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Infosys Technologies
Infosys buys Axon Group for Rs 3,300 crore
Posted by :
Infy_fan_alwaysTracked by: 0 Boarder
Axon group, is a SAP consulting company, this acquisition is opening up the consulting space to Infosys in a huge way.
What is more important is the strategy to focus in the European markets.
The management has taken very strong and innovative steps for the last 2 quarters , and it is very much visible from the company's perfomance.The new retail software product 'ShoppingTrip360' will bring in huge margins, once it starts kicking. The focus on Software products is what allowed infy to have a higher net profit than TCS , even though the TCS revenue is way higher than Infy.
Infosys is also having its analyst meet on August 27.
Overall , its a whole new world opening up, and I expect Infy to break 2000 barrier before Q3 results with ease.
Cheers!...
In reply to:
Infosys buys Axon Group for Rs 3,300 crore
Posted by :
vtycoon
what impact will it have on share price ? for tomo ? 
Infosys buys Axon Group for Rs 3,300 crore
Posted by : vtycoonTracked by: 0 Boarder
what impact will it have on share price ? for tomo ? ...
In reply to:
Infosys buys Axon Group for Rs 3,300 crore
Posted by : Infy_fan_always
Infosys Technologies has announced that it has agreed terms for a recommended cash offer for a leading UK-based SAP consulting company, Axon Group, in a deal value at Rs 3,300 crore ($753.1 million). The transfer of ownership to Infosys is expected to be completed by November 2008, subject to the scheme of arrangement.
Commenting on the transaction Kris Gopalkrishnan, CEO of Infosys said, \'This strategic combination of our groups will accelerate the realisation of our common aspiration - that of becoming the most respected provider of business transformational services in the global marketplace\'.
Axon provides consultancy services to multinational organisations that have chosen SAP as their strategic enterprise platform and has about 2000 employees. Specialising in the delivery of change through technology enabled transformation programs, Axon’s consultants bring in-depth industry expertise alongside best practice functional knowledge to address the strategic, operational, information management and organisation effectiveness challenges faced by organisations today.
Founded in 1994, today, Axon has offices in the UK, North America, Malaysia and Australia.
Axon reported net profit of Rs 160 crore ($37.4 million) on a total revenue of Rs 1660 crore ($378.3 million).
Infosys buys Axon Group for Rs 3,300 crore
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
Infosys Technologies has announced that it has agreed terms for a recommended cash offer for a leading UK-based SAP consulting company, Axon Group, in a deal value at Rs 3,300 crore ($753.1 million). The transfer of ownership to Infosys is expected to be completed by November 2008, subject to the scheme of arrangement.
Commenting on the transaction Kris Gopalkrishnan, CEO of Infosys said, \'This strategic combination of our groups will accelerate the realisation of our common aspiration - that of becoming the most respected provider of business transformational services in the global marketplace\'.
Axon provides consultancy services to multinational organisations that have chosen SAP as their strategic enterprise platform and has about 2000 employees. Specialising in the delivery of change through technology enabled transformation programs, Axon’s consultants bring in-depth industry expertise alongside best practice functional knowledge to address the strategic, operational, information management and organisation effectiveness challenges faced by organisations today.
Founded in 1994, today, Axon has offices in the UK, North America, Malaysia and Australia.
Axon reported net profit of Rs 160 crore ($37.4 million) on a total revenue of Rs 1660 crore ($378.3 million).
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Infosys says to delist Axon when deal closes
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
When the deal closed, Axon would be delisted from the London exchange, CFO V. Balakrishnan told a news conference.
Indian outsourcing firms such as Infosys and its bigger rival Tata Consultancy Services are expanding in Europe, Asia, the Middle East and Latin America to cut their dependence on the U.S. market, which accounts for more than half the sector\\`s revenue.
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Infosys to buy Axon Group in all-cash deal
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
Infosys Technologies India's No. 2 software services exporter, on Monday said it had agreed to buy UK-based consultancy services firm Axon Group Plc in an all-cash deal valued at 407.1 million pounds. Nasdaq-listed Infosys expects the deal to be completed by November 2008, it said in a statement.
It said the acquisition would 'accelerate the achievement of some of Infosys' current strategic corporate objectives, including the continued expansion consulting capabilities'.
Last month, Infosys, which develops applications, designs supply chains and offers back-office services, reported a 21 percent rise in quarterly profit but warned of challenging times ahead as its major Western clients battle weakening economies.
Ahead of the announcement, shares in Infosys, which the market values at $22 billion, ended 0.5 percent higher at 1,703.05 rupees in a Mumbai market .BSESN that closed up 0.3 percent.
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Infosys to buy UK based Axon group
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
Infosys is all set to buy UK based Axon group for 407 mn euros. The deal is to be completed by November 2008. The UK based Axon Group is into consultancy services.
