Aug 21, 2007: Infosys Technologies Limited (NASDAQ: INFY) today announced the creation of the company’s first Latin American subsidiary, and the opening of the development center and office for the region based in Monterrey, Mexico.
The subsidiary, Infosys Technologies S. De RL De CV, provides the company’s full range of business consulting and information technology services for clients in all industries including banking, financial services, retail, consumer packaged goods, resource, energy and utilities.
The center provides key offerings in business process outsourcing, infrastructure management and packaged solutions implementation.
Often referred to as “nearshore facilities,” such operations provide client solutions in time zones which are more convenient to clients and still provide access to processes, systems, services and talent globally. The Monterrey facility provides Infosys with the dedicated resources to service clients in North America, Latin America and Europe with bi-lingual talent in an agreeable time zone and close proximity. Furthermore, it strengthens the company’s global delivery model capabilities and joins such new facilities already on the network such as a development center in Brno, Czech Republic and BPO facilities in India.
“The world continues to flatten, unlocking Mexico’s potential as a major business center and solidifying its role as a strategic location for technology innovators such as Infosys,” said Mexico Secretary of the Economy Dr. Eduardo Sojo.
After examining several countries in the region, Infosys chose to establish a presence in Mexico because of the broad language skills available in the region, its geographical proximity to Canada, the U.S. and Europe. Latin America is a strong emerging market and one where many of Infosys’ clients have operations already.
“The combination of human and intellectual capital, nurturing business community and entrepreneurial spirit found in Monterrey positions the state for amazing IT service growth,” said Governor of the State of Nuevo Leon Jose Nativdad Gonzalez Paras.
Infosys has appointed Mohit Joshi to head the new subsidiary. Joshi, formerly a group engagement manager with the company’s banking and capital markets organization has more than 12 years of client and leadership experience.
“Our clients are exploring opportunities to mitigate risk while expanding operations into the burgeoning market,” said S. Gopalakrishnan, chief executive officer, Infosys Technologies. “The facility will help us establish our services in the Central time zone which allows us to provide better support to our clients located across multiple geographies.”
For the first year, Infosys Technologies S. De RL De CV will have more than 250 seats. By its third year of operation, the Monterrey facility is expected to employ nearly 1,000 employees. Local and international hires will participate in the standard Infosys training programs to ensure global consistency.
Showing posts with label Infosys. Show all posts
Showing posts with label Infosys. Show all posts
Wednesday, August 22, 2007
Wednesday, July 25, 2007
Hot action in the last quarter among top 4
Infosys
Plans investment of US$75.1m (Rs3.1bn) in a 8,000-seat development centre in Thiruvananthapuram; also setting up a 400-seat facility in Brno, Czech Republic and a 300-people centre in Mexico.
Introduced a non-compete agreement in employee contracts, barring the employee to work for the same client at a defined set of competing firms for a period of six months after their job termination at Infosys.
TCS
Bought out the joint-venture partner’s stake in the Brazil subsidiary for US$33.4m; inaugurated a new 500-seat centre in Mexico; targeting 5,000 employees in Mexico over the next five year.
ntegrated its financial services solutions (organic and from FNS acquisition) into a new SBU, TCS Financial Solutions.
Satyam
Launched a 4,500-sq ft near-shore development centre in Brazil; a 150-seat centre in Sydney (third in Australia); plans development centre in Vietnam by April 2009.
Announced extension of its existing contract with the Nestle group for a further three years; we estimate the current relationship at an annual run-rate of US$15m, that could go to US$25m. We estimate the pricing increase at about 3% in the renewed contract.
HCL Tech
Launched a 100-seat centre in Poland, its second in East Europe.
US$15m contract win from Alenia Aeronautica.
Infosys
Plans investment of US$75.1m (Rs3.1bn) in a 8,000-seat development centre in Thiruvananthapuram; also setting up a 400-seat facility in Brno, Czech Republic and a 300-people centre in Mexico.
Introduced a non-compete agreement in employee contracts, barring the employee to work for the same client at a defined set of competing firms for a period of six months after their job termination at Infosys.
TCS
Bought out the joint-venture partner’s stake in the Brazil subsidiary for US$33.4m; inaugurated a new 500-seat centre in Mexico; targeting 5,000 employees in Mexico over the next five year.
ntegrated its financial services solutions (organic and from FNS acquisition) into a new SBU, TCS Financial Solutions.
Satyam
Launched a 4,500-sq ft near-shore development centre in Brazil; a 150-seat centre in Sydney (third in Australia); plans development centre in Vietnam by April 2009.
Announced extension of its existing contract with the Nestle group for a further three years; we estimate the current relationship at an annual run-rate of US$15m, that could go to US$25m. We estimate the pricing increase at about 3% in the renewed contract.
HCL Tech
Launched a 100-seat centre in Poland, its second in East Europe.
US$15m contract win from Alenia Aeronautica.
Thursday, May 24, 2007
Another Captive on Sale!
