Global Business |Update|
(A weekly update on Global Business )
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Issue 5

 A. Global Environment


1.EU markets row overshadows summit
The two-day meeting was supposed to focus on economic co-operation and reform but is likely to be overshadowed by a simmering row over protectionism. France and Italy have clashed over a deal to merge two French energy firms, which critics say thwarts competition. Italy has failed to persuade EU leaders to issue a declaration condemning so-called "economic nationalism". But Italian Prime Minister Silvio Berlusconi is still expected to call for countries to uphold the rules of the single market and not protect firms from foreign takeover - putting him on a possible collision course with French President Jacques Chirac.President Chirac is expected to mount a staunch defence of France's policy of giving firms in key sectors of the economy - such as defence and energy - extra legal protection from takeover. This policy - dubbed "economic nationalism" - has been criticised by European Commission President Jose Manuel Barroso among others. He has called on EU governments - several of which have openly opposed foreign takeover deals in the steel, banking and energy sectors - to tone down nationalist rhetoric. EU leaders had been hoping to push the dispute to one side, focusing instead on issues such as energy co-operation and measures to increase youth employment.
www.bbc.com 18 march 06

2.Japanese trade back in the black
Japan's trade balance returned to surplus in February but the high cost of oil imports continued to be felt. Japan posted a surplus of 955.7bn yen ($8.17bn; £4.6bn) last month, as exports to China and the US improved. The surplus, although slightly lower than market expectations, marked a return to the black after Japan saw a surprise 348bn yen deficit in January. This was largely due to the Lunar holiday season and high oil prices, although the latter remain a factor. Although an improvement on January's figures, February's surplus was 12% lower than in the same month last year. The value of exports rose a healthy 21% year-on-year to 5.8 trillion yen, as trade to other Asian economies picked up and Japanese cars continued to prove popular in the US. Imports rose faster, however, gaining 30% to 4.89 trillion yen on the back of higher oil costs. Japan's deficit with China fell to $97.4m in February - 90% lower than this time last year - while its surplus with the US rose 9.6% to $6.3bn. The Japanese economy has recovered over the past year, boosting domestic demand and improving the outlook for exporters. The Bank of Japan recently announced plans to tighten its longstanding 'ultra-loose' monetary policy, indicative of the upturn in output. "Exports are improving but oil prices continue to keep import prices high," Soichi Okuda, senior economist at Sumitomo Shoji Research, said of the latest figures.
www.bbc.com 23 march 06

3.EU adopts shoe dumping penalties
The European Union (EU) has finally adopted duties on shoe imports from China and Vietnam in a dispute over alleged dumping of cheap footwear. The announcement came after a vote by trade officials from the 25 EU nations earlier this month highlighted divisions over the planned tariffs. While Italy and Portugal wish to protect their own shoe firms, others like the cheaper Far Eastern imports. But the European Commission voted in favour of the measure on Thursday. In a statement, the EU's executive body said that it had "identified clear evidence of disguised subsidies and unfair state intervention to the leather footwear sector in China and Vietnam". Trade Commissioner Peter Mandelson has proposed duties of 16.8% against Vietnam and 19.4% on China to be phased in over five months, starting at 4% in April. Mr Mandelson said that tariffs were necessary to correct the damage that cut-price shoe imports were doing to EU firms. But he added: "It is important that we act against unfair trade while encouraging legitimate and competitive trade from emerging economies. "We do not target China and Vietnam's natural competitive advantages, only unfair distortions of trade." China has urged the EU to reconsider its action, saying the planned measures are unfair.
www.bbc.com 23 march 06

4.Leading economic indicators fell in Feb. Decline was slightly less than economists' forecasts
A closely watched gauge of future economic activity declined slightly in February following a sharp rise in January, a private research group said Monday.The decline, which follows four months of gains, suggested to some analysts that the nation’s economic growth will slow in the second half of the year.The Conference Board said its Index of Leading Economic Indicators fell 0.2 percent in February, following a revised 0.5 percent rise in January. The January increase had initially been reported at 1.1 percent.Economists on Wall Street had expected the index to decline 0.3 percent in February.The Conference Board said its coincident index, a measure of the current economy, rose 0.3 percent in February, following no change in January and a 0.4 percent increase in December.In the latest report, the largest negative components were consumer expectations, building permits and stock prices. The positive components included manufacturers’ new orders for non-defense capital goods and orders for consumer goods and materials.
20 march 06 msnbc.com

