HCL Tech overtakes Wipro to become third-largest IT services firm in India

Source: Business Standard, May 10, 2019

New Delhi: HCL Technologies (HCLT) on Thursday surpassed Wipro to become the third-largest IT services firm in India in 2018-19, making the first change in the pecking order of the country’s $170-billion IT outsourcing industry in the last seven years.

The Noida-based IT services firm announced its revenues touched $8.63 billion in the last financial year, a rise of 10 per cent over the previous financial year.

In constant currency terms, the rise was 11.8 per cent.

Wipro, in comparison, posted IT services revenues of $8.12 billion, up 3.8 per cent over the preceding financial year.

Last year, Wipro’s full-year revenue totalled $8.06 billion, more than $220 million above HCL Technologies’ $7.84 billion. Read the rest of this entry »

Why the IT industry in India may be staring at a decline in growth this fiscal

Source: LiveMint.com, Apr 08, 2019

MUMBAI: What goes up must come down. India’s information technology (IT) exports are estimated to have risen 9.2% in FY19, faster than the 7.8% growth in the preceding fiscal, according to industry lobby group Nasscom. With major IT companies set to report FY19 results and provide an outlook for the new fiscal, a moot question is if growth rates will scale down.

After all, apart from the high base effect for some companies such as Tata Consultancy Services Ltd, the industry needs to contend with a global slowdown. This double whammy has already hit growth at Accenture Plc, which reported results for the quarter ended February late last month. The company’s financial year starts in September and ends in August.

In the quarter ended August 2018, Accenture had reported revenue growth of 11% in local currency terms. But this year, growth slowed to 9.5% and 9% in the first and second quarters, respectively. Based on its guidance for the rest of the year, growth is estimated at 8.5% and 7% in the third and fourth quarters, respectively. Read the rest of this entry »

IT firms compete for larger share of global engineering services contracts

Source: Business Standard, Mar 11, 2019

Bengaluru: Engineering services have emerged as the next growth segment for Indian IT services players with most firms taking aggressive steps to corner a larger share of the outsourcing deals. For instance, companies such as Infosys, with lesser presence in some segments of engineering services, have now reoriented their strategy to clinch more deals from marquee clients.

Many analysts are of the opinion that Infosys’s wining contract from Rolls-Royce is an outcome of such strategic moves.

According to a HFS Research report released last year, HCL Technologies was at the top spot among domestic IT services players, while it was ranked number four globally in this segment. Tata Consultancy Services (TCS) had been placed at sixth spot, followed by Wipro at seventh in the global list. According to the research firm, French company Altran was the global market leader in the engineering services space. Read the rest of this entry »

Cabinet approves National policy for software products

Source: The Economic Times, Feb 28, 2019

The Cabinet Thursday approved a national policy on software products that aims to position India as a hub for software products development and creating 65 lakh jobs by 2025.

“India’s IT revenue is USD 168 billion but most of it is services. Software product component is less, it is just USD 7.1 billion. Most of the software products are imported. The software product policy is designed to make India a big centre of software products by 2025,” IT Minister Ravi Shankar Prasad said after the Cabinet briefing.

This policy has a scope of giving employment to nearly 65 lakh people and will have enormous revenue benefit, he added.

The nod to the software products policy comes just days after the Cabinet cleared a new national electronics policy, and underscores India’s aggressive attempts to position itself as a global player in the tech domain that is gearing up for Artificial Intelligence, big data, Internet of Things and robotics. Read the rest of this entry »

Govt clears Rs 4,242cr IT-filing project, selects Infosys as developer

Source: IBEF.org, Jan 17, 2019

New Delhi: The government on Wednesday said IT major Infosys will develop the next-generation income tax filing system for Rs 4,241.97 crore which will cut down the processing time for returns to one day from 63 days and expedite refunds.

The Cabinet, chaired by Prime Minister Narendra Modi, gave its “approval to expenditure sanction of Rs 4,241.97 crore for Integrated E-filing and Centralised Processing Centre 2.0 Project of the Income Tax Department”, Union minister Piyush Goyal said.

Briefing media about the decision, he said the processing time at present for Income Tax Reurn (ITR) is 63 days and it will come down to one day after implementation of the project.

Goyal said the project is expected to be completed in 18 months and will be launched after three months of testing.

Infosys, he said, has been selected to implement the project after the bidding process.

The current system, he said, has been a success and new project will be more tax friendly.

The e-filing and Centralised Processing Centre (CPC) projects have enabled end-to-end automation of all processes within the Income Tax Department using various innovative methods to provide taxpayer services and to promote voluntary compliance.

The Cabinet also sanctioned a consolidated cost of Rs 1,482.44 crore for the existing CPC-ITR 1.0 project up to 2018-19.

Goyal also informed that tax refunds worth Rs 1.83 lakh crore have been issued so far in the current fiscal.

The decision will ensure transparency and accountability besides faster processing of returns and issue of refunds to the taxpayers’ bank account directly without any interface with the Income Tax Department.

The broad objectives of the integration project include faster and accurate outcomes for taxpayer, enhancing user experience at all stages, improving taxpayer awareness and education through continuous engagement, according to an official release.

Besides, it will also be promoting voluntary tax compliance and managing outstanding demand.

Larger outsourcing contracts may boost IT revenues in FY19

Source: LiveMint.com, Jan 02, 2018

New Delhi: The twin trends of outsourcing larger technology contracts and Fortune 1000 companies awarding work that was earlier done internally to its vendors have led analysts and information technology executives to suggest that the sector could grow faster in the year starting 1 April.

These trends are the third positive development for India’s $167 billion information technology (IT) outsourcing sector, after the first six months of the current fiscal saw IT firms adding more employees and raising salaries of some of them by as much as 40%.

“Digital spend is industrializing a little bit, moving from pilots and PoC (proof of concepts) to big spends. That should look well overall for the industry, so I am quite optimistic,” Nasscom chairman Rishad Premji said in an interaction with Mint last month. “The other interesting and exciting thing is, again at broad basis, the return of larger deals.”

The ability of IT companies to offer solutions through mobility and data crunching platforms that allows their clients, from Citigroup Inc. to Walmart Inc., to do their business more efficiently saw the technology vendors generating more revenue from stand-alone deals signed in 2018 than ever before. Read the rest of this entry »

Indian IT industry set to invest big in automation, AI in 2019

Source: LiveMint.com, Dec 24, 2018

New Delhi: Information technology faces threats from rising protectionism, data flow curbs and fast-changing technological shifts, but the Indian IT industry is keeping its hopes high for the new year with plans afoot for big investments in automation and artificial intelligence. For industry body Nasscom, 2018 had been the year of ‘Digital at Scale’ as IT firms focussed on leveraging new technologies and creating right skills with help from innovation, policies and partnerships.

The year ahead is “punctuated with several transformative opportunities,” Nasscom president Debjani Ghosh said.

The industry body has projected exports to grow at 7-9% for 2018-19, almost the same as the previous fiscal, but domestic revenue is likely to grow faster at 10-12% and this may make the new year transformative, with overseas funds accounting for the lion’s share so far. Read the rest of this entry »