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<keyword id="6357585" type="CITY" weightage="80" keywordseo="Tata-Consultancy-Services">Tata Consultancy Services</keyword> (TCS) stocks have gained over 8% in the last half year six as compared to the 5% gain in the benchmark. Over half of the stock gain happened in the past three weeks. This was in expectation of a strong quarterly performance in the June 2015 quarter. 
 
TCS will report its quarterly numbers on July 9, 2015. It will be a crucial quarter for the company after the stunted revenue growth reported in the previous two quarters. 
 This time there is a reason for investors to hope for a better performance since other <keyword id="6357647" type="ORGANIZATION" weightage="80" keywordseo="IT-Companies">IT companies</keyword> have usually shown greater revenue traction during the first two quarters of the fiscal the year, i.e. the June quarter and the September quarter. 
 
(Image credit: Indiatimes)

TCS may register 4-5% sequential growth in dollar
revenue for Q1 in 2016

The generative AI provides more <keyword id="20069513" type="General" weightage="20" keywordseo="opportunity" source="keywords">opportunity</keyword> to the Indian IT sector contrary to the believe of being a threat, highlighted a report by Nuvama Wealth Management. The report noted that although AI <keyword id="19901571" type="General" weightage="20" keywordseo="technology" source="keywords">technology</keyword> may initially disrupt the sector, especially in terms of business operations and billing models, the long-term benefits far outweigh the risks. "We, on the contrary, expect the Indian IT industry to come out stronger from the <keyword id="19906101" type="General" weightage="100" keywordseo="Gen-AI" source="keywords">Gen AI</keyword>-led disruption. We dig deep into various facets of Gen <keyword id="20037918" type="General" weightage="20" keywordseo="AI-adoption" source="keywords">AI adoption</keyword> for enterprises and find that Gen AI would create a mammoth incremental opportunity for <keyword id="20617562" type="General" weightage="20" keywordseo="Indian-IT-services" source="keywords">Indian IT services</keyword>," said the report. The report noted that as more enterprises adopt AI, the need for services such as upgradation of legacy code and data readiness for AI integration will increase, offering Indian IT firms new streams of revenue. The report mentioned one of the most significant opportunities lies in the modernization of <keyword id="21835113" type="General" weightage="20" keywordseo="legacy-systems" source="keywords">legacy systems</keyword>, particularly core banking systems (CBS). It stated that many <keyword id="19912054" type="General" weightage="20" keywordseo="financial-institutions" source="keywords">financial institutions</keyword> still use mainframe systems and outdated programming languages like COBOL. Gen AI enables automated code modernization, which will drive a major demand for Indian IT services to upgrade these systems, creating a long-term revenue stream. "Since most non-Indian (read European) do not have the scale to hire and deploy employees with the ability to code in COBOL (not to mention supply crunch)--they have ceded this opportunity to <keyword id="21817095" type="General" weightage="20" keywordseo="Indian-IT-Services-companies" source="keywords" meta.keywordsubtype="org" meta.entityname="Indian IT Services companies" meta.hostid="261" meta.entityid="Indian IT Services companies">Indian IT Services companies</keyword>" said the report. The report specifically highlighted the "upgradation of legacy code" as a key area of opportunity for IT companies as businesses prepare their systems for AI integration. Gen AI is expected to create new service lines for Indian IT companies, including AI-based <keyword id="19945906" type="General" weightage="20" keywordseo="customer-service" source="keywords">customer service</keyword>, fraud detection, predictive maintenance, and knowledge processing. These AI-driven solutions will allow IT firms to offer higher-value services to clients, boosting revenue and profit margins. "Indian IT companies have always repositioned themselves to continue to do what they do best--service customers. That has provided them with the longevity they have commanded for multiple decades now. We do not see that changing this time as well" the report added. Comparing Gen AI to "a hammer looking for a nail," the report suggested that the technology's applications are still being discovered, but its potential is undeniable. Looking ahead, the report forecasts a strong start to FY25 for Indian IT companies, with growth driven by an optimistic outlook for the Banking, Financial Services, and Insurance (BFSI) sector, increasing technology spending, and large deal ramp-ups.

Gen AI to unlock a "mammoth incremental opportunity" for Indian IT services: Report

