The upward spiral coupled with the volatile movement of the Indian currency against the US dollar has driven IT services majors to look at multiple options to minimise its shock.
In the last 15 months, the rupee has appreciated in the region of 14 to 15 per cent and every 1 per cent rise has a margin impact of 40-50 basis points for IT companies.
Indian IT giants have started taking cover in fresh clauses in contracts, price re-negotiations and extended forex covers to beat the rupee appreciation and volatility risk.
For instance, Wipro has now started forward covers extending to the entire length of the project. Satyam BPO has had a couple of cases where they have gone back to the table for rupee-triggered price renegotiation.
The most favourable option for the Indian companies has been re-pricing and many have managed such raises during contract renewals. Both Wipro and Infosys have managed price increases in the range of 3 to 5 per cent from both existing and new customers.
Offshore advisory firm Tholons CEO Avinash Vashistha says, “there have been three key drivers for the IT services vendors getting a price increase: Exchange rate fluctuation, demonstration of higher productivity and the competitive scenario for buyers of IT services.”
However, analysts are quick to add that, in the long term, rupee is something Indian companies will have to deal with on their own. Also, wild currency fluctuation is not something that these companies can easily pass on to their clients completely.
While they may hope that client companies would meet them mid-way in raising billing rates, IT industry trackers say that companies will have to learn to deal with such volatility.
As part of risk mitigation, what Wipro will do in the future is that if a contract lasts for four years and the current rupee rate is Rs 39, it will cover the currency at that level for the entire tenure of the project so that the margins are protected.
Wipro is also looking at non-dollar denominated contracts. While US business still accounts for 62 per cent of the business, it is looking at the possibility of dealing with local currencies such as euro with respect to European countries.
Most non-US based companies traditionally transact in dollars. “We are talking to customers to move into local currency in which they are. And, we are making decent success with new customers,” Wipro CFO Suresh Senapaty says.
Satyam BPO has attempted some re-pricing with its customers and also new outcome-linked contract structures. For instance, it has included in the contract clause that any significant deviation in the currency appreciation, say above 5 per cent would bring both parties back to the table for re-pricing.
Satyam BPO chief Venkatesh Roddam says the company is looking at outcome-linked, guaranteed revenue structures. This means that the company will commit to guaranteed savings or productivity increase for the client in a given period of time and the pricing would be linked to the outcome.
Infosys CFO V Balakrishnan says new structures based on risk-based pricing and productivity-linked contracts will emerge. Though for now, the dominant pricing structure is time and material or fixed price.
Thursday, January 24, 2008
Rs 6,996,00,00,000: Star power drives IPL equity
Mumbai: The Board of Control for Cricket in India (BCCI) has announced the wining bids for the Indian Premier League (IPL).
Bollywood actor Shah Rukh Khan’s Red Chillies Private Limited bagged the Kolkata team in the IPL, Vijay Mallya won the Bangalore team and Mukesh Ambani got the Mumbai team for BCCI's Twenty20 tournament.
Another Bollywood star Preity Zinta and Ness Wadia have got the Mohali/Chandigarh while Delhi has gone to the GMR group.
Hyderabad team has gone to Deccan Chronicle while Jaipur and Chennai have gone to Emerging Media and India Cement respectively.
Mallya bid $111.6 million for the Bangalore team.
"I was the under bidder for Mumbai at $111.6. I won Bangalore at that amount," Mallya said.
Speaking to CNN-IBN, Shah Rukh, whose movie Chak De India on Indian women hockey team was a runaway hit, said, "The idea is not how much money is involved, it's about owning a big city team and promoting sports. No question of brand building involved in it. I bid for four places, including Delhi. The idea was to own a big city team.”
“The idea is to provide a platform to the young sportstars to perform. We all want to nurture the talent in the team,” Shah Rukh said.
On being asked what will the name of his team, he said, “I may call the team Shah Rukh XI.”
