Three Tech Mahindra executives may join Satyam board

NEW DELHI: Three senior executives of Tech Mahindra are likely to be inducted in the Satyam board. The names doing the rounds are vice-chairman, MD & CEO Vineet Nayyar, president (international operations) CP Gurnani, and President (strategic initiatives) Sanjay Kalra.

Anand Mahindra, chairman of Tech Mahindra, who is in Hyderabad, is expected to address Satyam employees to provide them comfort amid concern that the new management may cut jobs.

Tech Mahindra will have its first official interaction with the Satyam board on Monday after obtaining the Company Law Board's approval for acquiring majority stake in troubled IT company.

Mahindra may also address all the vertical and process heads of Satyam and get an idea of the operations and business from the officials on the field.

"There is a board meeting on Monday. All Satyam directors and senior officials of Tech Mahindra will participate in the meeting to take stock of the situation," a Satyam Computer spokesperson said.

Tech Mahindra emerged as the highest bidder for majority stake in Satyam at Rs 58 a share in an auction held on last Monday. It has to pay Rs 1,756 crore by April 22, 2009 for 31% stake.

As per the bidding schedule, the payment of Rs 1,756 crore will ensure the ownership of Satyam to Tech Mahindra following which the Mumbai-based company has to acquire another 20% in an open offer to public.

Yahoo, Microsoft approach endgame on search

SAN FRANCISCO: It's been more than a year since Microsoft Corp's unsolicited bid to buy Yahoo Inc ended in tatters and acrimony. Now the two companies are talking again, with the less contentious agenda of forging an Internet search advertising partnership having replaced the notion of an outright merger.

Analysts say that co-opting Yahoo's search assets represents Microsoft's best hope to turn around its money-losing online business and to challenge Google Inc's dominant and growing share of the U.S. search market. But handing search over to Microsoft would be fraught with risk for Yahoo, which would cede what is believed to be a profitable and increasingly vital plank in its online business.

Search data is increasingly used to custom-tailor display advertisements for Web surfers. "You don't walk away from search unless there's some ridiculously huge number in front of you," said RBC Capital Markets analyst Ross Sandler.

Yahoo Chief Executive Carol Bartz and Microsoft CEO Steve Ballmer recently talked about various partnerships, possibly with Microsoft managing Yahoo's search advertising business and Yahoo handling display ads across Microsoft's websites, according to a source familiar with the situation.

Any deal would have to be sweeter than the one unsuccessfully brokered by activist investor Carl Icahn last July, in the wake of Microsoft's failed $47.5 billion acquisition bid for Yahoo, said RBC's Sandler. Under Icahn's search-only plan, Microsoft was willing to pay Yahoo a $1 billion upfront fee for Yahoo's search assets, plus $2.3 billion a year in guaranteed revenue for five years.

Also Read

→ Google showing signs of vulnerability

→ Google widens lead in US searches: Report

→ Yahoo's plan: Create community from isolated sites

→ YouTube adds more Hollywood movies, TV shows

→ Economic crisis threatens to spark rise in cyber crime: Microsoft

Critical Mass

Microsoft and Yahoo have each lost 1 percentage point or more of market share in US search queries since the two companies first considered combining in February 2008. Google has widened its lead from 59.2 percent market share in February 2008 to 63.7 percent in March 2009, according to comScore.

"There is urgency. I hope they both realize they need to get something done sooner rather than later," said Sid Parakh, an analyst at McAdams Wright Ragen, who has a "buy" rating on Microsoft. "But they are not going to rush into a deal that might not work out long-term." Market share is key in search-based advertising, say analysts, since many of the small businesses that buy online ads do not have enough money to spread their messages across a smattering of websites with limited audiences. For that reason, running ads with Google is generally considered a "no-brainer."

But a combined Microsoft-Yahoo with nearly 30 percent search market share could provide a large enough audience to also be worthwhile. And because search advertising is based on an auction system, size is doubly important. The more advertisers participate, the more keyword prices tend to be bid higher.

Microsoft

may be best-placed to run the combined search business, given its strength in sophisticated software needed to run search engines and its superior organization, said one analyst. "What Yahoo does best is make interesting content to attract users, but they can't do project management very well," said Kim Caughey, an analyst at money manager Fort Pitt Capital Group. "Microsoft's very good at software and they are a little more structured."

Antitrust Attention?