B. Global Markets

5.Jitters about interest rates weigh on stocks Greater-than-expected decline in weekly jobless claims also weighs
Wall Street had a renewed case of interest rate anxiety Thursday, with stocks falling on strong economic news and a jump in oil prices that heightened worries about inflation.A 5.2 percent upswing in monthly sales of existing homes eased worries about a slowdown in the housing market but fed fears that the Federal Reserve will continue boosting interest rates to stave off price inflation. The Fed’s Open Market Committee meets next week.Investors also fretted about a Labor Department report that 302,000 workers applied for jobless benefits last week, down 11,000 from the week before and marking the first decline in a month. The implied job growth added to Wall Street’s inflation and interest rate concerns.The unemployment numbers “increase the probability the Fed will make its way back to 5 percent,” said Robert Tipp, chief investment strategist for Prudential Fixed Income.The Dow Jones industrial average was down 47.14 points, or 0.42 percent, at the close. On Wednesday, the Dow rose 81.96 points, or 0.73 percent, to its highest level since May 21, 2001.The broader Standard & Poor’s 500-stock index fell 3.37 points, or 0.26 percent, while the Nasdaq composite index, full of technology stocks, closed the day down 3.20 points, or 0.14 percent.
Msnbc.com 23 mar 06

6.Indian shares power past 11,000
India's main stock market has passed another major milestone, scaling the 11,000 mark for the first time ever. The landmark level was reached less than six weeks after Indian shares broke through the 10,000 barrier. Strong economic growth and increased interest by foreign investors in Indian firms have underpinned the market's performance in the past two years. After touching a 11,017.25 high on Tuesday, the benchmark Sensex share index closed down slightly at 10,905.2. The index passed the 10,000 mark for the first time as recently as early February, and has risen 17% in value so far this year.
The previous year had seen share prices increase by 42%.
Analysts said they expected the market to continue growing, bolstered by widespread faith in India's ability to maintain its outstanding economic growth of recent years. "This is a no-sell market with strong fundamentals, sustained domestic buying and retail appetite in equities keeping stocks buoyant," said Rajesh Jain, a director at Pranav Securities.
www.economic times.com 20 mar 06

7.Google to join the ranks of the S&P 500
Shares in Google, the internet search group, jumped more than 8 per cent in after-hours trading on Thursday after Standard & Poor's, the credit ratings agency, said it would add it to its S&P 500 index of stocks.Inclusion in the S&P 500 marks the latest milestone in Google's meteoric ascent from Silicon Valley upstart to one of the business world's most influential companies.It is likely to trigger a temporary spike in demand for Google's shares as fund managers whose strategies rely on tracking the benchmark stock index rush to add the company's stock to their portfolios.The sharp rise in Google's share price followed a dismal few weeks for the company on the stock market.Google shares have fallen more than 25 per cent since they hit a high of $475.11 in January, amid concerns about privacy, click fraud and the potential for slower revenue growth.However, they have increased in value more than fourfold since Google made its stock market debut at $85 in 2004. Last month, George Reyes, Google's chief financial officer, triggered a sell-off after he warned that the company would have to find new ways to boost revenue to stave off slower revenue growth.
www.msnbc.com 23 march 06