“I adore Sourav Ganguly and I hope he will lead the team. I will have experts to work out the modalities in the next 30 days. We will try to create a team that has a good winning combination. I will get experts to explain to us how the best combination can be done. I will not be a selector for the team,” he said.
Bollywood actor Shah Rukh Khan’s Red Chillies Private Limited bagged the Kolkata team in the IPL, Vijay Mallya won the Bangalore team and Mukesh Ambani got the Mumbai team for BCCI's Twenty20 tournament.
Another Bollywood star Preity Zinta and Ness Wadia have got the Mohali/Chandigarh while Delhi has gone to the GMR group.
Hyderabad team has gone to Deccan Chronicle while Jaipur and Chennai have gone to Emerging Media and India Cement respectively.
Mallya bid $111.6 million for the Bangalore team.
"I was the under bidder for Mumbai at $111.6. I won Bangalore at that amount," Mallya said.
Speaking to CNN-IBN, Shah Rukh, whose movie Chak De India on Indian women hockey team was a runaway hit, said, "The idea is not how much money is involved, it's about owning a big city team and promoting sports. No question of brand building involved in it. I bid for four places, including Delhi. The idea was to own a big city team.”
“The idea is to provide a platform to the young sportstars to perform. We all want to nurture the talent in the team,” Shah Rukh said.
On being asked what will the name of his team, he said, “I may call the team Shah Rukh XI.”
“I adore Sourav Ganguly and I hope he will lead the team. I will have experts to work out the modalities in the next 30 days. We will try to create a team that has a good winning combination. I will get experts to explain to us how the best combination can be done. I will not be a selector for the team,” he said.
Wednesday, January 23, 2008
The World's First Ever Cell Phone with 5-inch Fold-Out Display
A Dutch Company by the name of Polymer Vision is set to release the world's first cell phone that features a fold-out display for viewing email, podcasts, text documents, news, and blogs. This device, called the "Readius", is the size of a typical cell phone and has a large 5-inch screen that folds out from the body of the phone.
Having a fold-out display is something new to the cell phone industry, and it allows the cell phone to have a much larger screen without adding very much bulk to the phone itself. The Readius is small enough to fit it your pocket and yet it has a gigantic 5-inch screen. The makers of the Readius say, "You get the large display of e-reading, the super battery life of e-reading, and the high-end connectivity ... and the form factor and weight of a mobile phone". The new Readius is almost like a mix between the Amazon Kindle (electronic book reader) and a normal cell phone. It features a black and white screen, much like the Amazon Kindle, that almost looks like ink and paper from an actual book or newspaper.
This device will be able to update any podcast, blog content, or email account that your subscribed to automatically through the 3G mobile phone network. The 3G network is an ultra-fast data network for cell phones that is a lot like WiFi for a laptop.
The Readius is expected to be available in mid-2008, and there is no word yet on pricing although they will probably be priced similarly to other high-end cell phones on the market ($300-$500?). It will be interesting to see if this cell phone/e-reader will be successful in a cell phone market that is currently being dominated by cell phones with Internet connectivity, GPS capabilities, and full-color touch-screen displays. Check back for updates about this device as its release approaches.
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Having a fold-out display is something new to the cell phone industry, and it allows the cell phone to have a much larger screen without adding very much bulk to the phone itself. The Readius is small enough to fit it your pocket and yet it has a gigantic 5-inch screen. The makers of the Readius say, "You get the large display of e-reading, the super battery life of e-reading, and the high-end connectivity ... and the form factor and weight of a mobile phone". The new Readius is almost like a mix between the Amazon Kindle (electronic book reader) and a normal cell phone. It features a black and white screen, much like the Amazon Kindle, that almost looks like ink and paper from an actual book or newspaper.
This device will be able to update any podcast, blog content, or email account that your subscribed to automatically through the 3G mobile phone network. The 3G network is an ultra-fast data network for cell phones that is a lot like WiFi for a laptop.
