Page 8 - It Firms
IT majors meet Piyush Goyal, flag barriers in accessing in China market
The meeting was attended by senior managers of TCS, Satyam Venture Engineering, HCL, NIIT Tech, Infosys, Invento Robotics, Tech Mahindra and Wipro
 "IT majors meet Piyush Goyal, flag barriers in accessing in China market")
Scarcity of talent likely to hit IT companies' forecasts for FY20
Indian IT services firms such as TCS and Infosys have announced a record number of deal closures in the past couple of quarters
 "Scarcity of talent likely to hit IT companies' forecasts for FY20")
18% GST likely on back-end IT services as they don't qualify as export
The move will have consequences for service providers in back-end services and post-sales support, among others
 "18% GST likely on back-end IT services as they don't qualify as export")
Outsourcing deal concerns IT firms, weakness in BFSI could impact: Experts
According to brokerage Prabhudas Lilladher, growth in technology spending atn BFSI clients in the US and Europe may be muted in 2019-20
 "Outsourcing deal concerns IT firms, weakness in BFSI could impact: Experts")
Tech complexities make reskilling of employees costlier at IT companies
Declining profit margins seen as an issue in deciding to spend time and money; however, it is becoming a priority area
Domestic IT firms may face growth headwinds in second half of 2019
Margins may come under further pressure owing to large scale hiring last year
 "Domestic IT firms may face growth headwinds in second half of 2019")
IT services firms likely to show strong Q3 growth on deal momentum
Seasonal furloughs to have minimal impact, guidance for full year to be keenly watched
 "IT services firms likely to show strong Q3 growth on deal momentum")
From NEC to Fujitsu, Japanese IT firms scout for acquisitions in India
These firms are reportedly acquiring companies in other key regions to improve their global footprint
 "From NEC to Fujitsu, Japanese IT firms scout for acquisitions in India")
HCL Technologies to Tech Mahindra, IT firms move towards early retirement
Analysts are of the opinion that 55 may emerge as the new age to retire for techies in India
 "HCL Technologies to Tech Mahindra, IT firms move towards early retirement")
IT companies see growth deceleration in Europe though US bounces back
"Companies in the European region are little cautious on outsourcing because of Brexit-related concerns", says Pareekh Jain
 "IT companies see growth deceleration in Europe though US bounces back")
Share buybacks might actually end up harming IT companies' competitiveness
The strategy of returning cash to shareholders through stock purchases could hinder their digital expansion plans
 "Share buybacks might actually end up harming IT companies' competitiveness")
From Infosys to Wipro, IT firms eye acquisitions to add to adtech skills
Analysts view this movement to acquire businesses in the digital marketing space as a move by firms to supplement their technology resource pool
 "From Infosys to Wipro, IT firms eye acquisitions to add to adtech skills")
IT firms tap start-ups for digital tech
Customers of IT firms are squeezing their IT budgets for innovation
 "IT firms tap start-ups for digital tech")
IT firms hit H1B hurdle as US acts tough on visas for entry-level workers
A large chunk of Indian IT employees work in the US on H1B visas
 "IT firms hit H1B hurdle as US acts tough on visas for entry-level workers")
Resolve employee issues, Maharashtra labour department tells IT firms
IT firms need to be more sympathetic to their employees, says Assistant Labour Commissioner at Pune
 "Resolve employee issues, Maharashtra labour department tells IT firms")
AI, data analytics: IT cos look for new skill sets in prospective employees
AI, cloud computing, data analytics are a few areas companies are looking for proficiency in
 "AI, data analytics: IT cos look for new skill sets in prospective employees")
Chatbots and more: How Indian IT is using automation to service customers
Chatbot has eliminated the delay and also trains itself to respond to more complex questions
 "Chatbots and more: How Indian IT is using automation to service customers")
IT firms opt for fixed-price contracts amid low demand
Clients cutting costs, demanding more efficiency, IT firms are going in for fixeed-price contracts
 "IT firms opt for fixed-price contracts amid low demand")
Not just Cognizant: Other IT firms may hire 40% fewer engineers this year
Even if there were no Brexit or US Elections, hiring by IT firms would have been the same
 "Not just Cognizant: Other IT firms may hire 40% fewer engineers this year")
Indian IT may face margin pressure till FY20
Indian IT service providers are likely to see their operating margins subdued for three years till financial year 2020, as they struggle to get better prices for traditional services and generate new business in digital and cloud that require expensive hires to work on client locations. The pressure on Indian firms such as TCS, Wipro, Infosys and HCL Technologies increases as they fight global firms such as IBM, Accenture and Capgemini see improved business in emerging areas and generate better margins from a lower base, says a report by brokerage firm Prabhudas Lilladher. The margins for Indian firms are between 20 and 26 per cent, which is substantially higher than what global firms such as IBM, Accenture and Capgemini earn. The struggle to retain margins means that ambitious targets set by Indian IT services majors like Infosys and Wipro, who expect margins to be 30 per cent and 23 per cent by 2020, could be an uphill task. Infosys chief executive Vishal Sikka has set a goal to ...
 "Indian IT may face margin pressure till FY20")
