SINGAPORE--Australian telco Telstra has expanded its Singapore presence with a new office to promote its service offerings beyond core connectivity, as the company looks to grow its international business.
This is part of over US$20 million it has invested in the country over the past 12 months which Telstra is shaping as a cornerstone for its Asia expansion plans.
"Primarily, Singapore has been a hub for us in delivering international connectivity sevices, mainly Australian companies moving to Asia as well as U.S. and European companies," said David Thodey, CEO of Telstra, who was speaking at the office opening here Friday.
He added the new facility houses what it calls an Executive Briefing Center to help promote Telstra's various networking services and products to potential customers beyond core connectivity. "We want to continue to grow our products such as unified communications, IP telephony, and cloud computing services," Thodey said.
A key feature is a collapsible telepresence room, dubbed the V-pod, which Telstra claims is the first of its kind. According to the telco, the room can be set up and taken apart in two days, offering a cost-effective tool for IT managers worried about committing to the cost of a permanent installation.
The local expansion comes less than a month after the opening of its new data center in Singapore, which has allowed Telstra to augment its product offering from just core connectivity, to include cloud computing and other services.
Telstra CEO David Thodey and Chairperson Catherine Livingstone "dot" the lion's eyes as part of the office opening ceremony. (credit: Ryan Huang/ZDNet) Thodey said the telco's international business currently comprises only about 7 percent of its total A$25 billion (US$26 billion) annual revenue.
"We don't talk about specific targets but I think it's fair to say that a company like Telstra that holds a large market share in Australia, we have to look for new geographies for growth and we're very keen to grow out this business as fast as we possibly can," he added.
The CEO said while the telco had considered entering Myanmar, it decided not to put in a bid for the ongoing tender for a mobile license as the company did not understand the market well enough.
Telstra's newly opened Executive Briefing Center in Singapore. (credit: Ryan Huang/ZDNet) He explained: "We look at whether we have the core capability and knowledge of the market before we decide whether to go in." According to Thodey, other Asian markets Telstra has been eyeing include Cambodia, Vietnam, South Korea and various parts of China.
He estimated Telstra's global headcount would grow by about 5 percent per year, based on the company's current growth of about 10 growth annually, but subject to the business opportunities it earned. It currently has about 4,000 staff in Asia, on top of the 55,000 in Australia, according to Thodey.
In Singapore, headcount had tripled over the past two years to under 100. Telstra's expansion here has ramped up since it secured a Facilities Based Operator (FBO) in 2011, allowing it to own and operate telecommunications infrastructure such as voice and data networks, systems, and facilities in the city-state.
Across the region, Telstra last year launched nine new global points of presence including cities such as Tokyo, Sydney, and Hong Kong.
Hard Rock Cafe in Pune, India, on Google Maps 
Interest in photography drives associated online business in India. (Credit: Abhishek Baxi) 
In an earnings statementfor Q4 2013, Wipro said the segment's quarterly revenues grew 0.5 percent compared to the previous three months, and 3.2 percent over the year. Total net income for IT services was US$317 million, before interest and tax, up 10 percent on the corresponding period in 2012. This figure was mostly in line with the US$309 million average predicted by 19 analysts polled by Thomson Reuters. In Friday market closing on India's National Stock Exchange, Wipro stock was down 1.68 percent to 368.65 rupees. For the first quarter of FY14, ending June 30, Wipro expects flat sequential growth with revenues in the range of US$1.58 billion to US$1.61 billion.This quarterly prediction trails the expected growth of the Indian IT industry. Nasscom forecast that India's IT services industry will grow by 10 percent to 14 percent in FY14.In the statement, Wipro chairman Azim Premji said the new financial year heralds the operation of a recently demerged Wipro, one where the IT services business unit has been separated from the consumer care and lighting segment.“We have completed the demerger of the ‘Diversified Business’ effective March 31, 2013 to make Wipro Limited a pure play IT company," Premji said. "We are confident that being a technology-focused company will provide a fresh momentum for growth.”The FY13 IT services earnings before tax and interest (EBIT) of US$1.28 billion represented a year-on-year growth of 18 percent. Overall income increased five percent to US$6.2 billion.However, the results weren't so positive in the IT products segment where EBIT dropped to US$18million: down 45 percent over the year. This was on the back of US$720 million revenue, an increase of two percent over that period.In the products business, the Q4 2013 figure of US$5 million was a decrease of 39 percent compared to the corresponding period in the previous year.Wipro's report rounds up the earnings season of the four big Indian IT outsourcers who for the quarter ending March 31, 2013, revealed:Tata Consultancy Services posted a US$663 net profit.Infosys reported a 4 percent drop to US$444 million.HCL flagged a 60 percent profit increase at US$193 million.Topics: Outsourcing, India 
