Tag: infosys

Infosys beats Wall Street predictions

Posted on January 9, 2015 by - News

Workers are pictured beneath clocks displaying time zones in various parts of the world at an outsourcing centre in BangaloreIndian outsourcers Infosys have business results which were much better than the cocaine nose jobs of Wall Street predicted.

Infosys posted a 13 percent rise in quarterly net profit, as it won more outsourcing contracts from Western clients than many thought possible.

Infosys, which provides IT services to clients including Apple, Wal-mart, and Volkswagen, said profit in the quarter ended December 31 rose to $520.9 million. Analysts, on average, were expecting a profit of   $498.8 million.

It has been a tough year for Infosys.  It has lost ground to competition and staff have been leaving the building so fast they have had to keep the doors open all the time.

The company has been boosting growth by focusing on high-margin services including artificial intelligence and automation.

The company won 59 new clients in the December quarter, it said in a statement.

 

 

Infosys founders sell $1 billion of shares

Posted on December 9, 2014 by - News

Infosys office in Mangalore - Wikimedia CommonsShares in Indian software services company Infosys fell on the Mumbai bourse today after four co-founders of the company sold the equivalent of $1 billion in shares.

They took advantage of an increased share price this year but the move meant the price of the stock fell by nearly five percent.

Co0founders NR Narayana Murthy, K. Denish, Nandan M.Nilekani and the wife of SD Shibulal claimed the sale was to fund “various philanthropic activities”, a statement from the co-founders said.

In a statement, the founders said they had spent mover three decades “nurturing the company”.

Infosys has over 160,000 employees and has fingers in almost every pie, including financial services, aerospace and defence, automative, enery and retail.

The seven co-founders of the company no longer have executive roles on the board, but control nearly 16 percent of the shares.

Infosys forced Apple to pay more for less

Posted on November 21, 2014 by - News

8eea64e0563590b07a4d93537eb2851fSome top Infosys executives have cleaned out their desks and been escorted from the building after it was discovered that the outfit had been daring to overcharge the margin king Apple.

Infosys, India’s second-largest IT services exporter, said on Tuesday it had fired Abraham Mathews, chief financial officer of its Infosys BPO unit, for failure to comply with the company’s code of conduct.

Infosys BPO chief executive officer Gautam Thakkar resigned on “moral grounds” and would leave the company on November 30, Infosys said. It did not give details about the charges against Mathews.

“The financial irregularities are not material in nature and the company has already made required disclosures. The company has taken disciplinary action on employees,” the company said. The irregularities in Infosys BPO’s dealings with Apple came out during an internal audit.

Though the audit showed that the financial impact of the wrongdoing on the company was minimal, Infosys decided to take a tough stance to demonstrate its “zero-tolerance policy for any improper conduct,” he said.

Reports from India suggest that six more people will be fired soon after investigations revealed that they had produced inflated invoices and allegedly overbilled Apple for many months.

The thought of Apple being overcharged for a service that actually cost a lot less, strikes us as a little ironic and would be confirmation of the doctrine of karma, if we believed in that sort of thing.

Infosys earlier this year brought in Vishal Sikka as its new CEO to chart a new strategy for the company, once a trendsetter for India’s more than $100 billion IT outsourcing industry. Infosys has struggled in recent years to retain staff and market share, the fact it has to fire a few cannot help things.

Infosys accused of being anti-American

Posted on October 8, 2014 by - News

Ashoka's Queen - Wikimedia CommonsA US court will hear how the Indian outsourcing outfit Infosys is alleged to have adopted racist policies against Americans.

The case, filed in a federal court in Wisconsin, is from four IT workers around the country who are suing the company for “ongoing national origin and race discrimination”.

The court documents include an account by Samuel Marrero, who worked as a recruiter in Infosys’s talent acquisition unit from 2011 until May 2013.

According to him recruiters were encouraged to focus their efforts on Indian candidates and “stick to the talent we’re used to”,

Marrero asked if the company only wanted Indian talent and was told by managers “Yes. They know our style and culture”.

The Infosys officials are identified in the lawsuit, one with the title of “senior vice president and global head,” the other as a “global enterprise officer lead.”

Marrero said that he “frequently complained” to higher-ups at Infosys during these weekly calls that many of the highly qualified American candidates they had presented were being rejected in favour of Indians.

As a result 90 percent of Infosys’ workforce is South Asian, and the high percentage is intentional.

In about October 2012, in response to one of these complaints, Infosys’ global enterprise lead allegedly said, “Americans don’t know shit”.

Outsourcing giant reports record results

Posted on July 11, 2014 by - News

India_flagIt appears that the downturn in the outsourcing market is over with Infosys, India’s second-largest software services exporter, beating estimates.

The company reported a 21.6 percent rise in quarterly net profit and retained sales growth outlook for this year on surging demand for outsourcing services.

The news is a little surprising as Infosys seems to been reeling under a staff exodus and loss of market share to rivals.

Vishal Sikka, a former senior executive at German software Company SAP took over as CEO last month seen nearly a fifth of his staff leave after 18.7 per cent left in the last quarter.

Infosys added 61 customers in the quarter, maintained its revenue growth forecast for the year to March 2015 at 7-9 percent, as expected.

Consolidated net profit for the quarter ended June 30 rose to $480.20 million. Revenue in the quarter rose 13.3 percent to $212 million.

US tech workers are revolting

Posted on July 7, 2014 by - News

India_flagThree US tech worker groups have launched a labour boycott of IBM, Infosys and Manpower.
Bright Future Jobs, the Programmers Guild and WashTech claim that the outfits discourage US workers from applying for US IT jobs by tailoring employment ads toward overseas workers, writes Nick Farrell.

In one case a Manpower subsidiary has advertised for Indian IT workers to come to the US for openings anticipated more than a year in advance. The advertisements in India are being placed even though the nature of the tech industry is so fast-paced that staffing projections cannot be adequately foreseen.

Not surprisingly the three groups believe that companies should look first for US workers to fill US IT jobs.

The main goals of the boycott are “attention getting” and putting pressure on the IT staffing firms to change their practice.

Infosys denied that it avoids recruiting US IT workers and pointed to job adverts for 440 active openings across 20 states in the US.  Many of the jobs require a US master’s degree in business administration.

However there is a general concern that tech companies are lobbying for a relaxation of visa restrictions to cope with a “tech skills shortage” which is not really there.  Instead they are bringing in foreign developers who are cheaper than their US counterparts.

Infosys hikes salaries

Posted on June 14, 2013 by - News

2008-9-23-17-36-38-5077fa01951842f2b98ae92a756dec49-5077fa01951842f2b98ae92a756dec49-2While many companies are tightening their belts and looking for austerity measures until the economy picks up, outsourcing outfit Infosys is going in the opposite direction.

According to Indian newspaper, the Economic Times, the first concrete step made public after the return of founder Narayana Murthy to an executive role is to jack up all employee’s salaries.

The company will increase pay by an average of eight percent for staff in India and three percent for overseas staff.

The announcement was made to the stock exchanges after markets closed in Mumbai.

Murthy returned as executive chairman on June 1, 11 years after he was last CEO of Infosys. The move is intended to boost flagging morale at the company and to enhance Murthy’s stock of goodwill. It is also sending a message that the Infosys co-founder is back and means business.

The company has had two years of disappointing results and starting to lose market share to rivals such as Tata Consultancy Services and Cognizant Technology Solutions.

The pay increase will be effective July 1 for most staff, while the company’s global sales force will see increases effective May 1, the company said.