There’s more evidence of Indian IT attracting big global deals. On Tuesday, some three contracts were announced, including a massive $500-million, five-year deal between HCL Technologies and MSD (also known as Merck & Co, with headquarters in the US), one of the world’s biggest pharmaceutical companies.
Symphony Services said it has bagged a seven-year, multi-million dollar deal from Aldata, a Finland-based supplier of integrated business solutions to organizations serving the retailconsumer and wholesale distribution markets. Aldata’s customer base includes 15 of the world’s 30 largest retailers.
Mahindra Satyam said it had signed a three-year offshoring deal with BASF IT Services, a wholly owned subsidiary of the global chemical company BASF.
These deals follow other big deals in recent months, including TCS’ $904-million one with UK’s Personal Accounts Delivery Authority (PADA) to administer the National Employee Savings Trust scheme for 10 years, and Infosys’ over $100 million deal with Microsoft to manage the latter’s internal technical services. “This is an indication that Indian IT’s experience and capabilities have matured. They have demonstrated a fair bit of transformation capabilities,” said Amneet Singh, VP in outsourcing consulting firm Everest Group.
Wednesday, May 5, 2010
Sunday, May 2, 2010
Higher rural push likely to help co dominate market
Bharti Airtel’s better-than-expected performance in the March 2009 quarter amidst intense competition and falling tariffs reflects its commanding position in the 584-million-strong domestic wireless market. Moreover, the telco may continue to dominate the revenue share of the domestic market given its investments in rural areas that are witnessing a higher mobile penetration.
The Street had estimated that Bharti would report a near flat growth of 0.9% sequentially in revenue and a sharp 9% dropin profit for the March quarter. The pessimism was on account of fast deteriorating average revenue per user (ARPU) and minutes of usage (MoU) in the past few months.
However, a surprise jump in MoU, a first in the past seven quarters, and a marginal fall in ARPU helped Bharti post a 3% growth in revenue and a drop of 7% in profit. MoU rose sequentially by 5% to 468 minutes. ARPU fell by 4.6% to Rs 220, lower than expected fall of 9%.
It also reported a rise of 12% in network usage measured in terms of total minutes on network.Bharti’s performance regarding these user-based operational parameters raises optimism over its ability to sustain and grow despite the challenging environment.
Another way to look at Bharti’s performance amidst entry of new telcos is to consider its dominance in the domestic market. Its share of total customer base has shrunk to about 22% from 24% a year ago reflecting the impact of new incumbents. However, this has not affected its revenue share. In fact, it has grown from just over 29% to 31%.
The Street had estimated that Bharti would report a near flat growth of 0.9% sequentially in revenue and a sharp 9% dropin profit for the March quarter. The pessimism was on account of fast deteriorating average revenue per user (ARPU) and minutes of usage (MoU) in the past few months.
However, a surprise jump in MoU, a first in the past seven quarters, and a marginal fall in ARPU helped Bharti post a 3% growth in revenue and a drop of 7% in profit. MoU rose sequentially by 5% to 468 minutes. ARPU fell by 4.6% to Rs 220, lower than expected fall of 9%.
It also reported a rise of 12% in network usage measured in terms of total minutes on network.Bharti’s performance regarding these user-based operational parameters raises optimism over its ability to sustain and grow despite the challenging environment.
Another way to look at Bharti’s performance amidst entry of new telcos is to consider its dominance in the domestic market. Its share of total customer base has shrunk to about 22% from 24% a year ago reflecting the impact of new incumbents. However, this has not affected its revenue share. In fact, it has grown from just over 29% to 31%.
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