Satyam confirmed this morning that its headcount had been reduced by 200 from its Australian operations since last year.
Last year the number of Australian employees had sat at around 1000, while this year it only reached 800, a spokesperson for the company said.
The number of employees supporting Australia in India had also been reduced, according to the spokesperson from 700 to around 400 to 500 employees.
The spokesperson didn't name any reasons for the contraction, but it has been public knowledge that Satyam has had a rough ride over the last few months after a scandal where it was revealed that the company's former chairman B. Ramalinga Raju had been doctoring the company's books. "For us it is very much business as unusual," T. R. Anand, director, senior VP and head of the Asia-Pacific region told ZDNet.com.au yesterday.
Anand added that the economic crisis had put pressure on all industries, although Australia was a more optimistic market than others. "We are not going to expand and grow in an economy which is shrinking," he said.
Satyam has just announced a new country manager for Australia and New Zealand, Venki Prathivadi. He replaced Deepak Nangia who it was announced this morning has been appointed to a position within technology consultant Capgemini as the managing director for its "New Business" division.
"Deepak's strong experience in technology services and transformational outsourcing is almost without peer in Australia. His innovative strategy development and commercial approach will let us enhance the value we provide to our clients," Paul Thorley, CEO Capgemini Australia said.
Thursday, June 4, 2009
Wednesday, June 3, 2009
Satyam
TechMahindra claims Satyam clients' confidence back
Tech Mahindra’s acquisition of Satyam Computer Services, according to an internal survey, has helped in restoring the confidence of the latter’s clients, many of whom were thinking of terminating their ties with the fraud-hit IT firm.
About 80 per cent of clients have resumed normal business now, while about half of them were earlier seriously considering whether or not to go ahead, it appears.
While the company’s finanical accounts are yet to be officially restated, Tech Mahindra officials have publicly stated that Satyam’s business had almost halved, to around $1.3 billion. Analysts, meanwhile, had cautioned that clients may not renew their contracts with Satyam.
The situation changed after Tech Mahindra won the acquisition bid and bought a 31 per cent stake in the company, beside declaring an open offer for an additional 20 per cent stake. “As part of our Operation Phoenix (named after the mythical bird which rises from its own ashes every time it dies), we conducted a survey on 400 clients globally, both regular customers and those who were in a wait-and-watch mode, between April 13 — the day when Tech Mahindra was announced the highest bidder to take over Satyam — and May 20. The idea was to get to know the clients’ perspective on what the acquisition would bring about, and 80 per cent of them responded positively and have resumed normal business with us,” a Satyam spokesperson told Business Standard.
Satyam had about 600 clients, including General Electric, Cisco Systems, General Motors, Nestle, Nissan and Quantas Airways. It reportedly lost a tenth of these after the Jnauary 7 revelation by its founder-head, Ramalinga Raju, that he had cooked the company’s books for years.
About 80 per cent of clients have resumed normal business now, while about half of them were earlier seriously considering whether or not to go ahead, it appears.
While the company’s finanical accounts are yet to be officially restated, Tech Mahindra officials have publicly stated that Satyam’s business had almost halved, to around $1.3 billion. Analysts, meanwhile, had cautioned that clients may not renew their contracts with Satyam.
The situation changed after Tech Mahindra won the acquisition bid and bought a 31 per cent stake in the company, beside declaring an open offer for an additional 20 per cent stake. “As part of our Operation Phoenix (named after the mythical bird which rises from its own ashes every time it dies), we conducted a survey on 400 clients globally, both regular customers and those who were in a wait-and-watch mode, between April 13 — the day when Tech Mahindra was announced the highest bidder to take over Satyam — and May 20. The idea was to get to know the clients’ perspective on what the acquisition would bring about, and 80 per cent of them responded positively and have resumed normal business with us,” a Satyam spokesperson told Business Standard.
Satyam had about 600 clients, including General Electric, Cisco Systems, General Motors, Nestle, Nissan and Quantas Airways. It reportedly lost a tenth of these after the Jnauary 7 revelation by its founder-head, Ramalinga Raju, that he had cooked the company’s books for years.
