Global delivery company DHL is forced to cut 9500 jobs within United States but will continue to operate business to other countries. The company is dropping the US based or domestic-only jobs to minimize future uncertainties. “We see [a] significant shortfall in the U.S. part of our express business due to the fact that the economy has weakened deeply,” said Frank Appel, chief executive of DHL’s parent company Deutsche Post World Net
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DHL-US to cut 9500 jobs
In an earlier post [ Kishore's Law ], I had posited that Indian software vendors need to make themselves accountable for final results. Signs of that happening are begining to show now with Satyam making the move to outcome-based billing: In a bid to earn higher revenues from transformational outsourcing contracts, India’s fourth largest software services company Satyam Computer Services will work with customers in the US and UK on performance-linked projects where it will get paid based on the tangible business benefits accrued by a customer
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Satyam Breaking Out of Commodity Play?
China , the world’s fourth largest economy is making its biggest move to guard its economy against global financial crisis. It recently announced $586 billion stimulus plan package as part of its plan to backup its ailing economic status. China’s statement said the Cabinet, at a meeting chaired by Premier Wen Jiabao, had “decided to adopt active fiscal policy and moderately easy monetary policies.” The statement said the spending would focus on 10 areas. They included picking up the pace of spending on low-cost housing — an urgent need in many parts of the country — as well as increased spending on rural infrastructure
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China reveals massive stimulus plan to boost economy
With the new administration next year, Wall Street spectators, investors are trying to figure out what would be the best stocks that would shake and move the Wall Street. An Obama victory also could get consumer confidence out of its doldrums and help a variety of sectors. “The good news is the American public got the change they wanted yesterday,” says Peter Miralles, president of Atlanta Wealth Management. “Consumer confidence is at all-time lows
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what stock could fare best in Wall Street on Obama Adminnistration
The month of October was in full red at Wall Street as October ends. This month was tagged as the worst-ever in the US stock markets as Dow jones was in wild ride and S&P lost 198 points. The markets have suffered under the weight of a deteriorating housing market, an ongoing credit crisis, sluggish profits and falling commodity prices. Worst of all, economists say, is that there seems to be no end in sight.
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October is the ever-worst month for Wall Street
Japan , being tagged as the number two in global economy is now being wrapped with fears over the financial crisis. To ensure economic stability, Japan has recently announced $275 billion package to support and maintain it economic status. The economic package comes on the heels of an ¥11.7 trillion supplementary budget approved by Parliament. That plan included help for fishermen and farmers to deal with high fuel prices, and assistance for part-time workers to find better jobs
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Japan reveals $275bn package to support economy
US software outsourcing company CSC, one of the world’s largest IT outsourcing firms, said yesterday it will launch a new delivery center in China as the global financial crisis may force more Western companies to outsource their business to the country. Michael Laphen, chairman and chief executive officer of CSC, said the financial turbulence would force
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IT Outsourcing Giant to Set Up New Center
In a report published by US financial management and advisory firm, Merrill Lynch, half of Europe’s millionaires are Russian and their number is growing twice as fast as the global rate. So with all this money is the Russian financial sector geared up for wealth management? Sergey Shelyagin, director at EPAM Systems, observes that although the Russian banks are quite keen to offer such services, overall, they noticeably yield to the longstanding experience, knowledge and efficiency of European banks in this sector (such as UBS and Credit Suisse). Shelyagin, whose employer, EPAM Systems, assists banks and various financial institutions with the development of wealth management technologies, observes that the interest in wealth management in Russia manifests itself in a host of dedicated conferences and forums.
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Wealth Management Technologies in Russia
Let us take a look at EDS now. After struggling to bootstrap an India capacity for many year, EDS acquired the Indian vendor MphasiS, whose strength in business process outsourcing is formidable [ EDS – India To Merge Into MphasiS ] Earlier this year, EDS was acquired by HP, creating a behemoth that could rival IBM [ With EDS, HP Buys Its Way Into Outsourcing Big League ]. The HP hardware lineage, combined with the EDS services lineage, combined with MphasiS’s India lineage brings this company neck-to-neck with IBM (though it still lacks the software products story of IBM). Therein lies the problem. This is really three companies masquerading as one ! Combining these three lineages is not going to be easy and any success, at best, is bound to be patchy
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MNC Vendors in India – EDS-HP
“Forewarned is forearmed” is a golden rule of life. Outsourcing is no exception. If your outsourcing initiatives are successful or fail depends mostly on the way you perceive outsourcing and communicate with your outsourcing partner, In other words: set firm goals and keep your eyes wide open. InfoWorld talked to industry experts to summarize their best advice, based on their own and their clients’ experience
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Forewarned is Forearmed
The BPO-KPO sector in India is facing the heat of the US slowdown , particularly following recent events in the financial markets. Businesses of a host of small- and mid-sized firms have taken a further hit in the industry since a major chunk of business comes from banking and financial services firms in the US. “The
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BPO Companies Have Taken a Hit as US Crisis Deepens
One of the criteria taken into account when choosing an outsourcing destination is governmental support in this country. In this respect Russia is becoming a tasty morsel: firstly, the creation of technoparks, then the increase of university places for students of technical branch of study, and now spending on technology-based research programs (about $25 billion) including the creation of two national research universities. Prime Minister Vladimir Putin made this announcement as he spoke at a science and education conference.
