Latest news with #ITeS
Hindustan Times
29-07-2025
- Business
- Hindustan Times
No 12-hour shifts? Karnataka drops plan to extend IT work hours after protests from unions
The Karnataka government has withdrawn its proposal to extend daily working hours in the IT and ITeS sector following sustained opposition from employee unions. Labour Minister Santosh Lad's office also confirmed that the government has decided not to go ahead with the proposed change.(X/@kitu_hq) The Karnataka State IT/ITeS Employees Union (KITU), which has been actively protesting the move for over six weeks, confirmed the development on Tuesday. According to KITU, the decision was communicated by Additional Labour Commissioner G Manjunath during a meeting with union office bearers. (Also Read: 'ORR on Wednesdays, CBD on Tuesdays': Bengaluru man breaks down city's weekly traffic madness) Labour Minister Santosh Lad's office also confirmed that the government has decided not to go ahead with the proposed change, news agency PTI reported. The now-dropped amendment, part of the proposed 'Karnataka Shops and Commercial Establishments (Amendment) Bill 2025', sought to revise the Karnataka Shops and Commercial Establishments Act, 1961. If implemented, it would have increased daily working hours beyond the current limits. KITU had argued that the legal maximum of 10 hours per day (including overtime) was being stretched to justify 12-hour shifts. They warned that such a change would pave the way for a two-shift system, potentially cutting the workforce by one-third. Calling it a victory for IT employees across the state, KITU general secretary Suhas Adiga said, 'This relentless struggle compelled the Karnataka government to retreat from its attempt to extend working hours in the sector.' The Bill was earlier presented at a stakeholder consultation meeting convened by the Labour Department on June 18, where KITU had strongly opposed the move, calling it an attack on the fundamental right to personal life. KITU is a registered union that represents IT sector employees in Karnataka and has consistently raised concerns about labour reforms that affect employee rights and work-life balance. (With agency inputs) (Also Read: B Dayananda won't return as Bengaluru Police Commissioner, says G Parameshwara)
Entrepreneur
29-07-2025
- Business
- Entrepreneur
IT Sector's Muted Q1 Trend Likely to Continue through FY26
The Indian IT sector is expected to witness a flat revenue growth of 0-2 per cent in FY26 as compared to the previous year in terms of constant currency revenue growth, according to CareEdge Ratings You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The Indian IT services industry has experienced muted growth during the first quarter earnings as clients across sectors continued to delay or defer discretionary projects due to macroeconomic uncertainty and cost pressures. Despite some commentary on a better second half of the fiscal, CareEdge Ratings believes the Indian IT sector is expected to witness a flat revenue growth of 0-2 per cent in FY26 as compared to the previous year in terms of constant currency revenue growth. This is underpinned by a healthy deal pipeline poised to convert into wins over the near term, ensuring revenue visibility for the next few quarters. "Increasing digitisation and rise in demand for emerging technologies like 5G, advanced data analytics, artificial intelligence, cloud computing, cyber-security, robotics and blockchain provide growth opportunities for Indian IT/ITeS firms," CareEdge said in a report. It further stated that, "The uncertainty arising from tariffs and movements in the US market is a significant concern for the IT industry, as a large proportion of its revenues are derived from the US market. The IT-software industry has been re-aligning its offerings to cater to the evolving requirements of its clients with respect to emerging technologies to become more effective in the dynamic business environment. Growth remains muted in key markets, as clients are cautious in spending prioritizing cost optimisation and vendor consolidation." Tata Consultancy Services (TCS) reported muted growth in core markets (except India) due to deferrals and