TCS among top companies selected for corporate responsibility  
May 26, 2008
Source: PTI

LONDON: India's largest software exporter Tata Consultancy Services was today named as one of the top 100 companies chosen for helping people globally through its corporate responsibility programme. 

TCS has been chosen by The Sunday Times in its list of "Companies that Count in 2008' for extending support to people globally through outreach programmes, community education and health initiatives. 

The TCS is the world's leading information technology consulting, services, business process outsourcing and engineering services organisation, the report said. 

The company achieved this by creating and perfecting a unique method of global deployment and delivery for high quality, high value services and products in IT consulting and business process outsourcing, it said. 

Known as the "Global Network Delivery Model," this strategic services delivery concept of TCS has reshaped the IT services industry. 

The company that heads the list is Accenture, an accountants and consultants giant. BAA, the British Airport Authority has bagged the second position. 

TCS had bagged the top position in the 'Top 10 Best Performing IT Services Providers category in the Global Services 100 listing last year. 

Rolta to buy US IT biz intelligence co        
May 26 , 2008 
SOURCE: TNN

MUMBAI: Mid-size technology services and IT engineering firm Rolta is learnt to be close to acquiring a US based IT firm in the area of business intelligence. 

The firm has been searching for an asset that will add to its skills on the IT side and complement its core strengths in geographic information systems (GIS) and engineering. 

In a strategy that is not dissimilar to Wipro’s ‘string-of-pearls’ acquisitions, the firm is building up skills in the areas it is not very strong and where it wants to grow, through acquisitions. 

Earlier this year, it had acquired Broech Corporation, an IT company specialising in ERP applications and Oracle database technologies, for $45 million. The acquisition of a business intelligence software firm is a natural extension to this. 

While database technologies help to organise information in form that can retrieved and used easily, business intelligence software help in mining this information, and provide a variety of value-add through statistical and analytical tools for intelligent decision making. Prior to this, in 2007, Rolta had acquired a firm in web-GIS systems called Orion Technology Inc. 

Rolta’s primary strengths are in GIS and engineering, and GIS-related works contribute nearly 50 per cent to its revenue. 

IT services contribute only about 18 per cent of its revenues, but in a recent interview Rolta chairman and managing director Kamal K Singh had said this would go up to 20-25 per cent of revenues in a few years. 

“We have drawn up a five-year plan according to which our revenues should touch $ 1 billion by 2010-11. GIS revenues will stay more or less constant and probably come down a little to 45 per cent,” Singh said. 

Avnet Tech buys Ontrack 
May 26, 2008 
SOURCE: TNN

MUMBAI: It’s not uncommon for IT companies in India to acquire firms in the US or the UK to get access to clients and improve their marketshare. 

But in an indication of the attractiveness of the domestic market, the $15-billion global distributor of technology solutions and electronic components, Avnet, has acquired domestic systems intergrator Ontrack Solutions for an undisclosed amount. 

Ontrack, a 15-year-old firm founded by Naresh Desai and G Balakrishnan, has no venture captial or PE investment. 

“Ontrack’s revenue was approximately $13 million. Avnet will leverage Ontrack’s existing business and capabilities to build value-added solutions distribution business throughout India. The transaction is expected to be immediately accretive to earnings and supports Avnet’s long-term return on capital goals,” said Avnet Technology Solutions president KP Tang. Ontrack is a distributor for players such as IBM, Hewlett Packard, Citrix and VMware. 

Ontrack founder-director G Balakrishnan said that while there were many firms that merely sold technologies and were ‘box-pushers’ , there were some that could actually deploy and implement them. “Most of our profits come from the services we provide. For instance, if you sell a software from Citrix, you also need to deploy it, but not everybody has that capability,” he said. 

While Avent’s operating margins as a distributor of electronic components and t e c h n o l o g y solutions, is in single-digits, a good systems integrator in the Indian market can enjoy double-digit operating margins. However, Ontrack, a privately-held company, did not disclose its margins or profits. 

Balakrishnan and Desai will continue with Avnet after the acquisition, leading the local India team, Tang said. The entity will become part of the operations of Avnet Technology Solutions Asia Pacific.