C. Global Corporate

8.Chancellor plans big asset sale
Nuclear power group British Energy and the Tote bookmakers will be sold off as the government looks to raise billions of pounds from state-owned assets. Its 65% stake in British Energy could be worth up to £10bn, especially if the firm gets the green light to operate new power stations in the UK. The Tote is scheduled for sale by the end of the next financial year, and could raise an estimated £500m. The privatisations will help fund Gordon Brown's budget spending plans. "The Chancellor is looking at selling any assets he can find," said Justin Urquhart Stewart from Seven Investment Management. "He is looking to sell various state assets that can bring in a bit of lucre and prevent him having to borrow any more and break his Golden Rule." The Government is already part of the way through a £30bn programme of boosting the Treasury's coffers by selling off state assets such as surplus property and land. British Energy generates more than 20% of Britain's energy through one coal-fired power station and eight nuclear ones. It was privatised in 1996, but nearly went bust in 2002 as it was hit by a fall in wholesale power prices. It was bailed out by the government, which took a stake before British Energy relisted on the Stock Exchange last year. Mr Brown said the decision to sell the stake in British Energy would not be taken until after a government study had reported its findings on whether Britain should commission a new series of nuclear power stations to replace its ageing ones.
www.bbc.com 23 march 06

9.Samsung men 'admit' price fixing
Three executives at Samsung Electronics have agreed to plead guilty on charges of conspiring to fix the price of computer memory chips. The three men each agreed to serve terms of between seven and eight months in prison and to each pay a fine of $250,000 (£143,000). The long-running US government probe has resulted in more than $731m in fines against 12 people and four firms. These included Samsung, Elpida Memory, Infineon and Hynix Semiconductor. The US government said a price fixing conspiracy had driven up the price of DRAM chips, the most commonly used product for storing and retrieving information in computers and electronic devices. Companies such as Dell, Hewlett-Packard and IBM said they had to raise PC prices or limit the amount of memory installed on their systems to offset the higher costs of computer chips. The Korean Samsung executives who agreed to the guilty pleas were Sun Woo Lee, senior manager of DRAM sales, Yeongho Kang, associate director of DRAM marketing for Samsung's US arm and Young Woo Lee, sales director for its German division.
www.bbc.com 20 march 06

10.General Mills profit rise, sales up 3 pct
General Mills Inc., maker of Cheerios cereal and Progresso soup, on Thursday reported higher quarterly earnings as higher sales offset increased fuel, packaging and marketing costs.Net income for the third quarter was $246 million, or 68 cents per share, compared with $230 million, or 58 cents per share, a year ago.
Wall Street analysts had expected the No. 2 maker of breakfast cereal to report earnings of between 63 cents and 69 cents per share with an average view of 65 cents per share, according to Reuters Estimates.Total sales rose 3 percent to $2.86 billion.Like others in the packaged food industry, the No. 2 maker of breakfast cereal has been hit by soaring prices on commodities like sugar, soybeans and energy. To help alleviate the impact of some of those increases,General Mills last year raised prices on its Big G cereals, which include Cheerios, Wheaties, and Lucky Charms, a move that led to market share losses to rival Kellogg Co. Since then, Big G volumes have improved, in part because General Mills increased marketing activity.For fiscal 2006, General Mills said it still expects to earn between $2.80 per share and $2.85 per share, including about 8 cents of dilution associated with accounting for contingently convertible debt. Excluding that item, the Minneapolis company expects to earn $2.88 per share to $2.93 per share.Analysts, on average, are expecting earnings of $2.93 per share, according to Reuters Estimates.
Reuters 16 March 06

11.Navistar CEO says '06 truck orders incredibly strong
Navistar International Corp., the Warrenville, Illinois-based truck manufacturer, said on Wednesday it is experiencing a spike in orders for heavy-duty trucks as customers rush to buy equipment before tough new U.S. emissions laws take effect.In an exclusive interview with Reuters, Chief Executive and President Daniel Ustian said Navistar was seeing a surge in so-called "prebuying" by fleet operators worried about the cost and reliability of the engines being introduced to comply with the stringent clean air rules that take effect in 2007."The orders are incredibly strong," Ustian told Reuters. "They surpassed anything I imagined."Ustian made his comments at an invitation-only world premiere of Navistar's new ProStar heavy duty truck at the Mid-America Trucking Show here -- the company's first launch in the Class 8 market in 33 years.Ustian and other top executives have been largely silent since mid-January, when Navistar said it would not file its form 10K annual report with the U.S. Securities and Exchange Commission on time.Navistar blamed the delay on a disagreement with its auditors at Deloitte and Touche over "complex and technical accounting issues." It suggested the issue was exacerbated when a key member of Deloitte's audit team who was more familiar with Navistar's finances went on an unexpected, extended medical leave.
Reuters 16 March 06

