Visa Crackdown May Benefit Mexican Outsourcers
July 21st, 2011
IT providers in Monterrey and other Mexican cities could benefit from the visa situation.
Mexico’s NAFTA-granted favored status will make it easier to bring in temporary IT workers
By Dan Berthiaume
Nearshore technology outsourcers providing employees from Mexico may benefit from a recent crackdown by the federal government on temporary visas for IT professionals. Doug Gattuso, president of Neoris, a global business/IT consulting firm with operations in Latin America, says Mexico’s favored status under the NAFTA treaty makes it much easier for US companies to bring in temporary IT professionals from Mexico than from non-NAFTA countries.
Walk around the Bangalore and Mysore campuses of Indian IT outsourcing giant Infosys and it’s easy to become despondent about Britain’s competitive future.
It’s not the grand replicas of the White House, the pyramids and Sydney Opera House so much as the numbers that tell the story.
Infosys adds 20,000 Indian IT and engineering graduates to its 150,000-strong workforce each year, paying salaries of just £5,000 and training them, 200 at a time, in huge auditoria.
It’s nearly all aimed at the West with Infosys, India’s fifth largest company, getting 90pc of its $6bn (£3.74bn) turnover from the US and Europe.
Britain accounts for 12pc – about $720m a year. No wonder the Bangalore campus was a key stop on David Cameron’s India tour last year.
Infosys is a household name in India, with a market capitalisation of $35bn in Mumbai and on Nasdaq. Last week it was the top-rated business …
Fever Hits at Full Force: Cartagena Summit Delivers Big Boost for Latin America Outsourcing
May 27th, 2011
On the Ground at the IAOP LatAm Summit: Our Top Seven Take Aways
Beautiful Cartagena has been the setting this week for a very lively IAOP Summit, hosted by the Colombia chamber of IT and BPO companies, ANDI. Over 400 delegates from about 15 countries have shown up – there is a well orchestrated mix of academic/thought leadership along with spirited, Colombian-style networking. There is little question that this summit is another significant breakthrough for an industry that continues to attract a wider audience, generate more credibility and provide opportunities for more introspection on how to maintain industry sustainability.
India Now Outsourcing IT Jobs to North America
May 27th, 2011US President Barack Obama rode to power on the promise of stopping American jobs from being outsourced to India.
Ironically, the Indian IT and IT services companies targeted by him may actually be bailing out unemployed Americans by hiring thousands in BPO jobs, in a US economy still struggling to cope with the aftermath of the worst recession since World War II. Outsourcing has come full circle.
Take Aegis, the BPO arm of the Mumbai-based conglomerate Essar Group. Aegis is one of the largest Indian employers in the US. It has over 5,000 US citizens on its payroll and plans to hire 10,000 more over the next three years.
“We have 10 centres operating in the US and more than 97 per cent of our employees are US citizens. Our clients are happy to have locals attend to their calls and we will be hiring many more,” said an …
Indian Outsourcers Target Ecuador for Investment and Expansion
April 11th, 2011By Greg Brown
India is ramping up investments in Latin America, targeting Ecuador for $2 million in IT funding in the near term, says India’s ambassador in Ecuador, Riewad V. Warjri. The Asian outsourcing giant is looking for “partners in areas of technological collaboration, capacity building in BPOs, KPOs, and call centers, providing banking software platform, sharing latest cyber security protocols,” he told Indian daily Financial Express.
In an earlier video interview with Nearshore Americas, Ecuador’s trade commissioner Karina Amaluisa said the country hopes to double the size of its IT services industry.
Infosys Plans Massive Rehaul to Compete with Rival TCS on Revenue and Global Footprint
February 2nd, 2011In its 29th year of existence, it is time for Infosys to once again embark on a periodic ritual — a self-overhaul. This “normal process” of re-organisation, undertaken every two or three years, has in the past seen Infosys redefine, reinvent and restructure itself.
But what is different this time is that the overhaul is expected to be truly massive, necessary for India’s second largest software exporter to compete with TCS, Wipro and the new challenger Cognizant.
Since 1998 the organisation has been recast six times — each time essentially to create need-based sub-units, beef up and/or split sales & marketing, and recast the geography-based and industry-based structures.TV Mohandas Pai, director, told Financial Chronicle: “For the past 15 years we have been doing this. It is a normal process. It will make us agile and place us in a better position to serve our …
Tata Consultancy Services and HCL Technologies have marched ahead of Infosys and Wipro by delivering all-round growth in a traditionally weak third quarter.
While HCL registered the highest growth on net profits and overall turnover, it continues to pick up work at the lowest margins. On the other hand, TCS results beat market expectations on almost all parameters while Infosys and Wipro’s were ‘below par’, industry watchers say.
“TCS has been an outperformer not only in the quarter but also in the calendar gone by. It is easier for a smaller company to grow from a smaller base, but a growth of 30 per cent on a quarterly revenue run rate of over $2 billion is certainly impressive,” Mr Jimit Arora, Everest Group’s research director, said.
On the other hand, the HCL management has realised that it needs to improve its …
Infosys Confident of LatAm Outsourcing Prospects, Quarterly Results Analysis Shows
November 9th, 2010By Preetam Kaushik
Indian tech player Infosys has traditionally been cautious about expanding in Latin America, much more so than rival TCS which has spent the last eight years aggressively opening delivery locations across the region. By contrast, Infosys has two country locations – Mexico and Brazil – and has focused more on consolidating services from those centers than expanding its LatAm footprint. But when we listened in on its quarterly results announcements last month, we found a marked difference. Infosys execs seem confident of future expansion in the Nearshore space, and in their ability to capture larger profits in Latin American outsourcing.
One of the enduring comments by Infosys CEO Kris Gopalakrishanan a few years ago is that changes in technology matter more for the company than losses from changes in outsourcing policies. That is relevant to how Infosys approached its results this quarter – placing equal importance on the earnings and financials, as well as strategies for the future.
Vemuri at Infosys Sees U.S. Clients Spending Big Bucks in ’11
October 21st, 2010BANGALORE — Infosys Technologies Ltd.’s head of U.S. operations said he expects the company’s clients in its biggest market to be more open to spending on long-term outsourcing contracts in 2011 than in the previous couple of years, unless there is a Lehman-like situation.
The crumbling of Lehman Brothers Holdings Inc. in 2008 and the economic slowdown that followed had led to a steep decline in orders for Indian outsourcing services providers–which get the largest share of their revenue from the U.S.–as clients cut back or slowed spending on non-essential and long-term projects.
Infosys and other outsourcing companies are recovering from the effects of the economic crisis as clients started giving long-term contracts again, though the risk of a double-dip recession coupled with high unemployment and deflation in the U.S. are major concerns for them.
“Unless there’s a cataclysmic situation…from …
Infosys Plans to Hire Over 1,000 Onshore Workers
October 18th, 2010Infosys Technologies says it will hire 1,000 U.S. workers to increase its ability to provide consulting and management services to its clients, an area of increasing importance for the India-based offshoring giant.
Infosys on Friday reported $1.5 billion in revenue for the quarter, an increase of nearly 30% from the same quarter last year. North America accounts for nearly 66% of its revenue.
Ashok Vemuri, SVP and global head of banking and capital markets, said that most of the growth is from existing clients, although it added 13 new accounts in the American market in the most recent quarter, including two Fortune 500 firms.
Vemuri said businesses have a backlog of projects and are now making “a release of dollars, if you will,” to move the projects ahead.
But Vemuri told Computerworld that the company’s revenue gains were related to customer …
