Yechte Consulting finalises the branding and visual art for a Luxurious Spa in Bangalore.
Mega-deal outsourcing deals - those contracts with a value of $1 billion or more - picked up in the second quarter of 2012, according to the quarterly Global TPI Index.
Five mega-deals were signed during the quarter compared with just one each in the second quarter of 2011 and the first quarter of 2012. All five were awarded outside of the mature U.S. and Western European markets-three of them in India and Brazil.
Mega-deal activity is always fairly uneven quarter to quarter, said John Keppel, partner and president of research and managed services for outsourcing consultancy ISG, which produces the index. But the location of the awards is worth noting.
"In the future we expect most new scope growth to come from emerging markets," said Keppel, "while the U.S. and Western Europe will generate the bulk of restructuring activity."
The mega-deals awarded by companies in the telecom, banking and consumer goods industries with a combined value of $6.3 billion, accounted for nearly 30% of global contract value signed during the second quarter. Four of them were entirely new deals, while one was a restructuring.
Additionally, 11 mega-relationships-those with an annual contract value of $100 million or more--were initiated in the quarter, the most since 2009 and an increase of four signed the year prior and seven in the previous quarter.
Keppel doesn't expect the mega-deal activity to return to decade-ago levels of robustness. "Some mega deals in the past year, especially those that are restructuring-related, are being broken up and returning to the market in the form of multiple smaller contracts with shorter durations," said Keppel. And the bellwether for large outsourcing deal affairs is likely to be the mega-relationship category of deals as contract durations continue to get shorter. The average deal length so far this year is 4.85 years, compared to 6.48 back in 2000.
"We expect mega-deals and mega-relationships will continue to make up an important part of the market," said Keppel. "We also expect more mega-deals to be awarded in less mature regions but mega-relationships to continue in mature and less mature regions."
Taking into account all outsourcing contracts worth $25 million or more, $13.1 billion in IT outsourcing business took place in the second quarter, up six percent year over year but down five percent over last quarter due to light contracting activity.
TPI is predicting a softer outsourcing market in the third quarter. "Historically, third quarters have been softer than other quarters, and current industry pipelines suggest this will hold true in 2012," Keppel said. "The fourth quarter will likely pick up, with some help from larger deals in the pipeline ready to go to award."
Meanwhile global outsourcing vendors continue to battle it out for business. American multi-national service providers have held 53% of total market share since 2010, down 10% from the 2007 to 2009 period.
European, Middle Eastern and Asian (non-Indian) vendors held 25% of the market since 2010, up three percent from the 2007-2009 period. While the Indian-heritage firms gained seven percent in market share, from 15% in the 2007 to 2009 period to 22% today.
Source: IT World
- BPO company Serco in talks with Agon for outsourcing deal (timesofindia.indiatimes.com)
- HCL inks $200 million deal with Disney (timesofindia.indiatimes.com)
- HCL bags Citibank BPO deal, to hire 800 (timesofindia.indiatimes.com)
- Indian IT services industry is at a crossroads: HCL Tech CEO (timesofindia.indiatimes.com)
- IT Outsourcing Predictions in 2012 (satpute.wordpress.com)
Yechte Consulting finalises a BIM, fully parametric proposal for a residential refurbishment in Yorkshire, United Kingdom.
Yechte Consulting finalises a BIM, fully parametric proposal for a new forestry centre in Nairobi, Kenya.
The ability to centralize capital project information in a cloud-based management system can be a huge benefit in the form of cost and time savings. Such technology platforms can provide a crucial advantage by allowing project teams to devote more time, energy, and focus to the task at hand.
ADAMS Management Services, www.adamspmc.com, Rome, Ga., is a program-management firm with expertise in facility planning, design, and construction for health-related facilities. The company was looking for a comprehensive software solution that incorporated not only the construction aspect, but project initiation and organization, process management and optimization, budget development and control, cash-flow analysis, and project documentation, among others.
e-Builder’s flagship offering, e-Builder Enterprise, can help owners improve execution on capital projects through cost, document, report, and schedule modules, among others, which combine to provide a centralized solution for managing information.
A key consideration in ADAMS’ technology implementation and adoption, according to Jeff Christmann, COO, ADAMS, was to find a centralized solution providing “one hub to access information.” Christmann says, “(e-Builder’s) Executive Reporting features allow us to pull project status information for complete oversight of our projects and make it easier for us to tailor information to fit our clients’ needs.”
Additionally, cloud-based solutions generally equate to reduced costs and faster deployment time. When it comes to managing project data in an efficient way, Web-based technology solutions can be the answer to increasing project visibility and ultimately, ensuring the end product is a success.
This week, ADAMS announced it has adopted e-Builder, www.e-builder.net, Fort Lauderdale, Fla., a provider of capital project and program-management software, to enhance its consulting services. According to the companies, e-Builder will help ADAMS provide “more efficient project oversight” of its clients’ programs.