<ul><li><keyword id="896278" type="PERSON" weightage="20" keywordseo="Indian-IT-services-companies">Indian IT services companies</keyword> <keyword id="6354512" type="COMPANY" weightage="20" keywordseo="Infosys">Infosys</keyword> and <keyword id="141968" type="CITY" weightage="20" keywordseo="HCL-Tech">HCL Tech</keyword> may see their stocks increase by more than 50% in the coming year, according to Edelweiss.</li><li>The current ‘tech upcycle’ could also put mid-cap stocks like MindTree and L&amp;T Infotech on the road to becoming large caps by 2035.</li><li>The surge of growth is pegged on the faster-than-expected recovery of the BFSI vertical, the prioritisation of spending on cloud services and the reduction of costs due to most employees working from home. </li></ul>The COVID-19 pandemic may have wreaked havoc on many industries but the IT sector exhibited extraordinary perseverance. Edelweiss estimates that despite the rally seen over the last three months, the best is yet to come. And, <keyword id="4126021" type="PERSON" weightage="20" keywordseo="Indian-IT-stocks">Indian IT stocks</keyword> like Infosys, HCL Tech and TCS are most likely to reap the benefits. “Among mid-caps, we believe Mindtree and L&amp;T Infotech might well be the large caps of 2035 (perhaps much like Infosys and TCS, respectively),” said the analysts’ December report on the IT sector. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Target Price </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Projected upside </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Eclerx </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹1,536 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">96.70% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹1,480 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">72.90% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹1,850 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">63.10% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">LTTS </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹2,740 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">52.10% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹4,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">46.90% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Mindtree </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹2,044 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">42.10% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T Infotech </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹4,197 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">28.50% </td></tr></tbody></table>Source: Edelweiss Research This is because ‘clients are more determined to spend than ever before,’ according to Edelweiss. This is further bolstered by the fact that the IT companies themselves are gaining on margins with employees working from home. Most companies will have a larger than usual budget for tech upgrades Companies don’t normally carry over their budget allocation for IT into the next year. But this time around, they’re making an exception. Majority of IT departments are likely to carry forward any of the unused technology budgets from 2020 into 2021, according to Edelweiss. That means next year, most clients of IT services companies will have a significant amount to spend in addition to traditional allocation for technology upgrades. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quarter </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS’ Total Contract Value </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys’ large deal signings </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5.7 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2.7 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$6.4 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2.8 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$6 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.8 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$8.9 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.7 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$6.9 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.7 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$8.6 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$3.2 billion </td></tr></tbody></table>Source: Respective company reports “[This implies] FY22 revenue growth for Indian technology companies can be comfortably in the 12–14% range or even more,” said the report. The best phase of the ‘tech upcycle’ The surge in spending on technology upgrades has been dubbed the ‘tech upcycle’. It’s a result of the increase in online activity during the coronavirus pandemic. Back in June, the upcycle was just kicking off and the most expansive phase — when the money actually starts rolling — is yet to begin. This is called the ‘squeeze up’ phase of the cycle. <div type="image" title="Copy of canara bank" msid="79659488" hostid="261" caption="&amp;lt;p&amp;gt;The share prices of HCL Tech, Infosys and TCS over the last six months&amp;lt;/p&amp;gt;"></div> Why will some companies gain more than others? According to Edelweiss, all IT companies have something to gain from the increased spending on digital that will flow in. But, some will gain more than others depending on where their focus lies within the digital space. For instance, spending on cloud technology is more important than investing in non-cloud digital services. “Cloud has clearly taken precedence in spends as clients now increasingly and strongly-than-ever believe that they need an agile IT infrastructure to manage variable data loads,” notes the report. With companies like HCL Tech, Infosys and TCS being the strongest contenders for cloud technology right now, they have the most to gain. Another positive for these companies is that the BFSI segment, in particular, is witnessing decade-high budgetary allocations to upgrade its technology. <div type="Article" hostid="261" msid="76334123" title="TCS, Infosys, HCL Tech and others will gain from Microsoft, Amazon and Google spending more on technology" mstype="2" mssubtype="0"></div> IT sector gains aren’t without its risks The IT sector may be on the precipice of massive growth but the risks have never been higher. A serious data breach — keeping in mind that the number of cyberattacks on companies during the last six months has been increasing — could have a serious impact on client trust and customer confidence. The depreciation of the dollar versus the rupee could also moderately affect growth and the resulting earnings estimates of IT companies, according to Edelweiss. And, while it is true that technology spends are stepping up, the North American market is an exception to that rule. Since most clients within the US are already digitally savvy, their budgets for IT may be slashed. <keyword id="6357549" type="UNKNOWN" weightage="20" keywordseo="Indian-IT-companies">Indian IT companies</keyword> may bear the brunt since, for most, the majority of their revenue comes from customers in the US. Lastly, while the BFSI sector is racing to catch up, it also means there’s a higher risk of companies within that vertical declaring bankruptcy. If a large enough BFSI client was to go bust, it wouldn’t impact the whole industry, but the IT services company providing services would be in for a rough ride. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/india-desi-gps-finally-joins-china-russia-and-the-us-after-a-two-year-long-wait/articleshow/79656300.cms">India’s desi-GPS is now in the same league as the US, Russia and China — can scan 1,500 kilometres beyond its own borders</a> <a href="https://www.businessinsider.in/science/health/news/canada-has-enough-covid-19-vaccine-doses-to-cover-each-citizen-five-times-over-while-the-fate-of-67-poor-countries-remains-undecided/articleshow/79645493.cms">Canada has enough COVID-19 vaccine doses to cover each citizen five times over while the fate of 67 poor countries remains undecided</a> <a href="https://www.businessinsider.in/india/news/farmers-plan-to-block-delhi-jaipur-and-delhi-agra-highways-starting-december-12-and-start-nationwide-protests-on-december-14/articleshow/79644167.cms">Farmers call for nationwide protest on December 14 — plan to block Delhi-Jaipur and Delhi-Agra highways starting December 12</a>

