Monday, May 2, 2011

Nokia to cut 7,000 jobs, Accenture takes Symbian

Nokia to cut 7,000 jobs, Accenture takes Symbian
Nokia, the world's largest phone maker by volume, will lay off 4,000 people and outsource another 3,000 to Accenture as part of a plan to slash annual spending by 1 billion euros ($1.46 billion).
 
Jefferies & Co. said Nokia Corp.'s (NYSE: NOK) results threw out no worse news than it had expected but it maintained "underperform" thesis nonetheless.
Nokia said it would outsource its Symbian software activities to Accenture, who will provide mobility software services to Nokia for future smartphones.
  • in smartphones falling sharply over the past few years as it continues to lose out to Apple and other manufacturers of the upmarket handsets.
To turn around its smartphone fortunes, in February Nokia unveiled a deal to start using Microsoft software instead of its own Symbian platform.
The deal enables Nokia to cut business research and development costs by 1 billion euros, or 18 percent, by 2013 from 5.65 billion in 2010

ROHIT KALIA
PGDM 2ND SEM

Wipro to raise wages by up to 15 pct

Wipro to raise wages by up to 15 pct

Wipro, India's third-largest software services exporter, plans to hike wages by up to 15 percent this year, the company said on Wednesday, in a move that would hurt operating margins.
Reuters
An employee walks pass a billboard in the Wipro campus in Bangalore
An employee walks pass a billboard in the Wipro campus in Bangalore in this file photo.
The company plans to hike wages by 12 to 15 percent for its India-based staff and 3 to 4 percent for employees working at client locations, investor relations head Rajendra Kumar Shreemal told reporters after the company posted a nearly 14-percent rise in quarterly profit.
The company expects the IT budget of its clients to remain flat or rise in certain sectors, and is seeing a stable pricing environment for its outsourcing services, Chief Financial Officer Suresh Senapaty said

ROHIT KALIA
PGDM 2ND SEM

Stocks rise after Bin Laden report; oil slides

SYDNEY: Asian stocks rose on Monday and US stock index futures extended gains on the back of media reports that Osama bin Laden was dead.

US crude slid more than 1 per cent to $112.51 a barrel after CNN reported that Al Qaeda's elusive leader Osama bin Laden was dead and his body has been recovered by US authorities.

US stock index futures rose 0.9 percent and MSCI's gauge of Asian stocks excluding Japan.

US Treasuries fell, pushing yields higher across the curve. The 10-year yield climbed 2.4 basis points to 3.314 percent.


ANIMA SINHA
PGDM 2nd Sem

Infosys eyes buys in Europe, Japan

Infosys eyes buys in Europe, Japan

Infosys, India's second-biggest software services exporter, is on the hunt for acquisitions in Europe and Japan in areas including healthcare and public services, its chief executive said on Sunday.
 
Reuters
Top Indian tech firms to hire local US talent
Senapathy Gopalakrishnan, chief executive of Infosys Technologies, speaks during the announcement of the company's quarterly financial results in Bangalore January 13, 2011. Infosys Technologies sparked concerns about the outlook for India's showpiece outsourcing sector after it missed estimates for profit and future sales growth and warned of sluggish global economic growth.
Speaking to Reuters a day after the company announced changes in its top-level management, S. Gopalakrishnan said Infosys could acquire companies with annual revenues of up to $600 million.
"Up to $600 million may not pose too much of a risk or burden on the company. But it's a thumb rule or a guideline rather than a hard and fast rule," said Gopalakrishnan, who is set to step down as chief executive in August to become executive co-chairman.
Infosys was also seeking acquisitions in new areas like cloud computing, he said. The company had cash and cash equivalents of $3.8 billion as of the end of March.
"Our philosophy has always been that you plan organic growth," Gopalakrishnan said.

" (But) you keep your eyes and ears open, you have a dedicated team looking at acquisitions."
"We do not want to set a target for acquisition because we are not doing acquisition for growth. We are doing acquisitions for strategic fit and adding capability at this point in time," he said at the company's sprawling headquarters campus on the outskirts of Bangalore, India's information technology hub.
Several Indian technology players including Infosys's larger rival Tata Consultancy Services and smaller rival Wipro have been looking for overseas acquisitions to boost growth amid growing competition from global rivals such as IBM and Accenture.
Indian software firms are also looking to reduce a dependency on their U.S. market, which accounts for more than half of the sector's revenue, and want to expand operations in European and Asian markets.
"There are multiple strategic requirements for acquisition so those are the things we are looking at. Typically a smaller acquisition rather than a large one," said Gopalakrishnan, one of the seven engineers who founded Infosys in 1981 with $250.
REORGANISATION
Infosys, which is also listed on Nasdaq, on Saturday announced top management changes linked to the retirement of its billionaire chairman and stuck to its practice of giving its founders a shot at running the firm. .
In a separate interview, CEO-designate S.D. Shibulal said Infosys planned to complete an ongoing reorganisation of its business divisions in about two months.
Infosys, which counts Goldman Sachs, BT and BP as clients, is struggling to meet growth expectations and its shares have fallen over 15 percent so far this year.
It is dividing its business into five global industry segments -- financial services and insurance; manufacturing; energy, utilities, communications and services; public service practices and healthcare; retail and life sciences.
Infosys will also look to strengthen its geographical focus by having separate heads for the Americas, Europe and emerging markets, said Shibulal, who is also one of the founders of Infosys, and is currently its chief operating officer.
Wipro earlier this year also reorganised its key outsourcing business weeks after it decided to replace its joint CEOs with company veteran T.K. Kurien in an effort to boost growth

