Honeywell Shortlists Indian Firms For Global Sourcing

Date: Thursday, October 10, 2002 3:36 PM

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This is bad news for Honeywell employees that expect to have a career there.
TATA is the largest bodyshop in the world and they are Indian owned. When
TATA moves in, American employees always lose. It's obvious that Honeywell
plans to outsource jobs to India and to bring in H-1Bs to replace American
workers that are considered expensive.

Honeywell is a large defense contractor and as you recall from a previous
newsletter, India and Iraq share technology. Here are the links just in case
you are new to this newsletter:
http://www.arabicnews.com/ansub/Daily/Day/001023/2000102344.html

http://www.andhranews.net/india/jun2001/30.asp

http://www.financialexpress.com/fe_full_story.php?content_id=19204

Honeywell Shortlists Indian Firms For Global Sourcing

Rajeev Jayaswal

New Delhi, October 7: Honeywell, the US-based $24-billion diversified
technology and manufacturing leader of aerospace products and services, has
shortlisted Hindustan Aeronautics Ltd (HAL), Tata group, Larsen & Toubro,
SKF Bearings, AT&S India and Kirloskar for its global sourcing.

As part of its globalisation strategy, the company is likely to source
products worth $250 million annually from Indian companies, a Confederation
of Indian Industry (CII) official said.

Honeywell invited CII members to become its partners for supplying various
products. “Over 100 members applied to supply various products to Honeywell.
The local representative of the company with the help of CII, shortlisted 15
companies as potential suppliers and invited them to Bangkok to participate
in Honeywell’s suppliers’ conference,” he said.

Besides aerospace products and services, Honeywell is likely to source parts
for providing control technologies for buildings, automotive products, power
generation systems, specialty chemicals, fibers, plastics and advanced
materials.

Representatives of shortlisted Indian companies had an interactive meeting
with Honeywell representatives in its Southeast Asia Suppliers’ Conference,
held in the last week of September. The conference was also attended by
companies from Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan,
Thailand and Vietnam. “Honeywell is looking forward for greater cooperation
with Indian companies due to their manufacturing abilities and technological
excellence,” CII official said quoting Mr Ashok Sajjanhar, deputy chief of
mission, Indian Embassy in Bangkok. Mr Sajjanhar had led the Indian
delegation in Bangkok and made a presentation on its behalf.

According to a survey conducted by Honeywell, the business scenario of the
company is likely to improve significantly in recent future. In the aviation
sector alone, Honeywell Aerospace forecasts $121 billion sales for new
business jet aircraft through 2013, CII official said.

Quoting Aerospace’s 11th Annual Business Aviation Outlook, he said: “It
projects continuing demand for new business aircraft with customers
accepting more than 7,600 units, valued at over $121 billion, for the period
2003-2013. The outlook projects a sustained near-term market for traditional
business aircraft.”

Honeywell is also a leading provider of software and solutions, and Internet
e-hubs including MyPlant.com, MyFacilities.com and MyAircraft (joint venture
with United Technologies and i2 Technologies).

Honeywell, re-constituted in 1999 through the merger of AlliedSignal Inc and
Honeywell Inc, employs approximately 125,000 people in 95 countries and
operates hundreds of facilities throughout the world.

The company’s shares are traded on the New York and London.

http://in.tech.yahoo.com/021008/137/1w5io.html

Tuesday October 8, 4:33 PM

Trend to outsource seen driving Indian tech recovery

ADVERTISEMENT

By Anshuman Daga

BANGALORE (Reuters) - India's top software exporters are expected to show a
rise in earnings when they begin unveiling quarterly results this week, as
growing outsourcing business helps them buck a global trend, analysts said
on Tuesday.

Aggressive hiring and a pick-up in client visits are also signposts that
suggest improving fortunes, the analysts said.

Better-than-expected volume growth is projected to help the companies beat
earnings estimates for the past quarter and traders await news of new
contracts, seen as the key driver for stocks.

Indian firms are making a big push to bag long-term contracts as companies
in the United States and Europe, battling severe cost pressures, outsource a
wide range of jobs from payroll accounts to large software and systems
maintenance deals.

"The key issue is whether many of the big ticket clients of software
players, which have tested the waters in India, are ramping up work
significantly or not," Amit Khurana, analyst at Birla Sun Life Securities,
told Reuters.

Nasdaq-listed blue-chip Infosys Technologies Ltd, India's second-largest
software exporter after unlisted Tata Consultancy Services, reports results
on Thursday.

A Reuters poll of 10 brokerages released on Tuesday forecast Infosys to
report a 5.5 percent rise in quarterly net profit to 2.29 billion rupees
($47.4 million) in the July-September second quarter, and up 13.5 percent on
the year.

ALL EYES ON INFOSYS

"There is a fair amount of optimism already in the market for Infosys and
that can be a little dangerous," said Jamshed Desai, head of research at
TAIB Securities.

Bangalore-based Infosys had estimated second-quarter profit to rise in a
range from 1.6 percent to nearly five percent with sales expected to be flat
to two percent higher.

The company, which aims to increase full year profit by 16 to 19 percent on
revenue growth of 17 to 20 percent in dollar terms, is likely to have hired
more than 1,000 people in the period from July to September, double the
preceding quarter, analysts said.

A sharp run-up in Infosys' stock price has meant most of the good news has
been digested by the market, however.

Infosys, up 0.86 percent at 3,482.50 rupees in afternoon trade, has jumped
about 11 percent in the past two months in line with a sectoral rally as the
industry drew investors who became disillusioned by a delay in
privatisation.

"What people want to see is the extent to which Infosys will beat its own
estimate and revise its full-year target," Desai said. "If they don't,
people are going to wonder whether the second half will be weak."

Profit at Wipro Ltd, India's third-largest software exporter, is seen
growing 6.25 percent on the year to 2.29 billion rupees.

Satyam Computer Services, the No. 4 exporter, is likely to post a 5.5
percent rise in net profit on the quarter with sales set to increase 4.2
percent.

The poll expects smaller exporter Digital GlobalSoft, a unit of Hewlett
Packard, to see its net drop five percent but sales are seen up six percent.

(With additional reporting by Rosemary Arackaparambil in Bombay)

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