Axon Group has 2000 employees. The Q1 revenue for Axon was 204.5 mn pounds in 2007. The profit after tax for the same period was 20.2 mn pounds. According to sources in Infosys, transfer of ownership will be completed by November. ...
BSE Announcements on Infosys
Posted by : MMB MessengerTracked by: 0 Boarder
Infosys Technologies Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 25, 2008 has approved the proposed scheme of arrangement to acquire Axon Global Plc.
In this regard the Company has issued a Press Release dated August 25, 2008 titled "Infosys announces its plans to acquire Axon Group plc; Cash offer of Euro 407.1 million"...
NSE Announcements on Infosys
Posted by : MMB MessengerTracked by: 0 Boarder
Infosys Technologies Ltd. has informed the Exchange regarding a press release dated August 25, 2008, titled "Infosys announces its plans to acquire Axon Group plc". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements). ...
Wall St rallies as oil drops; Infy ADR shine
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
The Wall Street rallied on the back of cool down in crude oil prices. The US crude oil futures plunged .59 to 4.59 a barrel after having surged over 1 the preceeding day.
The Dow Jones industrial average surged 198 points to 11,628. The Nasdaq gained 34 points at 2,415.
Among the Indian ADRs - Tata Motors advanced 4.3% to .70. Infosys soared over 3% to .56. HDFC Bank and Tata Communications moved up 2.7% each to .52 and .39, respectively. ...
Good times for IT: Dollar shoots up by 39 Paise
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
The Indian rupee turned weak despite a rally in equity markets and dipped by 39 paise to 43.70/71 against the greenback in morning trade today on month-end dollar demand as well as stronger dollar overseas.
In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed at 43.43/46 a dollar from its previous close of 43.31/32 a dollar and later dropped sharply to 43.70/71 a dollar in late morning deals, where it is now trading.
Forex dealers said the rupee came under pressure after a two-day recovery last weekend as oil corporates began buying dollars for their month-end import payments.
They said strong dollar against the basket of currencies in overseas markets and tight dollar supplies also weighed on the rupee sentiment....
Infy smiles: Dollar shoots up by 26 Paise
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
The Indian rupee turned weak despite a rally in equity markets and dipped by 26 paise to 43.59/60 against the greenback in morning trade today on month-end dollar demand as well as stronger dollar overseas.
In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed at 43.43/46 a dollar from its previous close of 43.22/23 a dollar and later dropped sharply to 43.59/60 a dollar in late morning deals.
Forex dealers said the rupee came under pressure after a two-day recovery last weekend as oil corporates began buying dollars for their month-end import payments.
They said strong dollar against the basket of currencies in overseas markets and tight dollar supplies also weighed on the rupee sentiment.
...
Infosys CEO -‘We have the flexibility to manage margins’
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
Infosys Technologies has developed a new method of pricing software maintenance projects to make its revenues more effort-based and less manpower dependent.
Starting this quarter, the company will start offering clients ‘ticket-based pricing’ as opposed to fixed price and time and material-based pricing for software maintenance projects. The move is aimed at increasing revenues without a proportional increase in the number of employees.
Under the traditional time and material-based pricing, customers are billed based on the number of man-hours spent on a project while under the fixed price, as the name suggests, the customer pays an agreed price that doesn’t vary with the manpower deployed on the project.
Under the new ‘ticket-based pricing’ a customer will pay based on certain parameters such as whether the client request or ‘ticket’ that is raised is for a small enhancement in the software application, a big enhancement or a bug-fix .
'A software application becomes more stable with time. But if a client has opted for a fixed price model, then even after the application becomes more stable and the number of requests decrease, the same price has to be paid. Ticket-based pricing will give them the flexibility to change that and reduce the total cost of ownership,' said Infosys COO S D Shibulal.
Application development and maintenance (ADM) revenue accounted for 43.4 per cent of Infosys’ total revenues with maintenance being approximately half of that in the just ended June 2007 quarter.
Infosys and other technology majors have been trying to decrease the dependence of revenue growth on manpower addition. Many of them have developed new services such as platform-based BPO and software-as-a-service, in addition to products, to do this.
But this is the first such attempt at bringing a transaction-based pricing model to traditional ADM projects, which account for a bulk of the revenue for Indian IT service providers.
For infrastructure management services as well, Infosys has come up with device-based pricing or pricing that is based on the type and number of servers, PCs and other devices. Shibulal said he expected client adoption of the new pricing model to be gradual. 'We will offer it to new and existing clients based on their comfort.
Client comfort will be the most important thing,' he said. Infosys is now focusing on getting more deeply involved with clients and adding more value to them, he added, about the firm’s renewed consulting focus.
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In reply to:
Infosys CEO -‘We have the flexibility to manage margins’
Posted by : Infy_fan_always
For those of who are not aware: New 'Ticket ' - based pricing explained.
