European bank HSBC is shuttering hundreds of branches in the U.S. that specialize in mortgage and consumer lending, and axing thousands of jobs, as it pulls back from its foray into the American housing market.
HSBC (HBC) said on Monday that it will cut 6,100 jobs in the U.S. and close its HFC and Beneficial bank branches. HSBC spokeswoman Kate Durham said the approximately 800 branches of HFC and Beneficial banks specialized in consumer and mortgage lending and are spread throughout the U.S.
As of Monday, these branches are no longer offering loans, she said, and employees are starting to receive their 30-day notices.
Tuesday, March 3, 2009
Immigrant Chinese, Indian tech workers increasingly return home
The U.S. economic magnet is losing some of its power to retain skilled immigrants from China and India, many of whom have come to Silicon Valley to study and work, according to a survey released today of more than a thousand returnees.
A powerful combination of career, family, culture and rapidly growing economies in their home countries is drawing them back, threatening U.S. supremacy in an increasingly competitive global environment.
The poll of 1,203 returnees to India and China by researchers at Duke and Harvard universities and the University of California also found the returnees thriving in their new jobs. Many rose through the ranks to senior management, with the number in high positions three to four times the number who held senior positions with their U.S. employers. About half said they planned to start a company in the next five years. Click here for complete story from 'SanJose Mercury News'
A powerful combination of career, family, culture and rapidly growing economies in their home countries is drawing them back, threatening U.S. supremacy in an increasingly competitive global environment.
The poll of 1,203 returnees to India and China by researchers at Duke and Harvard universities and the University of California also found the returnees thriving in their new jobs. Many rose through the ranks to senior management, with the number in high positions three to four times the number who held senior positions with their U.S. employers. About half said they planned to start a company in the next five years. Click here for complete story from 'SanJose Mercury News'
Satyam Woes Threaten SanDisk
Gadget maker SanDisk is warning investors that the trouble at scandal-plagued outsourcer Satyam has put its business operations at risk. SanDisk outsourced a number of critical IT projects to Satyam, but now some of those projects are in trouble following Satyam's admission that its chairman falsified profits and other financial information as part of a scam that's been dubbed India's Enron.
Among other things, SanDisk's plan to implement a new enterprise resource planning system this year is in jeopardy.
"The design and implementation of the new ERP system could also take longer than anticipated and put further strain on our ability to run our business on the older, existing ERP system," SanDisk warned in a document filed last week with the Securities and Exchange Commission that I happened across.
"Our current system integrator, Satyam Computer Services Ltd., is experiencing financial difficulty which has resulted in some project delays and loss of productivity," SanDisk stated.
"If the system integrator were to lose key personnel, declare bankruptcy or otherwise be unable to perform at the level we expect, we would have to engage a new integrator, which would likely result in significant delays in our implementation and additional cost," SanDisk continued.
"Any design flaws or delays in the new ERP system or any distraction of our workforce from competing business requirements could harm our business or results of operations," according to SanDisk, indicating that the stakes are pretty high.
On Jan. 7, Satyam chairman Ramalinga Raju admitted falsifying the company's cash position by as much as $1 billion while overstating quarterly earnings and revenue by up to 28%. Satyam may also have faked employee numbers and other data. Raju tendered his resignation and has since been arrested and jailed.
Some customers have fled Satyam in light of the scandal. India's Economic Times reported that U.S. heavy equipment manufacturer Caterpillar may terminate its deal. Insurer State Farm has said it would seek an end to its outsourcing contract with the company.
Satyam is now facing lawsuits from shareholders who claim they were misled about the company's financial situation. For their part, SanDisk investors might be wondering how much due diligence the manufacturer performed on Satyam before inking an outsourcing deal that has now come back to bite it.
Among other things, SanDisk's plan to implement a new enterprise resource planning system this year is in jeopardy.
"The design and implementation of the new ERP system could also take longer than anticipated and put further strain on our ability to run our business on the older, existing ERP system," SanDisk warned in a document filed last week with the Securities and Exchange Commission that I happened across.
