It's a European dawn for Indian IT companies
http://economictimes.indiatimes.com/articleshow/1056061.cms?headline=It's~a~European~dawn~for~India~IT~companies
It's a European dawn for Indian IT companies
K YATISH RAJAWAT & REENA CHAKRABORTY
TIMES NEWS NETWORK[ SATURDAY, MARCH 19, 2005 12:01:03 AM]
MUMBAI: European companies are now getting onto the offshore outsourcing bandwagon. German, Swedish and even Spanish companies are looking at India for outsourcing some of their functions.
Some companies like Wipro, Hexaware, HCL Tech and Mastek have traditionally had a much stronger European presence than others. Now, these companies are looking at expanding not only their sales and delivery but even their language capabilities for the European market.
As a result, the contribution to revenues from Europe is on the increase for Indian IT companies.
While the European share of revenues has increased, the exposure to the US has fallen for the companies.
Traditionally, Europe has been slow to accept outsourcing and has not experimented too much with offshore outsourcing. Strong labour unions, restricted working hours and the slow job market in Europe has not been conducive to the growth of the outsourcing trend.
But now, even European companies are aiming for offshore outsourcing contracts in a bid to cut their costs. Indian IT companies which had invested in the European market in the last few years are now reaping the benefits of this growth.
Some like TCS have even ventured to open development centers in East European countries like Hungary to sustain this growth. Hexaware has also opened a support and development centre in Germany for supporting its European customers.
In Europe, Infosys has won an integrated data services and technology provider and a UK utilities business as clients. The company also continued its relationship with a global automotive manufacturer based in Europe.
Hexaware has also witnessed a strong growth in its outsourcing business, especially in Germany. The company is now expanding its presence in Europe to ensure that it sustains this growth.
A European integrated paper manufacturing company, and an FMCG company were some of the customers acquired by Satyam for the quarter ended December 2004. The company also is also working for a European banking software solutions corporation. On the other hand, HCL Tech has been chosen to develop the loans origination system for consumer and commercial lending, as well as to develop the collateral management application for a European bank.
As the exposure to Europe has increased for the IT companies, the dependency on the US has reduced. For example, in the case of Infosys, the share of US revenues has dropped from 72 per cent for the quarter ended December 2003 to 67 per cent for the quarter ended December 2004, while the share of Europe has increased from 21 per cent to 22 per cent over the same period.
Similarly, the exposure to North America for Satyam has come down from 74 per cent to 68 per cent, whereas the figure for Europe has increased to 18 per cent for the quarter ended December 2004. Patni has also witnessed a fall in the US share of revenues to 86 per cent for the same period.
It's a European dawn for Indian IT companies
K YATISH RAJAWAT & REENA CHAKRABORTY
TIMES NEWS NETWORK[ SATURDAY, MARCH 19, 2005 12:01:03 AM]
MUMBAI: European companies are now getting onto the offshore outsourcing bandwagon. German, Swedish and even Spanish companies are looking at India for outsourcing some of their functions.
Some companies like Wipro, Hexaware, HCL Tech and Mastek have traditionally had a much stronger European presence than others. Now, these companies are looking at expanding not only their sales and delivery but even their language capabilities for the European market.
As a result, the contribution to revenues from Europe is on the increase for Indian IT companies.
While the European share of revenues has increased, the exposure to the US has fallen for the companies.
Traditionally, Europe has been slow to accept outsourcing and has not experimented too much with offshore outsourcing. Strong labour unions, restricted working hours and the slow job market in Europe has not been conducive to the growth of the outsourcing trend.
But now, even European companies are aiming for offshore outsourcing contracts in a bid to cut their costs. Indian IT companies which had invested in the European market in the last few years are now reaping the benefits of this growth.
Some like TCS have even ventured to open development centers in East European countries like Hungary to sustain this growth. Hexaware has also opened a support and development centre in Germany for supporting its European customers.
In Europe, Infosys has won an integrated data services and technology provider and a UK utilities business as clients. The company also continued its relationship with a global automotive manufacturer based in Europe.
Hexaware has also witnessed a strong growth in its outsourcing business, especially in Germany. The company is now expanding its presence in Europe to ensure that it sustains this growth.
A European integrated paper manufacturing company, and an FMCG company were some of the customers acquired by Satyam for the quarter ended December 2004. The company also is also working for a European banking software solutions corporation. On the other hand, HCL Tech has been chosen to develop the loans origination system for consumer and commercial lending, as well as to develop the collateral management application for a European bank.
As the exposure to Europe has increased for the IT companies, the dependency on the US has reduced. For example, in the case of Infosys, the share of US revenues has dropped from 72 per cent for the quarter ended December 2003 to 67 per cent for the quarter ended December 2004, while the share of Europe has increased from 21 per cent to 22 per cent over the same period.
Similarly, the exposure to North America for Satyam has come down from 74 per cent to 68 per cent, whereas the figure for Europe has increased to 18 per cent for the quarter ended December 2004. Patni has also witnessed a fall in the US share of revenues to 86 per cent for the same period.
posted by Cosmician | 10:10 AM
0 Comments:
Post a Comment
<< Home