Articles about Offshoring

HSBC swinging axe on UK IT department, 840 heads to roll

HSBC is to wipe out more than 800 of its UK-based techies in a move Unite the union has condemned as a ‘reckless’ drive to offshore jobs. The redundancies are part a wider cost cutting drive that will see the bank slash 8,000 positions in Blighty and a total of 50,000 worldwide by the end of next year, with the aim of saving $ …
Kat Hall, 16 May 2016
European commission photo via Shutterstock

IBM says no, non, nein to Brexit

IBM has left UK staff in no doubt it wants Britain to remain in the European Union even though many of those working in its services division might not be EU-based by the end of 2017. In February, Big Blue was one of 200 large firms across a range of industries that urged Brits to vote to stay in the Union, claiming a "Brexit …
Paul Kunert, 26 Apr 2016
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Union warns of second round of 'massive' layoffs at IBM in Europe

IBM staffers in Europe face another wave of deep cuts, according to a top union official. Marc Born, secretary of Big Blue's European Works Council, has warned a "second massive restructuring" effort at the company will kick off in 2016. This comes six weeks after the IT giant announced a round of layoffs in late January – its …
Chris Williams, 22 Mar 2016
Pennies in a jar. Photo via Shutterstock

Staff 'fury' as penny pinching IBM offers legal minimum redundo payoffs

IBMers at risk of losing their jobs have reacted with “fury” to Big Blue’s confirmation it can only afford to pay the bare statutory minimum in their redundancy packages. Staff at IBM's Global Technology Services (GTS), Global Business Services (GBS) and UK Labs entered into a 45-day consultation period recently. Around 400 …
Paul Kunert, 14 Mar 2016
A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)

Eight in ten IBM Global Tech Services roles will be offshore by 2017

Exclusive Just 20 per cent of IBM’s Global Technology Services workforce in mature economies could remain under offshoring and near-shoring plans set out by the company’s top brass, The Register can exclusively reveal. Big Blue last month embarked on a cost-cutting exercise in the UK, putting 1,352 staff on a 45-day notice period to “ …
Paul Kunert, 07 Mar 2016
data centre racks

Hardware – yes, hardware – is driving Hewlett Packard Enterprise's top line

Hewlett Packard Enterprise spends much of its time talking about hybrid IT taking over the world, but it was good old fashioned hardware - boosted by a $3.5bn buy - that made Q1 of fiscal year 2016 better than it might have been. In the period ended 31 January, the first full quarter of since HPE split with the PC and printing …
Paul Kunert, 04 Mar 2016
Breakwater at Portland Harbour

How to be certain about your data in an uncertain future

If it wasn’t for users, managers, or compliance execs, IT would be an easy place with goalposts that stayed put. The real world is far less predictable. The rules of play may change. So how do you design data strategies to cope? Data regulations are a good example. The EU’s Safe Harbour legislation made the rules clear when it …
Danny Bradbury, 28 Jan 2016
Man holds white flag while sitting alongside empty beer bottles next to a toilet bowl. Pic by Shutterstock

IBM union: OK guys, you've beaten us down, we give in

The sole unionised outpost trying to give a voice to IBM workers Stateside has frozen campaigns, citing sustained job cuts and a resulting drop in membership as the reasons. Alliance@IBM was set up in 1999 to organise protests against redundancies as Big Blue started to move more roles, particularly in manufacturing and …
Paul Kunert, 06 Jan 2016

Bad news, IT bods: UK's tech outsourcing up 15% last year

IT outsourcing contracts agreed in 2014 totalled £3.44bn in value, with nearly a third of that value accounted for by deals struck in the energy and utilities sector. Those deals were worth £1.05bn and accounted for most of the 187 per cent year-on-year rise in the sector on £373 million spent on all outsourcing deals in the …
OUT-LAW.COM, 16 Feb 2015
Boring Christmas