Few US employers see hiring recovery in '09: Survey by Dice
US employers and recruiters have largely given up expectations for an increase in hiring this year, and more are cutting starting salaries, according to a semi-annual survey by Dice Holdings Inc.
Dice's survey found 10 per cent of employers expect a hiring recovery in the second half of this year, down from 33 per cent who said so in November. Thirty-one per cent said layoffs were likely over the next six months, down only slightly from 34 per cent six months ago.
Majorities said they have seen significant increases in the number of applicants, and about a third said it takes longer to fill open jobs, largely because of uncertainty over the economy's direction.
Most hiring managers are sticking to budgets made at the beginning of the year, said Dice Chief Executive Scot Melland.
"Our customers are telling us they feel better about the environment but that has yet to translate into a change in recruiting budgets," Melland said. Hiring typically revives three to six months after the wider economy turns, he added.
Half of the 1,900 employers and recruiters surveyed expect a recovery in 2010 and a third were not sure, according to Dice, which runs specialized websites focused on technology, engineering and financial sector jobs.
LOWER SALARIES
Dice's real-time metric of tech jobs posted showed about 48,000 openings on Tuesday, down from about 50,000 earlier this month and about 80,000 in September. The company had about 1,100 openings at eFinancialCareers.com as of Monday, down 52 per cent year over year.
It was too soon to say this measure of financial sector hiring has stabilized, Melland said.
Private banking and wealth management are among growth categories, but those are offset by continuing declines in investment banking and hedge fund postings, Melland said, and new hires can expect lower pay.
Starting salaries are down slightly at 31 per cent of companies, up from 13 per cent of firms in November, Dice said. The number of employers reporting "significantly lower" starting salaries has more than tripled since November, to 7 per cent.
"There are enough people on the street to impact starting salaries," Melland said.
Pay is rising, however, in jobs that require active government security clearances, where average pay is up 2 per cent to $74,000. That part of Dice's business "continues to do really well," Melland said, after posting a 32-per cent sales increase in the first quarter.
ClearanceJobs.com has found sharply higher salaries for workers with security clearance in Afghanistan, reflecting a renewed US government focus on that country. The average salary for cleared workers there is up 7 per cent to $106,000, only slightly below the average for those working in Iraq.
"There is still very active demand for people with active security clearances," Melland said.
Dice's survey found 10 per cent of employers expect a hiring recovery in the second half of this year, down from 33 per cent who said so in November. Thirty-one per cent said layoffs were likely over the next six months, down only slightly from 34 per cent six months ago.
Majorities said they have seen significant increases in the number of applicants, and about a third said it takes longer to fill open jobs, largely because of uncertainty over the economy's direction.
Most hiring managers are sticking to budgets made at the beginning of the year, said Dice Chief Executive Scot Melland.
"Our customers are telling us they feel better about the environment but that has yet to translate into a change in recruiting budgets," Melland said. Hiring typically revives three to six months after the wider economy turns, he added.
Half of the 1,900 employers and recruiters surveyed expect a recovery in 2010 and a third were not sure, according to Dice, which runs specialized websites focused on technology, engineering and financial sector jobs.
LOWER SALARIES
Dice's real-time metric of tech jobs posted showed about 48,000 openings on Tuesday, down from about 50,000 earlier this month and about 80,000 in September. The company had about 1,100 openings at eFinancialCareers.com as of Monday, down 52 per cent year over year.
It was too soon to say this measure of financial sector hiring has stabilized, Melland said.
Private banking and wealth management are among growth categories, but those are offset by continuing declines in investment banking and hedge fund postings, Melland said, and new hires can expect lower pay.
Starting salaries are down slightly at 31 per cent of companies, up from 13 per cent of firms in November, Dice said. The number of employers reporting "significantly lower" starting salaries has more than tripled since November, to 7 per cent.
"There are enough people on the street to impact starting salaries," Melland said.
Pay is rising, however, in jobs that require active government security clearances, where average pay is up 2 per cent to $74,000. That part of Dice's business "continues to do really well," Melland said, after posting a 32-per cent sales increase in the first quarter.
