Indian IT industry revenue to grow by 8% to $167 bn in 2018-19 : Nasscom

Source: Business Standard, Oct 04, 2018

Bengaluru: With 37 per cent share of the global outsourcing, the Indian IT industry revenue is set to touch $167 billion for fiscal 2018-19, said its apex body Nasscom on Thursday.

“The Indian IT and Business Process Management (BPM) industry revenue, including exports is set to growth nearly 8 per cent annually to $167 billion for 2018-19 from $154 billion in fiscal 2017-18,” said Nasscom Vice Chairman Keshav R. Murugesh at its strategic summit here.

Noting that the industry is capitalising on newer technologies and re-skilling, Murugesh said the back office segment (BPM) has the largest base in the world, generating $32.5 billion revenue with 1.2 million employees across the country. Read the rest of this entry »

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Google agrees to comply with RBI’s data localization norms

Source: LiveMint.com, Sept 10, 2018

New Delhi: Technology giant Google has agreed to comply with the data localization norms set by the Reserve Bank of India (RBI), but has sought an extension of the deadline to put a proper mechanism in place.

During a recent meeting of Google chief executive officer (CEO) Sundar Pichai and IT minister Ravi Shankar Prasad at Google’s headquarters in Mountain View, the company agreed to comply with all the norms and sought time till the end of December, said a senior government official, requesting anonymity.

The RBI had set 15 October as the deadline for payment system operators to store data in India. Besides Visa, American Express, Facebook, PayPal, and Mastercard, among others, Google is also required to store date in the country.

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China’s growing clout in internet business worries Indian regulators

Source: LiveMint.com, Jul 04, 2018

Bengaluru: The government is preparing a policy framework to regulate foreign investments more closely in internet and smartphone businesses, especially in view of the increasing Chinese presence in these sectors, said three people familiar with the matter.

Government agencies including the defence ministry, information technology ministry and the Telecom Regulatory Authority of India (Trai), besides the Reserve Bank of India (RBI), are working on new policies, the people cited above said on condition of anonymity.

The proposed policies are meant to deal with the increasing digital colonization of India, said the people cited above. The aim is not to stop or restrict foreign investments but to install safeguards that will ensure India’s security is not compromised, they said. This assumes significance as Chinese and American companies either directly control large parts of the internet business or have tremendous influence as investors in local start-ups, even in strategically important areas such as financial services and content.

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TCS becomes first $100-b IT Company

download (5).jpgSource: The Hindu Business Line, Apr 23, 2018

Mumbai: Varun Aggarwal Fourteen years after it listed its shares, IT behemoth Tata Consultancy Services has become the first and only Indian company in the sector to cross market capitalisation of $100 billion.

The crown jewel of the Tata Group has surpassed its global rival in the IT services space, Accenture, in market valuation.

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Indian IT firms looking for ways to soften US tax blow

Source: LiveMint.com, Jan 30, 2018

New Delhi: An anti-abuse provision in the US tax code that President Donald Trump signed into law last month is forcing Indian information technology (IT) services companies to look at ways to mitigate the impact of the tax blow.

The Tax Cuts and Jobs Act, designed to encourage American companies to invest and create jobs locally, seeks to discourage offshoring of work to overseas group companies by way of a 10% tax on the payments made to such offshore entities.

This tax, called the “base erosion and anti-abuse tax”, or BEAT, hits Indian multinational companies in the IT sector, which caters to their US clients through American subsidiaries.

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Indian IT gears up for $50 billion renewals

Source: The Economic Times, Jan 08, 2018

BENGALURU: About 196 IT deals worth more than $100 million each, and adding up to $51 billion, are coming up for renewal in 2018. Of these, some 12 are multi-billion-dollar deals, the largest of which is Siemens’ $7.2-billion contract with French IT giant Atos, according to research firm Everest Group.

As in previous years, this is an opportunity for Indian IT firms that have been steadily increasing their share of global outsourcing contracts. Of the 196 deals, only four are currently led by Indian IT firms, though these firms may be present as secondary partners in some of the other deals.

Also, the opportunity for Indian IT sector is rising because many of the large deals today are being broken up into smaller contracts. Barring TCS, the others are typically not considered for billion-dollar deals, but if these same deals are broken up, the others get to pitch. Read the rest of this entry »

Chandrababu Naidu targeting US$ 2 billion in IT investments in Andhra Pradesh

index.jpgSource: LiveMint.com, Oct 10, 2017

Visakhapatnam: The Andhra Pradesh (AP) government aims to attract $2 billion of investments and create about 100,000 jobs in the information technology (IT) sector, chief minister N. Chandrababu Naidu said on Monday.

Addressing delegates at Blockchain Business Conference at Visakhapatnam, Naidu, who explained how his government is using technology to monitor work on a real-time basis, also remarked that “election is not a problem”, hinting that he was confident of winning the 2019 Andhra Pradesh elections thanks to various schemes introduced during his governance in the last three years.

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