Such an arrangement might put both companies' display ad business under the control of Yahoo, which is the US No. 1 in that market. In February, Yahoo led the market with 13 percent of display ad views. Microsoft was fifth with 4.3 percent and Google sixth with 1.2 percent, according to comScore figures. That is likely to attract the attention of antitrust regulators, who thwarted a proposed advertising pact between Google and Yahoo last year.

But antitrust experts say the market for online display ads is still relatively open, and regulators' main concern is Google's dominance in search. "From a pure antitrust standpoint, it's hard to see a problem here," said Evan Stewart, an antitrust lawyer with Zuckerman Spaeder LLP.

"If you're from the (US Justice Department) Antitrust Division, what you really want to have is more effective competitors for Google." Analysts say any deal would have to guarantee Yahoo's access to users' search data. "Without search, Yahoo looks like AOL," said RBC Capital Markets' Sandler, referring to Time Warner Inc's online division, which does not have its own search engine and which has seen its users and revenue erode in recent years.

There are many ideas about how a Microsoft-Yahoo partnership could work. Ironfire Capital's Eric Jackson believes they should create a joint venture where Microsoft transfers its online business and combines it with Yahoo's. The arrangement, first outlined in a Bank of America Merrill Lynch report, would have Microsoft take a 49 percent stake and give Yahoo 51 percent.

The new venture was projected to have $9 billion in net revenue in 2010 versus Google's estimated $16 billion, which would make it a strong No. 2 Internet search player, while boasting the largest Internet display advertising business. The company would be run by Yahoo, which Jackson said has a better track record in the online business than Microsoft.  

Cognizant in talks to buy UK firm Pa Consulting

BANGALORE/CHENNAI: Cognizant Technology Solutions, which backed out from Satyam bidding at the last moment, is in talks with London-based Pa Consulting for a buyout deal valued at $300-350 million. The preliminary discussions with the privately-held technology-led consulting firm come even as Cognizant is actively scouting for acquisitions in the European market, sources said.

Cognizant is looking to strengthen its presence in the UK and Continental Europe, from where the company gets 20% of its revenue pegged at $2.89 billion. When contacted, Cognizant CFO Gordon Coburn said in an email response, “We do not comment on speculation in the marketplace.” At the same time, Pa Consulting said, “It is not our policy to publicise or discuss in the media any alliance or partnership arrangements, and we have no comment to make.”

As the talks are still in early stages, sources say there is some doubt on the outcome and the way the deal will be structured. Banking sources said Pa Consulting with its rather strong presence in verticals like healthcare and aerospace have been on the radar of Indian IT firms that are searching inorganic growth options. The 63-year old Pa reported revenues of $342 million for 2008, with profit of $9.4 million. It has 3,000 people spread across multiple geographies with offices in New Delhi and Bangalore. Sources said Cognizant’s consulting-led approach could give Pa, which has been facing rough weather of late, a synergistic push, sources added.

The target company’s revenue during 2007 was estimated at $472 million. Pa’s operating margins reported a significant drop from 13.4% in 2005 to nearly 3.5% in 2007. Cognizant has been very active in the marketplace looking at buying out companies that fits the profile - not necessarily large entities but with skill sets in a specific domain. The last major acquisition done by Cognizant was of marketRx, a US-headquartered analytics firm with sizeable Indian offshore presence, for $135 million in October 2007.

Also Read

→ Cognizant backed out of bidding at last minute

→ Cognizant sees opportunities in economic downturn

→ Cognizant looking for buyouts in Asia-Pacific: CEO

→ Cognizant to pay back-wages to 67

In a recent interview with ET, Cognizant CEO Francisco D Souza had said, “The environment has improved and valuations have come down.” In terms of geography focus, Mr D Souza said, “Europe is at the tail end of our investment cycle. Most of our markets have reached critical mass.” It was also being speculated that Cognizant could be looking at larger publicly listed IT services companies like Thales SA, Ciber and Invensys. But there was no confirmation on any of these companies holding talks with Cognizant.

Many of the larger Indian IT companies have made acquisitions in Europe or actively scouting the market. In the recent past, HCL Technologies acquired UK based SAP services firm Axon, while Wipro snapped up NewLogic. Interest in Europe has increased, as Indian IT firms look for inorganic growth in markets outside the US that is going though a recession.

