Kinetic Concepts Inc. said Monday that the company is planning on laying off 4 percent of its work force, or 300 employees, worldwide.
San Antonio-based KCI (NYSE: KCI) is proceeding with the layoffs as a way of reducing expenses, improving operational efficiencies and increasing shareholder value.
The company created a global shares services team that will explore ways to improve the company’s overall productivity and performance.
Tuesday, March 31, 2009
IT biggies eye $2 Billion projects in power sector
Domestic IT market seems to be pouring opportunities to the Indian IT vendors with many government IT projects are at the doorstep. The government of India has a budget of Rs.50, 000 crore for the modernization of power sector, of which $2 billion (Rs.10,000 crore)will be spent on IT projects in areas such as consulting, implementation of IT systems and training, reported The Economic Times.
The state electricity boards (SEBs) have invited bids from eligible vendors and almost every major Indian and multinational companies is vying for the different pieces of the project. The fund distributing body for SEBs Power Finance Corporation (PFC) has empanelled around 15-20 vendors as eligible to be consultants. The consultants will be responsible for defining the requirements for the IT systems and also for releasing the RFPs for implementation and training.
"A few RFPs have already come out and the bids are underway. If things go well, we will see a lot of investment in the new year. Some of these projects will take a backseat because of the elections, but irrespective of which government comes to power these projects will go on," said Anand Sankaran, CEO, Wipro Infotech.
The consulting projects are estimated to be anywhere between Rs.50 lakh for small SEBs and Rs.2 crore for some of the larger SEBs. Each SEB will select the successful bidder from among the consultants empanelled by the PFC. Tenders for the implementation of new systems will be called after the initial consulting phase. The implementation phase is estimated to be between Rs 50 crore and Rs 200 crore.
The state electricity boards (SEBs) have invited bids from eligible vendors and almost every major Indian and multinational companies is vying for the different pieces of the project. The fund distributing body for SEBs Power Finance Corporation (PFC) has empanelled around 15-20 vendors as eligible to be consultants. The consultants will be responsible for defining the requirements for the IT systems and also for releasing the RFPs for implementation and training.
"A few RFPs have already come out and the bids are underway. If things go well, we will see a lot of investment in the new year. Some of these projects will take a backseat because of the elections, but irrespective of which government comes to power these projects will go on," said Anand Sankaran, CEO, Wipro Infotech.
The consulting projects are estimated to be anywhere between Rs.50 lakh for small SEBs and Rs.2 crore for some of the larger SEBs. Each SEB will select the successful bidder from among the consultants empanelled by the PFC. Tenders for the implementation of new systems will be called after the initial consulting phase. The implementation phase is estimated to be between Rs 50 crore and Rs 200 crore.
Saturday, March 28, 2009
Outsourcing
Obama lowers temperature against outsourcing
Source: TheEconomicTimes
Related: "Return of outsourced jobs not good for US: Obama"
US President Barack Obama will not insist on bringing back poorly-paid, low-skill jobs offshored to India and other emerging markets, signalling a reversal of his stance against US companies sending jobs abroad. Obama said he would rather work on creating high-skill, well-paying jobs in the US.
The US president’s acknowledgement that offshoring is here to stay, made in a live online town hall meeting from the White House, brings relief to the over two million employees in technology services and BPO companies in India and their counterparts in other offshore destinations like China and the Philippines.
Commenting on President Obama’s statement in Washington, Nasscom president Som Mittal told ET, “It will be good for the US and for us,” Both low-end and high-end offshoring would grow, he added.
“The issue is that over the years fewer Americans have been opting for STEMS (Science, Technology, Engineering & Maths) and there is a shortage of workers there. This is what President Obama is trying to address,” said Mr Mittal.
“It is the right sentiment. At a broader level, the issue is not high-end or low-end, but accepting the reality of today’s world, that is, you cannot root any job to a geography,” said Robert E Kennedy, a professor at Ross School of Business, University of Michigan.