One research firm says shares of Infosys, HCL Tech, and TCS may see another surge — here's why

<ul><li>Salaries for software-as-a-service (SaaS) roles in comparison to traditional <keyword id="57650" type="PERSON" weightage="20" keywordseo="IT-jobs">IT jobs</keyword> are higher by at least 30% if not more.</li><li>Demand for SaaS specific skills is on the rise after the ‘digital transformation’ wave of the pandemic.</li><li>Moreover, small businesses and startups are willing to pay more than bigger MNCs in order to secure the right talent.</li></ul>If you’re an engineer in India, the job market is tough. There’s a lot of competition and companies are selective about who they hire. But one thing that can give you an edge over other candidates is the right set of skills — SaaS-y skills. India’s software-as-a-service (SaaS) market is still young, but that’s where the real money is, if you’re an engineer. The demand is overflowing, especially after the COVID-19 pandemic’s ‘digital transformation’ wave. “COVID-related trail winds have led to a massive leverage using technology and that in turn leading firms to look at incrementing their teams with high quality engineers,” Siddharth Sangwan, the director and head of talent strategy at venture capital company Lightspeed Venture Partners, told Business Insider. Recruitment firm TeamLease told Business Insider that <keyword id="11126922" type="UNKNOWN" weightage="20" keywordseo="salaries-in-saas">salaries in SaaS</keyword> firms are at least 30% higher than traditional IT services, if not more. “The potential for growth is better as a SaaS firm because product development on this platform is more robust and exposure to technology is higher. Whereas in traditional IT service companies, they tend to stick to one project for longer durations,” explained Siva Prasad Nanduri, the vice president and business head of IT Staffing at TeamLease Digital. Five SaaS skills that have seen the biggest uptake in demand: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup></colgroup></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SaaS skills </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Spike in demand from December 2020 to January 2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IT security </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">166% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Full Stack </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">110% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Android Developers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">80% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Data Analytics </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">44.7% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Angular JS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40% </td></tr></tbody></table>Source: Quess IT Staffing What were once considered to be niche skills before the pandemic are now mainstream, especially with the wave of ‘digital transformation’ as lockdown forced businesses to shut down their physical stores. “Organisations are looking to hire talent with bundled skill sets, rather than just one skill, driving up the salary expectations and offers in the market,” said Vijay Sivaram, the chief executive officer (CEO) of Quess IT Staffing. Having at least two years of experience is all you need to capitalise on your skillset. It doesn’t matter which sector you were in, or what brand you were working on, your knowledge is what companies are looking for when hiring. “If you get a reasonable 2-3 years of experience, salaries have virtually doubled in the last one year. The demand is coming from traditional companies, from startups, from IT, and from global companies,” said Haresh Chawla, a partner at True North, during a Business Insider Twitter Live. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[]]></cdata></div> Sirion Labs, a contract life-cycle management company that has clients like Vodafone, Unilever, Credit Suisse, and EY, agrees that experience is key. Just having the right set of skills is not enough. A potential employee must also know how to use those skills to get the job done. “When it comes to technical hires specialising in AI/ analytics/data science, we look for top talent with practical experience in NLP, streaming applications (Kafka, Rabbitmq), and programming languages such as Python and R,” explained the co-founder and CEO of SirionLabs, Ajay Agrawal. <cmsannotation type="cmsannotation" annotationid="Startups are pulling talent away from the bigwig MNCs" comment="subhead" text="Startups are pulling talent away from the bigwig MNCs">Startups are pulling talent away from the bigwig MNCs</cmsannotation> It’s not that traditional IT companies aren’t hiring for the same skills. They’re even giving out pay hikes to junior employees to keep them around for longer. But startups and small businesses are willing to offer more money. “I know for a fact that startups are paying more. They’re more discerning in terms of the kind of people they have. Their interviewing style is very different from an IT services company or even some of the MNCs that are out there,” said Lathika Pai, country head of venture capital (VC) and private equity (PE) partnerships at Microsoft. According to her, the keyword is ‘passion’. Startups are looking for young employees who aren’t working for money, but from the heart — people who want to shoot for the stars, not just the Moon. "More than the skills, it’s the mindset that differentiates engineers who ship great products. The ability to solve a problem for a customer and then do it at scale is what excites most SaaS engineers," Praval Singh, the vice president of marketing at Zoho Corp, told Business Insider. He estimates that there over 1000 SaaS companies in India. More than 150 have annual recurring revenue of more than $1 million. And, these companies are a hotbed for engineering talent. They have a healthy customer retention rate, which means they willing to shell out the big bucks because they know they will see higher revenue per employee as the business grows. “As far as salaries go, there is a higher percentile of companies in the SaaS space who offer more salaries, but that is linked to the skills and competencies required based on the type of work or role the employee is expected to play,” said Atlassian, one of the biggest software companies in the world. It is currently planning to recruit 300 research and development engineers in India over the next year. Every other company wants to build a mobile app so that they can reach customers on their smartphones. Cloud is the new mantra, and cybersecurity concerns are on the rise. And firms are on the hunt to secure the right talent, which also means paying out big bucks to keep others from poaching talent away. SEE ALSO: <a href="https://www.businessinsider.in/sports/news/jp-morgan-is-funding-european-super-league-of-chelsea-real-madrid-barcelona-and-others/articleshow/82143811.cms">JP Morgan is doling out billions to fund the ‘Dirty Dozen’ Super League — the biggest disruption in the history of club football</a> <a href="https://www.businessinsider.in/tech/apps/news/whatsapp-users-need-to-update-their-apps-and-report-malicious-links-as-new-malware-makes-the-round-and-cert-in-warns-of-multiple-vulnerabilities/articleshow/82140756.cms">WhatsApp under threat — multiple vulnerabilities in older versions of the app and a new ‘Pink’ malware on the prowl</a>

