ICRA Techno Analytics acquires Axiom Technologies  
June 20, 2008
Source:  PTI

MUMBAI: Software developer ICRA Techno Analytics (ICTEAS) on Thursday announced the acquisition of Kolkata-based software services firm Axiom Technologies for an undisclosed sum. 

Axiom specialises in customisation and implementation of Enterprise Resource Planning (ERP) packages. 

The acquisition fits in neatly with the strategy of ICTEAS to enter into ERP implementation market and thereby offer its clients a larger portfolio of Information Technology solutions, ICTEAS, a wholly-owned subsidiary of rating agency ICRA, said in a release here. 

"ERP is the market we have been wanting to be in. It makes eminent sense for ICTEAS and Axiom to pool their talents together and offer customers a unique value proposition," ICTEAS' Director P K Choudhury said. 

Axiom so far has been offering its services in the Indian market. It would now be able to use our global reach and offer their services in the international market, it said.

TCS to set up BPO unit      
June 20 , 2008 
SOURCE: TNN

MUMBAI :Tata Consultancy Services (TCS), which has announced two major business units focused on decreasing revenue dependence on employee addition, is set to announce a third business unit that could be its largest in terms of business potential at least in the immediate term. 

The third business unit will be focused on offering platform-based business process outsourcing (BPO) services that the company has been working on for sometime now. 

The other two business units are financial products and IT-as-a-service (ITaaS) for small and medium-sized businesses. Financial product is a fairly mature segment but TCS continues to invest in building solution and products for financial services industry. It was spun off as a separate business unit to give it more focus and differentiate it from the IT services it provides to financial services clients. 

ITaaS is a more recent initiative to tap into businesses that are in the growth stage and may potentially be tomorrow’s billion-dollar firms. It is being piloted in India but will be later taken to other countries as well. 

Platform-based BPO services will be the third initiative in the area of de-linking revenues from employee addition. The investments in developing a platform are made upfront and the services to the customer are based on the outcome and number of transactions, making its similar to a product-based revenue model. 

“Platform-based BPO is still an emerging area. There are no proven success stories but that is the way forward to de-link revenues from manpower. Large deals such as the TCS-Peal deal and Infosys-Philips deals can be a base for creating a platform. If you count transactions such as these, about 20 per cent-25 per cent of IT and BPO exports could be coming from platform-based BPO services,” said Forrester Research country manager (India) Sudin Apte. 

Apte said the business potential of platform-based BPO was significant because its scope was wider than IT services, which is limited to the IT needs of clients. Building a platform is a fairly intensive effort and can take a company upwards of 6 months. 

A platform for payroll processing, for instance, would need to incorporate country-specific taxation practices and other regulations governing payroll. Some platforms may require to be industry-specific and need to incorporate details and nuances relating to the industry. 

One of the platform-based initiatives that TCS is learnt to be working on is in the area of human resource outsourcing. The other is likely to be in claims processing or F&A. While its ITaaS business unit currently has around 400 employees, the platform-based BPO business unit could have more than 1,000 employees.

MindTree to invest Rs 180 cr in Chennai centre    
June 20, 2008 
SOURCE: BL

Chennai, June 18 MindTree, a Bangalore-based information technology company, will invest $45 million (Rs 180 crore) in its new software development centre at Mahindra World City SEZ in Maraimalai Nagar, 45 km from Chennai.

‘MindTree Coromandel’, will be housed in a 2.80 lakh sq ft facility which has a capacity to seat 2,800 employees. Chennai will be the second most important centre after Bangalore, according to Mr Ashok Soota, Chairman and Managing Director. “This expansion is a symbol of our growth.