ClearanceJobs.com has found sharply higher salaries for workers with security clearance in Afghanistan, reflecting a renewed US government focus on that country. The average salary for cleared workers there is up 7 per cent to $106,000, only slightly below the average for those working in Iraq.
"There is still very active demand for people with active security clearances," Melland said.
One-fifth of Indian employers unable to fill vacant posts: Survey
Although Indian companies are resorting to layoffs and freeze on fresh hiring, about 20 per cent of employers in India are facing problems in filling vacancies, according to a survey by a global human resource consulting firm.
The talent shortage doesn't affect all regions equally, the survey by Manpower Inc found, with the problem being far more acute in Taiwan and Romania - where 62 per cent of companies are grappling with talent scarcity.
The two countries are followed by Peru (56 percent), Japan (55 percent) and Australia (49 percent). The global average is 30 percent.
India is affected to a lesser degree, with only about 20 per cent of employers finding it difficult to fill up vacant positions, while Spain (8 per cent) and Ireland (5 per cent) are the least affected.
"Despite global recession and the weakest employment outlook in decades, employers are nonetheless facing a scarcity of talent in critical areas," said manpower chairman and chief executive Jeffrey A. Joerres.
"Even as they've generally reduced hiring, they are still looking to fill critical positions and are having trouble finding people who are the perfect fit," Joerres said.
Added manpower India managing director Naresh Malhan: "Though the problem is comparatively less in India, there is certainly a disparity in between supply and demand."
Referring to customers service professionals, Malhan told media: "Earlier not many companies had technical sales support. But now, a lot of industries are providing such services leading to a surge in demand for these kind of professionals."
Some of the other skills in demand in India are engineers, traditional skill traders like plumbers, electricians, marketing executives and production management professionals.
"Perhaps the most important inference to be drawn from this data in these uncertain times is that employers have to master a difficult balancing act in terms of talent management: They must contain costs for the short term without compromising their longer-term appeal to talented workers," said the survey report.
"Sooner or later, global economic growth will resume, bringing additional strain to talent markets everywhere. And the increasing need for ever more refined skills will only intensify that strain.
"It is imperative, therefore, that employers act now to design and implement talent strategies that help attract, retain and motivate the best possible workforce."
The talent shortage doesn't affect all regions equally, the survey by Manpower Inc found, with the problem being far more acute in Taiwan and Romania - where 62 per cent of companies are grappling with talent scarcity.
The two countries are followed by Peru (56 percent), Japan (55 percent) and Australia (49 percent). The global average is 30 percent.
India is affected to a lesser degree, with only about 20 per cent of employers finding it difficult to fill up vacant positions, while Spain (8 per cent) and Ireland (5 per cent) are the least affected.
"Despite global recession and the weakest employment outlook in decades, employers are nonetheless facing a scarcity of talent in critical areas," said manpower chairman and chief executive Jeffrey A. Joerres.
"Even as they've generally reduced hiring, they are still looking to fill critical positions and are having trouble finding people who are the perfect fit," Joerres said.
Added manpower India managing director Naresh Malhan: "Though the problem is comparatively less in India, there is certainly a disparity in between supply and demand."
Referring to customers service professionals, Malhan told media: "Earlier not many companies had technical sales support. But now, a lot of industries are providing such services leading to a surge in demand for these kind of professionals."
Some of the other skills in demand in India are engineers, traditional skill traders like plumbers, electricians, marketing executives and production management professionals.
"Perhaps the most important inference to be drawn from this data in these uncertain times is that employers have to master a difficult balancing act in terms of talent management: They must contain costs for the short term without compromising their longer-term appeal to talented workers," said the survey report.
"Sooner or later, global economic growth will resume, bringing additional strain to talent markets everywhere. And the increasing need for ever more refined skills will only intensify that strain.
"It is imperative, therefore, that employers act now to design and implement talent strategies that help attract, retain and motivate the best possible workforce."
Outsourcing
Aussie banks to move IT projects to India
Even as Australia is making headlines for hostilities towards Indians, Australian banks are set to implement billions of dollars worth of IT projects and could also outsource many of their functions to India.