SaaS-y salaries are 30% more than traditional IT services — and they’re making it tougher for traditional IT service firms to find the right talent

Tata Consultancy Services has topped the <keyword id="28120" type="General" weightage="20" keywordseo="linkedin" source="Orion">LinkedIn</keyword>'s latest list of top companies to work for in India, followed by <keyword id="6370971" type="General" weightage="20" keywordseo="accenture" source="Orion">Accenture</keyword> and <keyword id="28721" type="General" weightage="20" keywordseo="cognizant" source="Orion">Cognizant</keyword> in the second and third place respectively. Professional networking platform LinkedIn on Tuesday released the 2024 Top Companies list for India wherein <keyword id="6357647" type="General" weightage="20" keywordseo="it-companies" source="Orion">IT companies</keyword> bagged the top three ranks, while <keyword id="6354241" type="General" weightage="20" keywordseo="financial-services" source="Orion">financial services</keyword> firms dominated the list with 9 out of 25 companies from this sector. The 8th edition has derived insights from LinkedIn data, and lists the top 25 large companies, 15 best mid-size companies, and provides insights on in-demand skills, top locations, and the largest job functions within these companies. Amongst large companies (500+ employees in India), Tata Consultancy Services retained its top spot this year, followed by Accenture and Cognizant. Continuing the trend from last year, financial services dominated the 2024 list with 9 out of 25 companies from this sector including Macquarie Group (4th place), Morgan Stanley (5th), and JPMorgan Chase and Co (6th), LinkedIn said. Software-as-a-service (SaaS) platform Lentra ranked first on the list of top mid-size companies list (250-500 employees), followed by Indian online travel platform MakeMyTrip. The list also featured fashion and beauty retailer Nykaa and fantasy sports platform Dream11, showcasing the wide range of opportunities available in diverse industries for job seekers in India. "The in-demand skills that the top companies are looking for in the financial services sector include investor relations, capital markets, and investment banking. Companies in the technology sector are looking for skills such as enterprise software, data storage technologies, software development life cycle (SDLC), and artificial intelligence (AI)," the data revealed. Revenue analysis, nonprofit management, and mobile application development are some of the other skills that are witnessing a surge in demand, it added. Silicon valley of India, Bengaluru was named the top location where these top companies are based and looking to hire talent, followed by Hyderabad, Mumbai Metropolitan Region, and Pune. LinkedIn said the ranking of companies is based on eight pillars that have been shown to lead to career progression such as the ability to advance, skills growth, company stability, external opportunity, company affinity, gender diversity, educational background, and employee presence in the country.

