Page 5 - It Industry

Indian tech earnings may indicate worst is over for showpiece sector

Executives from TCS and Infosys told investors after third-quarter earnings that the market had stabilized and clients were spending on AI-driven projects and software services

Troubles for Indian IT firms linger as clients tighten their budgets

Accenture Plc lowered its revenue outlook last month, citing a pullback in software spending by Wall Street firms, which are among the Indian companies' biggest clients

Srini Pallia's job as Wipro CEO: Drive growth, stem senior-level exits

Pallia joined Wipro in 1992 as product manager and moved to the US in 2000 as general manager, US central

Cognizant defers annual salary hikes to Aug 1, says 'recognises hard work'

Nasdaq-listed information technology company employs some 250,000 people in India

Tech hiring stuck in slow lane leaving engineering talent in quandary

Engineering institutes are feeling the impact of macro uncertainty and past over-hiring, as evidenced by the decrease in campus placements

Results preview: IT firms may report muted Q4 growth, eyes on FY25 guidance

January-March quarter, is considered to be a soft quarter, and will continue to see the headwinds that the sector has been facing. And the sector will enter the new financial year on a weak footing

Integration challenges, valuations key hurdles for LTI Mindtree investors

Centrum Research believes that the company has sufficient operating levers that will help it report a higher margin in FY25 vs FY24

Industry not in sync with K'taka IT union's demands to end labour exemption

KITU, the only registered union of IT/ITeS sector employees in Karnataka, which has a membership of more than ten thousand, demanded the government not renew the exemption anymore

Tech Mahindra to merge two US-based subsidiaries to optimise costs

IT services and consultation company Tech Mahindra said it plans to merge its two wholly-owned subsidiaries, Born Group and Tech Mahindra (Americas), to synergise business operations, optimise operational cost, and reduce compliance risks. The merger is subject to regulatory approvals in the country of incorporation. According to a regulatory filing, the appointed date of the plan of merger is April 1, 2024. "A Plan of Merger of Born Group, Inc., a wholly-owned step-down subsidiary of the Company with its parent company viz. Tech Mahindra (Americas) Inc., a wholly-owned material subsidiary of the Company, has been approved by the respective companies on Friday, 22nd March 2024," the company said. While BORN specializes in providing Brand strategy, visual design, brand identity exploration, and more for digital products, mobile apps, and physical products in the US, TMA provides computer consulting, programming support services and IT Management & Consulting Services. Tech Mahindra

Accenture fans IT industry spending gloom with annual forecast cut

Accenture now expects full-year revenue growth in the range of 1% to 3%, from its prior forecast of 2% to 5%

Tata Sons offloads TCS shares worth over Rs 9,300 crore via open market

Tata Sons has offloaded shares worth around Rs 9,300 crore in IT major Tata Consultancy Services through open market route, a regulatory filing said on Thursday. According to the filing, Tata Sons has sold 234 lakh shares amounting to 0.65 per cent stake in TCS on March 19. Calculated on the basis of the closing price of Rs 3,977.55 on March 19, the deal value comes to Rs 9,307.46 crore. The block deal initiated by Tata Sons was aimed to offload up to 2.34 crore shares of TCS at a floor price of Rs 4,001 per share. This floor price represented a 3.65 per cent discount from Monday's closing price of Rs 4,144.75 apiece. As of December 2023, promoters and promoter group entities hold a 72.41 per cent stake in TCS, of which 72.38 per cent shareholding is owned by Tata Sons. Shares of TCS recovered 0.09 per cent and settled for the day on Thursday at Rs 3,974.05 apiece on BSE, after witnessing a decline in the previous three trading sessions. Tata Sons shares had slipped on stock exch

Despite IT slowdown, high demand for GenAI courses: Simplilearn CEO

The Blackstone-backed firm, which skills and trains people online, said that the demand for GenAI courses in India increased 195 per cent year-on-year in the first quarter of 2024

TCS announces deal to 'transform' Danish firm Nuuday's IT infrastructure

Multi-million dollar agreement involves Nuuday's IT infrastructure being shifted to Cloud platform of TCS

Wipro's health care deals get an artificial intelligence booster shot

"Large deals with committed business transformation and business value delivered through AI, automation, and platform modernisation, are in the pipeline," said Kumar

Manish Prasad appointed president and MD for SAP Indian Subcontinent

Prasad succeeds Kulmeet Bawa, who takes on a global role for SAP

BPO employees face maximum risk of getting replaced by AI: Nasscom chairman

Workers in the business process outsourcing (BPO) sector are at the maximum risk of getting impacted by the influx of generative artificial intelligence, IT industry body Nasscom's chairman Rajesh Nambiar has said. Nambiar, who is also the chairman and managing director of global technology major Cogniozant's India unit, said workers in the software services industry, the Indian tech industry's mainstay, do not have much to worry. "People who work on process related industry, which we traditionally used to call as BPO (business process outsourcing)... Some of that runs the risk of getting replaced with an AI engine pretty quickly," he said at a seminar organised in Pune over the weekend. He stressed that the USD 48.9 billion BPM (business process management) industry has evolved quite a bit from merely managing simple business processes. There are heightened concerns around the impact of AI on jobs, especially in the over USD 250 billion Indian tech sector which contributes ...

We don't see hiring going down due to generative AI: TCS CEO K Krithivasan

His comments come at a time when the hiring done by industry has come down significantly. For instance, in FY23 the industry added a total new headcount of 290,000. This has fallen to 60,000 in FY24.

IT industry to grow 3.8% in FY24 to cross $250 billion, says Nasscom

FY24 growth coming at a slower pace, from a growth rate of 8.4% last year

DoT to establish quantum certification lab, set computing standards: Secy

The Department of Telecom is working to establish a quantum certification lab and set standards for quantum computing, a senior official said on Thursday. While speaking at the Second International Quantum Communication Conclave, Telecom Secretary Neeraj Mittal said that a lot of work is happening in C-DoT on quantum communications, and India has to be cautious in developing the technology with like-minded parties. "We are working with TEC to create standards (for quantum computing). We are also working on setting up a quantum certification lab," Mittal said. He said that the certification lab will test and verify the solutions that claim to be based on quantum technology. "There are countries who have massive resources at hand but do not necessarily believe in democratic values as India. We need to find the right partners and work with them," Mittal said. The Cabinet approved the National Quantum Computing Mission on April 19, 2023, with an outlay of Rs 6,003.65 crore for 8 ...

Metalbook targets $200 million ARR by FY24, plans IPO in 4-5 years

B2B digital platform Metalbook expects to achieve an annual recurring revenue (ARR) of USD 200 million (about Rs 1,660 crore) by March 2024, the company said on Thursday. ARR generally refers to the total revenue level that a company may achieve after 12 months. Metalbook claims to have registered a revenue of USD 72 million in financial year 2023. "Metalbook is anticipated to achieve an annualized revenue run rate of USD 200 million by the end of FY24, demonstrating a growth of over 15 times in the past two years," it said in a statement. Metalbook is a digital supply chain platform for the metals industry. The company recently launched new categories across copper, aluminium, metal scrap and claims to have a global footprint of processing centres, recycling networks and over 1,000 suppliers spread across 80 geographies. The expansion follows USD 15 million fundraise by the company in June 2023. The funding round was led by Rigel Capital, with participation from FJ Labs, as well