Infosys Technologies has developed a new method of pricing software maintenance projects to make its revenues more effort-based and less manpower dependent.
Starting this quarter, the company will start offering clients ‘ticket-based pricing’ as opposed to fixed price and time and material-based pricing for software maintenance projects. The move is aimed at increasing revenues without a proportional increase in the number of employees.
Under the traditional time and material-based pricing, customers are billed based on the number of man-hours spent on a project, while under the fixed price, as the name suggests, the customer pays an agreed price that doesn’t vary with the manpower deployed on the project.
Under the new ‘ticket-based pricing’, a customer’s pay will be based on certain parameters such as whether the client request or ‘ticket’ that is raised is for a small enhancement in the software application, a big enhancement or a bug-fix.
'A software application becomes more stable with time. But if a client has opted for a fixed price model, then even after the application becomes more stable and the number of requests decrease, the same price has to be paid. Ticket-based pricing will give them the flexibility to change that and reduce the total cost of ownership,'said Infosys COO SD Shibulal.
Application development and maintenance (ADM) revenue accounted for 43.4% of Infosys’ total revenues, with maintenance being approximately half of that, in the just ended June 2007 quarter.
Infosys and other technology majors have been trying to decrease the dependence of revenue growth on manpower addition. Many of them have developed new services such as platform-based BPO and software-as-a-service, in addition to products, to do this.
But this is for the first time such an attempt has been made to bring a transaction-based pricing model to traditional ADM projects, which account for a bulk of the revenue for Indian IT service providers. For infrastructure management services as well, Infosys has come up with device-based pricing or pricing that is based on the type and number of servers, PCs and other devices.
Mr Shibulal said he expected client adoption to the new pricing-model to be very gradual. 'We will offer it to new clients and existing clients, based on their comfort. Client comfort will be the most important thing,'he said. Infosys is now focusing on getting more deeply involved with clients and adding more value to them, he added, about the firm’s renewed consulting focus.
While Accenture’s better than expected results last month gave a fillip to its stock, Infosys results were shade below expectations, acting as a dampner for all tech stocks on day the overall sentiment was negative. 'While it appears we address the same segments, Accenture started as a consulting and transformational services provider that now offers outsourcing and global delivery services.
Indian players started as outsourcing and global delivery service providers and are getting into transformational and consulting engagements. The two are now converging,'said Mr Shibulal on the difference between the segments the two companies address.
Offshoring : An edge above the business slowdown
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
' Indian companies like Infosys and TCS have established their bases in U.S.A and Canada in order to offer the best of their services'
Whenever there is an economic slowdown and the period of recession, businesses shows a downward spiral indicating a negative future for the country. But, this period of business downturn can be a golden opportunity for some provided there is full utilization of resources to convert them to terrific outcomes.
With respect to the IT industry, the good time is called for as the slowdown brings positive change for them in terms of cost reduction and better business prospects. One such prospect is off shoring. Whether it is the offshore outsourcing of the products, services or the human resources to enable skilled labour force by the outsourcer, the dynamics of IT off shoring is changing for the better.
Companies operate on varying models of off shoring as per the requirements of the offshore clients. Most of the IT companies evaluate their clients’ needs and accordingly set the ball for off shore services in motion. The location is normally the prime criteria when off shoring and savings and cost-reduction among other factors. Some organizations undergo a huge makeover as they are on the look out for business revival and transformation. When the organizations choose a location which is apt for their business, the offshore location offers numerous advantages based on attributes of language skills, socio-political system, the culture of people etc.
Be it Microsoft, IBM or HP, these organizations have made their presence felt in many countries by offering excellent offshore services and products. Some of the Indian companies like Infosys and TCS have established their bases in U.S.A and Canada in order to offer the best of their services. India, no doubt has emerged as one of the top IT destinations to go off shore especially with regard to labour.
* Study the off shore location: Whenever any off shore client is in need of your services, do some research prior to offering your services. Understand the complete structure of the organization, their assests and how will you benefit them.
* Offer a reduction in the costs: This is a customary approach of any offshore outsourcer, as it faces the syndrome of business downturn. Only if is offered real value services at a reasonable cost, will it outsource.
* Emphasize on quality delivery and efficient services: Delivering services at a lower cost does not mean that you compromise on quality. Offer always the best as it will be good for you in the long run.
* Build your Human Resources Capital: Building your HR capital may include the best brains and hiring of foreign nationals in order to entice the offshore location organization.
While the banking and financial sectors were the worst hit during the time of recession, IT industry had a bright beginning in the past and serves to maintain a good growth. Rarely, the IT industry has seen a cut in the budget as far as off shoring is concerned. India has been unparalleled in terms of talent resources and organization culture, while countries like Japan are exploring the option of offshoring. A number of Indian IT/ITES industry made its mark and showed continuous growth and revenue increase in the last few years. ...
