Promoting India Latin America Collaboration

In India, Global Crisis Is Not All Bad News

washingtonpost.com

About 60 percent of India’s outsourcing business comes from the United States, and 40 percent of the work is in the banking, insurance and financial services sectors.

“We now have to look at other regions of the world, like Japan, the Middle East and the Nordic countries,” said Som Mittal, president of the National Association of Software and Services Companies, or Nasscom. “The current crisis has sharpened our realization that we cannot put all our eggs in the U.S. basket.”

Perhaps the biggest and most sustaining change has been its climb up the value chain of services in recent years — from back-office support functions to what the industry calls “knowledge process outsourcing,” which includes legal services, hardware network management and engineering design.
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TCS’s Ramadorai gets International CEO of the Year Award

The Economic Times

India’s largest software exporter Tata Consultancy Services’ chief S Ramadorai has been awarded the International CEO of the Year Award by
Latin Trade, a leading global business magazine focusing on South America.

The honour comes at the time when the country’s IT industry is experiencing the ripple effects of the financial crisis that has hit the US, the largest importer of the service, forcing many of the companies to pursue business opportunities in new markets such as Latin America and the Middle-East.

The award was given at a gala function here attended by more than 300 leaders from Latin America and the US, including Presidents, ministers, CEOs of multinational and Latin American companies and financial institutions.

Over 1,60,000 Latin Trade
readers worldwide nominate business, political and social leaders to be
recognised for their outstanding achievement.

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Karuturi launches farm operations in Ethiopia

Makes sense to look at operations in Ecuador and Colombia in the future.
The Hindu Business Line :

Karuturi Global Ltd, the world’s largest growers of roses with presence in India, Kenya, Ethiopia, Dubai and Holland on Wednesday announced the launch of its agricultural operations in Ethiopia where it had acquired 3.4 lakh hectares land on long term lease.

The company said it has started cultivation on 11,700 hectares of land in Bako, Ethiopia. This land will be used for the cultivation of maize, rice, vegetables and other commercial crops.

Mr Sai Ramakrishna Karuturi, Managing Director of Karuturi Global said the company hopes to start sowing operations on an additional 40,000 hectares by March.

He told Business Line that his company has already tied up for funds from banks to meet the investment cost, which is estimated at $250 million spread over 60 months. Karuturi will also be sowing long gestation crops such as sugarcane and oil seeds for which it would take some time.

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IBSA: Connectivity will ensure the way forward

The Financial Express

Intra-nation connectivity is a major impediment to furthering trade between India, South Africa and Brazil, and “I hope the governments of these three countries would take active measures to correct this,” said union commerce minister Kamal Nath, while addressing the summit.

Nath expressed the hope that the business leaders from these three countries would join hands with their respective governments to bring about early improvements in both air and maritime connectivity.
The closer relations between Brazil, South Africa and India have made it possible for their tri-lateral trade to more than double between 2003 and 2007, from $4.6 billion to $10.1 billion, which corresponds to an average annual growth rate of 21.8%.

Chairing one of the sessions Jayant Pendharkar, vice-president and head, Global Marketing, Tata Consultancy Services, said that India offered a unique combination of cost reduction and skills and experience in many business and technological domains, which could be utilised by both Brazil and South Africa.

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ICICI Bank to focus on agri sector

Business Standard

The ICICI Bank, the second largest bank in [India], will focus on the rural market and the agriculture sector for its future growth. Since agriculture contributes about 18 percent to the Gross Domestic Product (GDP) of the country and employs about 65 percent of the workforce, it provides enough opportunity for growth.

Keeping the vast untapped potential in the rural areas and in the agriculture sector, the bank will focus on reaching out to people not having access to the banking system, Kumar Ashish, General Manager, Rural Micro Banking and Agricultural Group, ICICI Bank said here.

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Mexico’s Softtek on the Off-shoring Landscape

BusinessWeek

Over the past couple of weeks, I’ve checked in with Indian IT and BPO outsourcing companies on how the global financial meltdown is affecting their businesses. So far, so good—even for those with a relatively high exposure to financial services clients. The near-shore scene is similar. Beni Lopez, CEO of Mexico-based Softtek’s near-shore operations, tells me there are a couple of forces at work. Under pressure because of concerns about the economy, some North American companies are trying near-shoring services for the first time. Meanwhile, some of Softtek’s existing customers have cut back on the services they require because of budgetary pressures. So far, “Softtek hasn’t felt the pain,” Lopez says. The company expects revenues to grow at more than 30% this year, roughly the rate of growth it has experienced for the past five years. One source of stability is its domestic Latin American business, which represents more than 50% of revenues. Brazil is growing fast, for instance.

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Where you pay 96 million dollars for a beer and 956 million dollars for dinner

Courtesy of the money printers at the Reserve Bank of Zimbabwe. The bizzarro world created by that state of affairs is cataloged here. Helicopter Ben Bernanke seems to derive  inspiration from them.
Zimbabwe dinner tab

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India-based iGATE Opens Mexican Operations

MarketWatch

iGATE Corporation, an integrated Technology and Operations (iTOPS) firm, announced that it will begin operating a new US$2 million facility in Guadalajara, Mexico on Monday, Oct. 20, 2008. The new center, iGATE Global Solutions Mexico S.A. de C.V., will utilize local workers to offer near-shore iTOPS, IT and BPO services to a variety of U.S. and Latin American clients.

iGATE’s Guadalajara facility is the latest addition to the company’s international network of locations in the United States, Canada, India, Malaysia, Australia and the United Kingdom, providing truly global, technology-based solutions to Fortune 1000 and government clients across a range of sectors. The facility plans to employ twenty-five staff in the near future, reaching one hundred by 2010.

“Mexico’s proximity to the U.S. and participation in NAFTA makes it an ideal location for a state of the art delivery facility. Our facility in Guadalajara will enable us to provide services with a very quick turnaround fuse like rapid application support and application development using rapid prototyping,” said Phaneesh Murthy, CEO, iGATE Corporation.

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Offshoring R&D services to India on the upswing

The Hindu Business Line

Research and Development offshoring to India by international IT players, a $9.35 billion industry, is estimated to touch $21.4 billion by 2012.

Mr Pari Natarajan, Chief Executive Officer, Zinnov Management Consulting, said that currently there are 594 R&D centres in India operating in SPD (software product development), embedded services and engineering services.

Bangalore, Pune and NCR together account for the majority of the R&D set-ups, with about 494 centres operating in these three cities.

He said that R&D offshoring in India currently employed about 1.4 crore (14 million) professionals across domains.

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Indian Shipping cos stick to ramp-up plans

The Economic Times

Undeterred by the global meltdown, Indian shipping companies are going full steam ahead with their expansion plans. Major domestic ship
ping companies, such as Shipping Corporation of India (SCI), Great Eastern (GE) and Essar, have already placed orders for 58 ships in Korea and China worth $3.3 billion and are bullish on their future orders.

The major reason why these companies have not been impacted by the liquidity crunch is that most of them have tied up their fund requirements well ahead of time.

Public sector company SCI, which has already placed orders for 32 ships worth $1.87 billion, will now be inviting bids for its $3 billion order of 40 ships.

“Though the liquidity crunch has affected the borrowing rate, we’ll able to sustain the orders. We plan to 25% through internal accruals and rest 75% through external commercial borrowings (ECB),” said S Hajara, chairman & MD, SCI. The company, however, has spread out the period of the order over three years (2008-11).
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