- Cloud Computing and Project and Portfolio Management (clean-clouds.com)
- Project Management in the Cloud (stanyanakiev.com)
- Why DevOps is the Next Big Shift in the IT Department (rackspace.com)
- OpenStack Adds Private Cloud-Building Features (informationweek.com)
Yechte Consulting, a global provider of AEC and IT digital services, expands in India by opening a new subsidiary in Bangalore. This will help us grow our teams and extend our business offerings for the domestic and international markets.
India will allow foreign nationals to invest directly in the country’s listed companies, in a bid to deepen its under-developed capital markets.
“[We] decided to allow qualified foreign investors to directly invest in the Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility,” the finance ministry said in a statement. The move, which also allows pension funds and trusts greater freedom to invest directly, was announced over the holiday weekend and will come into into effect on January 15.
Foreigners were previously restricted to investing in India's equity market through mutual funds or other institutional channels.
But India is under pressure to attract overseas capital after a dismal year for its financial markets, with some economists warning of possible balance of payments difficulties in the months ahead .
Foreign institutional investors have turned bearish on India in recent months, scaling back investments as the country’s growth prospects dimmed and the global economic outlook worsened. The Sensex, India’s benchmark equity index, was one of the world’s worst performing markets in 2011, falling 25 per cent. Foreign investor returns were further hit by the rupee’s 16 per cent fall against the dollar last year.
Overseas funds withdrew a net $380m last year compared to record inflows of $29bn in 2010.
Last month the market capitalisation of all stocks listed on the Bombay Stock Exchange, Asia's fourth largest, fell below $1tn, a level the market first attained in May 2007.
“Such simplification in the procedure can help more inflows into Indian markets, definitely giving a boost to the stagnated current situation," said D.K. Aggarwal, an analyst at Delhi-based SMC Investments.
But other analysts are not convinced the initiative will result in an immediate rush of foreign capital to the flagging emerging market. “We are in an established downtrend. There’s no sign of change,” said Heman Kapadia, chief executive at Chart Pundit, a Mumbai-based investment advisory service.
India’s business leaders have urged the government to prioritise large infrastructure projects, as part of a larger effort to restore the country’s status as one of the world’s most promising investment destinations.
In his New Year address, Manmohan Singh, prime minister, told the nation it could not take India’s high economic growth rate for granted and warned of the need to pare back subsidies and implement tax reform.
“I am concerned about fiscal stability in future because our fiscal deficit has worsened in the past three years,” Mr Singh said.
“We have run out of fiscal space and must once again begin the process of fiscal consolidation.”
The Congress party-led government experienced embarrassing setbacks at the end of the year with failed efforts to introduce retail reform and pass anti-corruption legislation.
Source: FT - By James Lamont in New Delhi
- Left criticises opening of equity markets to foreign investors (thehindu.com)
- New Year Bonanza : Qualified Foreign Investors Can Now Invest in Indian Stock Markets (chennaifocus.wordpress.com)
- Government opens domestic equity market to qualified foreign investors (thehindu.com)
- Foreign Investors allowed to directly invest in Indian Equity Markets! (trak.in)
- India to allow individual foreign investors access to its stock market (thestar.com)
- Govt lets foreign individuals invest in stock markets (ibnlive.in.com)
- India to open stock market to foreign investors (marketwatch.com)
- Ministry of Finance Moves to allow Foreigners to Directly Invest in the Indian Stock Market (pxvlaw.wordpress.com)
- Sensex starts New Year on promising note, gains 69 points (thehindu.com)
India and the UK have agreed to work towards a memorandum of understanding (MoU) in areas related to urban development.
India is keen to benefit from experience of UK, said India’s minister of urban development Kamal Nath. The announcement was made following a meeting with UK minister for decentralisation and cities Greg Clark.
The MoU would be aimed at cooperation and deepening the engagement between India and UK in the areas such as land economics, sustainable masterplanning and transport planning. Another area of cooperation would be the sharing of knowledge in the formulation of Public private partnership models.
The challenges of urbanisation in India were huge, said Mr Nath, both in significance and scale. The government of India is keen on bridging the urban infrastructure deficit by benefiting from the wealth of experience of the UK government in the urban sector.
Mr Nath also participated in a meeting of the UK India Urban Infrastructure Group organized by the UK Business Council and UK Trade & Investment. The UK India Urban Infrastructure Group has proposed conducting an urban regeneration scoping study. The above group has also proposed to cooperate in the development of a regeneration masterplan, This could be demonstrated by adopting a satellite town to deploy UK expertise. The meeting was attended by UK companies including Arup, Biwater International, Clifford Chance, JCB, KPMG, Mott MacDonald and Serco.