Tata Consultancy Services Ltd. reported the fastest profit growth in three years as overseas companies and governments outsourced more computer operations to Indiaâ€™s largest software-services provider.Indian owned Infosys is the #2 bloodsucking bodyshopper in the world. Business is booming for them especially now that they won an enormous contract from Microsoft.
Net income rose 47 percent to 19.3 billion rupees ($433 million) in the three months ended March 31, Mumbai-based Tata Consultancy said yesterday. That compared with the 18 billion rupee average of 26 analyst estimates compiled by Bloomberg. Profit jumped the most since the three months to March 31, 2007. Tata Consultancy Profit Rises Fastest in Three Years, Bloomberg, April 20, 2010
The trade body representing India`s software services companies hopes to raise its estimate on the sector`s export revenue growth for the current fiscal year as global spending on information technology is expected to rise, its president said Friday.The comments of Som Mittal come at a time when Indian technology companies are announcing new order wins and renewal of existing contracts as they shrug off the effects of the global economic slowdown.Recent large client wins include a three-year contract valued at more than $100 million that Infosys Technologies Ltd. got from Microsoft Corp. and multi-year contracts from British oil major BP PLC. to top Indian technology companies.The National Association of Software and Services Companies in February said it expects Indian software companies to export products and services worth $56 billion-$57 billion in the fiscal year that started April 1, about 13%-15% more than the estimated value for the previous year. The trade body representing India`s software services companies hopes to raise its estimate on the sector`s export revenue growth for the current fiscal year as global spending on information technology is expected to rise, its president said Friday. Indian Software Body Hopes To Raise Export Target, WSJ, APRIL 16, 2010The following comment from the WSJ article emphasizes how important this deal is to Infosys, and how damaging giving away technology will be for the U.S. in the long term.
â€?This is a huge deal for two reasons,â€? said Marc Harrison, president of Silicon East, a Microsoft solution provider in Manalapan, N.J. â€?First, obviously Microsoft bypassed all of their U.S.-based partners and chose Infosys. Second, this will give Infosys a tremendous competitive advantage globally.â€?Whatâ€™s interesting is that Infosys was the only party that issued a press release about the deal, and it isnâ€™t talking about how much money is involved. As noted elsewhere, Microsoft is downplaying the significance of the deal and insisted that it doesnâ€™t change the ratio of its internal and outsourced support. Microsoft-Infosys Contract Woth Over $100 Million, Indian Chat Forum, 15 April 2010Jokes are circulating that Microsoft can`t handle it`s own software so they are going to improve it by sending it to India (note the NYT comment below). That`s kind of funny but it will be no joke to the Americans who lose their jobs. Actually Microsoft has been moving operations to India for years and yet their software support hasn`t seemed to improve.
Infosys, a big outsourcing company based in India, got a nice win on Tuesday, grabbing a three-year contract to handle all the technology services and support for Microsoft itself. The announcement prompts two lines of thought. First, canâ€™t Microsoft get its own technology to work by itself? Infosys Is Microsoftâ€™s Tech Helper, By Steve Lohr, New York Times, April 13, 2010