Vendor consolidation gaining popularity
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
With Indian IT vendors vying for a larger share of the offshoring pie, and their clients trying to cut costs, vendor consolidation is increasingly becoming more popular.
Unlike in the past, where a company would split work between multiple IT service providers, the trend now is clearly to have one vendor for a function.
Most of the clients, when they are under pressure, try to consolidate vendors because nobody wants to work with some 10 different vendors, said Mr V. Balakrishnan, Chief Financial Officer, Infosys Technologies Ltd.
They want to work with a few vendors where they see value, where they can consolidate spending, and where they can get maximum benefit from what they can spend, he added.
Maturing business
Consolidation is also linked to the increasing maturity of the Indian service providers. The Indian vendors have now matured and can handle bigger contracts, said Mr Avinash Vashistha, Chairman and Chief Executive, Tholons, an offshore advisory company.
He said when companies in the US outsourced work to domestic vendors, they gave it to one company. When offshoring started, it was new and so they split the work between multiple vendors.
Now companies are looking at offshoring critical work, bigger task, and are looking at one vendor per function, Mr Vashistha added.
Lower costs
He said clients of companies such as Infosys, TCS, HCL and Satyam are doing vendor consolidation significantly. Also, so are clients of niche players such as Tech Mahindra or Patni.
It reduces the governance and management costs. Also, clients are offshoring more than one function, and integration issues crop up. The productivity, quality and cost get impacted as well, he added.
It is not only the clients, but also the IT services providers who are pushing for vendor consolidation.
Push and pull factor
There is a push and pull factor says, Mr Chandramouli, Engagement Manager, Zinnov Management Consulting Pvt Ltd.
He said now the service companies are trying to grow their account with existing clients, rather than acquiring new clients. They are trying to cross-sell their services.
Tech Mahindra Ltd, provider of IT services and telecommunication solutions, said its clients’ response to its vendor rationalising proposal has been positive, and it is one of the topline/bottomline enablers for the company.
Three of their clients have agreed to vendor rationalisation, said Mr L. Ravichandran, Executive Vice President and Chief operating Officer.
Tech Mahindra’s largest client British Telecom has done some vendor rationalisation. Mr Ravichandran said the application support function is handled only by Tech Mahindra and HCL. Fifty-five per cent to 60 per cent of the work is done by Tech Mahindra, he added.
Cost savings to a client would be between 5 and 10 per cent, but the major benefit is savings in the management overhead of managing multiple vendors, he said. ...
Outsourcing industry will continue to grow
Posted by : Infy_fan_alwaysTracked by: 0 Boarder
Despite the global economic slowdown and bad publicity against the industry, India's outsourcing sector would retain its high growth rate, says R. Chandrasekaran, president of Cognizant India, a leading global and business process outsourcing (BPO) company. The number of foreign companies outsourcing jobs to India is increasing geometrically, the industry leader said in an interview.
According to him, lower salaries, compared to the global standards, is the unique selling proposition (USP) of India. However, he added: 'On the global GDP linked purchase power parity grid, India is the fourth country ahead of Germany, the UK, Italy, Canada etc, according to the listings of the International Monetary Fund (IMF) and the World Bank. Doesn't that indicate something?' Chandrasekaran also expressed confidence that India would catch up with the global pace in the IT industry and technological advancement.
'From mobile telephony that helps us keep track of vehicles that ferry our associates from home to jobs, to application of RFID (Radio Frequency Identification), Nano and virtualisation methods, all in their infancy globally, our research is on a par with the world,' he said.
Asked about the computer hardware prices, he said prices would come down further in two years as all 'aspects of life will depend on computing per se' by that time. While he pointed out the crippling shortage of electricity in the country and particularly in Tamil Nadu, where Cognizant has units, Chandrasekaran said: 'No matter what the world says, we are happy here. Further, shortages in some form or other are a global phenomenon.'
Asked about the company's efforts to reverse brain drain, Chandrasekaran said he was one of those who started the process successfully. 'Roughly 70 per cent of our top people are the best examples of reverse brain drain,' he said.
Chandrasekaran said Cognizant was against making too many attractive offers to students before graduation as these result in dropouts.
'We invest in R&D in educational institutions, rewarding faculties for cutting-edge results and encourage systems of education like technical writing, content management, e-learning to prepare students for the future. Our collaborative ventures in Manipal have resulted in a new course in pharmacological methods,' he said.
Asked about bad publicity against the IT industry, he said: 'While our strict controls, sensitisation methods, constant monitoring have prevented any wrongdoing, some sections of the media play up minor aberrations as it's fashionable to titillate underachievers by blaming the smartest guys and girls of India.'
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