"Our current system integrator, Satyam Computer Services Ltd., is experiencing financial difficulty which has resulted in some project delays and loss of productivity," SanDisk stated.
"If the system integrator were to lose key personnel, declare bankruptcy or otherwise be unable to perform at the level we expect, we would have to engage a new integrator, which would likely result in significant delays in our implementation and additional cost," SanDisk continued.
"Any design flaws or delays in the new ERP system or any distraction of our workforce from competing business requirements could harm our business or results of operations," according to SanDisk, indicating that the stakes are pretty high.
On Jan. 7, Satyam chairman Ramalinga Raju admitted falsifying the company's cash position by as much as $1 billion while overstating quarterly earnings and revenue by up to 28%. Satyam may also have faked employee numbers and other data. Raju tendered his resignation and has since been arrested and jailed.
Some customers have fled Satyam in light of the scandal. India's Economic Times reported that U.S. heavy equipment manufacturer Caterpillar may terminate its deal. Insurer State Farm has said it would seek an end to its outsourcing contract with the company.
Satyam is now facing lawsuits from shareholders who claim they were misled about the company's financial situation. For their part, SanDisk investors might be wondering how much due diligence the manufacturer performed on Satyam before inking an outsourcing deal that has now come back to bite it.
Monday, March 2, 2009
HCL BPO eyeing buys in US, UK
HCL BPO is looking for acquisitions of platform-based BPO firms in the US, UK and Australia with revenues of up to $250 million, its chief executive said. “We want to de-link revenue growth from headcount growth. So, we want to acquire companies in English-speaking countries that derive revenues from output or outcome-based pricing and platform-led services,” HCL BPO president and CEO N Ranjit said.Last year, the BPO arm of HCL Technologies had acquired two firms —UK-based Liberata Financial Services (LFS) and US-based Control Point Solutions. The BPO firm aims to earn revenues of $1 billion by 2010-11 and expects about 56% or $560 million to come from acquired entities. HCL BPO had revenues of about $223 million in the year-ended June 2008.
Outsourcing ban: Who gets hurt?
May hurt China more than India
President Obama’s statement to the joint session of the US Congress on ending tax breaks for corporations that ship jobs overseas so as to restore a sense of fairness and balance to the tax code may seem alarmist to some. However, it was made to stem the increasing job losses and curtail the negative sentiment that may be setting in the country.
If Obama follows through with the announcement in the budget, the move may hurt manufacturing and services sector, as without the tax breaks, US companies may find it less attractive to outsource the jobs overseas. But in the globalisation era, is it possible for large corporations to compete globally without a sourcing strategy built around finding the lowest cost providers? Click here for complete story from 'TheEconomicTimes'.
President Obama’s statement to the joint session of the US Congress on ending tax breaks for corporations that ship jobs overseas so as to restore a sense of fairness and balance to the tax code may seem alarmist to some. However, it was made to stem the increasing job losses and curtail the negative sentiment that may be setting in the country.
If Obama follows through with the announcement in the budget, the move may hurt manufacturing and services sector, as without the tax breaks, US companies may find it less attractive to outsource the jobs overseas. But in the globalisation era, is it possible for large corporations to compete globally without a sourcing strategy built around finding the lowest cost providers? Click here for complete story from 'TheEconomicTimes'.
California’s unemployment rate above 10 percent
According to Reuters: “California’s unemployment rate rose to 10.1 percent in January, its highest level in a quarter century, as recession tightened its grip on the most populous U.S. state.
Weakness in the housing and consumer sectors helped drive the jobless rate up from a revised 8.7 percent in December and 6.1 percent in January 2008 and to above the national average in January of 7.6 percent, state officials said on Friday.”
Weakness in the housing and consumer sectors helped drive the jobless rate up from a revised 8.7 percent in December and 6.1 percent in January 2008 and to above the national average in January of 7.6 percent, state officials said on Friday.”
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