Indian IT firms, especially in the mid-tier segment, have seen a rise of private equity firms placing stakes on them. While faster technology at mid-size IT services companies have attracted PE firms such as Blackstone, Carlyle, ChrysCap, Bain Capital, The Baring Asia and others to invest in the sector; PE-backed companies have seen faster growth at a time when their large listed peers slowed down due to uncertain market.
Catch Sanchit Vir Gogia, Chief Analyst, Greyhound along with Anshoo Nandwaani, Principal Analyst, Greyhound on our latest Greyhound TV series, Analyst Axiom, a Greyhound Studios production.
A replacement for Vishal Sikka, the first non-founder to become the CEO and MD of Infosys, must be an internal candidate who has risen up the ranks and is favoured by co-founder N.R. Narayana Murthy, industry analysts said.
India’s largest IT firm Tata Consultancy Services has appointed veteran Ravi Viswanathan as its global chief marketing officer. Viswanathan’s appointment comes at a time when the company, like its peers, is battling not just increasing competition but also heightened protectionism in its largest market — US. Viswanathan, who will be in charge of the marketing and communications functions and based in Chennai, will directly report to new CEO Rajesh Gopinathan.
IT services industry is staring at jobless growth because its top employers are focusing on automation to improve productivity and deliver services while they battle shifts in technology to remain profitable.
Here is a quick glimpse of Sanchit Vir Gogia, Chief Analyst & CEO of Greyhound Research presenting on the topic of Digital Transformation at Dimension Data’s Shape The Next Leadership Connect Forum 2017.
Industry body Nasscom projected software export growth in fiscal 2017-18 at 7-8% in constant currency, down from 8.6% last year.
How safe is the average Indian techie’s job? Between Donald Trump’s “Make America Great Again” push at one end and artificial intelligence-driven automation on the other, India’s most sought-after career for two decades is suddenly losing its appeal.
On May 02, Infosys, India’s second largest information technology (IT) company, announced that it will hire 10,000 American workers over the next two years. Three days later, on May 05, Nasdaq-listed Cognizant Technology Solutions, which has a large presence in India, also revealed plans to significantly ramp up hiring in the US. if and when they do end up attracting talent, Indian IT companies may have to pay through their nose for it.
India’s famed multi-billion dollar information technology (IT) industry has been facing challenging times over the past 6-12 months with top-notch IT companies already facing earnings pressures in recent quarters due to tough business environment prevailing in their most lucrative US and European markets.
With President Donald Trump making it abundantly clear that he will curb immigrant work visas to protect domestic jobs, technology outsourcing firms such as Tata Consultancy Services, Infosys and Wipro are focusing on localisation and hiring more Americans to serve their clients in the U.S.
On May 2, 2017 Infosys announced plans to hire 10,000 American workers over the next two years.
At Greyhound Research we believe, steps such as these by IT Services Providers eloquently tell a tale of the pressure they are experiencing under the new Trump administration.
The software industry is facing mounting challenges as countries from Australia to the United States have moved to tighten work visas to limit the influx of foreign workers.
American President Donald Trump’s policy to protect jobs by imposing restrictions on H-1B visas is unlikely to be of any help to that country and may hurt US interests, say experts. What Trump is seeking to protect are entry level jobs that are being phased out by the tech majors, with automation, artificial intelligence and robotics paving the way to increased productivity.
What is the event about?
We are experiencing unprecedented change and disruption in the industry today. Business and technology paradigms are changing at a pace that has never before been seen and the innovative use of technology to adapt to these changes is becoming the only way forward.
To address this change, Dimension Data is organising the Leadership Connect, a gathering aimed at bringing together CxOs involved in Digital Transformation journeys.
Fireside Chat Topic: Bringing Transformation Home
Greyhound Research’s Chief Analyst & CEO, Sanchit Vir Gogia (SVG), will be at the event to share insights on Digital Transformation from across the globe and in the region. Separately, SVG will chair a fireside chat session (participants below) on how can CxOs tailor Digital Transformation for their respective organisations.
- Jason Goodall (Group CEO, Dimension Data)
- John Lombard (Asia Pacific CEO, Dimension Data)
- Kiran Bhagwanani (India CEO, Dimension Data)
Have a question for SVG?
When & Where?
April 19, 2017, Mumbai
April 20, 2017, Bengaluru
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Infosys has deployed its artificial intelligence (AI) platform ‘Mana’ to process contracts for a bank in Asia that typically needed a team of 10-15 dedicated lawyers.
