- Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They - Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e - Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009
By Sarah Marsh and Noah Barkin
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German - Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who - Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an - SKorean troops bracing for possible NKorean attack | 21 December 2010
- Suspected rebels attack freight train in India | 17 November 2009
- Sony to sell liquid crystal display plant to Kyocera | 31 March 2010
- U.S. Goes After Two Hezbollah Fundraisers In Africa | 28 May 2009
">Forum Views () ">Forum Replies ()
Read more with google mobile : Outsourcing faces new era of scrutiny: Eric Auchard
Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Search Search: Outsourcing faces new era of scrutiny: Eric Auchard Reuters - 26 minutes ago By Eric Auchard LONDON - Outsourcing, Indian-style, is challenged as never before by an erosion in business confidence that makes corporate spending, even to generate quick cost-savings, harder to justify. "No New Investment" is the order of the day; cost avoidance, the mantra; zero percent, the growth target in the current era of uncertainty. Software service providers emerged out of the 2000-2002 technology spending bust with sales growing up to 50 percent a year as they won over companies to contract out inefficient operations instead of managing them in-house. But shocks to the world economy seen over the past 18 months are triggering reassessments of corporate growth expectations, cost considerations and operational accountability. It's no longer safe to assume that the logic that drove outsourcing in the past will drive it again, once the economy picks up. Here are reasons why the industry will find it difficult to repeat its past performance in the tough times ahead. CUTTING BACK ON COST-CUTTING: The paradox at the moment is that spending on services meant to cut costs and save money is itself being squeezed. Technology Partners International , a research firm that has tracked the outsourcing industry for 20 years, reported this week that total contract volumes fell 22 percent in the fourth quarter from a year ago. Just how bad things could get this year is only likely to emerge as corporate customers nail down their 2009 spending plans to vendors in the next two to three months. "The worst of the IT spending slowdown likely remains in front of us as we start the clock on slashed 2009 budgets," Goldman Sachs warned in a report on the software industry earlier this month. The conventional wisdom is that companies will eventually need to cost-cut their way out of the economic morass. But as the software services industry has matured over this decade, Goldman analysts say the sector has become more cyclically dependent on overall IT spending, reducing the chances it will be an early winner in any corporate recovery. Tata Consultancy Services, the largest of the Indian software service providers, estimates that budgets for IT outsourcing will fall between 5 and 20 percent during 2009. Market forecasters predict more declines in store for 2010. KEY CUSTOMERS IN TROUBLE. One problem is that the $40 billion-a-year industry's fortunes are heavily linked to the financial sector. Indeed outsourcing started out 30 years ago as a way to help banks automate tangled back-office operations. But while it grew more diverse in the 1990s, branching into telecom, manufacturing, retail and other industries; banks, brokerages and insurers are still the biggest slice of the market at 20 percent of overall sales, Goldman Sachs estimates. The finance sector is not just in trouble, it is experiencing a meltdown like no other since the 1970s or perhaps even the 1930s -- long before outsourcing itself was invented. And while the credit crisis has left many institutions needing to slash costs, we are seeing a wholesale contraction of the market that will lead to steep reductions in overall demand. Whole parts of the business will disappear and not be replaced. Moreover, the financial industry's reliance on governments for bailouts has curtailed the autonomy of bosses. Governments are likely to be dubious should big banks and insurers seek to offshore financial jobs, especially in countries with mounting unemployment. Outsourcers may have to get used to having fewer, and more conservative, financial services customers. GROWING COMPETITION. Even if volumes hold up, Indian software services may find their market share eroded. After all, Indian firms no longer lay claim to the sort of exclusive cost advantages -- lowest cost technical labor -- they did. In recent years, the industry has expanded into other offshore regions such as Southeast Asia, Central Europe and Latin America but promises to handle sensitive work "near-shore" or onsite when customers demand or labor politics require. Big computer services firms IBM, Hewlett-Packard and Accenture got in on the act by expanding into India or by acquiring offshore companies themselves. Accenture now has more staff in India than in the United States. Because these firms are agnostic about whether they offer their services offshore or near-shore, they look better placed to navigate global labor