12.Microsoft delays launch of Vista
Microsoft plans to delay the consumer launch of its much-anticipated Windows Vista operating system to January 2007. It had originally aimed to launch Vista - the first major update since Windows XP was introduced five years ago - in the second half of 2006. Now, a version will be available for corporate customers from November 2006.
Vista will then be rolled out for consumers after the holiday shopping season, said a spokesman for Microsoft - the world's biggest software maker. But analysts said this could throw some PC manufacturers and retailers into turmoil.
"It's not the optimal situation, to be launching the next-generation version of Windows right after the big holiday sales season," said analyst Joe Wilcox at Jupiter Research. Efforts to improve security in the new system were largely behind the delay, Microsoft said. Microsoft is planning six versions of the next incarnation of its Windows operating system. Three versions of the software, called Vista, will be for home users, two will be for businesses and one will be for emerging markets.
Vista, which was known as Longhorn during its long development, is a major re-working of Windows that makes changes, among other things, to the way the operating system looks and how it handles networking and sound.
Microsoft said the six versions were designed to match the demands different users have for its software.
www.bbc.com 19 march 06

13.Harley-Davidson rumbles into ChinaIconic motorcycle maker to open Beijing showroom in early April
Harley-Davidson Inc. will open its first dealership in China next month, marking its entry into the burgeoning economy.Beijing Harley-Davidson, partnered with dealer Beijing Feng Huo Lun, will open in early April, the Milwaukee-based motorcycle manufacturer said Thursday."The quality of the Beijing Harley-Davidson dealership experience will be first-class in every respect," said David Foley, the company's managing director in China. "Customers will get a real understanding and appreciation of the Harley-Davidson lifestyle. This will mark the motorcycle maker's first retail outlet in the country since at least World War II.The new dealership will be in Beijing's Fourth Ring Road, just outside the downtown area, and just within limits of motorcycle operation. Motorcycles may not be operated within the city's Third Ring Road, a 30-mile highway that encircles the center of the city.The dealership will have 14 staff members initially and be headed by Feng Huo Lun's founder, owner and executive director Wan Jidong. Foley said Wan and his management team are passionate about riding motorcycles and understand the market in China.The dealership will sell several makes of Harley-Davidson motorcycles, parts, accessories, merchandise and collectibles. Sales and service will be offered, as will rider training and events including organized rides.
www.msnbc.com 23 march 06

14.GM sells property finance group
US car giant General Motors (GM) says an investor group has bought a majority stake in property firm GMAC Commercial Holding, from GM's financing arm GMAC. GMAC sold 78% of its equity in GMAC Commercial Holding in exchange for more than $1.5bn (£0.86bn) in cash, GM said. And GMAC Commercial will repay its GMAC parent about $7.3bn, bringing total proceeds from the deal close to $9bn. The buyers are led by Kohlberg Kravis Roberts, Five Mile Capital Partners and Goldman Sachs Capital Partners. GMAC Commercial Holding will change its name to Capmark Financial Group, with the name change to be fully implemented in the second quarter of this year, GM said. GM has been seeking funds to aid its continuing turnaround efforts. The carmaker, undergoing a painful restructuring, had previously hoped to sell a 60% stake in the property financing unit. Last year, GMAC earned $2.8bn, compared to GM's overall loss of $8.6bn.
www.bbc.com 23 march 06

15.Dell launches Alienware invasion
The world's largest computer maker Dell is buying gaming-computer firm Alienware whose PCs are famous for their "Alien" UFO style look. Texas-based Dell said Alienware would operate as a standalone division, keeping its brand name. Alienware, based in Miami, was founded in 1996 by Nelson Gonzalez and Alex Aguila, two friends from childhood, who will continue to run the company. The deal gives Dell a leg up into the lucrative computer gaming market. But Dell did not disclose the financial terms of the deal. Alienware is expected to have a turnover of $225m (£128m) this year, up from $172m in 2005. This huge growth potential is attracting big firms into the video gaming PC market. Dell revamped its XPS line in 2001 to feature high-powered, high-priced computers in a bid to compete more effectively with companies like Alienware and Voodoo. In January this year, Dell's chairman Michael Dell announced an aggressive push into consumer electronics on the basis that about 20% of PC users use games too. "This is good news for Dell's consumer market," said Ted Schadler of Forrester Research. "It is kind of re-upping Dell's commitment to that market."
www.bbc.com 23 march 06