decision-making delays in Q1. Deal TCV has been strong for last three quarters, up 7.4 per cent YoY, but revenue growth in core markets has been flat at -0.7 per cent YoY USD due to re-scoping, delay in ramp-up and elongation in deal tenure. Pace of client decision making did not improve in Q1. Management believes that uncertainty would persist until trade deals between US and all major countries are finalised. Management reiterated its target to grow better in international markets in FY26 versus +0.5 per cent YoY USD in FY25. "We continue to value the company at 24x on Q3FY27-Q2FY28 EPS of INR 152.9 to arrive at our target price of INR 3,670. We continue to like TCS for better execution, profitability and return metrics in the industry," ICICI Securities said in a note. Wipro grew marginally better than expected at -2 per cent in constant currency, within its guided range for Q1, led by the healthcare and technology verticals. Guidance for Q2FY26 is flat at the midpoint. With a strong TCV and two mega deals, focus shall be on execution of these mega deals. "Though Wipro has indicated that H2FY26 will likely be better than H1 on the back of these deals, negative seasonality of H2 will also be at play. The company has indicated that margin might be impacted on upfront investment for large deals for a few of the quarters. WPRO has been losing clients and has trouble gaining broad-based growth traction across verticals. We factor in a -0.5 per cent IT services revenue USD growth print for FY26. We cut FY26–28E EPS by about 1–2 per cent and maintain 'Reduce' with a one-year forward target price of INR 240 on a target PE of 18x," ICICI Securities said. LTIMindtree reported in-line revenue growth led by a recovery in consumer and healthcare segments, and healthy momentum in BFSI. EBIT margin improved about 50 basis points QoQ on expected lines, enabled largely by its focused margin improvement program. TCV wins have been healthy with TCV up 13.6 per cent YoY over the last three quarters. "But this is yet to translate into revenue growth (5.3 per cent YoY USD over same period). Management is focussing on execution i.e. improving its large deal pipeline and win rates amidst a challenging macro environment and expects revenue growth momentum to improve from here on. We continue to value LTIMindtree at 22x on Q3FY27E to Q2FY28E EPS of INR 215 to arrive at a revised target price of INR 4,740. We maintain 'Reduce'. LTIM has higher exposure to its discretionary portfolio, constraining its growth in the current weak macro," ICICI Securities said.
Hans India
26-06-2025
- Business
- Hans India
Cognizant's investment will fuel regional growth: Lokesh
Vijayawada: Information Technology Minister Nara Lokesh on Wednesday said that IT major Cognizant would establish a major campus in Visakhapatnam with an investment of Rs 1,500 crore. This investment will accelerate regional growth, he added. The company, which will develop its campus on a 22-acre site at Kapuluppada IT Hills in three phases, is expected to generate 8,000 jobs. Lokesh said the government approved the project to position Andhra Pradesh as a global technology hub and promote digital skilling in tier-2 cities. "We welcome Cognizant to Vizag. This investment will accelerate regional growth and future-ready workforce development," the IT Minister said. Cognizant's presence is expected to boost the regional digital economy, enhance tech skills, and benefit from Andhra Pradesh's infrastructure, business-friendly policies, and IT and Information Technology Enabled Services (ITeS) sectors' support, he added. Cognizant will begin operations by early 2026 from a temporary facility for 800 staff until Phase-I of the permanent campus is ready by early 2029. "We are proud to expand in the port city and thank the government for its progressive support," said Cognizant CEO S Ravi Kumar in a statement. Kumar said the city offers abundant talent and strong infrastructure, fitting into the firm's broader strategy of investing in high-potential regional locations. The campus aims to build an inclusive, innovation-driven digital workforce and support Cognizant's global transformation delivery capabilities, he added.