politics than Indian rivals. TRUSTWORTHINESS. Adding to the sector's troubles is the massive corporate fraud uncovered recently at Satyam Computer Services Ltd, India's fourth largest software services provider. The scandal has Satyam customers scrambling to find alternative providers. Other offshore services providers report stepped-up scrutiny from clients of their own corporate governance and financial viability. It has also revived questions about the trustworthiness of Indian accounts and the adequacy of corporate controls. That's a big black eye for an industry that sells risk management and corporate governance services as a major client offering. It may raise the risk premium investors require for holding these stocks. PRICE PRESSURES. Rising competition isn't the only threat to offshore outsourcers' margins. Many of the more profitable, longer-term contracts worth tens or hundreds of millions of dollars are being put on hold as companies scramble to reassess their business strategies. Customers want more control over projects and are demanding fixed-price deals that are more likely than not to limit margin growth. Infosys, Tata and others say they are doing their best to make up for price cuts by driving greater sales volumes. The trend is disguised by the long-term nature of many existing software services contracts. Recent reports suggest many customers are scaling back or cancelling long-term "mega-deals" until they can get a handle on the impact of economic decline on their own businesses. The industry is subsisting on short-term, quick-fix contracts aimed at cutting operational costs as fast as possible. These price-sensitive deals are what software services firms had been trying to move away from in favor of higher-value projects to create new businesses for customers, not just manage existing software or customer services. There is a big cultural change underway in global corporations that may be less friendly to outsourcing. Fallout from the financial crisis is likely to mean far greater pressure on chief executives to run a tighter ship. There's likely to be less merger activity, less headlong expansion and less resulting need to consolidate organizations using external services. Chief executives are sure to be more closely scrutinized for the operational choices they make, instead of farming out responsibility to lower level technical managers in order to focus on deal-making. Inevitably there is a lack of control involved in contracting business operations out around the globe. This more constrained environment could be less favorable for outsourcing than downturns of the past. -- At the time of publication Eric Auchard did not own any direct investments in securities mentioned in this article. He may be an owner indirectly as an investor in a fund. -- Eric Auchard is a Reuters columnist. The opinions expressed are his own -- Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: Technology US-TECH SummaryReuters - 26 minutes ago Outsourcing faces new era of scrutiny: Eric AuchardReuters - 26 minutes ago China vows copyright cooperation after WTO caseReuters - Wednesday, January 28 Asian chip makers to gain from Qimonda's troublesReuters - Wednesday, January 28 Apple wins patent for iPhone touch-screen controlsAFP - Tuesday, January 27 Enlarge Photo Indian employees at a call centre provide service support to international customers, in the southern city of Bangalore March 17, 2004. REUTERS/Sherwin Crasto Most Popular – Technology Viewed Obama lobbies for $825 bln stimulus to thwart recession Caterpillar to slash 20,000 jobs Barclays bank shares sky-rocket after bailout fears fade Child matador kills six bulls in Mexico Obama begins teardown of Bush climate policy View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular
Other News on Tuesday, 27 January 2009
Iraqi prime minister expects faster US pullout
US-TECH Summary
World must double food production by 2050: FAO chief
EU takes Iran opposition group off terror list
U.S. wants direct talks with Iran on atom work: envoy | International |
U.S. claims victory in WTO complaint on China piracy
Germany OKs Atlantic global warming experiment
Displaced Iraqis to cast ballots far from home
Middle East peace envoy heads to region Monday | International |
YouTube allows users to delete comments
Farmers cut Greece into three as protests intensify
Clinton picks climate envoy, in another break with Bush
Borders shut and cars banned for Iraq vote
Gunmen fire outside U.S. embassy in Yemen | International |
Fresh warnings after storm kills 26 in southern Europe
Man pleads guilty in Iran parts case
Somali insurgents take Baidoa after Ethiopians leave | International |
Iran: Men vs. women soccer game draws punishment
Darfur rebels clash with Sudan army on two fronts | International |
Germany OKs Atlantic global warming experiment
Obama to world: we will lead on climate change
Clinton picks climate envoy, in another break with Bush
Fast action needed to avoid climate chaos: study
A look at other ongoing war crimes trials
China's Year of the Ox not so bullish
U.S. claims victory in WTO complaint on China piracy | Technology |
After long wait, Cambodia seeing start of justice
Mitchell sent to Mideast to bolster Gaza truce
Row Down Under: Australia Day or Invasion Day?
