Infosys to cross-sell BPO services with Finacle

BANGALORE: India’s second-biggest software exporter, Infosys Technologies, plans to cross-sell its back-office services with the company’s core banking product Finacle in order to gain more revenues from financial sector customers and also explore newer geographic markets.

Infosys BPO, the $300 million back-office services arm of the IT major, will align with Finacle, the banking solution business to provide its services to the latters’ customers. Amitabh Chaudhry, CEO, Infosys BPO, said: “We are trying to see how we can work with Finacle to provide our various services.”

Infosys BPO, which gets significant part of its business from North America and Europe, will now have a chance to enter into markets such as Middle East, Central & Eastern Europe through Finacle. The banking solution business of Infosys, Finacle, has got a dominant presence in India and outside of the country, it has bagged orders in emerging market regions such as the Middle-East, Africa and Eastern & Central Europe.

According to Mr Chaudhry, they have already started having conversations with the clients of Finacle to provide their services, which are generally after the product is implemented. Some of these include the transaction services and value-added activities of Infosys BPO.

read more.....

Tax BPO services at 11-13% over cost, says Deloitte

NEW DELHI: Foreign software and BPO services companies should be allowed to pay tax on a presumed rate of profit on inter-company transactions. The tax constancy firm Deloitte has suggested a 11-13% rate over costs for both software and BPO services in a white paper released on Tuesday.

Introduction of the safe harbour rules is expected to improve the foreign investment climate in the information technology and IT enabled services sector such as BPOs by providing clarity on tax liability and simplicity in tax administration.

The Budget 2009-10 had made an announcement in this regard and the Central Board of Direct Taxes, the apex direct tax body, is working on the rules expected to be announced soon.

“To reduce the impact of judgmental errors in determining transfer price in international transactions, it is proposed to empower the Central Board of Direct Taxes (CBDT) to formulate ‘safe harbour’ rules.” finance minister Pranab Mukherjee had said in his budget speech.

A ‘safe harbour’ would essentially mean ‘circumstances’ in which, the Indian revenue Authorities shall accept the transfer pricing declared by the taxpayer.

Transfer pricing provisions in general require income arising from an international transaction between two or more related organisations to be calculated at an arm’s length price or at a price comparable to similar transactions between unrelated parties.

“We have lost foreign investment to countries such as Sri Lanka, Philippines... Safe harbour provisions will create a conducive climate for foreign investments by reducing administrative burden,” said Shonto Ghosh, senior director, Deloitte.

read more....

BPO Services - most competitive in India

BPO services are related to providing latest technical services to the clients for hassle-free functioning.

BPO services India are one of the most competitive services; mainly due to the advanced technology and efficiency in services. BPO services are provided to achieve core-business objectives and efficiency in servicing.

Any client who is in need of non-core business activity is always looking for a deal where the service-quality is superior and there is a substantial decrease in cost. It is now very obvious that BPO services India are one of the best amongst various nations. The most important factor is the skilled and up-to-date manpower. Manpower efficiency is assessed through quality of services and cost to the Company. While the former is very high, the latter is low, resulting in competency in services.

BPO services are extremely specific and as per customers demands. Outsourcing the services from India reduces cost and transforms operations for substantial benefits. Both inbound and outbound services are provided with equal efficiency, to create cost-effective solutions for the Company. Companies in India focus on complimenting outsourcing solutions, through internal improvements. This increases efficiency and profitability of the clients and their organizations.

There are several services including customer support, lead generation activity, appointment scheduling, research surveys, debt realization and collection, data entry and compilation and numerous other activities.

read more.....

Tax BPO services at 11-13% over cost, says Deloitte

NEW DELHI: Foreign software and BPO services companies should be allowed to pay tax on a presumed rate of profit on inter-company transactions. The tax constancy firm Deloitte has suggested a 11-13% rate over costs for both software and BPO services in a white paper released on Tuesday.

Introduction of the safe harbour rules is expected to improve the foreign investment climate in the information technology and IT enabled services sector such as BPOs by providing clarity on tax liability and simplicity in tax administration.

The Budget 2009-10 had made an announcement in this regard and the Central Board of Direct Taxes, the apex direct tax body, is working on the rules expected to be announced soon.

“To reduce the impact of judgmental errors in determining transfer price in international transactions, it is proposed to empower the Central Board of Direct Taxes (CBDT) to formulate ‘safe harbour’ rules.” finance minister Pranab Mukherjee had said in his budget speech.

A ‘safe harbour’ would essentially mean ‘circumstances’ in which, the Indian revenue Authorities shall accept the transfer pricing declared by the taxpayer.

Transfer pricing provisions in general require income arising from an international transaction between two or more related organisations to be calculated at an arm’s length price or at a price comparable to similar transactions between unrelated parties.

read more .....