Everything happening in the IT sector (28/05/'24)
Personally curated list of news happening in the IT sector
Dear Readers,
Below you can find everything that transpired in the IT world in the recent days. First things first, not the best day for NIFTY IT index today. 📉📉📉📉 It was a volatile trading session for Indian Indices undergoing consolidation.
Infosys Achieves Cisco Gold Provider Status Worldwide: Infosys has been awarded Cisco’s Gold Provider status for its expertise in delivering Cisco technology solutions and transformation services globally for over 25 years. This recognition highlights Infosys' capability in leveraging Cisco technologies and its Infosys Cobalt offerings to enhance enterprise performance, security, and operational efficiency.
Read here: Link
Infosys CEO confirms no job cuts!: Infosys CEO Salil Parekh confirmed that the company will not implement job cuts amid broader tech industry layoffs due to advancements in generative AI. Instead, Infosys will focus on integrating new technologies and creating opportunities, maintaining a flexible hiring strategy while continuing to develop expertise in generative AI.
Read here: Link
Infosys Among Top Contenders for Government's New KYC Repository:
Infosys is a leading contender for the Central Registry of Securitisation Asset Reconstruction and Security Interest of India's (CERSAI) tender to develop CKYCRR 2.0, an advanced and scalable central KYC record repository. The project aims to migrate citizen data to a more robust system, enhancing compliance, fraud detection, and user access to KYC records. Read here: Link
Expensive Visas for Indian IT Workers Not in US Interest:
The US has sharply increased H-1B visa fees, potentially deterring Indian IT firms from bringing foreign workers to the US. Despite political claims, immigrants complement native workers and boost the US economy by filling critical skill gaps in STEM fields, enhancing competitiveness, and fostering innovation. Read here: Link
Coforge Allots 48.69 Lakh Equity Shares Under QIP Issue:
Coforge has allotted 48,69,565 equity shares to 143 qualified institutional buyers at Rs 4,600 per share, raising Rs 2240 crore through a Qualified Institutions Placement (QIP) issue. This increases the company's paid-up equity share capital from Rs 61.82 crore to Rs 66.69 crore. Read here: Link
Indian IT Companies Boost Revenue with Generative AI Integration:
Indian IT companies currently derive an estimated 1-3% of their revenue from generative AI, with this figure expected to grow. Coforge has developed an AI platform, Quasar, powered by 23 language models, including OpenAI’s GPT series and Google's Gemini, offering over 100 solutions and capabilities. Quasar's applications range from document processing to contact center automation, enhancing customer onboarding and operational efficiency. Despite challenges in AI adoption and change management, generative AI is becoming integral to IT services, with firms like Coforge leading in innovative deployments. Read here: Link
Indian IT Companies Reduce Freshers Hiring Amid Tech Spend Slowdown:
Facing macroeconomic uncertainty and a slowdown in tech spending, Indian IT services companies have reduced campus visits and freshers hiring, leading to a shrinking base of young, less expensive employees. Both TCS and Infosys reported a significant decline in the share of young employees in FY24. With a tech spend revival expected later this fiscal year, the share of young employees is anticipated to increase next year, potentially boosting operating margins. Read here: Link
That’s it folks for today. Hope you all got some insights into the latest chirps in the IT sector. If you’re new here, and enjoyed reading it, please consider subscribing to the substack. I do company analysis, earnings analysis and very soon will be publishing a primer on IT sector.