Snehal khanna Blog

Infosys gave a low key welcome to Parekh, unlike the aggressive marketing exercise it undertook to welcome Sikka LATEST NEWS :  Salil Parekh will earn an annual salary of Rs 162. 5 million ($ 2.55 million)  as the CEO of Infosys, less than what Infosys had offered his high-profile predecessor Vishal Sikka , who quit the firm after three years in turmoil. The compensation also reflects the reality at Infosys and its chairman Nandan Nilekani who would like the low-profile senior executive to execute a vision of focused delivery for customers rather than over-promise and under-delivery that would be in contrast with the company's culture. Parekh, the soft-spoken executive who was poached from global rival Capgemini, will get an annual fixed salary of Rs 65 million and a variable pay of Rs 97.5 million that would be compensated based on achieving metrics set by the company.  The second non-founder CEO at Infosys is also being offered a generous compens...

The buyback price offered by the company is Rs 1,150 LATEST NEWS :  The Rs 13,000-crore share buyback programme of Infosys commenced on Thursday. Eligible shareholders can tender their shares till December 14, the last day of the buyback. The buyback price offered by the company is Rs 1,150. Therefore, investors can pocket 18 per cent more upside (at current market rate) by tendering their shares. The entitlement ratio for retail shareholders works out to 28 per cent. In other words, 28 shares of those holding 100 shares will get accepted in the buyback. However, an investor can even tender 100 per cent of their shares. If eligible shareholders abstain from participation, the entitlement ratio goes up. “A study of the past few tender offers indicate that generally not all the small shareholders participate in the offer and the acceptance ratio is higher than the entitlement ratio,” says HDFC Securities. The retail-focused brokerage cites the example of the...

Infosys was trading 2% lower at Rs 927 on the BSE as compared to 0.21% decline in the S&P BSE Sensex and 0.48% fall in the sector index S&P BSE Information Technology at 10:47 AM. LATEST NEWS : Infosys fell 2.5% at Rs 921 on the BSE intra-day trade after the stock turned ex-date for the proposed buyback and for interim dividend of Rs 13 per share. On October 9, 2017, the Buyback Committee had approved and fixed Wednesday, November 1, 2017 to be the record date for determining the entitlement and the names of the equity shareholders, to whom the Letter of Offer will be sent and will be eligible to participate in the buyback which was approved in the board meeting on August 19, 2017. The record date for the payment of interim dividend would also be November 1, 2017, subject to declaration of interim dividend by the board of directors of the Company in their meeting to be held on October 24, 2017, Infosys said in a regulatory filing. The board had declared an in...

The Infosys board and Murthy have drawn battle lines, each holding ground on their stand LATEST NEWS :  Infosys founder N R Narayana Murthy has begun reaching out to investors in a bid to explain his stand on the public battle with the Infosys board and the management that led to the resignation of its first non-founder chief executive Vishal Sikka. He would be holding an investors’ call on Wednesday to explain why the values of the company he built has been diluted and how that is bad for Infosys in the long run. Murthy did not respond to an email seeking comments. The Bengaluru-based software major is the most liquid stock on the bourses, with institutional investors holding 57.72 per cent as on June 30, 2017. While Indian investors, who have 9.63 per cent in the company, saw market cap erosion, foreign institutional investors, who hold 37.53 per cent stake in the company, saw a significantly negative impact on the market cap ever since the public fallout l...

Narayana Murthy had publicly criticised Infy for poor corporate governance. LATEST NEWS    :    Infosys board is making every effort to placate its founder N R Narayana Murthy, who has criticised the company on its corporate disclosures, by offering a formal role in the organisation. It also would bring curtains to the distraction that chief executive Vishal Sikka has often complained is hurting the business. At 70, Murthy is eligible for a role on the board, including as executive chairman. In 2013, Infosys board had raised the age bar to 75 from the earlier 60 years to facilitate entry of Murthy as the IT major firm chairman for the second time. “If he were to wish that, we would absolutely consider it,“ Ravi Venkatesan, co-chairperson at Infosys said in an interview with ET NOW on Thursday. Since, Murthy raised the issue of failing corporate governance, Infosys has taken pains to bring policy changes to improve transparency, which includ...