Time of India
27-05-2025
- Business
- Time of India
Tumakuru woos Bengaluru's tech companies with ready office space
Bengaluru: Bengaluru over-saturated? Relocate to Tumakuru. Neighbouring Tumakuru City — 60km from tech capital by road — has made a strong pitch offering ready-to-occupy space for Bengaluru-based Information Technology (IT) and Information Technology-Enabled Services (ITeS) companies to shift en bloc or set up branches. To start with, Tumakuru district administration has started collecting data on the number of IT professionals who daily commute from Tumakuru to Bengaluru. On Monday, Tumakuru administration posted a datasheet on social-media platforms with an appeal to techies to mention the names of companies they work for and the frequency of travel between two cities. The district administration has received overwhelming support from techies. "In less than two days of posting on 'X', we received details about 150 various IT companies operating in different parts of Bengaluru. We will discuss this with the IT department director Rahul SS and reach out to these companies via emails. If any company is interested in shifting or starting operations in Tumakuru, they can reach out to us directly," Tumakuru deputy commissioner Subha Kalyan said. On the rationale behind collecting details, the DC said the plan was to urge these companies to set up branches or completely shift operations to Tumakuru. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo "As per estimates, over 5,000 techies from Tumakuru travel to Bengaluru daily. This could be more. Hence, we decided to have an open house for collecting data and formally reach out to those companies," Subha said. Meticulous planning has gone into this shift-to-Tumakuru plan. "We discussed this plan in detail with IT secretary Ekroop Caur and Sanjeev Gupta, CEO of Karnataka Digital Economy Mission, also visited the city and inspected the availability of infrastructure. Tumakuru has prospects of hosting software companies and IT industries. Accessing the Kempegowda International Airport from Tumakuru is easier with dedicated roads cutting through the hinterland. Suiting the needs of IT companies that look out for plug-and-play or coworking space, kind of office space, we have ready infrastructure at the heart of the city," Subha said. The DC said work on phases 4, 5, and 6 of the industrial township at Vasanthanarasapura on the outskirts of Tumakuru city is nearing completion and has ample provision to accommodate software and IT industries. Subha highlighted the perks that await the companies on shifting to Tumakuru: Companies can save on monthly rentals, transportation, and other expenditures.
Business Recorder
21-05-2025
- Business
- Business Recorder
Pakistan's IT, ITeS sector: P@SHA underscores need for consistent tax policy
ISLAMABAD: The Pakistan Software Houses Association (P@SHA) has strongly recommended a consistent tax policy with no changes in the tax structure of IT and IT-enabled Services (ITeS) sector in the Federal Budget 2025-26. Addressing at a press conference here on Tuesday, Sajjad Mustafa Syed, Chairman P@SHA stated that the government must ensure policy stability and tax clarity for the IT and IT-enabled Services (ITeS) sector in 2025–26. As a cornerstone of Pakistan's digital economy, the IT industry has demonstrated resilience amid economic turbulence, contributing USD 3.2 billion in exports in 2023–24, and is projected to close the current fiscal year at nearly USD 4 billion. Forecasts estimate a USD 15 billion export potential by 2030. Despite these promising numbers, policy inconsistency, ad hoc taxation, and operational challenges continue to undermine investor confidence and economic contributions, he regretted. Policy stability is essential for sustaining the momentum we've recently achieved. The recent DFDI event alone resulted in over USD 700 million in investment commitments — of which USD 600 million was facilitated by P@SHA, he said. Frequent changes in tax laws — whether related to export incentives, withholding taxes, or other fiscal instruments — discourage long-term investment. The lack of predictability threatens to undo the combined efforts of public and private sector stakeholders, including MOITT, PSEB, SIFC, and TDAP. If investor confidence is shaken, Pakistan risks forfeiting years of progress, including advances in branding, skill development, and digital infrastructure, he added. 'We are not asking for exemptions that jeopardize international obligations. However, if our practical, fair recommendations are implemented in both letter and spirit, Pakistan's IT sector can contribute substantially more to national growth,' Sajjad said. He recommended there is a critical need to align tax treatment between employees of IT firms and independent remote workers. The P@SHA urged the government to formally define remote workers in the Income Tax Ordinance (2001). The proposed classification applies to individuals earning over Rs 2.5 million annually through foreign remittances or working with fewer than three international clients, taxing them similarly to salaried individuals. This recommendation aims to expand the tax base while leveling the playing field. The current disparity creates an uneven labor market where it's more cost-effective for global companies to hire Pakistani talent directly rather than through local firms. As a result, local IT businesses lose both competitiveness and valuable export revenue. A clear and fair framework will bring transparency for taxpayers and authorities alike and help protect Pakistan's economic interests. IT firms, especially call centres and BPOs, operate on narrow margins, have service level agreements and cannot afford such disruptions. Legislation must be enacted to shield them from outdated and misaligned labor regulations. Until reforms are complete, temporary exemptions must be provided to IT companies from EOBI and other arcane labor laws. Despite being one of the region's lowest revenue-per-employee markets, Pakistan's IT sector employs a massive formal workforce of over 600,000. The sector's resilience is remarkable, bearing some of the highest input costs, yet continuing to grow. Copyright Business Recorder, 2025
