5G rollout may be $10 billion opportunity for Indian IT firms

Source: LiveMint.com, Nov 01, 2018

New Delhi: The planned rollout of 5G or fifth-generation wireless technology by telecom companies globally offers at least $10 billion business over the next six years for India’s information technology (IT) services companies, according to a Mumbai-based brokerage firm.

This new technology spend by telecom firms on software and services could bring over $1.1 billion in incremental revenue over the next three years for country’s five largest companies, including Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Wipro Ltd and Tech Mahindra Ltd.

This development is significant as telecom firms over the last two years had held back their spend on technology, leading to tepid growth at telecom verticals for all IT firms. A new gusher of money should further boost growth for the five largest IT firms, which share among themselves about 30% of homegrown IT companies’ business from telecom companies. Read the rest of this entry »

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Nasscom signs deal with Hiroshima govt for building Japan-India IT corridor

Source: Business Standard, Oct 22, 2018

New Delhi: IT industry body Nasscom Monday said it has signed a letter of intent with the Hiroshima government to work together in creating Japan-India IT corridor to facilitate partnerships between companies from both nations.

“The Hiroshima government will co-invest with Nasscom in creating Japan India IT Corridor that could be at the forefront of promoting B2B cooperation and talent transfer from India to Japan,” Nasscom said in a statement.

This project will be formally initiated by early 2019 on mutual consent, it added. Read the rest of this entry »

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 »

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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