Economics Times News SUBMITTED BY: NehaSingla MBA 2C
Latest buzz in the Indian IT sector
India has conveyed its serious concern" to the US over Ohio's ban on offshore outsourcing of government business and a hike in US visa fees for professionals.
Despite a shortage of talent in the Information Technology sector in India, the country would remain competitive at least for the next five to 10 years, a top official of Infosys said.
Wipro Technologies, the global IT services division of Wipro Limited and Oracle have announced an expansion of their existing partnership aimed at enhancing development and implementation of best-in-class solutions for customers.
Indian software companies such as Infosys Technologies and Wipro are entering the unfamiliar area of vendor financing, at the urging of cash-strapped US customers.
Nokia appoints Microsoft's Elop as new CEO
Nokia, the world's top cell phone maker, said Stephen Elop, the head of Microsoft's Business Division, was to be its new chief executive, leading a renewed effort to compete in the Smartphone market.
His strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company.
Elop will take over from Olli-Pekka Kallasvuo on Sept. 21. Under Kallasvuo, who has spent more than half of his life at the company, Nokia has struggled to keep up with new rivals like Apple and Google in the Smartphone market.
Nokia has a communication problem. There is no doubt that SptephenElop is a better communicator than Kallasvuo," said John Strand, head of telecoms consultancy Strand Consult.
The Finnish company has lacked a hit Smartphone model since its 2006
launch of the N95, and has lost out in the top end of the market to Apple's iPhone
Nokia said Kallasvuo would get a severance payment of 4.6 million euros Kallasvuo, a former company lawyer and chief financial officer who married a veteran Nokia attorney, had come under attack from shareholders this year as the stock price tanked
IT cos must innovate to beat US outsourcing curbs: Murthy
The Indian IT firms need to innovate to beat challenges like curbs on outsourcing.
Indian companies need to innovate more and more so that they become a "necessity" for their (overseas) clients to succeed.
Murthy said he always believed that the only way the companies can survive, succeed and grow profitably is by becoming increasingly innovative.
There will always be various geo-political issues that create friction in the growth of revenues of many of the corporations.
Indian IT companies have to look at how they can innovate so that their clients would realise the importance of transacting with them.
Stepping up his campaign against outsourcing, the US President Barak Obama yesterday asserted that his administration would offer tax benefits only to those firms which will create jobs in the country, a move that may hit Indian IT firms in a big way. Obama's remarks came close on the heels of the Ohio state Governor passing an executive order to ban outsourcing, a development that has raised concerns in India, which is often described as the world's back office.
Ohio bars govt departments from it outsourcing
The US state of Ohio has banned outsourcing if it and back office projects by govt dept to offshore locations such as India in a move that could lead to more backlash and similar action from other states.
India top tech firms including TCS, WIPRO, HCL technologies is already working with US state govt such as Virginia, Missouri for delivering the services which could effect their profitability.
Such measures would also make Indian firms less attractive for awarding multi-billion-dollar government outsourcing contracts, experts.
There are pervasive service delivery problems with offshore providers including dissatisfaction with the quality of their service.
India $50 billion outsourcing industry is on the defensive after the US govt passed the controversial decision to increase the visa fee for funding maxico border security program .
Top American firms such as IBM, Accenture are gaining more business from Indian govt IT spend.
Many states are ready to give tax break worth Million of dollars if TCS, WIPRO makes commitment about hiring local staff. It may not be cost competitive as an offshore location like India.
A US based outsourcing expert who advices govt dept on IT services buying said while more states could give into the pressure and force creation of local jobs, Indian vendors should use this as an opportunity to increase their foot print in the US.
Google's Android to be world No. 2 in 2010: Report
Google Inc's Android software will become the world's second most popular operating system for cell phones this year, leapfrogging rival offerings from Microsoft Corp, Research in Motion and Apple Inc, according to a new report.
By 2014 Android will account for nearly 30 percent of all cell phone operating system sales, according to research firm Gartner, putting it in position to challenge Nokia Corp's Symbian software, which has reigned as the top mobile operating system for years.
Symbian will have a 30.2 percent share of the global market in 2014, according to Gartner, compared to Android's 29.6 percent.
For Google, the world's No. 1 Internet search engine, making the transition to mobile phones is key as it seeks to maintain and expand its nearly $24 billion online advertising business.
Android became the No. 1 operating system for U.S. smartphones in the second quarter.
Nokia announced that Microsoft's Stephen Elop would replace Olli-Pekka Kallasvuo as chief executive in a bid to revive the Finish handset company's fortunes.
Gartner projected that Apple's iOS software, which is only available on Apple's iPhone, will add nearly 3 percentage points of market share to achieve a 17.1 percent slice of the global market by 2011, but will slip back to a 14.9 percent share in 2014.
Blackberry-maker Research in Motion will see its share fall from 19.9 percent in 2009 to 11.7 percent in 2014, Gartner said, while Microsoft's Windows Phone software will decline to 3.9 percent in 2014 from 8.7 percent in 2009.