, located in the Northeastern city of Saltillo, is the company’s third facility in Mexico and it is focused on clients in North and Latin America.
Hexaware currently has 300 employees in Mexico, serving 30 customers, and the company says it is looking to hire 85 IT professionals for the new facility.
The new delivery center will offer outsourcing services in areas, including business intelligence, analytics (BI/BA), remote infrastructure management services (IMS), the Indian firm stated in a press release.
“The opening of the new development center is in response to the growth we are experiencing in the IT market and this will help us to further strengthen Hexaware’s presence and add value to more customers from this region,” said PR …
Indian outsourcing giant Infosys has expanded its footprint in Latin America by officially opening a new shared services delivery center in the capital of Costa Rica.
Laura Chinchilla Miranda, President of Costa Rica who inaugurated the facility, stated that the Infosys expansion recognizes the competitive advantage her country offers.
The shared center, employing more than 100 workers, will provide services in strategic sourcing and procurement for Procter & Gamble, the global consumer packaged goods company.
Infosys stated that it would use its base in Costa Rica to offer to its global clients a whole range of BPO services in areas including finance and accounting, human resources management, analytics, legal processes, customer relationship services, marketing, and supply chain management.
“The high quality of the universities, as well as the strong political and business leadership in Costa Rica will …
BY STAFF REPORT
Over the past five years, India has lost 10 percent of its share in the global BPO market to countries like China, Brazil and Philippines, says the country’s annual economic survey.
The government, in turn, told domestic BPO firms to be more aggressive in their PR campaigns directed as clients in the Western world. India continues to dominate the global BPO industry, and there are few who believe the country will relinquish its top-ranking status any time soon. However, the rise of outsourcing tiger nations such as Brazil, Poland and the Philippines has made real impacts.
This year, India’s BPO sector will generate $100 billion in revenue.
“Although China faces challenges, such as language proficiency, the country is spending a large amount of money in mission mode to increase English proficiency, and thus may eventually emerge as a threat to India,” the report said. …
BY STAFF REPORT
Indian outsourcing giant Infosys Technologies has appointed Gautam Thakkar, one of its most senior officials, as CEO and managing director of its BPO unit.
Thakkar, who is currently the vice president and head of enterprise services at Infosys, will take over the job from Swami Swaminanth who is retiring in April this year. Swami was one of the best known executives from Infosys in Latin America, where he was a speaker at several industry conferences in the last few years. Thakkar joined Infosys before the technology giant launched its BPO unit in 2002. He has previously worked with Accenture.
In an another announcement, the country’s second largest software exporter has stated that it named Srikantan Moorthy its new global head of human resources.
Infosys has seen reshuffling its management team since early 2011 after KV Kamath took over as its chairman. …
Samasource hires thousands of workers in economically troubled countries. Founder Leila Janah talks about her vision and how it works.
BY STAFF REPORT
An increasing number of Indian technology companies are expanding into the emerging markets of Latin America in an attempt to reduce their overreliance on saturating markets of the United States and Europe, says a report from analyst firm IDC.
At the forefront of this invasion are the country’s information technology and outsourcing firms whose growing dominance in the US remains a political hot-potato.
Given the IDC’s estimation, Latin America’s IT services market reached $23.97 billion in 2011 and is on pace to grow at 10.8 percent annually over the next four years.
Latin America presents a $40 billion untapped market, IDC says. Though the region has cultural similarities with India, there are many a number of unique challenges to deal with like language, the report noted.
IDC says there has been a rapid increase in IT spending in Latin America over the past ten years, and the entire IT ecosystem of …
By Narayan Ammachchi
When Indian-born US business executive, Vikram Pandit, resigned several weeks ago from the Citibank, an important question cropped up: Will his departure have any impact on the thriving practice of outsourcing, which has long been a vital back-office for US financial firms? Outsourcing companies in India agree that it has been increasingly difficult to get contracts in the US but