Tech firms TCS, Accenture, Cognizant lead LinkedIn's top large companies list

<ul><li>The demand-supply gap between fresh talent and the skill demands of the <keyword id="6368235" type="UNKNOWN" weightage="20" keywordseo="IT-services">IT services</keyword> industry is only going to increase in the coming days.</li><li><keyword id="43217" type="CITY" weightage="20" keywordseo="Tech-Mahindra">Tech Mahindra</keyword> points out that while skills are high in demand, clients are willing to pay a premium because the pace of change is so fast.</li><li>For now, talent availability is trumping the ‘rate discussion’ as clients look to speed up their digital transformation.</li></ul>Reskilling employees in the IT services sector is not a new phenomenon. However, since COVID-19 pushed so many businesses to expedite their digital journey, the demand for these skills is higher than ever. “I see some of the skills which are high in demand, but clients are willing to pay a premium because of the pace of change. What is impacting us, is also impacting our clients,” Vivek Agarwal, the head of corporate development and global head for healthcare and financial Services at Tech Mahindra told Business Insider in an exclusive interaction. A study by <a href="https://nasscom.in/knowledge-center/publications/futureskills-talent-india-demand-supply-analysis">NASSCOM</a> estimates that India’s demand for digital talents is around eight times larger than the size of its fresh talent pool. In another three years, this demand is expected to be twenty times greater than the available manpower. Analysts <a href="https://www.livemint.com/market/mark-to-market/tech-mahindra-s-stellar-margins-steal-the-show-but-may-not-sustain-11611933180424.html">caution</a> that hiring based on specific talents could come at a higher cost. This could possibly impact the stellar margins that Tech Mahindra has seen over the past two quarters. “Talent availability is trumping the ‘rate discussion’ right now for a lot of these ‘very much in demand’ skills,” said Agarwal. Tech Mahindra has four vertices in its line of sight According to Tech Mahindra’s CFO, Manoj Bhat, the company will be doubling down on four vertices — communications, manufacturing, healthcare and BFSI. “That is where our investments are going to be,” he told Business Insider. And, within these vertices, cloud, artificial intelligence (AI) and digital is where the company is looking for the right set of skills. “Full chain execution — where somebody can deliver a program effectively — is more important to clients than just finding the right individual talent,” explained Agarwal. More deals, more money, and the need for more talent According to Bhat, Tech Mahindra’s pipeline today may be at an ‘all time high’. “It’s a very big pipeline today. We should see acceleration of deal wins going into Q4 and beyond, hopefully,” he said. And, with more deal wins, having the right talent on hand is more important than ever. COVID-19 has highlighted the drawbacks of what happens when a business doesn’t go digital, which is why businesses want ways to access their customers in a manner that is not solely dependent on a physical connection, according to Bhat. “A lot of customers are also looking at total outsourcing in a very different manner, which will then allow them some sayings on their operational spends, which will help fund a lot of these initiatives,” he explained. On the one hand, talent is going to get more expensive as the demand-supply gap widens. But, at the same time ‘work from anywhere’ is going to help expand the fresh talent pool as Indian IT services companies like Tech Mahindra look to capitalise on the third wave of outsourcing. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/heres-why-indias-biggest-banking-stocks-went-nuts-today-and-what-they-missed/articleshow/80626013.cms">Here's why India's biggest banking stocks went nuts today — and what they missed</a> <a href="https://www.businessinsider.in/science/health/news/india-needs-a-regulator-for-private-hospitals-and-doctors-says-chief-economic-advisor/articleshow/80585394.cms">India needs a regulator for private hospitals and doctors, says Chief Economic Advisor</a> <a href="https://www.businessinsider.in/india/news/migrant-workers-to-get-minimum-wages-rental-homes-but-experts-unhappy-with-lack-of-mnrega-push/articleshow/80631215.cms">Migrant workers to get minimum wages, rental homes but experts unhappy with lack of MNREGA push</a>

EXCLUSIVE: Tech Mahindra CFO says talent is getting expensive but clients are willing to pay the premium

<ul><li>While the demand for IT services companies remains robust with the evolving digital environment, high attrition rates remain a top concern for IT firms.</li><li><keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword>, <keyword id="6354512" type="General" weightage="20" keywordseo="infosys" source="Orion">Infosys</keyword> and <keyword id="10862" type="General" weightage="20" keywordseo="wipro" source="Orion">Wipro</keyword> will together hire 1.53 lakh employees in FY22 to hedge against employees leaving.</li><li>Wipro’s attrition rate remains highest at 20.5% followed by Infosys at 20.1% and TCS at 11.9%.</li></ul>While the demand for information technology (IT) services companies remains robust with the evolving digital environment, a huge number of employees leaving these organisations remain a top concern for IT firms. Attrition rate of IT companies has been rising consistently and in-line with growing demand for digital talent. With the earnings results available so far for the September quarter, Wipro has the highest attrition rate, among IT firms, at 20.5% followed by Infosys at 20.1% and <keyword id="6357585" type="General" weightage="20" keywordseo="tata-consultancy-services" source="Orion">Tata Consultancy Services</keyword> (TCS) at 11.9%. <div type="image" title="attrition chart" height="900" width="1200" msid="87013677" hostid="261"></div> However, a report by human resource solutions firm TeamLease shows that the average attrition rate in the IT industry was at 8.67% in September quarter, far less than what the big IT firms have reported. One of the key concerns of IT employees for leaving an organisation is muted growth in increments followed by poor employee benefits, rewards, digital skilling and so on, shows a ‘compensation benchmarking survey’ by Deloitte India and software firms’ lobby NASSCOM. The average increments for the technology services sector in India dropped from 9.5% in 2019 to 5.2% in 2020, which later increased to 8.8% in 2021 due to higher attrition rate. Average increments are expected to go up to 9% to 11% in 2022, said the report. <div type="image" title="compensation" height="900" width="1200" msid="87013730" hostid="261"></div> IT companies are all set to hire in bulk from campuses as they struggle to retain employees with the increasing demand for digital talent. TCS, which has already hired 43,000 freshers in the first half of FY22, expects to hire another 35,000 in the next six months. This takes up the total count of FY22 to 78,000 new employees. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IT companies </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY22 hiring </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">45,000 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">30,000 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">78,000 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> “We believe this attrition level will continue for the next 2-3 quarters. Having said that, our strong employer brand and our robust talent acquisition and talent development models will help us significantly overcome the supply side issues…We will continue to hire more and more and keep the supply ready since our model is robust. The attrition level is definitely concerning, but we can manage through that,” said Milind Lakkad, global head of human resources at TCS, in a press conference post earnings. High attrition rate in some of the largest IT companies in the country is expected to continue for the coming quarters and so is the huge hiring process. “In order to harness the full potential of the market opportunity, we are expanding our college graduates hiring program to close to 45,000 for the year. Simultaneously, we continue to strengthen employee value propositions including health and wellness measures, reskilling programs, appropriate compensation interventions and enhanced career growth opportunities,” said Pravin Rao, chief operating officer at Infosys. TCS is one of the biggest employers in the country with 5.28 lakh employees as of September quarter. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Companies </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Total headcount </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">5.28 lakh </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2.79 lakh </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2.21 lakh </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>At 11:12 a.m., on October 14, shares of Wipro were up 7%, Infosys stock was up 2% and TCS stock was down by 0.8%. ALSO WATCH: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/videos/talent-from-large-it-firms-has-been-flowing-towards-indias-tech-startups/videoshow/87014361.cms">Talent from large IT firms has been flowing towards India's tech startups</a> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/ecommerce/news/three-unicorns-hundreds-of-crore-in-loss-and-very-little-market-share-whats-the-hype-around-online-car-retailers/articleshow/87012417.cms">Three unicorns, hundreds of crore in loss and very little market share — What's the hype around online car retailers?</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/infosys-wipro-vodafone-idea-and-other-hot-stocks-in-focus-on-october-14-as-results-season-heats-up/slidelist/87010496.cms">Infosys, Wipro, Vodafone Idea and other hot stocks in focus on October 14 as results season heats up</a>