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The Readius is expected to be available in mid-2008, and there is no word yet on pricing although they will probably be priced similarly to other high-end cell phones on the market ($300-$500?). It will be interesting to see if this cell phone/e-reader will be successful in a cell phone market that is currently being dominated by cell phones with Internet connectivity, GPS capabilities, and full-color touch-screen displays. Check back for updates about this device as its release approaches.
Friday, January 18, 2008
Don't buy petrol on 24th Jan 2008
Petrol in Pakistan Rs 17 per liter.
Malaysia Rs 18 per liter
In India it's 51 per liter
Why this difference in Asia itself? World Market CRUDE Oil is not the
reason for this. It's all Gain for private owners. As we are the
general public, or Common Man as R.K.Laxman wud have said, we have to
raise our voice, let's rise thru Emails.
Forward this to all Indians who care.
IT HAS BEEN CALCULATED THAT IF EVERYONE DID NOT PURCHASE A DROP OF
PETROL FOR ONE DAY AND ALL AT THE SAME TIME, THE OIL COMPANIES WOULD
CHOKE ON THEIR STOCKPILES.
AT THE SAME TIME IT WOULD HIT THE ENTIRE INDUSTRY WITH A NET LOSS OVER
4.6 BILLION DOLLARS WHICH AFFECTS THE BOTTOM LINES OF THE OIL
COMPANIES.
THEREFORE "24th JANUARY" HAS BEEN FORMALLY DECLARED "STICK IT UP THEIR
BEHIND "DAY AND THE PEOPLE OF THIS NATION SHOULD NOT BUY A SINGLE DROP
OF PETROL THAT DAY.
THE ONLY WAY THIS CAN BE DONE IS IF YOU FORWARD THIS E-MAIL TO AS MANY
PEOPLE AS YOU CAN AND AS QUICKLY AS YOU CAN TO GET THE WORD OUT.
WAITING ON THE GOVERNMENT TO STEP IN AND CONTROL THE PRICES IS NOT
GOING TO HAPPEN. WHAT HAPPENED TO THE REDUCTION AND CONTROL IN PRICES
THAT THE ARAB NATIONS PROMISED TWO WEEKS AGO?
REMEMBER ONE THING, NOT ONLY IS THE PRICE OF PETROL GOING UP BUT
AT THE SAME TIME AIRLINES ARE FORCED TO RAISE THEIR PRICES,
TRUCKING COMPANIES ARE FORCED TO RAISE THEIR PRICES WHICH AFFECTS
PRICES ON EVERYTHING THAT IS SHIPPED. THINGS LIKE FOOD, CLOTHING,
BUILDING SUPPLIES MEDICAL SUPPLIES ETC. WHO PAYS IN THE END? WE DO!
WE CAN MAKE A DIFFERENCE.IF THEY DON'T GET THE MESSAGE AFTER ONE DAY,
WE WILL DO IT AGAIN AND AGAIN. SO DO YOUR PART AND SPREAD THE WORD.
FORWARD THIS EMAIL TO EVERYONE YOU KNOW. MARK YOUR CALENDARS AND MAKE
24 JANUARY A DAY THAT THE CITIZENS SAY "ENOUGH IS ENOUGH".
We forward so many junk email to many of our friends, now let us do it
for some useful cause to cut down the price of the petrol........
REMEMBER: JANUARY 24, 2008.... NO Petrol Day...!
Please "Think Of It ...............
Malaysia Rs 18 per liter
In India it's 51 per liter
Why this difference in Asia itself? World Market CRUDE Oil is not the
reason for this. It's all Gain for private owners. As we are the
general public, or Common Man as R.K.Laxman wud have said, we have to
raise our voice, let's rise thru Emails.
Forward this to all Indians who care.
