Krishna Baidya’s Random Musings

What recession? India, China & multi billion dollar deals

Posted on: May 5, 2009

Nation with billions still outplacing multi-billion deals

Large deals are still being (or waiting to be) signed in Ch-Indian context, specially in the IT/ Telecom sectors.

India’s domestic demand:

Multi-year IT outsourcing deals from new telcos in India (Unitech Wireless, Loop Telecom, Swan Telecom, ByCell Communications and Datacom) are likely to be worth up to US$2 billion. Taking a cue from Bharti, the pioneer in this aspect (was later adopted by the likes of Vodafone, Idea Cellular), new telcos are likely to outsource their all IT operations, including setting up of IT networks and managing services. Leading Indian IT vendors such as Wipro, Infosys, Tech Mahindra are running against each other and the likes on IBM (contribution from India to its global revenue has soared in recent times). Most of these new telcos have already shortlisted IT vendors and are in different stages of talks.

According to reports :

  • Unitech deal (valued around US$ 600 million over 10 yrs) is expected to be finalized in May.
  • Swan Telecom (expected to be worth US$500 million) is looking at 2Q to finalize vendor.
  • ByCell Communications is evaluating proposals from vendors and likely t o decide on partner(s) soon.

Aircel, a regional telco that revved up plans to become a full-fledged national operator in 2009, has recently awarded a nine-year contract to Wipro. Deal was valued to be US$600 million.

China Inc. looking outward to ink multi billion dollar deals:

Chinese government has taken extra steps to help companies win deals from US and Europe.

Bloomberg reported on 27th April ’09 : “Chinese delegation in Washington, D.C. for a forum had signed 32 contracts totaling US$10.6 billion. The forum was hosted by the U.S. Chamber of Commerce and China Chamber of Commerce for Import and Export of Machinery and Electronic Products. Among the U.S. signatories are IBM, Cisco Systems, Hewlett-Packard, Dell, Microsoft, Oracle and Sun Microsystems. “

February ’09 update : “A trade delegation of about 200 Chinese entrepreneurs led by Commerce Minister Chen Deming arrived in Germany yesterday as the first leg of their four country tour. Following Chinese Premier Wen Jiabao’s Europe tour earlier this month the trade delegation will also visit Switzerland, Spain and Britain and is expected to sign a series of deals worth up to $15 billion. The delegation consists of joint ventures, state-owned and private companies and plans to sign deals for automobiles, machinery, aircraft engines, railway equipment, and foodstuffs.”


1 Response to "What recession? India, China & multi billion dollar deals"

Deals are definitely happening.

But the businesses from US n UK markets are depleting by the day. Sub Prime crisis has hit many a businesses and there are scores of companies in US filing for bankruptcy..sending hundreds out of jobs and all new projects failing to be renewed….which doesn’t sound good for the IT cos and the Indian market.

Recession is on and theres no respite yet….End of this long dark tunnel looks still far away…..Studies reveal atleast couple of years is required to shed these tattered skin developed during the current recession-near depression hit weather…

Worst is the Uncertainity this inclement weather has created in the minds of zillion well to do professionals..its true u dont get to learn to manage these times at schools right from Kindergaten to ur Universities….Economics does devote a topic on Depression n Recession But it hardly touches on leading a life …Great Depression of 1930s do have plenty of stories but they all have been long forgotten….

Lets just keep up the hope that the cycle is reversed and good times come all over again when theres smiles across miles all over the world

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