Mr Kennedy recently wrote a book on outsourcing: The Services Shift, Seizing the Ultimate Offshore Opportunity.
IT honchos said the US now acknowledges that offshoring is a reality to live with. “President Obama is actually saying that the US needs to move up the value chain, while legitimising offshoring. About 8-10% of those done in India is high-end and this trend will continue, even as the US scales up further,” said the India head of a US services multinational who requested not to be named.
Citing a S&P 500 research, Mr Mittal said among the top 10 US companies, 50% of the revenue comes from outside the US and the growth in their businesses outside the US is 2.5 times that of their businesses in the US. Also, US companies like GE, Cisco, Intel, Microsoft, Oracle have R&D centres in India. They are leveraging global talent to remain competitive and will continue to do so.
Responding to a question about outsourced jobs returning to the US, Mr Obama said: “Not all of these jobs are going to come back... What we’ve
got to do is create new jobs that can’t be outsourced.”
However, not all jobs that have been offshored are low-end. The high-end jobs being done in India include the work done at R&D units of multinationals, analytics, engineering services, new technology development and so on. “Calling jobs ‘low skilled’ is a reference more to manufacturing rather than services offshoring. The US will not put curbs on offshoring, but will give a stimulus to its own high-end
Related: "Return of outsourced jobs not good for US: Obama"
US President Barack Obama will not insist on bringing back poorly-paid, low-skill jobs offshored to India and other emerging markets, signalling a reversal of his stance against US companies sending jobs abroad. Obama said he would rather work on creating high-skill, well-paying jobs in the US.
The US president’s acknowledgement that offshoring is here to stay, made in a live online town hall meeting from the White House, brings relief to the over two million employees in technology services and BPO companies in India and their counterparts in other offshore destinations like China and the Philippines.
Commenting on President Obama’s statement in Washington, Nasscom president Som Mittal told ET, “It will be good for the US and for us,” Both low-end and high-end offshoring would grow, he added.
“The issue is that over the years fewer Americans have been opting for STEMS (Science, Technology, Engineering & Maths) and there is a shortage of workers there. This is what President Obama is trying to address,” said Mr Mittal.
“It is the right sentiment. At a broader level, the issue is not high-end or low-end, but accepting the reality of today’s world, that is, you cannot root any job to a geography,” said Robert E Kennedy, a professor at Ross School of Business, University of Michigan.
Mr Kennedy recently wrote a book on outsourcing: The Services Shift, Seizing the Ultimate Offshore Opportunity.
IT honchos said the US now acknowledges that offshoring is a reality to live with. “President Obama is actually saying that the US needs to move up the value chain, while legitimising offshoring. About 8-10% of those done in India is high-end and this trend will continue, even as the US scales up further,” said the India head of a US services multinational who requested not to be named.
Citing a S&P 500 research, Mr Mittal said among the top 10 US companies, 50% of the revenue comes from outside the US and the growth in their businesses outside the US is 2.5 times that of their businesses in the US. Also, US companies like GE, Cisco, Intel, Microsoft, Oracle have R&D centres in India. They are leveraging global talent to remain competitive and will continue to do so.
Responding to a question about outsourced jobs returning to the US, Mr Obama said: “Not all of these jobs are going to come back... What we’ve
got to do is create new jobs that can’t be outsourced.”
However, not all jobs that have been offshored are low-end. The high-end jobs being done in India include the work done at R&D units of multinationals, analytics, engineering services, new technology development and so on. “Calling jobs ‘low skilled’ is a reference more to manufacturing rather than services offshoring. The US will not put curbs on offshoring, but will give a stimulus to its own high-end
BPO
Genpact sets sights on home turf, aims to bag 30 outsourcing deals
Genpact is eyeing around 30 outsourcing deals in India across sectors like manufacturing, telecom, utilities and financial services, according to the company’s president and CEO Pramod Bhasin. The country’s largest BPO firm by sales has also zeroed in on China, Japan and West Asia as growth markets.