Beijing's population at nearly 17 mln in 2008: state media
EU backs Guantanamo closure but wary of accepting inmates
Congress Tackles Economic Stimulus, Treasury Secretary Nomination
UN says dozens of civilians killed as Tigers flee
Obama to world: we will lead on climate change
U.S. December Home Resales Jump While Prices Fall To 70-Year Low
Democrats Welcome White House Decision To Tighten Auto Emissions Standards
More Americans Visit Libraries To Hunt For Jobs
At Least 14 States Consider Gambling Expansion, OK To Plug Budget Deficit
Gregory Wasson Appointed New Walgreens CEO
Minnesota's Senate Recount Goes To Trial Monday
Jan 26 Highlights Of Low Points In The U.S. Economy
Democratic Senator Seeks Ending Senate Appointments By Governors
House Begins Consideration Of Obama's $825 Billion Stimulus As Republicans Signal Opposition
Michael Jackson's Thriller to become musical show | Entertainment |
Michael Jackson's Thriller to become musical show | Entertainment |
Franz Ferdinand's Tonight hits shelves | Entertainment |
`Slumdog' far from underdog with SAG win
Backstage comments by SAG Award winners
Michael Jackson's "Thriller" to become musical show
Snowmobile deaths on the rise in Canada
The boom in kids' online games; lots more 'Spore'
Dance company creates an online video competition
The horror! Neil Gaiman's spooky book wins Newbery
London's West End theaters defy downturn
'Bye Bye Birdie' set for its first B'way revival
Franz Ferdinand's "Tonight" hits shelves
Fast action needed to avoid climate chaos: study
The former Cat Stevens performs song for Gaza
Study Finds Many Women Got Unnecessary Mastectomies
Historical Evidence Links Denmark's King Christian IV To Murder Of Famed Astronomer Tycho
Library Visits In The U.S. Up
Obama Staffers Shocked By Lack Of Technology In White House
Injured US soldier says he was shocked in shower
Obama says Mideast peace envoy to engage "vigorously"
Shooting outside U.S. embassy in Yemen, 3 held | International |
German coalition at loggerheads over global warming test
Health info technology saves lives, costs: study
Netanyahu would let West Bank settlements expand
With Cheney gone, Google gains sky view of VP's home
Geithner pledges quick action as US Treasury Secretary
Darfur rebels clash with Sudan army on two fronts
NY Times, local publisher reach settlement in copyright case
Bahamas paramedic charged in Travolta extortion plot
IBM to cut more than 2,800 jobs: union
Australian pension system reels from market meltdown | International |
Texas Instruments cuts 3,400 jobs
'You've got no mail' -- tech glitch hits Obama White House
MySpace, YouTube 'citizen reporters' at World Economic Forum
Ashes of "Star Trek" creator and wife rocketing to deep space
Online encyclopedia Wikipedia may tighten editing rules
Report: Some climate damage already irreversible
Obama orders push to cleaner, more efficient cars
Senate passes bill to delay digital TV switch | Technology |
German coalition at loggerheads over global warming test
U.S. claims victory in WTO complaint on China piracy | Technology |
Health info technology saves lives, costs: study | Technology |
Mother, daughter missing in Philippine floods
US military deaths in Iraq war at 4,236
Geithner wins OK for U.S. Treasury despite tax woes
Australian serial killer cuts off finger in jail
Hit Warne musical pitches up new audience to Australian theatre
CORRECTED-U.S. Marines force of 20,000 seen for Afghanistan
Japan to tourists: Please don't lick the tuna
Mitchell to 'engage vigorously' in Mideast peacemaking: Obama
UN: Civilians trapped in Sri Lanka war a crisis
Chavez: OPEC could cut output _ again
US envoy vows 'direct' nuclear diplomacy with Iran
Third Australian publisher deported from Fiji
Geithner Receives Senate Approval As Treasury Secretary
Australia backpacker killer cuts off finger
Jan 26 Highlights Of Low Points In U.S. Economy
Syria wants dialogue with US without preconditions
NKorea's Kim attends Lunar New Year concert: state media
American Express' Earnings Plummet Amid Declining Revenue
Wall Street Closes Higher On Better Housing Data
UN: Trapped civilians in Sri Lanka war a 'crisis'
Obama's Special Envoy Heads To The Middle East For Peace Talks
New Zealand cenbank governor to speak on Friday
Nokia's luxury brand Vertu to launch mobile services in Japan
WTO backs US in copyright dispute with China
Hollywood actors union ousts chief negotiator | Entertainment |
Finance crisis claims another 85,000 jobs
Bahamas medic charged in Travolta extortion plot | Entertainment |
McCartney, Radiohead to perform during Grammys | Entertainment |
Janet Jackson postpones shows in Japan | Entertainment |
Oasis, Kings of Leon lead NME music nominations | Entertainment |
McCartney, Vedder sign on for NYC benefit | Entertainment |
Buddy Holly not fading away, 50 years after death | Entertainment |
