Is Infosys on the Acquisition block?

Economic Times suggests in an article that Infosys is a very attractive acquisition target right now.  Look at some of the facts:Infosys has Cash and cash equivalents (Rs 22,000 crore) equal to 17% of the company's total market capitalisation of over Rs 1,34,000 crore - compared to TCS' ratio (Cash/Market Cap) of 2.2% and Cognizant's 12.5% With no debt burden and presence of cash reduces the enterprise value or the price that an acquirer would put on a going concern by an equal amount which w … [Read more...]

Global Email Patterns show Civilizational associations and conflicts

A paper titled “The Mesh of Civilizations and International Email Flows,” written by researchers at Stanford, Cornell, Yahoo! and Qatar’s Computational Research Institute; has come out with rather interesting insights into who in the world is emailing whom?  What brings senders and recipients of the email exchanges together?Apparently, the following factors:GDP, trade, language, non-Commonwealth colonial relations, and a couple of academic-sounding cultural metrics, like power-distance, indiv … [Read more...]

Indian IT companies headed for a rough future

Experts are predicting that the high profit margins experienced by the Indian IT companies will erode in the next 3-5 years.  And would settle at just around the 11-15% mark. Within the next two years, experts predict that operating margins will fall to below 20% (the average is 25% now for Infosys, TCS, Wipro and HCL Tech) and settle at a level that just about takes it past single digits. For comparison, in the quarter to September, the average operating profit margin for corporate India was … [Read more...]

By 2018, Computers will have 5 human senses and be able to interact more profoundly

IBM is predicting something extremely interesting.  It says that in the next five years, the computers could get all the five senses and will be able to interact with humans in totally different ways! "This new generation of machines will learn, adapt, sense and begin to experience the world as it really is," the company said in a statement. "This year's predictions focus on one element of the new era, the ability of computers to mimic the human senses--in their own way, to see, smell, touch, … [Read more...]

Infosys Financial Results and its Future Contradictions

One is trying to understand Infosys and where it is going.  Honestly, I cannot make out the logic behind some of what is happening in there.  Read the following and contemplate:Lost a major transmission client in Europe (portfolio worth $15 mn) Pricing and Currency Fluctuations: Lost $13 mn on currency fluctuations (bad investment?).  While its rooting for the Indian Rupee to stay at INR 55 / $, the fall in Rupee is being offset by lower pricing.  So, clients are smart - they are factoring th … [Read more...]

IBM’s amazing 5 year predictions: Mind Reading and power your home with your own energy

IBM's future predictions via its 5 in 5 (You can read the complete list here - Five innovations which will alter the tech landscape in 5 years) series this year are mind boggling. Here they are:Create energy from unexpected sources, including your body to power your home You will never need a password again Mind Reading is no longer Science Fiction Mobile devices will close the Digital Divide Big Data & sensemaking engines will become friendsLet us look at these predictions in more … [Read more...]


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