MNCs continue to shift jobs to offshore locations (IBM, Accenture, EDS)

[OhioChick]

Source: Economic Times of India

27 Jul 2010, 0435 hrs IST,ET Bureau

BANGALORE: Transnational technology majors are moving more jobs to offshore locations despite the negative rhetoric and move to spike tax sops.

The offshore leverage for firms like IBM, Accenture & EDS, front-end delivery staff in offshore centres as a percentage of workforce, has risen from 25-30% in 2007 to 35-40% in 2009, Everest Research Institute says in a report on global sourcing trends.

While some global majors have a high offshore leverage of 45-50%, the average ratio can go up to the 38-42% levels during 2010, Eric Simonson, managing principal of Everest Research, told ET. “Offshore leverage continues to dominate outsourcing economics and is an accepted reality for staying competitive,” he says.

By not including support staff, people engaged in domestic delivery and third-party contract workers, this measure pin-points that offshoring is imperative given the difference in cost structure and price points among locations.

However, cost is one of the offshoring drivers, the report says. Globally distributed clients are asking technology service providers to set up bases in different locations as growth moves to emerging geographies from the US and Western Europe.



Read more: http://economictimes.indiatimes.com/news/news-by-industry/jobs/IBM-Accenture-EDS-moving-more-jobs-to-offshore-locations/articleshow/6221409.cms

[onehandle]

1. I've said it before: Accenture's CEO said a few years back that outsourcing is their main business.

They are a mailbox in the Caribbean.

[OZark Dem]

2. Aren't they Arthur (Enron) Andersen ?

Jeb B*Shrubs favorite place to outsource Florida.

[onehandle]

4. They are a spin-off. They completed separation just before AA went down.

It's basically the same slimy people.

[OZark Dem]

12. I did some work for them in Sarasota back then

Went to their office to bid some more work and it wasn't there. I found the guy in Orlando working for someone else.

[BeatleBoot]

3. EDS doesn't exist anymore. Hewlett-Packard bought 'em out.

[DemReadingDU]

9. A whole bunch of us worked for EDS

until they laid us off in 2002

[Newest Reality]

5. Oh,

we know that the low wages increase the profit margin.

However, I can't imagine these companies ignoring the economic impact on a host, (as in what parasites survive on) country. It should be clear that the markets here for their products/services will diminish as they offshore more.

So, then, is this a pertinent sign that portends an expected result on their part, and not just a cost-cutting pragmatism?

I mean, are the rats abandoning a sinking ship?

[BeatleBoot]

7. You been asleep the last 25 years?

Get real.

This is way old news.

It started with Reagan.

[Newest Reality]

8. No ...

actually you caught me at couching my response in a way that would be more palatable to more people without evoking antipathy.

Thanks though, for adding some panache and emphasis to it all.

[Haole Girl]

6. Well, then. They can't excect the middle class to keep the wheels of consumerism going.

Hard to spin that wheel without jobs.

:-(

[ChromeFoundry]

10. Maybe the goal is...

the upper 1% wants the lower 90% to join their, soon to be, private military ranks... defending their wealth.

I'm sure they will start to trickle-down those profits any day now.
:sarcasm:

[Haole Girl]

11. I'm too old to join their military machine. But old enough to know....

I'm not spending any money unnecessarily. grr