India’s techies are leaving IT firms in hordes — Here’s why

<ul><li>The increase in US H-1B visa application rejection rates may mean that Indian tech giants will begin to acquire companies in the US according to Mohandas Pai, the former director of Infosys.</li><li>Hiring locally is expensive and still requires at least 60% of the workforce still needs to be upskilled. </li><li>IT companies have already shifted their business models with back end engineering in India, they will provide the requisite services through companies in the US.</li></ul> Indian IT companies are in serious trouble. The number of US visa rejections has <a href="https://www.zdnet.com/article/with-h-1b-rejection-rates-approaching-40-indian-it-will-urgently-need-a-new-service-delivery-model/">hit 40%</a>, and looking at the Trump administration's agenda <a href="https://www.businessinsider.in/us-immigration-denial-of-h1-b-visas-raises-legal-questions/articleshow/68844794.cms">going forward</a>, things are likely to become worse. Mohandas Pai the former CFO of Infosys and startup investor, shares that the option left with Indian IT companies is to acquire IT companies in the US. "The next phase will be that Indian IT firms will go acquire more companies in the US. And, those companies will have back end engineering in India," Pai told Business Insider. This will solve the problem of having engineers on-site. Companies can either acquire a local company or setup an office in Canada or Mexico. The actual software engineering will be still be happening in India where companies have abundant talent to tap. Can they ‘really' Hire American? A simpler way out of visa rejections mess would be hiring in the US. This move could also achieve what US President Donald Trump wanted to achieve in the first place with his aggressive ‘<a href="https://www.uscis.gov/legal-resources/buy-american-hire-american-putting-american-workers-first">Buy American and Hire American</a>' policy. Shivendra Singh, Vice President &amp; Head of Global Trade Development at industry body NASSCOM, believes that Indian IT companies should get skills, whichever way they can get them. Singh explains, "Firms can either upscale locally or bridge the sales gap by bringing in people on higher scales," adding, "You need upscale at least 60% of the workforce for them to perform on all cylinders. " But, this is much easier said than done. For one, it would drive down profit margins of Indian IT majors. Added to that, there is a dearth of engineering talent. "Firms are hiring locally but the talent is not available. Freshers are available but they have to be trained," Pai says. A good engineer from the Valley <a href="http://time.com/31617/here-are-the-15-highest-paying-companies-in-america/">costs</a> around $125,000- $150,000 per annum. That too, would be a fresher. "In fact, hiring freshers are cheaper than sending people from India." The problem with freshers is that they aren't flexible to go from place to place or work across different technologies. Unlike Indian IT professionals who have worked in India. Who will gain? As per experts, the Indian IT industry and their US companies, along with the US government in general, is looking at a lose-lose situation. Outsourcing to India provides a competitive advantage as they can perform the very same tasks at a better, faster and cost-effective manner. "Digital startups can afford to pay (high salaries) because they're swimming in a lot of capital, whereas manufacturing companies can't afford it. So, they need to get it done at a much more productive and cost effective level," says Pai. If Indian IT companies lose business, their US clients will also suffer as much. Indian IT firms contribute $58 billion to the US GDP, which is higher than six individual US states contribution according to NASSCOM. And, they work with more than 75% of the Fortune 500 companies — the majority of which are American enterprises. "The US administration does not understand that, with unemployment at 3-4% — there are no people. More and more companies will start to move their work offshore or nearshore," says Pai. See also: <a href="https://www.businessinsider.in/donald-trump-may-hike-h1-b-visa-fees-to-fund-national-skill-development-mission/articleshow/69216233.cms">Now, Trump administration wants to hike H1-B visa fees to train Americans in technology</a> <a href="https://www.businessinsider.in/us-immigration-denial-of-h1-b-visas-raises-legal-questions/articleshow/68844794.cms">US Immigration is denying more H1-B visas than ever before — without notice or authority</a> <a href="https://www.businessinsider.in/Spouses-of-H-1B-visa-holders-may-lose-work-permits-in-the-US/articleshow/63898572.cms">Spouses of H-1B visa holders may lose work permits in the US</a>

