OUTSOURCING SOFTWARE DEVELOPMENT
IT service exports should start diversifying in AI, cloud computing and data analytics, say industry players
As the IT service exports come out unscathed amidst a turbulent period for the world, industry players believe it’s time the service portfolio spread out.
New-age job roles: How India can engineer a future beyond software
With nearly 1,600 international corporations operating captive units, 1.7 million highly educated professionals are employed. It might theoretically increase its pool of relevant talent if it made a concerted effort to improve both the number and calibre of the more than 2.5 million Ph.D.s and graduates in science, technology, engineering, and medicine that India produces each year.
IT sector: As the global interest rate cycle changes, time to shed the bias against them? 7 software stocks with upside potential of upto 32 %
In the last few days, there have been trading sessions where all of sudden IT stocks have started to do well. This is coming at a time when there is nothing positive which either companies from the sector have said or there is anything else which can be seen as signs of things changing for better. Is this an first indication that global risk on trade is back on the table. There is enough evidence to show when US interest rates are high, there is a risk off mode globally and tech stocks both in India and globally don't outperform, rather they at times under perform. As soon as there is an indication that interest rates in the US are likely to come down, the risk on trade tends to make a comeback and tech stocks start to do well globally. But incase of Indian IT stock, there is probability that this risk on trade is helpful but another factor is adjustment of valuations and finally the fact that some money is going to move toward a strong and stable balance sheet.
How IT companies are using acquisitions to build engineering prowess
IT companies like Cognizant are acquiring engineering services companies to expand their competencies and fend off competition from pure-play firms. Cognizant's recent $1.3 billion acquisition of Belcan marks its largest in this segment, signaling a trend in the industry.
How India's new brain power adds to its economic brawn
India is transitioning from being the telemarketing voice of MNCs to their intellectual hub with the rise of GCCs. These fully owned and integrated hubs are driving growth, innovation, and value creation by leveraging India's talent pool. With a projected doubling of GDP share by 2030, GCCs are transforming India's economy and IT landscape, attracting global companies seeking tech talent and cost efficiency.
FY24 FDI equity inflows down 3.49% on-yr
Foreign direct investment (FDI) equity inflows into India decreased by 3.49% in FY23 to $44.42 billion from $46.03 billion in FY22, according to official data. Singapore was the top source of foreign inflows, followed by Mauritius and the US. FDI in services, computer hardware and software, telecom, auto, and pharma fell in 2023-24. Total FDI fell 1% to $70.95 billion in FY24.
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IT’s bench strength halves as slump-hit companies eye efficiencies
The bench strength at top Indian outsourcers has nearly halved of late, with higher utilisation and generative artificial intelligence (GenAI) driving efficiency in the $254-billion IT industry. Bench strength in the IT industry means full-time employees who are not assigned any active project.
AI-led tech craze leaves mega Indian software stocks in the dust
Unlike counterparts in the developed world and China, Indian software makers including leader Tata Consultancy Services have yet to make significant advances in generative AI. That combined with a still cloudy outlook for client spending may soon leave them looking like the tech bets of yesterday.
E&RD growth to come from US, Germany and Japan, says LTTS CEO
LTTS, a mid-tier information technology firm, reached the $1 billion revenue milestone in 2023-24 2024.
Time to unlink size and agility: 6 not-so-large IT stocks operating in niche areas with upside potential of up to 53%
Over the years, there has been some change in how the street looks at IT stocks, but somehow, still there is a perception that large cap companies like TCS, Infy and Wipro, are the ones which give all the indication of what is happening in the IT space. But the reality has been very different. Especially in the last five years, since the time ML and cloud and other speciality segments have come in the software segment. There have been smaller companies which operate in specialized areas who have been able to show much stronger growth at a time when Infy and Wipro’s of the world are under pressure in terms of growth.
The Canadian government’s struggles with outsourcing software development
This week, as federal officials announced measures to tighten oversight of government procurement, particularly for software services, they said that the government had asked the Royal Canadian Mounted Police to investigate 5 million dollars in invoices from three software contractors as potential frauds.
Nifty IT index stocks: Relative outperformance candidates for a volatile market?
Nifty IT index is probably among very few sectoral indices which are still below the high they had touched in October 2021. Yes, the sector has some headwinds which not many had thought would appear two years back. But the bigger question is whether this phase of underperformance is about to get over or not. It might be too early to say as short term performance could be many reasons, but the way stocks have reacted to bad news and see sharp upward movement with slightly positive news, it might be worth bringing them back on watch list and shed the bias of looking at all IT stocks with a coloured lens. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.
