Profile of Paul McDougallEditor At Large, InformationWeek
News & Commentary Posts: 3695
Paul McDougall is a former editor for InformationWeek.
Articles by Paul McDougall
posted in January 2006
Sprint is bringing back work and employees it gave to IBM under a $400 million outsourcing pact and redoing its multibillion-dollar call center deal with the IT services firm.
Ford Motor Co.'s plan to cut 34,000 jobs to help restore profitability is just the beginning of the automaker's campaign to ensure its competitiveness in the 21st century. And while labor unions and some media commentators will frame the move as more proof that American workers are being sold out, the truth is more complex--though not by much.
Users of Lotus and Domino products will be able to connect with IM tools from Yahoo, AOL, and Google, and make Internet voice calls using technology from Siemens.
Wipro Technologies also said net income jumped 25% for the quarter while earnings per share increased 24%.
Overall, revenue in 2005 was off 5.4% at $91.1 billion, with sales of software up 4.4% and sales of services up just 2.5%.
While the debate rages over whether outsourcing is a positive or negative for Western economies, here's some fresh evidence that shows why the flow of capital from developed countries to emerging markets, to which offshoring contributes substantially, is not a one way street.
The 10-year pact calls for IBM to support and manage mainframes, servers, networks, and data centers, as well as provide help-desk and disaster-recovery services.
High-tech R&D firm is credited with inventing or co-inventing the jet engine, radar, and the liquid crystal display.
The number of outsourcing contracts increased 9% last year, but the majority of that work is still performed within the United States.
Here's another aspect of offshoring that's lost on Lou Dobbs, John Kerry, and other misinformed critics of the practice. If India didn't exist, much of the IT and call-center work that's taking place overseas would be automated by now. Either way, a job in the United States is still lost.
It's always sruck me how the newspaper industry--ostensibly all about the free exchange of ideas and information--often seems more controlling than the Pentagon when it comes to internal or external scrutiny. It was, after all, media baron Conrad Black who said, "I shall not have the press in my home." Here's the latest example of the Fourth Estate's fear of microscopes and mirrors...
Sales of application development, infrastructure management, and other IT and business services rose 18%, while consulting sales increased 8%.
Wednesday's edition of The Wall Street Journal is reporting that Hewlett-Packard and private equity firm Blackstone Group are in talks to acquire defense IT specialist Computer Sciences Corp. This follows reports that private capital is also behind a possible buyout of Affiliated Computer Services. These deals could happen, but...
This blog often extols the virtues of offshore outsourcing. We think it's good for the economy, corporate profits, domestic employment and even international relations. But we're not the only ones who believe this.
Software development, customer service, back office work--the offshoring of these business activities is now pretty much commonplace. So what's "the next big thing" headed overseas? It could well be new product design and development.