Dayanand Menashi

Patni: Hot As Indian Curry

Friends,
Thanks for your time in reading my blog, just to give you a brief background about myself.I started my career with Patni, worked for seven years and last three years I am working independently through MNCs (by being third party contractor) on outsourcing assignments. In fact more than half of my staff is from Patni. So I know handson how the value of cooks change by changing the restaurant...)

People in the Industry very much value the experience that folks get while working for companies like PCS and TCS. The reason being these guys were the founders of IT outsourcing and have mastered the strategy of coverting fresh college grads into seasoned outsourcing pros.

Thanks,
Dayanand.

Increasing Taxes Should Keep India’s IT Biggies at Bay (INFY, WIT)

Hi Ciba,
Please Dont take any of my remarks personally.... infact I have enjoyed chatting with you here in seeking alpha, I did learn a lot. I guess these kind of positive debate keeps this site alive.

Thanks,
D

Increasing Taxes Should Keep India’s IT Biggies at Bay (INFY, WIT)

Hi Ciba,
I thought you believed in FACTS and go through the SEC filings for your analysis, so cant believe you are asking such a basic question.

FYI all Indian IT companies are enjoying a tax holiday from govt of India . This holiday is about to expire in 2009.

Following is an excerpt from Infy's latest 20-f report. in the section "Risks related to Investments in Indian companies and international operations generally"

Currently, the Government of India provides tax benefits to companies that export software from specially designated software technology parks in India. These tax benefits include a 10-year tax holiday from Indian corporate income taxes. We benefit from the 10-year tax holiday on Indian corporate income taxes for the operation of most of our Indian facilities, and as a result, our operations have been subject to relatively low tax liabilities. These tax incentives resulted in a decrease in our income tax expense of $224 million, $160 million and $126 million for fiscal 2007, fiscal 2006 and fiscal 2005 compared to the effective tax rates that we estimate would have applied if these incentives had not been available.

The Finance Act, 2000 phases out the 10-year tax holiday available to companies that export software from specially designated software technology parks in India, such that it is available only until the earlier of fiscal year 2009 or 10 years after the commencement of a company's undertaking.