The first round of bids for Citi’s business process outsourcing operations — Citigroup Global Services (formerly known as e-Serve) — is likely to be completed this week. A host of global IT companies and also private equity firms are said to be in the initial race. However, Citi is likely to look at selling part of its operations only to a strategic partner, given the sensitivities involved in the deal. According to sources, IBM, Automatic Data Processing (ADP), Genpact, Infosys and private equity firms such as Blackstone and General Atlantic are in the race for Citi’s BPO business.
Citi is likely to follow the Genpact model, where it is likely to sell off over 50% stake in the BPO firm. It is, however, likely to retain a part of the stake in the firm so that they can not only get the benefits in case of a future listing but would also handhold the firm.
According to sources, one of the main reasons that the group is looking at bringing in a strategic partner is to bring down the overall costs and not monetising the stake.
Citi officials declined to comment. When contacted Genpact president and CEO Pramod Bhasin declined to comment while Infosys BPO’s officials were unavailable for comment. However, experts believe that Genpact has more synergies with Citi’s BPO unit because it has the experience of working out of a captive shell. Genpact had started off as a captive for GE in 1997.
GE had in 2004 sold 60% of its stake to Oak Hill Capital Partners and General Atlantic Partners. It was then renamed as Genpact. Citi had delisted Citigroup Global services in 2004. Citi held 44.4% stake in the BPO company. It had accepted an exit price of Rs 975 per share while delisting the firm. At that price the company was valued at around Rs 1,200 crore. According to i-bankers the value of the company now would be at around $700 million.
According to Forrester Research, nearly 60% of the captives in India are struggling due to spiralling costs, high attrition and lack of integration and management support. “Nearly, 10% of these struggling captive BPOs are most likely to sell off and go the outsourcing way,” a recent Forrester study says. Another Mumbai-based analyst voiced similar views about Citi’s BPO stake sale. “It is simply following the trend set by the likes of GE and Deutche Bank,” he added.
Deutsche Bank later sold off its stake to the Delhi based HCL Technologies. Citi globally has been on a major cost cutting spree. It had recently announced that it would cut 17,000 jobs on the back of a restructuring plan that is targeting billions of dollars in cost savings over the next few years. It is also looking at moving out 9,500 jobs overseas and to smaller American cities. Citi’s BPO operations have over 9,000 employees with nearly 4,000 servicing its international businesses.
from ET
The first round of bids for Citi’s business process outsourcing operations — Citigroup Global Services (formerly known as e-Serve) — is likely to be completed this week. A host of global IT companies and also private equity firms are said to be in the initial race. However, Citi is likely to look at selling part of its operations only to a strategic partner, given the sensitivities involved in the deal. According to sources, IBM, Automatic Data Processing (ADP), Genpact, Infosys and private equity firms such as Blackstone and General Atlantic are in the race for Citi’s BPO business.
Citi is likely to follow the Genpact model, where it is likely to sell off over 50% stake in the BPO firm. It is, however, likely to retain a part of the stake in the firm so that they can not only get the benefits in case of a future listing but would also handhold the firm.
According to sources, one of the main reasons that the group is looking at bringing in a strategic partner is to bring down the overall costs and not monetising the stake.
“Though there is interest from a host of firms, the group is most likely to sell the operations to someone who has experience in the field. They would want a strategic partner in the firm. It’s a core asset and they would not like to have any issues post a sell off,”said a senior private equity official of a leading firm. ADP and Genpact are said to be the front runners for the deal.
Citi officials declined to comment. When contacted Genpact president and CEO Pramod Bhasin declined to comment while Infosys BPO’s officials were unavailable for comment. However, experts believe that Genpact has more synergies with Citi’s BPO unit because it has the experience of working out of a captive shell. Genpact had started off as a captive for GE in 1997.
GE had in 2004 sold 60% of its stake to Oak Hill Capital Partners and General Atlantic Partners. It was then renamed as Genpact. Citi had delisted Citigroup Global services in 2004. Citi held 44.4% stake in the BPO company. It had accepted an exit price of Rs 975 per share while delisting the firm. At that price the company was valued at around Rs 1,200 crore. According to i-bankers the value of the company now would be at around $700 million.
According to Forrester Research, nearly 60% of the captives in India are struggling due to spiralling costs, high attrition and lack of integration and management support. “Nearly, 10% of these struggling captive BPOs are most likely to sell off and go the outsourcing way,” a recent Forrester study says. Another Mumbai-based analyst voiced similar views about Citi’s BPO stake sale. “It is simply following the trend set by the likes of GE and Deutche Bank,” he added.
Deutsche Bank later sold off its stake to the Delhi based HCL Technologies. Citi globally has been on a major cost cutting spree. It had recently announced that it would cut 17,000 jobs on the back of a restructuring plan that is targeting billions of dollars in cost savings over the next few years. It is also looking at moving out 9,500 jobs overseas and to smaller American cities. Citi’s BPO operations have over 9,000 employees with nearly 4,000 servicing its international businesses.
from ET
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