Satyam, Rockwell Automation tie-up       
June 26, 2008
Source:  BL

Satyam Computer Services Ltd has tied up with Rockwell Automation India, a wholly owned subsidiary of Rockwell Automation Inc. The partnership will give Satyam a preferred status to conduct systems integration assignments as an Engineering Solution Provider in Rockwell Automation’s PartnerNetworkTM. “This alliance provides synergy to our industrial automation business, which positions Satyam as a leading global industrial automation solution provider,” s aid Dr T.S.K. Murthy, its Global Head and Senior Vice-President. Satyam can also now provide solutions to customers throughout India. Its domain expertise and application knowledge will complement Rockwell Automation’s capabilities and provide customised solutions to specific markets in different regions. “Satyam’s customer base, market leadership, technical and application expertise, and experienced workforce make it a good fit,” said Mr Pankaj Joshi, the regional market access development manager of Rockwell Automation’s Southeast Asia region.

Infosys ends down on fear of losing UBS      
June 26, 2008 
SOURCE: BL

Bangalore, Shares of Infosys Technologies Ltd fell 2.48 per cent on Wednesday on talks that HSBC might acquire UBS, one among Infosys’ top-10 clients.

Although there has been no confirmation from either HSBC or UBS, the media has reported that HSBC might make an $80 billion bid for the Swiss bank. Shares of the tech major dropped by Rs 44.40 to Rs 1,748.60 from Rs 1,793 on Wednesday on the Bombay Stock Exchange.

An analyst with a Mumbai-based brokerage Motilal Oswal said there is a possibility that UBS’ contract with Infosys might be terminated, once the deal is through. The analyst said HSBC would have its own IT vendor, and there is the possibility that UBS’ account might go to the vendor handling HSBC’s account.

However, UBS’ account with Infosys might probably be a big one valued between $100 million and $150 million, and it is not very easy to switch these accounts, he added. 

He also said the evaluation gap between Tata Consultancy Services and Infosys was about 25 per cent, which meant Infosys was trading at a premium, while TCS traded at a discount. Investors might have wanted to reduce the risk on Infosys and put it in TCS. This could be another reason, he added. 

Mr Harish HV, Partner Grant Thornton, said after an acquisition, the IT vendor usually does change. At the end of the day, they would have a common system, he added.

He said they might change immediately, or they may do it later. But there is also the possibility that Infosys might get larger deals from the common entity. However, Infosys would get a lower price for the larger deals, he added.

In its recent research report, India Infoline has maintained its sell recommendation on Infosys Technologies. “The excess stock performance has been fuelled by company’s better positioning (due to lower forex cover) to take advantage of the depreciating rupee. 

"We expect the company to upgrade FY-09 guidance, but based solely on the higher Re/$ assumption. The business fundamentals remain challenging,” said the report. 

Indiabulls downgraded the stock rating to hold. “Key concerns to our rating include a recession in the US economy, a further slowdown in the BFSI segment, currency fluctuations, stronger competition from global players in the offshore arena, and a greater-than-anticipated wage inflation,” said in its recent report.

Tech Mahindra in deal with Telecom Fiji       
June 26, 2008 
SOURCE: PTI

NEW DELHI: Tech Mahindra today announced a multi-million dollar deal with Telecom Fiji to provide global ICT services to enterprise customers in Oceania market. 

This deal with Telecom Fiji (TFL) is part of Tech Mahindra's overall strategy to expand its business in the A-PAC region, said a company statement. 

Under this agreement, Tech Mahindra would implement a transformation programme for TFL in the specific telecom domains OSS and BSS for a period of 15 months. 

The company already has existing operations in Australia and New Zealand and they contribute approximately 50 per cent of revenue within the A-PAC region. 

"Looking at Tech Mahindra's capabilities, we are also exploring possibilities of leveraging on each others strengths to work together as global services partners for providing ICT services within Oceania region to our enterprise customers. We are very hopeful that this relationship will be further developed and can help us grow our service offerings and our reach in the global market," TFL CEO Taito Tabaleka said. 

"Our support will enable them to adapt to changing market conditions and increase speed-to-market of new and innovative offerings for their customers," said Tech Mahindra President (International Operations) CP Gurnani.