epages News [Software Companies, December 2004]

• Information Technology scene looks bright
• Satyam’s sponsored ADS issue gets Board approval
• Back to Software Companies Archives

Information Technology scene looks bright

Dec 08, 2004: With plenty of openings well-aided by a quantum leap in information technology solutions, Nasscom chief Mr Kiran Karnikhas predicted a bright future for India. Earnings from the sector is all set to cross the $15 billion mark this year, with an estimated 30-32% jump each year.

Despite the positive outlook, there remains several problems faced by the sector, foremost being the infrastructure weakness followed by appreciating rupee value,skilled human resource backlog & security issue. Also, rising competition from nations such as Philippines, Russia, China, Ireland, Brazil, etc should keep India on its toes and better its performance.

The rupee appreciation is a critical factor & Mr Karnik disclosed that the issue has been talked over with the Government & urged for a slower appreciation since a greater one nullifies nation’s earnings from IT sector. About 30% export earnings from the USA forms the bedrock of our earnings & a rupee appreciation relating to dollar only complicates the issue.

Information Technology sector was getting more complex and challenging and there lies a critical need for a fresh thinking to meet the same, keeping pace with the latest knowledge inputs.

Relating infrastructure bottlenecks such as airports, transportation bottlenecks, power, etc he stressed that they have to tackled on an urgent basis lest the enormous gains gets lessened. Outsourcing issue is another theme that needs to be tackled at the Government level in an effective manner to counter the so-called negative trends that has flown from it.

Satyam’s sponsored ADS issue gets Board approval

Dec 10, 2004: The Board of Directors of Satyam Computer Services Ltd gave its nod for its sponsored American Depository Shares against the existing equity shares of the company.

Company’s statement says the size of the sponsored ADR issue will not exceed 30 million equity shares equivalent to 15 million ADS including grandiose options, if any.

The issue would amount to $300 million issued on the closing price of ADS on the New York Stock Exchange as on December 7. An extra ordinary meeting has been convened for this purpose on January 7,2005.