Happy Holidays! Misco axes ONE IN FIVE UK sales peeps: sources

Shape shifting Misco spread the cheer among its workforce in the run-up to Christmas by distributing P45s, with sources estimating that up to 20 per cent of UK sales heads rolled. The parent of the web tech bazaar, Systemax, which is trying to deal more with mid-market corporate enterprises and sell services, is cutting costs …
Paul Kunert, 09 Jan 2015

New job in 2015? The Reg guide to getting out and moving on

Official stats show the British economy is recovering, with a huge demand for tech jobs across the board, and the storm of outsourcing and offshoring seen over the last few years now abating. Even those in Whitehall are hiring, bringing back in-house the planning and execution smarts they previously let go. For job-seekers, many …
Rachel Willcox, 24 Nov 2014
President Putin doing judo

Russia to ban iCloud.. to PROTECT iPhone fiddlers' pics 'n' sh*t

The Kremlin is set to ban Apple's iCloud as part of plans to throw up a new iron curtain around Russia's digital communications. Anti-data-offshoring laws will come into force on New Year's Day 2015 that require all data generated within Russia to be stored within its borders. Apple's iCloud service has been in the news …
Jasper Hamill, 05 Nov 2014
Old Bailey Lady Justice

More Home Office and MoJ jobs could move abroad, union warns

Jobs at the Ministry of Justice and the Home Office could be next in line to be offshored to India, the PCS union has warned, with both departments joining a £1bn shared services venture with outsourcing giant Steria. The Shared Services Connected (SSCL) joint venture, in which Steria owns a 75 per cent stake and the Cabinet …
Kat Hall, 31 Oct 2014

IT JOB OUTSOURCING: Will it ever END?

Worstall on Wednesday HL Mencken once told us that in a democracy the electorate should get what they voted for – and good and hard too. So, on that basis, I present to you a piece on outsourcing, as requested by one Gordon 10. The commenter in question wrote: What would be really nice is [an article] on the race to the bottom on labour …
Tim Worstall, 29 Oct 2014

HP workers under shadow of the axe edge towards ballot box

The Public and Commercial Services union is to ballot members working at HP over 600 planned job cuts to the services operation in the latest futile exercise to influence the company's decision making. As world + dog knows, HP's Make It Better Programme to rationalise the workforce is due to conclude by the end of October, by …
Paul Kunert, 01 Apr 2014
channel_partners_deal_handshake

New-wave offshorers present exotic new risks

A need to drive down costs is forcing many multinationals to look at emerging Asian offshore locations such as Indonesia and Vietnam, but IP security and privacy concerns continue to hold them back, according to a new report. Gartner’s Leading Locations for Offshore Services in Asia/Pacific 2014 report, paints a mixed picture. …
Phil Muncaster, 26 Mar 2014
Suitcase bulging with cash

Apple 'hid AUD$9 BILLION' from Australia alone: Report

An Australian newspaper is claiming that analysis of Apple's Irish subsidiary's finances demonstrates Cupertino's skill at offshoring its revenues is saving the company billions it would otherwise have to shell out in tax. The Australian Financial Review alleges (warning: may be paywalled) that over a ten-year period, Apple has …
Prison window

UK.gov back-office battle may see British Justice offshored

The Ministry of Justice is reviewing the current way back office functions are deployed, citing further cost savings as the reason for doing so – and not, as our sources state, because of departmental in-fighting. Under the Next Generation Shared Service Strategy (NGSSS) rolled out by the Cabinet Office last March, the plan was …
Paul Kunert, 03 Mar 2014
RoboCop

Smart getaway drivers would yell at Officer Glasshole: 'SafeSearch off, Horse porn'

Quotw Redundancies at big tech firms, including both HP and Dell, were big news this week. At HP, the company has refused to rule out making roles redundant in the UK and then shifting them to parts of Europe where average salaries are lower. Corporate PR Clare Loxley said eloquently: It's a mixture of activities [in the …
Job cuts jpeg