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Russia Contributes to Hi Tech Future
The Wall Street collapse will take the most toll on the knowledge process outsourcing (KPO) business in India , according to industry experts, but firms are optimistic that the meltdown will still create opportunities for outsourcing. The filing of bankruptcy by investment bank Lehman Brothers has hit its KPO services provider eClerx Services, hard. The
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KPO Firms Don’t Lose Heart Despite Wall Street Woes
According to a new study conducted by the Economist Intelligence Unit, the business information arm of The Economist Group, and sponsored by the Business Software Alliance (BSA), the United States continues to rank first in the annual global IT industry competitiveness index. However its score has gone down a bit compared to the previous year as many other countries are nipping at its heels. The study assessed and compared the information technology industry environments of 66 economies to determine the extent to which they enable IT sector competitiveness. According to the Economist Intelligence Unit, six factors combine to create a sound environment for the IT sector, including: overall business environment, IT infrastructure, human capital, legal environment, research and development environment, and support for IT industry development. Interesting to notice is that in this study Russia goes right after India and ranks higher than China.
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The Economist Intelligence Unit Reveals IT industry Competitiveness Index
Gensler, the San Francisco-based architecture design company, and Singapore-based architecture firm, Space Matrix, have set up their joint venture — ‘Studio i’ in Bangalore. ‘Studio i’ has been set up to handle architectural and interior design knowledge process outsourcing (KPO). The company’s operations will be carried out from its facility at Divyashree Park SEZ in Whitefield,
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‘Studio I’ to Handle Architectural KPO
So most of the companies I talk to get 800 calls a week from offshore companies. They’re either working with a solid team already, or they aren’t interested in building an offshore team at all. It’s not for everyone, but outsourcing works very well if you find a sharp team and are willing to invest a lot of time and energy in developing a relationships and processes with your offshore team
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Skeptical About Outsourcing Software Development? Good!
According to a recent study by French analytical company Pierre Audoin Consultants (PAC), the growth rate of Russian IT services market is a bit lower compared to IDC calculations and it wasn’t half as high as in 2006 and increased by 18% only (vs 47.2% according to IDC). However, PAC’s estimation of IT services market volume equals to that by IDC: approximately 3 billion euro or 4.4 billion dollars. Nevertheless, PAC admits that even with 18% growth rate in 2007 Russian IT services market is the fastest growing in the world. Its growth surpasses IT services market growth rate in Western (6.6% in 2007) and even Eastern Europe (15% in 2007). Local integrators who participated in IDC survey don’t question its correctness.
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IT Services: Russia Excels. Part 2
According to IDC last year Russian IT services market showed robust growth and reached 4.4 billion dollars. As company analysts claim this growth rate is considered to be the highest in the world. According to IDC’s classification IT services segment consists of systems integration (30.4% of the services market), consulting and custom application development (28.8%), hard- and software support and installation (18.7%), IT education and training (4.3%)
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IT Services: Russia Excels. Part 1
A new study by Ernst & Young completed last month found that Europeans are becoming more open to outsourcing . Being one of the few research works analyzing Europe’s openness towards outsourcing, the study showed that outsourcing was being used by 70 per cent of the European firms surveyed. The British are, however, likely to outsource only a few standard functions, while the French and Belgians are open to outsourcing a wide range of functions. Also, compared to 70 per cent of respondents that had at least one outsourcing relationship, only 49 per cent of respondents cited cost savings and higher productivity (revenue earned per employee) as the advantage of outsourcing for their organization. About 33 per cent identified better quality through use of specialized skills
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Europe Outsources for Quality
Maybe you’re working with an offshore team, or maybe you’re thinking about it. Or worse yet, you’ve been burned by an offshore “software sweatshop”. We’ve all heard offshore outsourcing horror stories. There are obvious advantages (and disadvantages) to outsourcing. Here are 5 tips to help you choose the right offshore partner
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More Than Cheap Labor: 5 Things to Know When Looking to Outsource Software Development
I had a conversation with Pete Segar, the CTO of Ergotron a few weeks ago. I read about him in an article about domestic outsourcing and how it’s becoming more of an imperative for mid-market firms. More outsourcing firms are targeting mid-market companies (Pete gets his fair share of cold calls). Ergotron is working with an offshore team in Belarus
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Don’t Forget to Flush When You Offshore Software Development