Philips outsourcing Indian Television business to Videocon
Philips has announced that they have entered into an agreement with Videocon for their Indian operations.
Videocon would now mange their television operations in the Indian market. This includes manufacturing, distribution and even selling of the TVs here.
The company said: “The brand licensing agreement under which Videocon assumes responsibility for the sourcing, distribution, marketing and sales of all Philips’ consumer television activities in India is aimed at bringing the TV business back into profitability from 2010 onwards.”
This agreement would last for 5 years and only involves television sets and no other product from the company.
Philips is now concentrating on lighting and healthcare segment in India.
Caretel Infotech to provide call center services to MTNL
Caretel Infotech has confirmed that they have bagged a two year long contract to provide call center services to government owned telecom giant MTNL.
The current contract is for 200 seats. Caretel said that they are going to help MTNL in controlling the costs on customer support.
The contract signed between the two companies would see them catering to MTNL’s GSM services in Mumbai.
Caretel Infotech CEO Amit Roy said: “We see great potential business in the Indian telecom market in coming days and would continue adding more names to the growing list of our clients around the country.”
Tech Mahindra claims Satyam is already gaining new business
Tech Mahindra has announced that their new subsidiary Satyam has already started gaining new business.
The company has reportedly won some new projects as it looks like it might soon come back on its feet.
Anand Mahindra spoke about Satyam: “As far as I am concerned, since the bidding started, since we came in, I have been getting only positive signals from customers. In fact, in the last few weeks there have been some wins, there have been new business that has come in.”
Mahindra did not reveal the name of the new clients.
All is not well though. Market reports claim that Satyam continues to lose existing clients.
Delta Air Lines stops using India based call centers
Delta Air Lines has announced that they are no longer outsourcing reservation calls to India.
This decision was taken after the company received too many complaints from their customers.
The airline company added that they are in the process of bringing all customer calls back in-house to USA.
They are still using some of their centers based in Jamaica and South Africa.
Airline Chief Executive Richard Anderson added: “The customer acceptance of call centers in foreign countries is low, and our customers are not shy about letting us have that feedback.”
Checkout: Delta Air Lines
Tech Mahindra could be the new owner of Satyam
Market sources say that Tech Mahindra has emerged as the winner of the bidding process for Satyam.
The company offered Rs 58 per share for the company.
This was much higher compared to Rs 49 per shared offered by engineering firm L&T.
Satyam could turn out to be a good acquisition for Tech Mahindra which is working on expanding their services and offerings.
They are turning out to be pretty solid rivals to other giants in the market like TCS, IBM, Infosys and Wipro.
They are also likely to gain some major customers through this deal.
Infosys let go 2,100 employees
Indian IT Company Infosys has announced that they are firing around 2100 workers from their operations in the Indian market.
The company said that these workers are being fired due to poor performance history.
Infosys said that the decision was taken after the annual performance appraisal exercise that was concluded last month.
A senior company representative said: “The tolerance for non-performance has come down to zero. The appraisal was conducted for 60,000 of our employees. At the bottom, some 3.5 per cent of the people were either outplaced or left the company. It’s an annual scenario after every performance assessment. In fact, normally the bottom size is 5 per cent.”
Infosys clarified that none of their trainees were fired.
HCL Technologies signs a deal with Xerox
Xerox has announced an outsourcing deal with Indian IT company HCL Technologies.
The deal is said to be worth around USD 100 million and it would last for a period of six years.
HCL would now be managing disaster-recovery preparation along with consolidating Xerox’s data centres in North America and Europe.
Xerox has been focusing on cutting costs in their operations and this outsourcing deal would help them in that process.
The company however said that the deal is not part of their restructuring process aimed at cutting costs and eliminating jobs.
Telstra said to have terminated contract with Satyam
Australian telecom services provider Telstra is said to have terminated their outsourcing contract with Satyam.
The contract is said to be worth around $32 million per year.
Market reports say that the contract has now gone to EDS which is part of the US based giant Hewlett Packard.
Satyam has declined to comment on these reports in the media.
Satyam has been losing clients after it was revealed that its ex-ceo Ramalinga Raju was involved in a major financial scam.
TCS to review variable pay to employees to cut costs
Indian IT giant TCS has announced that they are going to review the variable pay of their employees in an attempt to cut costs.
The company said that they are not planning to cut employee salaries.
TCS CEO and MD S Ramadorai said in a statement: “We are trying to reduce costs. Currently our largest expenditure — around 54 per cent of our revenues — is manpower cost and employee salaries. We are not contemplating a pay reduction. But we are reviewing the employee variable pay.”
He added that they are also now increasing employee working hours from 40 hours a week to 45 hours a week. This would be effective from April this year.
Ramadorai further said: “We are also focusing on more offshore projects right now to cope effectively with the recession by moving more roles and delivery functions to offshore locations such as India.”
TCS to cut costs by freezing lateral hiring
TCS is one of the largest IT companies in the Indian market.
The company is not untouched by the ongoing economic crisis.
TCS has said that they are going to cut costs by taking steps including freezing lateral hirings.
The company assured that they would honor its commitment on hiring 24,800 people during financial year 2009-10.
Ajoy Mukherjee, vice-president and head-global human resources, TCS added: “We have been very controlled about the numbers that we take from here. The focus is on trainees as from cost management perspective this will balance out.”
Market analysts had this to say about TCS: “It’s a business environment that is making the company look at such measures. But this will certainly help it manage cost as unlike its peers TCS did hire a lot of experienced people. But that is also because it has a higher component of R&D work. Two, we think it will help the company garner a good position in terms of credibility and branding in the long run.”
TCS has just signed on a deal with Ducati to provide them with IT services.