HP's hiring: UK jobs for, er, UK workers.... maybe

HP has refused to rule out making roles redundant in the UK and shifting them to parts of Europe where average salaries are lower. Cost cutting HP last week entered into consultation with the works council and yesterday engaged with union types over plans to slash 7,100 roles across the region, the last tranche of 34k job cuts …
Paul Kunert, 10 Feb 2014

Bored with patent trolls? Small fry - prepare for the Design Trolls

Changes to UK patent and design law affecting thousands of British businesses have been criticised by industry and Labour's front bench business team. The Intellectual Property Bill contains changes to design and patent law proposed in the so-called Google Review, better known as "The Independent Review of IP and Growth” by …
Andrew Orlowski, 23 Jan 2014
india

India's grip on offshoring eases ever so slightly

India's dominance of the offshoring industry has eased ever so slightly, with Mumbai losing its position as the world's second-best place to outsource to Filipino capital Manila, according to the new Tholons 2014 Top 100 Outsourcing Destinations rankings report. The news isn't all bad for India: it's still home to six of the …
Simon Sharwood, 21 Jan 2014
Metfone's floating phone shop

VMware plans courseware on smartmobes for Asian sysadmins

VMware is working on courseware designed to download to and run on mobile phones, as a way of ensuring sysadmins in developing nations can get their hands on the knowledge they need to build virtualised data centres without having to acquire a ruinously expensive PC or leave the bandwidth-poor communities in which they live. …
Simon Sharwood, 04 Sep 2013
Moto X

Moto X teardown shows US manufacturing adds mere $4 to handset costs

It's taken as gospel by businesses – particularly in the technology industry – that when it comes to manufacturing, offshoring production to Asia is the only way to go. But a Moto X teardown by analyst house IHS shows this to be faulty logic. Moto X teardown by IHS Pieces of X (source: IHS) Motorola has been heavily marketing …
Iain Thomson, 28 Aug 2013
india

Indian IT exporters coin windfall profits as rupee plunges

India has in recent weeks descended into a financial crisis, but despite dire economic warnings, industry watchers believe that the period of instability could actually benefit the country’s IT services giants and their outsourcing customers. Wednesday saw the Indian rupee fall to another new low, dropping over two per cent to …
Phil Muncaster, 23 Aug 2013
Vodafone UK booster brolly

Recession-battered Europeans still squeezing Vodafone's pips

Mobile operator Vodafone is still feeling the recession's squeeze in Europe as it posted another drop in revenues for the quarter ending last month. The British group said its service revenue, including joint ventures, for the quarter was £10.155bn, down 3.5 per cent year on year following a 4.2 per cent slip in the previous …
channel_partners_deal_handshake

Destination Korea: an emerging market for IT services

South Korea is being touted as the latest outsourcing market for global IT services firms to target, and could even emerge as an offshoring destination in its own right in the future, according to analyst outfit Ovum. The IT analyst’s latest Emerging Outsourcing Opportunities reportclaims the South Korean IT services market is …
Phil Muncaster, 03 Jun 2013

Chinese cops shutter PRC's biggest pirate movie site

The Chinese authorities’ ongoing efforts to crack down on piracy have claimed another big scalp after police shuttered the nation's largest online source of not-entirely-properly-sourced movies last Friday, cuffing eight execs along the way. Siluhd.com is said to have over 140 million members, who each pay 50 yuan (£5) every …
Phil Muncaster, 29 Apr 2013
The Register breaking news

Study suggests US companies use overseas workers to cut wages

An extensive study of the US labor market has shown that the skills shortage which technology firms are constantly complaining about is overstated and firms may instead be using overseas workers to drive down wage costs. In a paper for the Economic Policy Institute by Hal Salzman of Rutgers University, Daniel Kuehn of American …
Iain Thomson, 26 Apr 2013
Ferrari F430. Photo © by Rudolf Stricker