Some of its top banks are looking to implement core-banking projects, and the first of these projects from the National Australia Bank has already gone to Oracle Financial Solutions, earlier i-flex Solutions.
These projects could range anywhere from $2-$4 billion, with the software licences alone costing $500 million. Unlike the US, banks in Australia are still very profitable. “Many of these banks are running applications on legacy systems and hardware that may not be supported anymore. They are shifting to core banking applications and awarding contracts
for their implementation,” said Tim Sheedy, senior analyst, Forrester Research. One of Australia’s big four banks, Commonwealth Bank, is also in the midst of a core-banking modernisation programme, while two of the other big four banks are also in similar discussions with vendors. These banks are looking at outsourcing their entire IT to select functions such as monitoring and maintenance, said Mr Sheedy.
The banks are outsourcing out of necessity to cut costs and move from a variable cost model to a more predictable cost model, he said. The findings of a report yet to be released by Forrester, show that the outsourcing is staging a comeback in Australia. “Australia had moved away from outsourcing but now cost is driving them to it again.
Australian banks have never outsourced but are now starting to. The outsourcing contracts that come up could be in hundreds of millions of dollars,” he said.
So, although IT budgets in the Asia Pacific are shrinking by an average of 9%, outsourcing has increased. “The banks are doing it to save money. So we will see a considerable offshoring component because price will be a key consideration,” said Mr Sheedy.
Some of its top banks are looking to implement core-banking projects, and the first of these projects from the National Australia Bank has already gone to Oracle Financial Solutions, earlier i-flex Solutions.
These projects could range anywhere from $2-$4 billion, with the software licences alone costing $500 million. Unlike the US, banks in Australia are still very profitable. “Many of these banks are running applications on legacy systems and hardware that may not be supported anymore. They are shifting to core banking applications and awarding contracts
for their implementation,” said Tim Sheedy, senior analyst, Forrester Research. One of Australia’s big four banks, Commonwealth Bank, is also in the midst of a core-banking modernisation programme, while two of the other big four banks are also in similar discussions with vendors. These banks are looking at outsourcing their entire IT to select functions such as monitoring and maintenance, said Mr Sheedy.
The banks are outsourcing out of necessity to cut costs and move from a variable cost model to a more predictable cost model, he said. The findings of a report yet to be released by Forrester, show that the outsourcing is staging a comeback in Australia. “Australia had moved away from outsourcing but now cost is driving them to it again.
Australian banks have never outsourced but are now starting to. The outsourcing contracts that come up could be in hundreds of millions of dollars,” he said.
So, although IT budgets in the Asia Pacific are shrinking by an average of 9%, outsourcing has increased. “The banks are doing it to save money. So we will see a considerable offshoring component because price will be a key consideration,” said Mr Sheedy.
Tuesday, June 2, 2009
BPO, Outsourcing
The 10 Riskiest Locations In The World For Outsourcing
The list, built around concerns over terrorism, pollution, and geopolitical tensions, includes cities from a range of countries that could otherwise constitute a round-the-world tourism dream: Thailand, Jamaica, South Africa, Brazil, India, Israel, the Philippines, and Colombia. Read on to see if your company's global outsourcing map matches up with this list of the world's10 riskiest locations for outsourcing.
Here are the top 10 as ranked by Brown & Wilson, authors of the annual "Black Book of Outsourcing":
1. Bogota, Colombia
2. Bangkok, Thailand
3. Johannesburg, South Africa
4. Kuala Lumpur, Malaysia
5. Kingston, Jamaica
6. Delhi/Noida/Gurgaon (NCR), India
7. Manila, Philippines
8. Rio do Janeiro, Brazil
9. Mumbai, India
10. Jerusalem, Israel
Here are the top 10 as ranked by Brown & Wilson, authors of the annual "Black Book of Outsourcing":
1. Bogota, Colombia
2. Bangkok, Thailand
3. Johannesburg, South Africa
4. Kuala Lumpur, Malaysia
5. Kingston, Jamaica
6. Delhi/Noida/Gurgaon (NCR), India
7. Manila, Philippines
8. Rio do Janeiro, Brazil
9. Mumbai, India
10. Jerusalem, Israel
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