TCS is setting up a large BPO operation in Varanasi next year, some staff could be absorbed there LATEST NEWS : India's largest IT services firm Tata Consultancy Services is shutting its Lucknow centre as part of the consolidation of its UP operations and has asked its over 1,000-odd employees to either shift to its centre in Noida, Indore or any other facility in the country "We are consolidating our UP operations. There have neither been any job losses nor have we asked anyone to quit," said a TCS spokesperson. TCS is also setting up a large BPO operation in Varanasi, Prime Minister Narendra Modi's constituency next year and some of these staff could  be absorbed in the centre. The 10-year old facility in Gomti Nagar, does  internal process for TCS and has a small team that works on projects for  global clients. TCS employees in Lucknow were briefed about the development  on Wednesday, following which they have petitioned UP chief minister ...

However, the company ruled out any plans of layoffs in big numbers Infosys , India’s second largest IT (information technology) firm, has deferred salary hikes for its mid-level employees till end of July to reduce cost and ensure better payouts at the same time. Some employees may even get salary hike after July. Employees with less than eight years of experience who fall under job level 5 (JL5) category will see their performance and salary review begin from July, Pravin Rao, chief operating officer, Infosys, told employees in a mail on Wednesday. Amidst fears of job losses across different IT services firms, Rao said the company would not look at any layoffs and any separation may have happened on ground of performance. Under the eight years experience bracket roles are typically software engineers, senior software engineers, business analyst, senior business analyst and others and industry experts say such roles form 40 to 50 per cent of the workforce at the IT compa...

According to reports, the 7 biggest IT firms operating in India are set to let go of 56,000 workers In his social media post, an anonymous techie called the recent spate of layoffs in the information technology (IT ) sector a "nightmare". The bad news is, the nightmare is unlikely to end anytime soon. The seven biggest IT companies operating in India, including Wipro, Infosys, Tech Mahindra and Cognizant, are planning to layoff at least 56,000 engineers this year, Livemint reported on Thursday. According to the report, this projected number is double the amount of layoffs by these companies last year. Mint claims the astoundingly high number was arrived at after "extensive interviews with 22 current and former employees across these seven companies". Read this: 62 million tonnes of waste generated annually; how ragpickers help clean it The companies concerned are Infosys, Wipro, Tech Mahindra, HCL Technologies, US-based Cognizant Technology Solut...

Firm says nothing new about it, laggards weeded out every year, this year is no different Software services firm Tech Mahindra has sacked thousand odd employees this month joining peers such as Wipro, Infosys and Cognizant to trim workforce as they face their worst business crisis in nearly a decade. Indian firms are witnessing their slowest growth in a decade due to automation, technology shifts and increased protectionism in its main markets. Global firms are shifting their budgets from traditional IT services to newer areas such as digital and cloud, which requires engineers to engage clients than work remotely. Also, low end maintenance work is increasingly automated forcing companies to shift them to other projects and reduce hiring from campuses. With growing stress on their business, IT firms are also increasing scrutiny on performance of employees and weed out non performers. Read this: Hero MotoCorp Q4 net falls 14% at Rs 718 cr over BS-III discounts ...

Indian IT firms account for less than 20 per cent of the H-1B visas Indian IT industry's apex organisation has said that the two top companies -- TCS and Infosys -- got only 8.8 per cent of the H-1B visas for placement of workers in the United States. "Of the six Indian IT companies, software majors TCS (Tata Consultancy Services) and Infosys received 7,504 H-1B visas in FY 2015, which is 8.8 per cent of the total H-1B visas," said the National Association of Software Services and Companies (Nasscom) in a statement here. The apex body's clarification was in response to a US official last week accusing top Indian IT firms TCS and Infosys of unfairly cornering majority of the H-IB visas, by applying more in the lottery system. Read this : Only eight of Nifty50 stocks are at all-time high level Only six Indian IT firms were among the top 20 recipients of the H-1B visas in fiscal 2015 for their professionals to work in the US, said Nasscom. US ...

Analysts say the move is both soothing and disconcerting         The annual appraisal at  Cognizant   Technology Solutions this month came as a surprise to many. Not only was their performance under greater scrutiny, but at the end of the review process, as many as 10,000 employees are expected to be laid off. Many of them will lose their job to automation. Like others in the industry, Cognizant, too, has been trying to reinvent itself and focus on high-end projects that require specialised skills as traditional offshore contracts shrink. The Nasdaq-listed solutions provider has 262,200 employees, and, according to sources in the company, up to 2.5 per cent could lose their job, although employees think the number could be higher. Cognizant has been under pressure from investors to shore up margins. Investors want to see the company boost profitability, deliver growth and return cash to shareholders. Last month, Cognizant reached an agreement...