Cap Count for H-1B and H-2B Workers for Fiscal Year 2010

What is a "Cap"

The word "Cap" used in this Update refers to annual numerical limitations set by Congress on certain nonimmigrant visa classifications, e.g., H-1B and H-2B. Caps control the number of workers that can be issued a visa in a given fiscal year to enter the United States pursuant to a particular nonimmigrant classification. Caps also control the number of aliens already in the United States that may be authorized to change status to a cap-subject classification.

H-1B

The H-1B visa program is used by some U.S.employers to employ foreign workers in specialty occupations that require theoretical or technical expertise in a specialized field and a bachelor's degree or its equivalent. Typical H-1B occupations include architects, engineers, computer programmers, accountants, doctors and college professors. The H-1B visa program also includes certain fashion models of distinguished merit and ability and up to 100 persons who will performing services of an exceptional nature in connection with Department of Defense (DOD) research and development projects or coproduction projects. The current annual cap on the H-1B category is 65,000. Not all H-1B nonimmigrants are subject to this annual cap. Please note that up to 6,800 visas may be set aside from the cap of 65,000 during each fiscal year for the H-1B1 program under the terms of the legislation implementing the U.S.-Chile and U.S.-Singapore Free Trade Agreements. Unused numbers in this pool are made available for H-1B use for the next fiscal year.

H-1B Employer Exemptions

H-1B nonimmigrants who are employed, or who have received an offer of employment, by institutions of higher education or a related or affiliated nonprofit entity, as well as those employed, or who will be employed, by a nonprofit research organization or a governmental research organization are exempt from the cap.

H-1B Advanced Degree Exemption

The H-1B Visa Reform Act of 2004 makes available 20,000 new H-1B visas for foreign workers with a Master's or higher level degree from a U.S. academic institution. For each fiscal year, 20,000 beneficiaries of H-1B petitions on behalf of persons who hold such credentials are statutorily exempted from the cap.

Duplicate H-1B Petitions Filed Requesting Fiscal Year 2010 Employment

USCIS will deny or revoke all petitions filed by an employer for the same H-1B worker if more than one filing is discovered. If multiple petitions are discovered, whether one or more such petitions are approved, USCIS will data enter all those duplicative petitions, retain all fees, and either deny the petitions or, if a petition was approved, revoke the petition. The petitions will not be returned to the petitioner.

As of April 13, 2009, approximately 43,000 H-1B cap-subject petitions and approximately 20,000 petitions qualifying for the advanced degree cap exemption had been filed. USCIS will continue to accept both cap-subject petitions and advanced degree petitions until a sufficient number of H-1B petitions have been received to reach the statutory limits, taking into account the fact that some of these petitions may be denied, revoked, or withdrawn.

 

H-1B1

An H-1B1 is a national of Chile or Singapore coming to the United States to work temporarily in a specialty occupation. The law defines an H-1B1 specialty occupation as a position that requires theoretical and practical application of a body of specialized knowledge. The beneficiary must have a bachelor's degree or higher (or equivalent) in the specific specialty. The combined statutory limit is 6,800 per year. The cap for H-1B1 for FY2010 has not been reached as of the date of this Update.

H-2B

The H-2B visa category allows U.S. employers in industries with peak load, seasonal or intermittent needs to augment their existing labor force with temporary workers. The H-2B visa category also allows U.S. employers to augment their existing labor force when necessary due to a one-time occurrence which necessitates a temporary increase in workers. Typically, H-2B workers fill labor needs in occupational areas such as construction, health care, landscaping, lumber, manufacturing, food service/processing, and resort/hospitality services.

The Save Our Small and Seasonal Businesses Act of 2005 (SOS Act) divided the annual numerical limitations of 66,000 into two halves. As of FY 2010, an H-2B petition may not be filed more than 120 days before the date of the actual need for the H-2B worker's labor/services identified on the labor certification. As a result, USCIS normally begins receiving H-2B petitions with employment start dates in October and June.

What is the H-2B numerical limit set by Congress?

The H-2B numerical limit set by Congress per fiscal year is 66,000. Generally, an H-2B worker who extends his/her stay in H-2B status will not be counted again against the numerical limit. An alien who changes nonimmigrant status to H-2B is counted against the annual H-2B cap.

As USCIS begins receiving H-2B petitions, the below chart will be regularly updated.

