India's largest software and services firm Tata Consultancy Services (TCS) on Thursday said outsourcing to the country would continue, even as the company plans to raise the charges for new clients.
Outsourcing firms in India are witnessing a fall in margins due to appreciation in rupee, which is trading below the Rs 40 a dollar mark, with falling margins. Companies have to reconsider the fee they charge from customers amidst a worry that outsourcing to the country may witness a fall.
Though, there are no plans for TCS to lower or raise billing rates for existing clients, new clients would be charged more, TCS managing director and chief operating officer S Ramadorai told reporters on the sidelines of a conference.
"We will hold the billing rates for sure. I don't think we would be reducing the billing rates," he said. However, new contracts will come at higher rates, he said.
The reason for TCS opting higher rates is because of the appreciation of rupee against the dollar and the potential subprime implication, Ramadorai pointed out.
Ramadorai was confident that outsourcing of jobs to India would continue despite higher wages and attrition in the industry.
"Outsourcing will continue. Even with the increase in wages in India by 14 or 14.5 per cent a year, we are still competitive upto the foreseeable future till 2011-12."
Margins can have an implication, but outsourcing is going to be there, he added.
Courtesy : Expressindia.com
Outsourcing for India to remain: TCS
September 29, 2007, 12:21 pmBSE, NSE seek explanation from RNRL
September 29, 2007, 12:15 pm
MUMBAI: Stock market authorities on Thursday 27th September 2007 have sought explanation from the Anil Ambani group firm Reliance Natural Resources Ltd, whose share price has nearly doubled in the past few days, on media reports about its business plans.
Both the Bombay Stock Exchange and the National Stock Exchange brought the company under scanner last week and early this week to ascertain if the price movement was normal.
From Rs 52 at close on September 19, the share price hit a one-year high of Rs 103 during trading on September 25, although it ended down at Rs 94.85 that day.
There have been media reports that it plans to sell stake in coal-bed methane blocks to strategic investors and has applied for starting city gas distribution projects.
NSE wrote to company officials on September 21 after reports that it plans to start CGD projects in various cities. The company's share price surged by a whopping 35 per cent that day to settle at Rs 76.70 from Rs 56.80 a day ago.
The scrip soared another 22 per cent on September 24 to Rs 93.55. Incidentally, there is no circuit filter on the scrip.
Similarly, turnover rose to a whopping Rs 673.47 crore on September 21 when more than 9.5 crore shares changed hands. This was against Rs 136.5 crore in the previous day when only 2.4 crore shares were traded. On September 24, it recorded a turnover of about Rs 457 crore.
The company informed the bourses on September 24 that its affiliate firm Reliance Fuel Resources Ltd did submit an application to the Petroleum Ministry for setting up such projects in Mumbai, Delhi and the national capital region.
Both the Bombay Stock Exchange and the National Stock Exchange brought the company under scanner last week and early this week to ascertain if the price movement was normal.
From Rs 52 at close on September 19, the share price hit a one-year high of Rs 103 during trading on September 25, although it ended down at Rs 94.85 that day.
There have been media reports that it plans to sell stake in coal-bed methane blocks to strategic investors and has applied for starting city gas distribution projects.
NSE wrote to company officials on September 21 after reports that it plans to start CGD projects in various cities. The company's share price surged by a whopping 35 per cent that day to settle at Rs 76.70 from Rs 56.80 a day ago.
The scrip soared another 22 per cent on September 24 to Rs 93.55. Incidentally, there is no circuit filter on the scrip.
Similarly, turnover rose to a whopping Rs 673.47 crore on September 21 when more than 9.5 crore shares changed hands. This was against Rs 136.5 crore in the previous day when only 2.4 crore shares were traded. On September 24, it recorded a turnover of about Rs 457 crore.
The company informed the bourses on September 24 that its affiliate firm Reliance Fuel Resources Ltd did submit an application to the Petroleum Ministry for setting up such projects in Mumbai, Delhi and the national capital region.
Wipro acquires Oki subsidiary for $2-3 mn
September 29, 2007, 12:02 pm
Bangalore-based Wipro Limited on Friday announced it has entered into a definitive agreement to acquire Oki Techno Centre Singapore Pte Ltd (OTCS), a wholly-owned subsidiary of OKI Electric Industry Co Ltd.
"Wipro has signed a definitive agreement to acquire Oki Techno Centre Singapore Pte Ltd, including its intellectual Property Rights in an all cash deal over a period of one year," a company statement said.
Although the company did not mention the financial details of the deal, sources said it has acquired OTCS for USD 2-3 million.
OTCS is a 40 member centre and has customers in Japan in product engineering space.
"Wipro sees this acquisition as a strategic fitment in building niche competencies which would enhance our presence among our technology companies in Japan," company's Chief Strategy Officer Sudip Nandy said.
As part of the acquisition, it would establish a dedicated Development Centre for Oki, which would enable the latter to utilise design resource efficiently and enhance product development capabilities, the statement said.
"We have been looking for a global partner to improve our efficiency in semiconductor design through outsourcing, as we focus on improving our core designing capabilities," President of Silicon Solutions Company at Oki Electric Industry Masahiko Morioka said in the statement.
OTCS primarily focuses on wireless design and has expertise in Radio Frequency and baseband design.
Courtesy : Expressindia.com
"Wipro has signed a definitive agreement to acquire Oki Techno Centre Singapore Pte Ltd, including its intellectual Property Rights in an all cash deal over a period of one year," a company statement said.
Although the company did not mention the financial details of the deal, sources said it has acquired OTCS for USD 2-3 million.
OTCS is a 40 member centre and has customers in Japan in product engineering space.
"Wipro sees this acquisition as a strategic fitment in building niche competencies which would enhance our presence among our technology companies in Japan," company's Chief Strategy Officer Sudip Nandy said.
As part of the acquisition, it would establish a dedicated Development Centre for Oki, which would enable the latter to utilise design resource efficiently and enhance product development capabilities, the statement said.
"We have been looking for a global partner to improve our efficiency in semiconductor design through outsourcing, as we focus on improving our core designing capabilities," President of Silicon Solutions Company at Oki Electric Industry Masahiko Morioka said in the statement.
OTCS primarily focuses on wireless design and has expertise in Radio Frequency and baseband design.
Courtesy : Expressindia.com
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