TECH MAHINDRA BECOMES NO 4 IN IT COS' LIST

Maimed and left gasping for a lifeline, Satyam Computer Services has finally found its new knight in shining armour, Tech Mahindra (TechMa).

The bidding process for the beleaguered software firm culminated on Monday with TechMa emerging as the highest bidder with an offer price of Rs 58 per share. TechMa's price outbid other suitors, engineering giant Larsen & Toubro and private equity player Wilbur Ross, by a comfortable margin. L&T's bid of Rs 45.90 per share and Wilbur Ross' Rs 20, were not even within striking distance of TechMa's deal-winning bid.

The Economic Times

SATYAM: ON THE PATH OF EVOLUTION

The fraud at India’s fourth largest software exporter, Satyam Computer Services Ltd, has kick started a Darwinian consolidation among top-tier Indian IT companies as they pitch for Satyam, in part or whole. The company is still reeling under the revelation of $2 billion fraud by its founder on January 7.

Various companies are in the fray to acquire the company either in part, depending on their core business, or in its entirety. These include, the IT arm of India’s largest engineering company Larsen & Toubro Ltd; fifth largest Indian IT company HCL Technologies Ltd; diversified conglomerate Essar Group; London-based diversified Indian conglomerate Hinduja Group; Indian IT company i-Gate Global Solutions; and Spice Group.

The Indian IT industry is in the next stage of evolution, which commenced with the emergence of a number of companies establishing themselves as industry leaders by virtue of expertise in a certain domain, big clients’ accounts and sheer geographical spread. What now follows is the second stage of evolution, that of, consolidation which will involve mergers and acquisitions (M&As) that will shrink the number of companies in the top tier.

A new wave of M&As will be triggered by the acquirer’s business objectives to expand into new markets and new customers, high-end intellectual property of either process technology or product technology and also to garner new skill sets.

UNDETERRED I.T. INDUSTRY SAYS IT WON'T BOW DOWN TO TERROR

Shocked at the most terrible terrorist attack in the country, IT companies beefed up security in campuses across cities, including Bangalore, and said the industry will not "bow down to terror".

The IT Industry association Nasscom said, "We will not bow down to terror. As an industry that is international and services customers across the globe, we continue our operations, uninterrupted, from centers across India and even Mumbai."

The Economic Times

PROFIT-FOCUSED INFOSYS NOW LOOKS TO GROWTH

In a significant change of strategy, India’s second largest software services firm Infosys Technologies Ltd has said it will focus on growth, even if this means lower profitability — a reflection of a tougher business environment where Indian software firms are finding it harder to grow, and a contrarian play for a company that has sometimes walked away from deals that would have meant lower profitability.

MINT

INDIAN FIRMS EMPLOY OVER 30K US CITIZENS

Amidst the row in US over outsourcing, a study has said that big corporates like Essar, HCL, Tata, Mahindra and Wipro have generated over 30,000 jobs for Americans in recent years.

The Financial Express

RESULTS FROM IT COS SET TO EXCEED TARGETS

First-quarter results for India’s largest software services companies are expected to exceed the most bullish markets estimates, reflecting a windfall from the weaking of the rupee against the US dollar and the euro.

Livemint

One night @ the Call Centre-in Hinterland

Welcome to the world of rural BPOs—an idea that has potential to dramatically change the way people look at rural and semi-urban workforce. While rural BPOs are changing lives for the village youth, for many companies the trend accompanies a big relief from increasing costs and nagging attrition in their urban units. Little wonder then, rural BPOs are growing at an impressive 60% clip, according to estimates.

The Economic Times
http://economictimes.indiatimes.com/
articleshow/msid-3085379,flstry-1.cms

Sensex up 235 pts; global cues lift sentiment

The market opened with major gains on Thursday tracking a rally in stocks overseas after corporate earnings in the US beat expectations indicating the worst of the credit crisis may be over. Back home, technology shares led the advances as investors cheered fourth quarter results released over the past couple of days. At 10:05 am, the Bombay Stock Exchange’s Sensex was up 235 points or 1.44 per cent at 16,478.79.

The Economic Times
http://economictimes.indiatimes.com/
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articleshow/2958503.cms

Sensex up on tech stocks rally

The markets pared early losses as technology stocks rallied smartly on the back of Infosys results. The BSE sensex dropped by almost 235 points early in the session, however the 30 share index gained strength after Infosys announced its earnings for the financial year and gave a guidance that enthused investors. The sensex closed 346 points higher at 16,154, its highest closing in two weeks. The gains were across the board with the BSEs Midcap Index and Smallcap Index rising by over 1% each.

The Times of India
http://timesofindia.indiatimes.com/Business/India_Business/
Sensex_up_on_tech_stocks_rally/articleshow/2954633.cms

Tech results | Q3 on track, but all eyes on next quarter

Software services firms such as Tata Consultancy Services Ltd (TCS), Infosys Technologies Ltd and Wipro Ltd will start announcing their results for the December quarter later this week, but analysts say the focus will be more on their business outlook for the coming quarters from the US, where an economic slowdown could potentially shrink technology spending.

MINT
http://www.livemint.com/2008/01/08001417/
Tech-results--Q3-on-track-bu.html