Chrysler bankruptcy may hit Indian IT cos

[ChromeFoundry]

Source: Economic Times India

5 May 2009, 0244 hrs IST, Pankaj Mishra, ET Bureau

BANGALORE: Chrysler, the bankrupt US automaker, plans to scale down its offshore outsourcing of information technology projects to vendors such as TCS in the near term, as America’s third-largest automaker prepares to undergo a massive business transformation steered by the Obama administration and sell its assets to Italy’s Fiat.

Chrysler, which outsourced software and back-office projects worth around $200-250 million to India-based service providers last year, also shifted some customer service projects from its Bangalore captive centre in India to Rochester Hills, Michigan, and Salt Lake City in the US a month ago.

“TCS’ $120-million Chrysler contract is relatively small in the bigger scheme of things being worked out at the automaker. However, given the uncertainty around which product lines to continue with, some of the software application and maintenance contracts have become smaller,” said a US-based outsourcing consultant familiar with Chrysler’s offshoring initiatives. He requested anonymity because he is not an authorised spokesperson of his firm.

While Chrysler officials did not get back on an e-mail query sent by ET last week, spokespersons at TCS declined to comment about any specific customer. Another outsourcing expert told ET on condition of anonymity that TCS could be deriving around $30-40 million from Chrysler annually. However, this could not be independently verified by ET.


Read more: http://economictimes.indiatimes.com/Infotech/Chrysler-bankruptcy-may-hit-Indian-IT-cos/articleshow/4484498.cms

[OhioChick]

1. Maybe I could afford to buy a Chrysler, GM or Ford if they stopped outsourcing their entire IT depts

And instead, hired U.S. IT workers.

[liberal N proud]

3. Exactly

I said this years ago when all these companies started the outsourcing. It was alway apparent to me anyway that once they outsourced all our jobs who was going to buy the products companies were trying to produce.

Chrysler is just one of many outsourcing companies, they are one of the first to fall victim to their own practice.

[sarcasmo]

6. You and many others could afford a Chrysler if the average hourly wage was more than 8 bucks an hour

[Deja Q]

13. Ah! The root problem is mentioned!

:thumbsup:

[Hello_Kitty]

2. Well shit, we better save Chrysler RIGHT FUCKING NOW then!

It's one thing when the jobs of worthless Americans are at stake, but OMGZ Indian complanies are in jeopardy!!1! :sarcasm:

[ChromeFoundry]

10. :O)

:toast:

[Deja Q]

12. "Reverse protectionism"? There's a thought...

But with the President closing wrongful tax loopholes and other forms of chicanery, and supporting unions, I still think he's working for the benefit of America's economy first and foremost. The complexity of the entire situation is why we can't abandon offshored elements (unless they start acting like pricks and/or trying to kill people with crap products or services, China's reputation is one they did all by themselves and it's not a very popular one if you were to ask people out in the real world right now.)

[Jokerman]

4. "Buy American"

Yea, right.

[ihavenobias]

5. Interesting, thanks for posting. n/t

[Hepburn]

7. Boo-fucking-hoo....

...I have less than -0- sympathy for out-sourced jobs.

JMHO

[DebbieCDC]

8. Excuse me but my sympathies are with Chrysler's US workers

[OhioChick]

9. Too bad Chrysler didn't/doesn't have a U.S. IT dept. n/t

[Deja Q]

11. Literally; we're all in this together. Kids, let's thank Daddy Offshorer for this crisis.

"Thanks Dad!"

They talk about repercussions of "protectionism" despite enough articles showing other countries are already doing that. At this point, the US needs to get up and running again. China and other countries will bleat because they want it both ways. Never mind they seem on the 'up' side now but they would be abandoned too, for the same excuses. "Too high costs and all the workers are stupid which is why our product is crap" and the rest of the empty fluff.

It's a messy situation, but Indian workers - and certainly America's workers - shouldn't have to be the fall guys for myopic managerial decisions?