IT HAS BEEN CALCULATED THAT IF EVERYONE DID NOT PURCHASE A DROP OF
PETROL FOR ONE DAY AND ALL AT THE SAME TIME, THE OIL COMPANIES WOULD
CHOKE ON THEIR STOCKPILES.
AT THE SAME TIME IT WOULD HIT THE ENTIRE INDUSTRY WITH A NET LOSS OVER
4.6 BILLION DOLLARS WHICH AFFECTS THE BOTTOM LINES OF THE OIL
COMPANIES.
THEREFORE "24th JANUARY" HAS BEEN FORMALLY DECLARED "STICK IT UP THEIR
BEHIND "DAY AND THE PEOPLE OF THIS NATION SHOULD NOT BUY A SINGLE DROP
OF PETROL THAT DAY.
THE ONLY WAY THIS CAN BE DONE IS IF YOU FORWARD THIS E-MAIL TO AS MANY
PEOPLE AS YOU CAN AND AS QUICKLY AS YOU CAN TO GET THE WORD OUT.
WAITING ON THE GOVERNMENT TO STEP IN AND CONTROL THE PRICES IS NOT
GOING TO HAPPEN. WHAT HAPPENED TO THE REDUCTION AND CONTROL IN PRICES
THAT THE ARAB NATIONS PROMISED TWO WEEKS AGO?
REMEMBER ONE THING, NOT ONLY IS THE PRICE OF PETROL GOING UP BUT
AT THE SAME TIME AIRLINES ARE FORCED TO RAISE THEIR PRICES,
TRUCKING COMPANIES ARE FORCED TO RAISE THEIR PRICES WHICH AFFECTS
PRICES ON EVERYTHING THAT IS SHIPPED. THINGS LIKE FOOD, CLOTHING,
BUILDING SUPPLIES MEDICAL SUPPLIES ETC. WHO PAYS IN THE END? WE DO!
WE CAN MAKE A DIFFERENCE.IF THEY DON'T GET THE MESSAGE AFTER ONE DAY,
WE WILL DO IT AGAIN AND AGAIN. SO DO YOUR PART AND SPREAD THE WORD.
FORWARD THIS EMAIL TO EVERYONE YOU KNOW. MARK YOUR CALENDARS AND MAKE
24 JANUARY A DAY THAT THE CITIZENS SAY "ENOUGH IS ENOUGH".
We forward so many junk email to many of our friends, now let us do it
for some useful cause to cut down the price of the petrol........
REMEMBER: JANUARY 24, 2008.... NO Petrol Day...!
Please "Think Of It ...............
Monday, January 7, 2008
Rules ICC should incorporated to ensure that the sportive spirit of AUSTRALIAN CRICKET maintained
After watching the test match, someone has written some rules have to be incorporated by ICC to give the other teams a perfect clarification
(1) Ricky Ponting – (THE TRULY GENUINE CRICKETER OF THE CRICKET ERA AND WHOSE INTEGRITY SHOULD NOT BE DOUBTED) should be considered as the FOURTH UMPIRE. As per the new rules, FOURTH UMPIRE decision is final and will over ride any decisions taken by any other umpires. ON-FIELD umpires can seek the assistance of RICKY PONTING even if he is not on the field. This rule is to be made, so that every team should understand the importance of the FOURTH UMPIRE.
(2) While AUSTRALIAN TEAM is bowling, If the ball flies anywhere close to the AUSTRALIAN FIELDER(WITHIN 5 metre distance), the batsman is to be considered OUT irrelevant of whether the catch was taken cleanly or grassed. Any decision for further clarification should be seeked from the FOURTH UMPIRE. This is made to ensure that the cricket is played with SPORTIVE SPIRIT by all the teams.
(3) While BATTING, AUSTRALIAN players will wait for the ON-FIELD UMPIRE decisions only (even if the catch goes to the FIFTH SLIP as the ball might not have touched the bat). Each AUSTRALIAN batsman has to be out FOUR TIMES (minimum) before he can return to the pavilion. In case of THE CRICKETER WITH INTEGRITY, this can be higher.