IT salaries: Why you are a clapped-out Ferrari

As a tech careers writer I regularly receive noise about the UK IT “skills shortage", which makes as much sense as saying there’s a shortage of Ferraris. I know this because, according to Blighty's Office for National Statistics, the average weekly pre-tax pay in “computer programming, consultancy and related activities” in 2012 …
Dominic Connor, 12 Apr 2013

India’s outsourcers battle for customers in a cloudy universe

Analysis The rumblings started in the late 1990s. Indian services companies were getting into outsourcing. Almost before the news broke, deals followed. Before long, India was a destination for all manner of serious jobs and a byword for getting things done well and at a price western nations struggled to match. Fast forward a decade or …
Phil Muncaster, 27 Mar 2013

Cisco opens in Myanmar as US tech firms eye fresh territory

Networking giant Cisco looks set to be one of the first major Western tech firms to establish a presence in once-isolated Myanmar, after announcing two networking academies designed to train up locals for work in the country’s burgeoning IT sector. The collaborative project with the US Agency for International Development (USAID …
Phil Muncaster, 11 Mar 2013

How IT bosses turned the tables on our cushy consultancy gigs

I think I’ve been through enough economic cycles in my life to say that the nature of employment, at least in the financial-tech industry that I’m most familiar with, has changed fundamentally in the last few years. If you’re a technology worker and your job suddenly seems unusually precarious, that’s because it is: fear of …
Dave Mandl, 04 Nov 2012
CapitaITServices

Capita UK offshoring plan killed by customer backlash - insiders

Unite claimed victory over Capita IT Services' (ITS) decision to tear apart its offshoring blueprint, but company insiders claim that much more pressure had been imposed on management from customers who objected to the move. The union threatened industrial action in August over Capita's move, first proposed in March, to put 1, …
Paul Kunert, 01 Oct 2012
Palmisano Rometty IBM

Sam Palmisano exits IBM

This is Sam Palmisano's last week at the top of IBM, a company he has been running more or less since he was tapped to be president and chief operating officer back in July 2000. Ginni Rometty, who had previously run IBM's worldwide sales and marketing group and a chunk of the Global Services behemoth for many years, was tapped …
CapitaITServices

Capita ITS ditches UK job cuts, offshoring dream

Capita IT Services has finally shelved its plans to offshore jobs and make compulsory redundancies in 2013. In August just 84 unionised workers at the reseller-cum-integrator threatened industrial action over moves to send part of the service desk to India and push through job cuts across the wider organisation. Then last month …
Paul Kunert, 14 Sep 2012

Philippines tech industries survive floods

To the west of the Philippines' capital, Manila, lies Laguna De Bay, a colossal freshwater lake that has just become the site of what can loosely be called maritime services startups. The new businesses sprung up weeks ago after the annual monsoon hit the Philippines harder than usual. The lake filled, then spilled into …
Simon Sharwood, 30 Aug 2012
CapitaITServices

Unite workers at Capita ITS vote for strike action

Updated Unionised workers at Capita IT Services have threatened to down tools over plans to offshore service-desk jobs to India and force through compulsory redundancies. The reseller-cum-integrator kicked off a redundancy plan earlier this year placing 1,000 UK staff at risk - although bosses are aiming to reduce headcount by about 400 …
Paul Kunert, 14 Aug 2012

RBS must realise it's just an IT biz with a banking licence

Analysis Banks need to start thinking of themselves as IT companies, said David Chan of City University London. "A senior banking technologist has said to me: 'A retail bank is nothing but an IT company with a banking licence'," Chan told The Reg. "While this may seem extreme, when one looks at the economics of any retail bank, it is …
Anna Leach, 01 Aug 2012
The Register breaking news