India's software exports grow 12.2% to $193 billion in 2022-2023: ESC report
ESC chairman Sandeep Narula said that IT software/services accounted for the largest share of the exports, contributing $126 billion, followed by BPO services contributing $52 billion, software products development contributing $5.1 billion, and engineering services $ 9 billion.
Don't paint all software companies with the same brush; 3 mid and 3 smallcap IT stocks operating in niche areas
It is not only mid-cap as a whole segment which has outperformed the other segments. Even in some sectors, while the large cap have not performed well, mid-cap stocks in the same space have done well. IT is one sector where the large caps have done nothing in the last two years, but selective stocks have been doing well. It is probably a time to take a look at each company separately rather than just looking at what stocks like TCS and Infy are doing and take a call on the overall sector.
HCL inching close to chip unit in Karnataka, investment estimated at $400 million
The group — best known for its $12.6 billion IT arm HCLTech — is in active talks with the state government, which has offered land both near the international airport in Bengaluru as well as in Mysuru.
IT staff forced to work 50 hours/week to meet deadlines: data
IT employees in the country work on an average work for around 45-50 hours per week, translating around 10 hours a day in the 5-day week while the standard is 40 hours a week as a large part of them is often compelled to work longer hours to meet project deadlines, as per data from staffing firms.
Dunzo’s funding plans hit a roadblock; software firms seek changes to local value addition norms
Troubled quick commerce company Dunzo, in desperate need of cash, is in talks for a funding deal with its investors. But with that comes a possible valuation cut of 50%, and some shareholders are not on board. This scuffle and more in today’s ETtech Morning Dispatch.
Software companies seek tweak in local value addition norms
In a letter to the the ministry of electronics and information technology said that since government norms on software and service procurement do not consider the nature of how software and related services are developed, it deprives them of the “reasonable opportunity” to compete for state-run projects and procurement.
Contrarian play? 5 IT service & product stocks with up to 30% upside potential
After being in the front leading the stock market rally during covid, software stocks have been witnessing correction in their valuations for more eighteen months. In August 2021, they had “ buy and strong buy” written all over it. It appeared that nothing wrong could happen with the software sector when it comes to the demand pipeline. By August 2023, more than half the companies have “ hold or sell “ recommendations. Neither expectation of 2021 turned correct, neither the fear of 2023 may turn correct
Contra Bets: 5 software stocks with an upside potential of up to 29%
In 2021, software stocks were doing very well, the narrative was that the global wave of digitisation and moving to the cloud will ensure that the deal pipe for the Indian software sector will remain robust for many years. Today in 2023, the narrative is that valuations are expensive and the deal pipeline has slowed. So, does there lie an opportunity to take a contrarian bet?
Is the worst over for IT? 5 software stocks with an upside potential of up to 16%
Are analysts more pessimistic than what they should have been in the case of software services . Will the headwinds which are more in terms of expectation than business headwinds disappear sooner than later.
Attempting a comeback: 4 software stocks with 'buy' rating and an upside potential of up to 21%
After being in the front leading the stock market rally during covid, software stocks have been witnessing correction in their valuations for more than a year. But in the last few weeks, they have been witnessing some positive reaction whenever there is any news related to their earnings or any sectoral developments.
India becomes destination for auto OEMs to secure their digital content needs
Indian engineering services providers have been developing automotive talent both in house and in collaboration with the academia. With Indian OEMs and startups starting and scaling up EV programmes, the requirement and sources of automotive talent have gone up.
A global crisis drives opportunities for Indian IT industry
For the Indian IT industry, the current economic uncertainty gripping the world is worrying. But every crisis is an opportunity: to expand the share of outsourcing as organisations tighten belts and send more work to Indian shores.
Attempting a comeback! 3 software stocks with 'Buy' ratings and upside potential of up to 34%
After being in the front leading the stock market rally during covid, software stocks have been witnessing correction in their valuations for more than a year. But in the last few weeks, they have been witnessing some positive reaction whenever there is any news related to their earnings or any sectoral developments. The companies in the list are covered by a minimum count of 2 analysts. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.
Dividend yield & probability of capital gains: The non-classical combination of income from stock market
Stock price and dividend yields have an inverse relationship but before this inverse relationship kicks in there is a level of equilibrium. Now this level of equilibrium is a subjective level which moves according to the level of risk free interest rate which FD provides. But there is another equilibrium level which mathematical equations don't solve. As an investor one buys’ a stock with 4 percent dividend yield stocks what should be his expected return from capital gains or whether he should have it even.
Eight out of 10 Indian businesses reskilling IT workers in response to growing tech skills gap : Survey
IT leaders in India have serious concerns about talent retention and getting applicants with wrong skillsets, finds a new survey. According to the Equinix 2022 Global Tech Trends Survey, 74% of IT decision-makers in India view shortage of personnel with IT skills as one of the main threats to their business.
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