(4) UMPIRES should consider a huge bonus if an AUSTRALIAN player scores a century. Any wrong decisions can be ignored as they will be paid huge bonus and will receive the backing of the AUSTRALIAN team and board.
(5) All AUSTRALIAN players are eligible to keep commenting about all players on the field and the OPPONENT TEAM should never comment as they will be spoiling the spirit of the AUSTRALIAN team. Any comments made in any other language are to be considered as RACISM only.
(6) MATCH REFREE decisions will be taken purely on the AUSTRALIAN TEAM advice only. Player views from the other teams decisions will not be considered for hearing. MATCH REFREES are to be given huge bonus if this rule is implemented.
(7) NO VISITING TEAM should plan to win in AUSTRALIA. This is to ensure that the sportive spirit of CRICKET is maintained.
(8) THE MOST IMPORTANT RULE: If any bowler gets RICKY PONTING - “THE UNDISPUTED CRICKETER WITH INTEGTIRY IN THE GAME OF CRICKET” more than twice in a series, he will be banned for the REST OF THE SERIES. This is to ensure that the best batsman/Captain will be played to break records and create history in the game of CRICKET.
These rules will clarify better to the all the teams VISITING AUSTRALIA.
(1) Ricky Ponting – (THE TRULY GENUINE CRICKETER OF THE CRICKET ERA AND WHOSE INTEGRITY SHOULD NOT BE DOUBTED) should be considered as the FOURTH UMPIRE. As per the new rules, FOURTH UMPIRE decision is final and will over ride any decisions taken by any other umpires. ON-FIELD umpires can seek the assistance of RICKY PONTING even if he is not on the field. This rule is to be made, so that every team should understand the importance of the FOURTH UMPIRE.
(2) While AUSTRALIAN TEAM is bowling, If the ball flies anywhere close to the AUSTRALIAN FIELDER(WITHIN 5 metre distance), the batsman is to be considered OUT irrelevant of whether the catch was taken cleanly or grassed. Any decision for further clarification should be seeked from the FOURTH UMPIRE. This is made to ensure that the cricket is played with SPORTIVE SPIRIT by all the teams.
(3) While BATTING, AUSTRALIAN players will wait for the ON-FIELD UMPIRE decisions only (even if the catch goes to the FIFTH SLIP as the ball might not have touched the bat). Each AUSTRALIAN batsman has to be out FOUR TIMES (minimum) before he can return to the pavilion. In case of THE CRICKETER WITH INTEGRITY, this can be higher.
(4) UMPIRES should consider a huge bonus if an AUSTRALIAN player scores a century. Any wrong decisions can be ignored as they will be paid huge bonus and will receive the backing of the AUSTRALIAN team and board.
(5) All AUSTRALIAN players are eligible to keep commenting about all players on the field and the OPPONENT TEAM should never comment as they will be spoiling the spirit of the AUSTRALIAN team. Any comments made in any other language are to be considered as RACISM only.
(6) MATCH REFREE decisions will be taken purely on the AUSTRALIAN TEAM advice only. Player views from the other teams decisions will not be considered for hearing. MATCH REFREES are to be given huge bonus if this rule is implemented.
(7) NO VISITING TEAM should plan to win in AUSTRALIA. This is to ensure that the sportive spirit of CRICKET is maintained.
(8) THE MOST IMPORTANT RULE: If any bowler gets RICKY PONTING - “THE UNDISPUTED CRICKETER WITH INTEGTIRY IN THE GAME OF CRICKET” more than twice in a series, he will be banned for the REST OF THE SERIES. This is to ensure that the best batsman/Captain will be played to break records and create history in the game of CRICKET.
These rules will clarify better to the all the teams VISITING AUSTRALIA.
Wednesday, January 2, 2008
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