Analysts hail Burma's untapped IT goldmine

Forget China, Burma could be the next big growth market for IT investors as long as the country continues its political and social reforms, according to IDC. The analyst’s latest report, Myanmar ICT Market 2012–2016 Forecast and Analysis, predicts 15 per cent year-on-year growth in IT spending this year, with the market reaching …
Phil Muncaster, 09 Jul 2012
Flag New Zealand

Kiwi telcos hungry for consolidation

A desperate need for consolidation in the New Zealand market is being driven by the government’s national broadband network initiatives and could see accelerated exits and/or acquisitions according to analysts Ovum. Commenting on the speculation over takeover talks between Vodafone New Zealand and TelstraClear, Ovum’s David …
channel

Capita job cuts, offshoring 'driven by expectations', says MD

Capita IT Services (CITS) boss Mark Quartermaine told staff the rapid expansion of the group through acquisition and more recently a slow down in sales led to the redundancy programme. As exclusively revealed by The Register, the public sector IT supplier informed 1,000 staff - more than 26 per cent of its total workforce - that …
Paul Kunert, 02 Apr 2012
chart

Capita poises axe over 1,000 staff - jobs headed to India

Exclusive Capita IT Services (CITS) has told 1,000 staff they are at risk of redundancy and plans to offshore roles to India. The cuts were announced to employees this morning on the same day that the Department for Education confirmed that CITS was among 18 companies selected for an £575m IT framework. Company insiders told The Reg that …
Paul Kunert, 30 Mar 2012
The Register breaking news

Gov IT contractors hire staff in India to work on benefits system

Hundreds of computer technicians in India are being hired to help develop an IT system for the government's universal credit welfare programme, work potentially worth hundreds of millions of pounds, despite promises that large data projects would remain in the UK. Workers in Bangalore and Mumbai are being hired by the …
The Register breaking news

End in sight for IT jobs outsourcing massacre

The offshoring of IT work to developing countries has been very popular with accountants looking to cut costs, but the limits are being reached of what jobs can conceivably be sent overseas. Research by The Hackett Group estimates that of the 8.2 million business service jobs available in the US and Europe in 2002, only around 4 …
Iain Thomson, 23 Mar 2012

Japan's once-proud semis learn size DOES matter

Japan’s creaking semiconductor industry is struggling to stay relevant on the world stage and may face extinction if it can’t make a name for itself in the cutting-edge sub-28 nanometer manufacturing space, according to analysts. Market watcher IHS iSuppli is arguing that the damage was done to the country’s once proud …
Phil Muncaster, 21 Mar 2012
The Register breaking news

UK drivers' privates fondled overseas in new outsource plan

Transport for London (TfL) has proposed that the Driver and Vehicle Licensing Agency's (DVLA) vehicle keeper data - which includes names, addresses and registration plate numbers - should be accessed outside the UK by contractors working on the capital's congestion charge scheme. The congestion charge is run by IBM, which was …
The Register breaking news

Westpac drops tech roles

Westpac continues to slash jobs as part of its offshoring initiatives, revealing that it will cull a further 119 technology roles, most of which will be awarded to India’s Infosys. The job cuts follow on from the recent dismantling of 188 positions in November and 560 in February. The bank is in hot water with unions and …
The Register breaking news

Apple claims its 'innovation' creates 514,000 US jobs

Apple has launched a web page entitled "Creating jobs through innovation" that cites what it claims are statistics that show it's responsible for creating or supporting 514,000 jobs in the US. According to Apple, a study by the Analysis Group determined that Cook & Co. has "directly or indirectly" created 304,000 jobs spread …
Rik Myslewski, 02 Mar 2012
The Register breaking news

Currency flux incapacitates IBM's Q4 sales

The fact that IBM's $29.5bn in sales in the fourth quarter (up 1.6 per cent) was about $200m shy of Wall Street's expectations was not as big a deal to the company's top brass as the fact that net income of $5.5bn was up 4.4 per cent and higher than the Street anticipated. Why? Simple. As it has proved in the past decade as it …