ETtech Top 5: India's top Internet firms & govt, New business model of TCS & more
India’s top Internet firms to submit company info to govt

What’s the news?

India’s top new-age internet firms including Flipkart, Amazon, Snapdeal are in the process of submitting detailed reports to the ministry of commerce and industry, explaining their company structures and business operations in India, multiple people with knowledge of the matter told ET.

Why does this matter?

This is the first such instance of the government seeking such clarification on the way these internet companies function, and comes on the back of several complaints being made by seller bodies and other rival players about internet commerce firms allegedly violating laws that govern the sector. The development also coincides with the Competition Commission of India conducting a survey on the e-commerce market in India. Read more.

ETtech Top 5: India's top Internet firms & govt, New business model of TCS & more
TCS‘s new business model

What’s the news?

India’s top IT services provider, Tata Consultancy Services, is betting on the three Ps — patents, products, and platforms — to create a new business model and power its next phase of growth, chief executive Rajesh Gopinathan said, a business shift that will need changes to the company culture.

The business model of the future depends on converting knowledge into assets that can be licensed, Gopinathan said.

How are they doing this?

IT services companies have been looking at platforms and products as a way to grow in a non-linear manner, as they try to decouple revenue and headcount growth and boost margins.

However, what’s different with TCS’s approach is that it plans to tap internal expertise to achieve its target, rather than creating product groups or bringing in product experts

READ  Startups bet on tech, smart logistics to carve a big chunk off meat & fish market

To encourage employees to think about creative, patentable parts of their job, TCS is also creating forums and placing patent walls in delivery centres that will list the number of patents from each centre. Read more.

ETtech Top 5: India's top Internet firms & govt, New business model of TCS & more
Jabong‘s imminent shutdown

What’s the news?

Flipkart has started redirecting users from Jabong to Myntra in what could be a precursor to the imminent shuttering of Jabong as an independent brand, sources in the know said. Flipkart has cut all marketing spends on Jabong and is diverting all web and app traffic to Myntra over the past few months.

What’s the significance?

Flipkart has been struggling to figure out a definitive long-term strategy for Jabong since its acquisition, a top Myntra executive told ET. Last year, the company said it is integrating back-end functions of Myntra and Jabong including technology, marketing, finance and creative, but continued to defend that Jabong and Myntra customer base is differentiated. Myntra and Jabong have laid off close to 150 employees at this time. Read more.

ETtech Top 5: India's top Internet firms & govt, New business model of TCS & more
Treebo layoffs

What’s the news?

Hospitality company Ruptub Solutions, which owns and operates Treebo Hotels, has fired 100-120 employees, or about 20% of its workforce, three people familiar with the development told ET. The company cited a “large” potential investment round falling through as the reason for the retrenchment, according to an employee who spoke to ET on the condition of anonymity.

Why does it matter?

A bunch of startups in the real estate and ancillary businesses have been under pressure to raise larger rounds to fight the Softbank-backed Oyo, which most recently raised $1 billion from Chinese ride-hailing firm Didi Chuxing, SoftBank, Singapore-based ride-hailing company Grab, and others.

READ  Wall St rises as Apple, tech shares climb - Business News

French hotel chain, Accor SA, was in advanced discussions for an up to $40 million investment in Treebo, ET reported in May.

Treebo had also laid off 70-80 employees in July last year after online travel agency MakeMyTrip stopped listing the company on its platform, instead choosing to deepen its relationship with OYO Rooms. Read more.
ETtech Top 5: India's top Internet firms & govt, New business model of TCS & more

L&T looks to protect Mindtree culture

What’s the news?

Larsen & Toubro plans to nurture the unique culture of Mindtree and will set up a council that will help in the exchange of best practices between the conglomerate and the company it has just acquired, L&T chief executive officer SN Subrahmanyan said.

Why is this significant?

L&T recently completed the acquisition of Mindtree, the first hostile takeover in India’s information technology industry, after being attacked by founders and employees who feared the heavyweight would crush the culture of the company. In March, when L&T first made its intentions clear, employees started a social media campaign, #MindtreeMatters, to express their displeasure about the plan.

L&T’s leadership, however, has maintained that Mindtree will be run as a separate entity and operate at an arm’s length from L&T Infotech and that there would be no conflict of interest between them. Read more.



READ SOURCE

WHAT YOUR THOUGHTS

Please enter your comment!
Please enter your name here