D. Global outsourcing

16.US must focus on STEM to stem erosion of competitiveness
Global sourcing has brought the focus back on attracting more American students to study STEM, if the country wants to stem the erosion of its global competitiveness! Well, STEM stands for science, technology. engineering and math. According to experts America must at a minimum double the number of STEM graduates, from approximately 430,000 to 860,000 over the next 10 years, or risk losing ground to global competitors.
The lead in technology that America has enjoyed over the years is gradually giving way to a level playing field thanks to the huge number of STEM graduates that are being produced by countries such as China and India. As national barriers disappear and more and more companies adopt a global hiring policy, the need for America to have its own large pool of skilled workers becomes more and more important.

17.U.S. Banks Outsourcing Work Overseas
Zak Mann banks the modern way. He gets his cash from the ATM and checks his bank statement online."That's really how it's the most convenient," says Mann.
But he had no idea about the latest trend his bank is using -- outsourcing work overseas. "I was not aware," he says.It turns out that many of the top U.S. banks are now hiring people in countries like India to fill data entry and technical support jobs with the hope of saving money.But consumer advocate Beth Givens says bankers need to beware."The person on the other end of the line is likely to have very sensitive information, your account number, your social security number, the types of accounts you have, the way you use your accounts," says Givens, of Privacy Rights Clearinghouse.Even government regulators say the practice can be risky. The reason: background checks are standard in the U.S., but the ability for banks to obtain that information in other countries is questionable."They may not really know who is working for them," says Givens. "There could be a higher risk for fraud."
Just last year, employees of an Indian company were arrested for allegedly stealing hundreds of thousands of dollars from Citibank customers.The banking industry says cases like that are rare and insists your money is safe. And if fraudulent activity did occur, you'd get your money back.
www.offshorexperts.com Mar 16, 2006

18.Outsourcing is not unstoppable, group says
A fair-trade organization talks to 100 Oregonians about losing their jobs to overseas competition Globalization: It's one of those words that tends to wash right over us. Depending on whom you ask, it means growing international economic interdependence (International Monetary Fund), freeing individuals and companies to initiate international economic transactions (World Bank) or shifting toward an international economic system dominated by corporate institutions that are not accountable to a democratic process with environmental or labor standards (The International Forum on Globalization). But for people such as Ben Joy, who once worked at InFocus in Wilsonville, the definition of globalization is closer to home -- it's a large part of what cost him his job. Last October, after nine years in product management, Joy lost his job when InFocus outsourced manufacturing, engineering, research and development jobs to Malaysia and China. He wasn't alone: InFocus laid off 25 percent of its employees last fall. Joy, who subsequently became director of product marketing for Clarity Visual Systems in Wilsonville, is now with Barco Medical Imagining in Portland. He doesn't blame InFocus. "The globalization and outsourcing of my job was inevitable," he says. "If you want to compete on a worldwide scale and be a leader, you have to refine your business model." This sense of resignation seems pervasive among workers in the high-tech and manufacturing sectors, industries increasingly subject to the whim of international economics, according to interviews that the nonprofit Oregon Fair Trade Coalition conducted with Oregonians. "At times you worry about losing your job because the industry is so volatile now," says Cliff Banta, a sales representative at Coe Manufacturing Inc., an engineered wood products company in Tigard.
www.offshorexperts.com Mar 16, 2006