The country’s BPO market, valued at $1.3 billion, is expected to grow by 40% in 2009. "The domestic market is very receptive towards outsourcing. Deal sizes, however, remain small, ranging between $1 million and $5 million," Mr Bhasin said.
The country’s BPO market, valued at $1.3 billion, is expected to grow by 40% in 2009. "The domestic market is very receptive towards outsourcing. Deal sizes, however, remain small, ranging between $1 million and $5 million," Mr Bhasin said.
IBM, severance package
IBM's golden handshake to employees
Source: TheEconomicTimes
The severance package that IT giant IBM is expected to give employees selected for a layoff reportedly includes a lump sum severance payment as well as counseling and financial planning services.
According to media reports, the company will cut about 5,000 jobs in the United States. The job cuts will account for over 4 per cent of IBM's US workforce, which totaled around 115,000 at the end of 2008.
According to a report in Computerworld, here’s what the laid off IBM employees are slated to receive:
A lump sum separation payment equal to one week of pay for each fully completed six months of service based on the most recent date of hire, with a minimum of two weeks and a maximum of 26 weeks.
Eligibility for a continued IBM subsidy for medical coverage. The coverage period is three months for less than five years of service; six months for five or more years but less than 25 years of service, and 12 months for 25 or more years of service. Transitional group life insurance follows a similar formula.
Outplacement and career counseling, with reimbursement of up to $2,500 for job-related skills training completed within 12 months of departure date, among other services.
The ability to apply for other jobs within IBM, as well as take jobs overseas, but the pay will be at local rates. The company says overseas work "may not appeal to everyone, but it can be a good fit for IBMers who are interested in broadening their skills by living and working abroad, or for those with a cultural or heritage link to one of the countries where positions are open."
The severance package that IT giant IBM is expected to give employees selected for a layoff reportedly includes a lump sum severance payment as well as counseling and financial planning services.
According to media reports, the company will cut about 5,000 jobs in the United States. The job cuts will account for over 4 per cent of IBM's US workforce, which totaled around 115,000 at the end of 2008.
According to a report in Computerworld, here’s what the laid off IBM employees are slated to receive:
A lump sum separation payment equal to one week of pay for each fully completed six months of service based on the most recent date of hire, with a minimum of two weeks and a maximum of 26 weeks.
Eligibility for a continued IBM subsidy for medical coverage. The coverage period is three months for less than five years of service; six months for five or more years but less than 25 years of service, and 12 months for 25 or more years of service. Transitional group life insurance follows a similar formula.
Outplacement and career counseling, with reimbursement of up to $2,500 for job-related skills training completed within 12 months of departure date, among other services.
The ability to apply for other jobs within IBM, as well as take jobs overseas, but the pay will be at local rates. The company says overseas work "may not appeal to everyone, but it can be a good fit for IBMers who are interested in broadening their skills by living and working abroad, or for those with a cultural or heritage link to one of the countries where positions are open."
Infosys
Infosys ties up R&D with Cambrigde University, eyes acquisitions in US
Infosys Technologies will partner the University of Cambridge for research in engineering, management and business, architecture and pharmacy, even as the technology bellwether is exploring opportunities for acquisition in the US.
"This collaboration will create an opportunity for some of the best minds engaged in academia and at Infosys to come together to identify and create relevant solutions in the areas of engineering, business, architecture and pharma," Narayana Murthy, chairman of Infosys Technologies, said.Infosys ties up R&D with Cambrigde University, eyes acquisitions in US.
"This collaboration will create an opportunity for some of the best minds engaged in academia and at Infosys to come together to identify and create relevant solutions in the areas of engineering, business, architecture and pharma," Narayana Murthy, chairman of Infosys Technologies, said.Infosys ties up R&D with Cambrigde University, eyes acquisitions in US.
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