Cap Type	Cap Amount	Beneficiaries Approved	Beneficiaries Pending	Beneficiaries Target 1	Total	Date of Last Count
H-2B 1st Half	33,000	------	------	------	------	-------
H-2B 2nd Half	33,000 2	-------	------	-----	------	-----
Total H-2B Per FY	66,000 3	------	------	------	------	------

 

¹ Refers to the estimated numbers of beneficiary applications needed to reach a cap, with an allowance for withdrawals, denials and revocations.
² A shortfall in the 1st half would be made up in the 2nd half.
³ Visas issued plus beneficiaries changing status already in the United States.

H-3

The H-3 nonimmigrant visa category is for aliens who are coming temporarily to the U.S. to receive training (other than graduate medical education or training) that is not available in their home countries. The training may be provided by a business entity, academic, or vocational institute. The H-3 nonimmigrant visa category also includes aliens who are coming temporarily to the U.S. to participate in a special education training program for children with physical, mental, or emotional disabilities. There is a limit of 50 visas per fiscal year allocated to H-3 aliens participating in special education training programs. As of March 30, 2009, three of these H-3 visas had been approved with a start date in FY 2009.

Last updated:04/17/2009

2010 H-1B Petition Season

USCIS begins accepting H-1B petitions subject to the Fiscal Year 2010 (FY 2010) cap on April 1, 2009. Cases are considered accepted on the date that USCIS takes possession of the petition; not the date that the petition is postmarked.

The numerical limitation on H-1B petitions for Fiscal Year 2010 is 65,000. Additionally, the first 20,000 H-1B petitions filed on behalf of aliens who have earned a U.S. masters’ degree or higher are exempt from the fiscal year cap.

USCIS will monitor the number of petitions received and will notify the public of the date USCIS has received the necessary number of petitions to meet the H-1B cap, known as the “final receipt date.” The date USCIS publishes information that the cap has been reached does not control the final receipt date. To ensure a fair system, USCIS will, if needed, randomly select the number of petitions required to reach the numerical limit from the petitions received on the final receipt date. USCIS will reject cap subject petitions that are not selected, as well as those received after the final receipt date.

H-1B petitions cannot be filed more than six months in advance of the requested start date. Petitions seeking an H-1B worker for an Oct. 1, 2009 start date can be filed no earlier than April 1, 2009. 

Petitions for new H-1B employment are exempt from the annual cap if the beneficiaries will work at institutions of higher education or a related or affiliated nonprofit entities, or at nonprofit research organizations or governmental research organizations. Thus, employers may continue to file petitions for these exempt H-1B categories seeking work dates starting in FY 2009 or 2010.

Petitions filed on behalf of current H-1B workers who have been counted previously against the cap also do not count towards the congressionally mandated H-1B cap. Accordingly, USCIS will continue to process petitions filed to: 

•  Extend the amount of time a current H-1B worker may remain in the United States. 
• Change the terms of employment for current H-1B workers. 
• Allow current H-1B workers to change employers. 
• Allow current H-1B workers to work concurrently in a second H-1B position.

H-1B petitioners should follow all regulatory requirements (8 CFR §214.2) as they prepare petitions to avoid delays in processing and possible requests for evidence. USCIS has developed detailed information, including a processing worksheet, to assist in the completion and submission of a FY2010 H-1B petition.  Those documents, and other information for your guidance, are linked from the bottom of this page.

U.S. businesses use the H-1B program to employ foreign workers in specialty occupations that require theoretical or technical expertise in specialized fields, such as scientists, engineers, or computer programmers.

USCIS Updates Count of FY2010 H-1B Petition Filings

WASHINGTON April 9, 2009 — USCIS announced an updated number of filings for H-1B petitions for the fiscal year 2010 program.

USCIS has received approximately 42,000 H-1B petitions counting toward the Congressionally-mandated 65,000 cap.  The agency continues to accept petitions subject to the general cap. 

Additionally, the agency has received approximately 20,000 petitions for aliens with advanced degrees; however, we continue to accept advanced degree petitions since experience has shown that not all petitions received are approvable.  Congress mandated that the first 20,000 of these types of petitions are exempt from any fiscal year cap on available H-1B visas.   

For cases filed for premium processing during the initial five-day filing window, the 15-day premium processing period began April 7.  For cases filed for premium processing after the filing window, the premium processing period begins on the date USCIS takes physical possession of the petition.

USCIS will provide regular updates as the processing of FY2010 H-1B petitions continue.