19. Micro Technologies: Outsourcing strategy
Brics PCG Research, in its company update on Micro Technologies, recommends a "buy". The report states that there has been a shift in the company's strategy towards outsourced manufacturing. The company's focus is on R&D. Its core strength lies in developing new applications and enhancing the existing ones. Over the years, it has developed a range of innovative products that are now receiving market attention. The company now intends to focus on R&D for new product development rather than product manufacturing. It has partially outsourced the manufacturing of VBB devices to two vendors. It now manufactures only the core chip software for this product, which is then sold to the vendors. In the past few months it has formed a technological alliance with Sony Ericsson for developing high-tech wireless products. However, the company is research-centric, which suggests that not every product that it develops would be marketable. There could be instances where the investments made on research may fail to yield any returns.
NIIT Technologies: Vertical focus:Emkay Research, initiating coverage on NIIT Technologies, recommends a "buy". The company offers application development and maintenance, enterprise solutions and BPO services with focus on the banking, finance, insurance, transportation and retail segment. ts focus verticals contributed to 66.2 per cent of FY06E sales as against 52.8 per cent in FY04, reporting 24 per cent CAGR. However, revenues from other verticals declined from 45.4 per cent of sales in FY04 to 34 per cent in FY06E. The report expects a decline in its other verticals to stabilise and the focus verticals to grow at a CAGR of 20 per cent over FY06-08E. Its revenues are expected to grow at a CAGR of 15.6 per cent to Rs 808.4 crore.
www.offshorexperts.com Mar 21, 2006

20.Global BPO market up 33% in 2005 :India continues to be one of the fastest growing IT and telecom markets: IDC
The global BPO marketplace had a rocking 2005, experiencing a 33% increase in the volume of deals signed, according to research analyst firm IDC. While mega deals represented a mere 3% of all BPO deals, the majority of the deals were under $1 billion. India continues to be the favourite outsourcing destination with one of the highest spends on IT and telecom. "Growing at 24% per annum, the Indian IT market is expected to move up to 14th position in 2008 from 21st position in 2003," IDC said The report covered major Indian IT companies like Cisco, HCL, HP, IBM, Infosys, Microsoft, NIIT, Oracle, Satyam, Sun Microsystems, TCS and Wipro. 2005 saw an increase in the number of specific BPO deals, particularly in the financial services and government verticals. The major BPO deals in the financial vertical in India were the TCS-Pearl deal ($848 million) and the ABN Amro contract to TCS ($260 million) and Infosys ($140 million). Oracle's acquisition of 41% stake in I-Flex is also a case in point. Globally, the major BPO deals were the $1.6 billion Atos Origin's contract with the UK's department of health and the $719 million BPO contract by Banco do Brasil to IBM. The growth continues in 2006, too. Recently, General Motors announced a $7.5 billion outsourcing contract. Indian IT majors like Wipro and Satyam also benefited through subcontracts of the mega deal. PCs, storage systems, mobiles, PDAs, digicams, software, telecom and data communication continue to be the hottest. They are driving a boom in India's IT spend.
www.offshorexperts.com Mar 19, 2006

21.Analysis: Indian IT mart booming says NASSCOM IDC
Information technology isn't simply a big export for the Indian economy. The surge in the domestic economy has meant that demand for IT services within India's own borders is becoming a money-spinner too, including multinationals such as IBM and HP. Until now, call centers and other technology "has been associated only with export, but there is huge opportunity waiting to be tapped as globalization demands higher efficiencies and competitiveness from Indian businesses," said Kapil Dev Singh, country manager, IDC India, adding, "Domestic demand for IT in India is witnessing a gradual transformation from being predominantly hardware driven towards a solutions oriented approach resulting in a growing emphasis on services." According to a joint study by NASSCOM, the local IT lobby, and IDC India entitled "Study on the Domestic Services (IT-ITES) Market Opportunity," revenue growth in the services sector has been faster than that for the overall domestic IT market (including hardware, software and services) over the past few years." Indeed, over the last decade, even as India's IT services sector has grown to be a role model globally for its outsourcing services, the sector has thrived primarily on exports. And unlike China, which has a burgeoning domestic IT market but little exports of IT services, the domestic IT services market was hardly a story worth talking home. "It is against this backdrop of the increased interest in the domestic IT services market by major IT vendors that has been fuelled by high value deals, NASSCOM commissioned IDC India to conduct a base line research study," said NASSCOM.
www.offshorexperts.com Mar 21, 2006