ROHIT KALIA
PGDM 2ND SEM

Sunday, May 1, 2011

Al Qaeda leader Osama bin Laden dead - Obama

Al Qaeda leader Osama bin Laden was killed on Sunday in a firefight with U.S. forces in Pakistan and his body was recovered, President Barack Obama announced on Sunday.
Al Qaeda leader Osama bin Laden speaks in a video released on a web site September 7, 2007. Bin Laden said in the video issued ahead of the sixth anniversary of the Sept 11 attacks the United States was vulnerable despite its military and economic power. It was not clear when the tape, acquired by Reuters Television from a web trawler in Europe, was made. The authenticity of the tape could not be immediately verified, although bin Laden's image on an excerpt seen by Reuters matched a still photograph carried by an al Qaeda-linked Web site which had advertised the tape.
"Justice has been done," Obama said in a dramatic, late-night White House speech announcing the death of the elusive mastermind of the Sept. 11, 2001, attacks on the New York and Washington.
Obama said U.S. forces led the operation that killed bin Laden. No Americans were killed in the operation and they took care to avoid civilian casualties, he said.
"The United States has conducted an operation that killed Osama bin Laden, the leader of al Qaeda and a terrorist who is responsible for the murder of thousands of men, women and children," Obama said.
It is a major accomplishment for Obama and his national security team, after many Americans had given up hope of ever finding bin Laden.
A crowd gathered outside the White House to celebrate, chanting, "USA, USA."
Obama's predecessor, George W. Bush, had repeatedly vowed to bring bin Laden to justice "dead or alive" for the Sept. 11, 2001, attacks on New York and Washington that killed nearly 3,000 people, but never did before leaving office in early 2009.
U.S. officials said that after searching in vain for the al Qaeda leader since he disappeared in Afghanistan in late 2001, the Saudi-born extremist was killed in the Pakistani town of Abbotabad and his body recovered.
Having the body may help convince any doubters that bin Laden is really dead.
He had been the subject of a search since he eluded U.S. soldiers and Afghan militia forces in a large-scale assault on the Tora Bora mountains of Afghanistan in 2001.
The trail quickly went cold after he disappeared and many intelligence officials believed he had been hiding in Pakistan.
While in hiding, bin Laden had taunted the West and advocated his militant Islamist views in videotapes spirited from his hideaway.
Besides Sept. 11, Washington has also linked bin Laden to a string of attacks -- including the 1998 bombings of American embassies in Kenya and Tanzania and the 2000 bombing of the warship USS Cole in Yemen

ROHIT KALIA
PGDM 2ND SEM

Jet Airways pilots back Air India strikers as arrests loom


NEW DELHI: Several hundred flights have been cancelled and thousands of passengers affected but the striking faction of Air India pilots seems to be getting increasing support from several quarters. The latest to join the clatter of voices in favour of the pilots is Jet Airways' Society for the Welfare of Indian Pilots. The organization wrote to civil aviation minister Vayalar Ravi on Sunday, extolling the commitment of AI pilots to the country and asking the government to start fair negotiations with them.

The support comes at a time when the management is actively considering sacking the pilots on stir. Sources said the management is waiting till Monday, when the high court is expected to pass a judgment on the contempt notice to the striking pilots. "Once the judgment is passed, the management will start issuing termination letters. A list of pilots on strike was sent to the court on Friday for initiating contempt proceedings," said sources.

The letter supporting the strikers, signed by SWIP general secretary Capt Karan Chadha, says: "We call on the government and your ministry to take a more holistic and compassionate approach and implore you to direct the Air India management to immediately retract the dismissals of the ICPA members/office bearers, and then enter into meaningful negotiations to find a way forward that is fair and acceptable to it`s pilots…"

The letter says the AI pilots had resorted to the strike only after they were left with no other recourse. "They are fighting to ensure their rights, they are taking a stand against corruption and nepotism, as well as gross mismanagement of India's flag carrier."

It says that Air India pilots had put aside their personal safety and operated flights into Egyptduring the recent turmoil there and into Japan in the midst of its nuclear crisis. "Going beyond the prescribed regulations on fatigue and stress, they operated special flights during the Iceland volcano under dispensations from the DGCA," it

AI CMD Arvind Jadhav also issued a letter to his staff on Sunday, accepting that there were problems with the airline but that he was not to be blamed. "We all condemn corruption in public life, and culprits must be punished. All actions spoken of (by the strikers) are unforgivable, but occurred many years ago, for which current administration cannot be held responsible," it says.

On Sunday, the airline operated 41 flights across the country of which 13 were from Delhi. An airline spokesperson said that curtailed schedules would continue till at least May 5. The disruption has hit thousands of passengers, the worst affected of which are those in transit.

"I arrived in Delhi from Chicago and had to catch a connecting flight to Varanasi. There is no clear information from the airline and I have been asked to wait till they can accommodate me on another flight. I will probably catch a train on Monday now," said Ramit Batra, an engineer.

The impasse between pilots and management showed no signs of abating with management reiterating that it would not talk to the pilots unless they called off the stir. The court had asked striking pilots to return to work, failing which it had asked them to explain why contempt proceedings should not be initiated against them. The next court hearing is on Monday after which ICPA office bearers are also anticipating arrests. "If it does come to that, all 800 of us are ready to court arrest together," said a senior flight commander.

There is also trouble brewing at the airline`s hub at IGI Airport's terminal 3, where AI-SATS, a consortium of AI and Singapore Airline terminal services, handles a large part of the ground services. Here, sources said, the AI staffers are earning less than their counterparts elsewhere, and spurred on by the pilots' agitation, could also be contemplating some form of dissent. If that happens, AI's international services, so far barely affected, would also come to a grinding halt.

VIVEK KUMAR
PGDM 2nd Sem