With the latest missive from the Donald Trump administration on H-1B visa, cautioning companies against misuse, the immigration issues of the Indian IT sector are back in news. And it is not the US alone that is drumming up protectionism for political gains. However, industry observers say that Indian IT services companies are resilient enough to weather such issues.
In a fresh blow to software professionals, the Trump administration has moved to bar entry-level programmers from the H-1B visa programme.
Cognizant, the New Jersey-headquartered software services company with most of its operations in Chennai, is likely to lay off 6,000-10,000 “ redundant and non-performing” employees.
Over the last 24 hours, the Indian IT Industry and media have been abuzz with supposed corporate governance issues at Infosys. The founders have lashed out at Vishal Sikka, CEO and the board via a letter that highlights possible corporate governance issues under the new management. While no facts have been presented until now, additional news material was floated this morning with some strong commentary from none other than NR Narayana Murthy himself.
Donald Trump’s efforts to limit the number of temporary workers in the US will dent India’s software industry.
Over the last 24 hours, the Indian IT Industry and media have been abuzz with supposed corporate governance issues at Infosys. Founders have lashed out at Vishal Sikka and the board via a letter that highlights possible corporate governance issues under the new management. While no facts have been presented until now, additional news material was floated this morning with some strong commentary from none other than NR Narayana Murthy himself.
On 31 January 2017, an announcement impacting H-1B visa programme has been made by the US House of Representatives making it difficult for companies in the US to employ skilled foreign workers. Among other things, the minimum wage requirement of H-1B visa holders has been more than doubled to USD 130,000. At Greyhound Research we believe this is a significant announcement by the newly appointed Trump administration. While changes were expected under the new President, the suddenness and the order of the announcement has surely caught IT Services Providers across the globe by surprise.
Rajesh Gopinathan, who will take over as the CEO of Tata group crown jewel Tata Consultancy Services on February 21, has big shoes to fill. But experts believe the 46-year-old will bring freshness into the company at a time when technology trends are shifting at an unprecedented pace.
The Donald Trump administration which will take charge on 20 January in the US has announced that it will push for legislative measures to curb misuse of H1-B and L1 work visas significantly used by Indian IT professionals.
Of all the possible candidates, the credentials of TCS’ N Chandrasekaran was hard to be ignored for panel.
January 20, 2017, will mark the commencement of the four-year term of Donald Trump, the 45th President of the United States. Since his presidential election win on November 8, 2016, many quarters of the global industry have been abuzz with possible outcomes of the protectionist sentiment in the US – a key pillar of Donald Tump’s campaign. Here’s what we at Greyhound Research, the Technology Transformation Research & Advisory arm of Greyhound Knowledge Group, believe will be the impact on the Indian IT Services firms.
IBM’s two major global bets — cloud and cognitive — are also the two weakest areas for the computing giant in India, where it seems to be struggling in a highly competitive market. Will the new India MD be able to get the company back on track?
“2017 is going to be a volatile year for the Indian IT industry,” says Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research. “The pace of technological changes is very high and it will lead to substantial job cuts. The companies will try to be a lot leaner,” predicts Gogia.
Indian IT services companies have been facing competition from upstart players with highly specialised skill sets based in advanced markets, especially in areas such as cloud services and analytics. The cash-rich Indian IT companies are responding to this by acquiring companies overseas and thereby enhancing capabilities. Wipro spending nearly $1 billion in acquisitions last year is a case in point. In 2017, we are likely to see big boys of the Indian IT industry loosening their purse strings to make large acquisitions. “They will look at companies with sizeable revenues,” says Gogia.
On January 4, 2017, IBM India named Karan Bajwa as the new Managing Director. He takes over the reigns from Vanitha Narayanan, who has now been appointed as the Chairman. Per the announcement, this change is effective immediately; both Karan and Vanitha will report to Randy Walker, Chairman, IBM Asia Pacific.
At Greyhound Research we believe while the company is in great hands with both Karan and Vanitha at the helm, significant challenges lie ahead for them and the broader management team at IBM India. Here’s why.
On December 31, 2016, Infosys announced a sudden exit of its General Counsel and Chief Compliance Officer, David Kennedy. While no reasons have been cited by the company, per the terms of exit, Kennedy will receive aggregate severance payments of US$ 868,250 along with reimbursements for COBRA (insurance) continuation coverage over a period of 12 months.
IT major Infosys’ Rs. 5.9 crore ($868,250) severance pay offer to outgoing General Counsel David D Kennedy is a move to play safe with Donald Trump administration in the US, say experts.