22.Convergys Joins the "BPO Services Powered by SAP" Partner Program
Convergys Corporation, provider of call center outsourcing, customer care and billing services announced today it has been accepted into the "BPO Services Powered by SAP " partner program.SAP, which provides businesses software solutions that improve overall customer care and business operations is hosting the SAP BPO program along with other partners to support businesses in the setup and maintaining of their outsourced services. Qualified partners have met SAP requirements to ensure optimum service is always being delivered. Extending on a 10-year relationship with SAP, the new partnership will allow Convergys  to further expand its Employee Care business which serves more than 3 million people each year. In the partnership Convergys will integrate its HR technology platform for Human Resource Outsourcing into SAP's solutions and provide businesses with the tools they need to properly and effectively outsource their business processes. The BPO services will be powered by SAP and their NetWeaver platform and according to a recent news release, Convergys and SAP will also work together in the partnership to "improve the standization of quality business processes, increase efficiencies, and utilize best-of-breed processes while reducing risk and operation costs."
www.offshorexperts.com Mar 21, 2006

23.Infinite Plans Expansion In India :Enters Hyderabad with the acquisition of Datagrid.
Infinite Computer Solutions (I) Pvt. Ltd. has acquired the Hyderabad-based Datagrid Services Pvt. Ltd., making it a wholly-owned subsidiary. This strategic investment will enable Infinite to augment its BPO services, especially in the healthcare, BFSI and legal services verticals, and broaden its reach across the globe. The acquisition is part of the company's growth strategy to be a $300 million organisation by 2009."Acquisition of Datagrid Services will help us consolidate our position in the healthcare, financial and legal services space, and give us a much needed fillip. Infinite has been allotted six acres of land in Hyderabad and will be setting up a delivery centre soon. We have major expansion plans in the country and our focus on Hyderabad is a step in that direction," said Upinder Zutshi, CEO, Infinite Computer Solutions.Prasad, founder-director, Datagrid services, said, "Infinite is amongst the leaders in the IT services space and by coming together, we will be able to leverage their reach and position to establish ourselves as a leader in the KPO space."Krishna Kottapalli, VP and head of BPO sales, Infinite Computer Solution, commented, "Datagrid's capabilities will complement our existing strength in BPO, while enabling us to deliver to our customers through integrated offerings."
 www.offshorexperts.com Mar 23, 2006

E. Global Technology

24.Sony gears up PS3 online network
Sony has outlined plans for its new online gaming service for its forthcoming PlayStation 3 (PS3). The service will allow users to download games and other content direct to the console's hard drive. When it is launched in November, the online offering will seek to rival Microsoft's Xbox Live network. The details were revealed at the Games Developers Conference in San Jose, US, which brings together game developers, academics and business executives. The service was announced by Phil Harrison, president of worldwide studios for Sony Computer Entertainment at the event. Known as the PlayStation Network Platform, it will allow gamers the opportunity to purchase entire games, doing away with the need for games discs and retailers. The basic service will be free and will also allow users to chat and send e-mails. Sony is expected to charge for premium offerings, much like Microsoft charges a monthly subscription for some Xbox Live services. Unlike previous online services for PlayStation, Sony will develop and run the network in-house. Games developers will then offer their content over the network. Online distribution is seen as a necessity for any next generation console. On Tuesday, Microsoft said that downloads for its Xbox 360 console, which went on sale late last year, had already sped past the 10 million mark. More than 85% of Xbox 360 consoles that are connected to the net have downloaded games, trailers and videos from the subscription service, said the software giant. Sony will be hoping for a similar success. However the electronics giant was recently forced to postpone the launch of its latest machine. Technical hitches with the console's Blu-ray disc drive meant it will not ship worldwide until late November. When it finally enters the market place the PS3 will be one of three new gaming consoles that promises cutting edge processing and graphical power. The Xbox 360 is already available and Nintendo's Revolution is due later this year.
www.bbc.com 23 March 06

Compiled by Madhur Ajmani
(Faculty Member)

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