Rise in US H-1B visa rejection may force Indian tech companies to look at M&A

Indian <keyword id="6357647" type="ORGANIZATION" weightage="100" keywordseo="IT-Companies">IT companies</keyword> are likely to step up acquisitions to make their competitive position strong and boost growth, a report by <keyword id="572062" type="COMPANY" weightage="100" keywordseo="Standard-Poors-Ratings-Services">Standard &amp; Poor's Ratings Services</keyword> said on Tuesday. The report, 'Moderating Growth And Rising Cash Put <keyword id="30334" type="ORGANIZATION" weightage="100" keywordseo="acquisition">Acquisition</keyword>s On Indian IT Companies' Radar', identified two key drivers for acquisition - moderating revenue growth and access to new <keyword id="6355118" type="ENTERTAINMENT" weightage="100" keywordseo="technology">technology</keyword> and new markets or business segments. 

	"The high cash levels and low debt at Indian IT companies should help them seek opportunities to acquire larger companies than they have in the past, it said.
 

	However, it noted a drawback too - the limited track record of IT companies in making large acquisitions that can expose them to risks in integrating employees and businesses.
 "We expect the larger Indian IT companies to maintain their financial discipline and conservative leverage despite possible acquisitions. We also expect them to maintain their competitive edge on growth and margins over their global peers," said Standard &amp; Poor's credit analyst <keyword id="1510643" type="PERSON" weightage="100" keywordseo="Abhishek-Dangra">Abhishek Dangra</keyword>. 

	The report said increasing competition, a slowing global economy, and the already large scale of top Indian IT companies will result in moderate organic growth. 
 

	"We expect revenue growth for Indian IT companies to remain at 8-12% a year over the next one to two years," said Standard &amp; Poor's credit analyst Ashutosh Sharma.
 

	The rating agency said in its view, shareholder distributions by larger Indian IT companies are likely to remain moderate compared with their global peers. However, payouts by Indian companies are likely to be higher than historical levels, it added. 
	 
	(Image credit: BCCL)

Indian IT firms to step up acquisitions to boost growth: Standard & Poor Ratings report

BANGALORE: This is a landmark for Indian IT. The country's largest IT services provider, <keyword id="6357585" type="CITY" weightage="40" keywordseo="Tata-Consultancy-Services">Tata Consultancy Services</keyword> (TCS), has broken into the league of top 10 global IT services companies, moving from the 13th position in 2012 to the 10th spot in 2013. 
 
Twelve years ago, when TCS' revenues were about $1 billion, then CEO S Ramadorai had laid out a vision to be among the top 10 by 2010. It's taken a little longer, partly because of the global financial slump of 2008-09, but the company has now got there, and considering the pace at which it is growing compared to its global counterparts, the ranking could get better fairly quickly in the years to come. 
 
"Talk to any incumbent western service provider today, and the one making them all tremble from the sub-continent is TCS," writes Jamie Snowdon, executive VP of research operations at HfS Research, the consultancy firm that compiled the ranking. 
 TCS is estimated to have IT services revenues of $10.1 billion (out of its total revenues of about $12.5 billion). IBM ($54.4 billion), <keyword id="102186" type="CITY" weightage="40" keywordseo="Fujitsu">Fujitsu</keyword> ($32.1 billion), <keyword id="6528042" type="CITY" weightage="40" keywordseo="Hewlett-Packard">Hewlett-Packard</keyword> ($29.2 billion) and <keyword id="6370971" type="CITY" weightage="40" keywordseo="Accenture">Accenture</keyword> ($25.4 billion) lead the list. 
 
The research compares IT services, and excludes other areas such as BPO, R&amp;D services and software/hardware products. And it uses figures for the four quarters of calendar year 2013. TCS rose to the 10th spot displacing Montreal-based IT services firm CGI. 
 India-based companies Cognizant, Infosys, Wipro and <keyword id="28126" type="CITY" weightage="40" keywordseo="HCL">HCL</keyword> are at the 15th, 18th, 20th and 25th positions, respectively, all of them rising by one to three spots compared to 2012. HfS Research believes that Cognizant could be in the top 10 in the next 2-3 years, may be at the expense of US IT company CSC. CSC's revenues last year had dropped compared to the year before. 
 
On TCS, HfS says its aggressive targeting of renewals and new business, particularly in continental Europe, was an important factor in driving its assault on the leaders. TCS, it said, is frequently seen as being the most flexible service provider on pricing and terms, and has a developing reputation for winning any deal anywhere in the world at any price, if it really wants. 
 
"The firm is increasingly being perceived by many today as an alternative provider to the Western Tier 1s, that can come in and fix messy contracts and implementations; it has shown an appetite and willingness pick up a lot of the low-margin, low-value work that seemingly every Western Tier 1 wants out of and make the deals profitable and leverageable across clients," said Phil Fersht, CEO of HfS. TCS also has an extraordinary profit margin, something that's normally difficult to achieve in conjunction with high revenue growth.

