TCS, Infosys, Wipro run Indian IT show: Forrester

Large IT services companies have widened the gap with their smaller peers in terms of revenue, strategy and differentiation, a report by Forrester research says.

The country’s top three IT vendors, TCS, Infosys and Wipro—accounted for 46.4% of exports from India during FY08 compared to 26% in FY04, according to the study ‘Understanding the new grip of vendor polarisation.’

The top-tier firms have been outperforming the rest on all counts, including profitability, revenue-per-employee and growth while the sub-$1 billion firms have not shown any differentiation either in terms of capability or providing specialised IT services, according to the research outfit’s senior analyst Sudin Apte.

Small and mid-sized IT companies are also struggling to grow the base of their existing clients and bag large orders. On the other hand, those with revenue above $1 billion are growing their revenue by 30% despite tougher economic conditions.

Infosys may be forced to change name in France

Indian IT giant Infosys may have to change its name in France, as a court there has found its use of this name infringing the trademark as well as business and corporate identities of another firm 'Infosys France'.

While noting that it may be forced to operate under some other trade name in France, Nasdaq-listed Infosys Technologies said in a regulatory filing here that it has sought a stay on the court ruling and is planning to appeal against it.

The Bangalore-headquartered company, which is present across a host of countries, said a civil court in Bobigny, France, ruled on April 15, that its use of the name "Infosys" constituted infringement of the trademark, corporate name and trade name "Infosys France" in that country.

The ruling added that the Indian IT major could not use the same name in France as a trademark, corporate name, trade name and domain name "with immediate effect."

According to Infosys Technologies' regulatory filing, it has two sales and marketing offices in France.

"Infosys France" is a technology and consulting firm- based in France and is part of an integrated management consulting services provider "Groupe Infodis."

"Although we have appealed against the ruling and have sought a stay on the decision of the civil court, failure to obtain a stay..., or an adverse final ruling, may force us to operate under a different trade name and could adversely affect our operations in France," Indian firm said.

Infosys added that the ruling in France, or a similar ruling in any jurisdiction where it operates, "could disrupt our ongoing business, distract our management and employees, and affect our future business."

Naryanamurthy receives highest civilian honour of France

Infosys mentor N R Naryanamurthy was on Saturday conferred with the Officer of the Legion of Honour, the highest civilian distinction of the Government of France.

The French honour for Narayanamurthy comes on a day when he was chosen for Padma Vibhushan, the second highest civilian award of the country.

French Minister of Higher Education and Research Valerie Pecresse bestowed the honour to the "most admired business leader" of India at a glittering function here this evening.

Created in 1802 by Napoleon Bonaparte, the Legion of Honour is the highest civilian distinction that can be conferred in France regardless of the social status or the nationality of the recipients.

Pecresse acknowledged the humble beginnings of Infosys, which was co-founded by Narayanamurthy in 1981 along with six friends and 215 dollars in the pocket.

"Infosys, which employs over 82,000 staff, is a shining example of development in India," she said.

Accepting the distinction, Narayanamurthy said he was extremely greateful to the government of France for honouring him and try and work hard to deserve the confidence you have in me.

Narayanamurthy, who pursued higher studies in France, said it was a country he loves most after India.

"Today is a very important day .. I read in the newspapers this morning that I had been chosen for the Padma Vibhushan award. It was a pleasant surprise," he said.

Infosys could bid for Capgemini

Shares in Paris-based consultancy Capgemini and Indian software firm Infosys Technologies have jumped on reports of a possible merger.

Infosys declined to comment on "market speculation" that it planned to bid for the European group, bolstering its position in the technology market.

But investors chased the Bangalore firm's shares up 2.5% in India. Shares in Capgemini rose 4.61% in Europe.

A tie-up would help Infosys prepare for an outsourcing slowdown, analysts said.

Outsourcing slowdown

Infosys has grown exponentially over the past five years, capitalising on the demand for IT outsourcing from India's large and well-trained English-speaking engineering workforce, whose wages are on average a fifth of those in the West.

Margins are very high in consulting business as compared to other commoditised business Infosys has Tejas Doshi, Sushil Finance

Infosys said its fourth quarter net profits leaped 70% to 11.4bn rupees ($267m; £134m) in the three months to 31 March, from 6.73bn rupees a year earlier.

But it recently said it expected earnings growth for the coming financial year to be more modest amid rising wage pressures and a strengthening rupee, which makes India a less attractive bet for outsourcing.More>>

Living the good life at Infosys

The clipped green grounds at Infosys Technologies include a swimming pool, table tennis, pool tables, cafeterias and a mirrored building shaped like one of the pyramids.

 

Golf carts transport employees and visitors around the property of Indian high-tech giant Infosys.

Credit: Michael

 

Microsoft Chairman Bill Gates and British Prime Minister Tony Blair planted these trees in a garden at Infosys Technologies' campus in Bangalore.

 

Outsourcing giant Infosys believes it is the new model for global businesses

First came orientation at the Hyatt Regency in Burlingame -- name tags for all, a buffet of pasta, sushi and apple pie, the quick rundown on company goals and ethics. Then the recruits prepared to climb aboard three jet airliners for the 30-hour journey to Bangalore, headquarters of their new employer, Infosys Technologies.
``I'm nervous about the flight and I don't know what to expect there -- the weather, the culture, working,'' said Nicole Dun, a 22-year-old San Franciscan embarking on a six-month intensive company training program before being redeployed in the United States. ``Business is global now.''
The summer hiring of 126 young Americans was a validation of sorts for the outsourcing giant, a company that for some in the United States has been synonymous with offshoring and lost jobs.More>>

Leading Infosys 2.0

Leadership in transition is a particularly painful time for companies. But not for Infosys and Nandan Manohar Nilekani. This year's Dataquest IT Man Of The Year continues to take Infosys and the Indian outsourcing story to new heights.More>>

Mr.Narayana Murthy to retire on August 20

Mr. Narayana Murthy is undoubtedly one of the most famous persons from Karnataka. He is known not just for building the biggest IT empire in India but also for his simplicity. Almost every important dignitary visits Infosys campus. The beauty about his family is that they believe in sharing their wealth with the needy.

"On August 20, I will complete 60 years and as per company policy, I will retire. From August 21, I will, if the board of directors decide, continue as the Non-Executive Chairman. The board will also decide on the Chief Mentor because the Chief Mentor has to be an executive person who will come to the office every day,'' Mr. Murthy told reporters here after chairing the 25th annual general meeting of the company.
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