Tata Consultancy Services Joins Top 10 Global IT Services Companies Club

<table>
<tbody>
<tr valign="middle">
<td>This post was originally published on <a href="https://www.openforum.com/articles/can-the-moneyball-method-help-you-hire-better-employees/">OPEN Forum.</a> </td>
<td><a href="http://www.openforum.com/"></a></td>
</tr>
</tbody>
</table><div class="image-container display-table"><div><div class="image"><a href="http://www.flickr.com/photos/eriatarka31/3539319357/">Gregory Tonon via flickr</a></div></div></div>There are several factors that can influence your hiring decision when <keyword id="6672143" type="UNKNOWN" weightage="60" keywordseo="interviewing">interviewing</keyword> candidates, such as the impression you get during an interview or what's on their resumes. Unfortunately, relying too heavily on either doesn't always result in the perfect fit for your company. Burned too many times, some employers are now using research and analytics to predict the best person for the job.
Michael Rosenbaum, president and founder Catalyst IT services, began using the "<keyword id="248886" type="ENTERTAINMENT" weightage="60" keywordseo="Moneyball">Moneyball</keyword>" method in 2001 as part of his company's hiring strategy. The <a href="http://www.businessinsider.com/big-data-in-the-workplace-2013-5" target="_blank">term Moneyball originates</a> from a statistical method that the Oakland Athletics baseball team used to build a winning team on a smaller budget by identifying undervalued talent. Rosenbaum did the same thing and relied more on the analysis of metrics than what was on a person's resume, and it worked to help him increase retention rates and hire better talent and. By analyzing up to 2,000 data points on a person, Rosenbaum says he can even know when an employee is ready to be promoted. 
We asked Rosenbaum how he did it, what kind of data he compiles and how he determines whether candidates will be a good fit before hiring them. 
BI: Why do you think the traditional interviewing method is so imperfect?
MR: The classic way of hiring is so subjective, because it tends to revolve around hiring someone similar to yourself. When I was 23, the person who hired me for my first job also went to The London School of Economics and I think that's the only reason I got my job. The idea is that people think that they're good at their jobs, so they want to hire someone who reminds them of themselves. However, teams work best when you have complementary skill sets on the team.
BI: What type of data do you look at?
MR: We collect traditional data, such as what's on an individual's resume and their social network, but we also look at things like how long someone spends filling out their online application, and we analyze their keystrokes. What you can get from analyzing large data sets can better help you understand how someone works and their productivity levels.
The time that candidates spend looking at individual questions and the number of keystrokes are only some of the variables that go into our algorithms for predicting high performance in individuals and teams. The complete set of data lets us predict not only high performance but also which teams will have compatible cultures and communication styles with particular kinds of clients. We use this approach for all of our engineering positions.
BI: What if someone takes a break in the middle of filling out their online application? Do you record that data? And how do you use it?
MR: If it turns out the data we compiled doesn't seem relevant when we compare it to everything else, we probably won't consider it.
BI: What kind of software do you use to collect the data?
MR: When we decided to use this method in our own company, we developed software that would allow us to use algorithms to find the best match. After some success, we spun out that software into its own company called <a href="https://w.peggedsoftware.com/Home.aspx">Pegged Software</a>, which launched in 2010 and is available for other employers. We're a software company so it makes sense that we wanted to develop our own software for hiring purposes to predict if someone's a good fit and how long they'll stay with us.
BI: What made you want to develop your own software? Did you have a string of bad hires?
MR: It’s actually the other way around. Catalyst was founded around the idea of using data rather than resumes and interviews to identify high performing individuals and teams more effectively; the focus on IT services came after. The spark for this was my observation that resumes communicate a set of signals that may or may not predict success, and they are the core of a labor market that is very inefficient. I felt that if we could use data rather than subjective perception to assemble teams we could achieve much higher levels of performance. I then received an Irving R. Kaufman Fellowship to help support building the first version of what is now Catalyst’s analytics engine for talent selection and team assembly.
BI: Is hiring all metric-based? What percentage depends on interview or resume?
MR: A large portion of hiring is metrics-based. We will likely hire 150 people in the next year, and in order to do that we will evaluate 10,000 people. Data will narrow that 10,000 down to 300 or so, and the 300 will be interviewed to select 150.
The hiring is not all metric-based ... but when incorporating data into the equation, the entire hiring process becomes much more efficient.
BI: How accurate are you at predicting how long someone will stay?
MR: Our voluntary turnover rate last year was 5.8 percent and our involuntary turnover rate was 9 percent. In the software development space, turnover is typically 30 percent.
SEE MORE ON OPEN FORUM: 
<ul>
<li>
<a href="https://www.openforum.com/articles/7-powers-leaders-can-use-for-good-or-evil/">7 powers leaders can use for good or evil &gt;</a>
</li>
<li>
<a href="https://www.openforum.com/articles/4-good-reasons-to-fire-an-employee/">4 signs it's time to fire an employee &gt;</a>
</li>
<li>
<a href="https://www.openforum.com/articles/5-ways-productive-under-pressure/">5 ways to be productive when the pressure is on &gt;</a>
</li>
</ul>

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