Star Trek creator and wife's ashes space-bound | Entertainment |
U.K. Study Links Active Sex Life While Young To Prostate Cancer
Hollywood actors union ousts chief negotiator
Bahamas paramedic charged in Travolta extortion plot
Hollywood actors union ousts chief negotiator
McCartney, Vedder sign on for NYC benefit
McCartney, Radiohead to perform during Grammys
Gene Roddenberry, wife to spend eternity in space
Music Review: The Bird & the Bee still buzz-worthy
Outspoken Owens to feature in reality TV show
Bahamas paramedic charged in Travolta extortion plot
Oasis, Kings of Leon lead NME music nominations
Weaver says 'Prayers' for Lifetime
"Star Trek" creator and wife's ashes space-bound
Pakistan should exploit US missile strikes, say analysts
65 hospitalised for toxic fumes at French church: officials
Apple wins patent for iPhone touch-screen controls
Zimbabwe opposition disappointed with summit | International |
Obama begins teardown of Bush climate policy
Top Brazilian prosecutor urges end to Battisti case
Caviar days are over for Davos crisis debate
Fears for civilians as Sri Lanka troops, Tigers fight | International |
More Rohingya land in Thailand, allege Burma abuse | International |
Israel soldier killed, 3 wounded in Gaza blast: TV | International |
Obama begins teardown of Bush climate policy
Obama calls on Iran to 'unclench' fist
Octuplets stun doctors at California hospital
China vows copyright cooperation after WTO case
Captives in Philippines say they are okay
Oil hovers above $46 as OPEC cuts, demand weighed
Fiji's leader defies democracy meeting
U.S. claims victory in WTO complaint on China piracy | Technology |
Australia police carpeted over "racist" video
Ice Storm Causes 5 Traffic Deaths, Power Outage In Oklahoma, Texas
Officials confirm talks on Japanese whaling deal
Rare Octuplets Born To California Mom
SKorea to deploy remote-controlled mines: official
Microsoft's Latest Internet Browser Out
Three killed in Thai south: police
Gunmen Arrested For Shooting Near U.S. Embassy In Yemen
Pacific leaders gather over action against Fiji military regime
Rice Sets 'Vigorous,' 'Direct' Diplomacy With Iran Over Nuke Program
Japan's Nomura posts 3.8 billion dollar loss in Q3
Nomura posts record 3Q loss amid global turmoil
Japan's Fujitsu scraps HDD head business
Nomura posts massive 3Q loss amid global turmoil
Tokyo stocks surge five percent
Japan to inject public funds into companies
Yamaha says it is to recall 53,814 bikes
SKorea sets aside 2.9 bln dlrs in emergency funds
Japan Golf Tour pulls out of Australian-led 'super series'
Honda cuts output by 50,000
'80s miniseries V being updated as series pilot | Entertainment |
Hollywood actors' union director steps down: report
Near-Final Version Of Internet Explorer 8 Out
'80s miniseries "V" being updated as series pilot
CORRECTED: Hollywood actors union ousts chief negotiator
London squatters live like lords in abandoned mansions
Citing crisis, Janet Jackson cancels Japan tour
Threats and tears fail to tame Afghan diva's dream
Hollywood actors' union director steps down: report
'80s miniseries "V" being updated as series pilot
Lil Wayne to perform single live for Facebook
Jury to visit Spector's home in 2nd murder trial
SAG board ousts embattled negotiator Doug Allen
Marvel sued for $750M in movie profits
California Mom Gives Birth To 6 Girls, 2 Boys
Gaza truce breached after Israeli soldier killed
Israeli soldier killed, Gaza truce breached | International |
Iranian rebels kill a dozen policemen: judiciary
German rail workers to stage warning strikes: unions
China vows copyright cooperation after WTO case
Deadly flare-up in Gaza
Iceland parties in coalition talks with president | International |
Asian chip makers to gain from Qimonda's troubles
Bahamian Paramedic Formally Charged Over Alleged Extortion Plot Against John Travolta
US vows 'direct' nuclear diplomacy with Iran
Belgian nursery killer suspect's detention confirmed | International |
Obama lobbies for stimulus as economy clouds darken
Religion or vote? Iraq Shi'ites wrestle with choice
U.N. rights boss decries abuses in Congo | International |
Global warming 'irreversible' for next 1000 years: study
Religion or vote? Iraq Shi'ites wrestle with choice | International |
California woman makes history with healthy octuplets
N.Ireland compensation scheme causes row | International |
Somali Islamists to rule by sharia law in Baidoa | International |
Global warming 'irreversible' for next 1000 years: study
Tajikistan rations power supplies to capital city
Woman to appear on SKorean banknote for 1st time
Blowfish poison scare returns to Japan
Fiji leader told to hold elections this year
Asian chip makers to gain from Qimonda's troubles | Technology |
Afghan police: 5 Taliban killed in gunbattle
Oil rises above $46 as OPEC cuts, demand weighed
Officials confirm talks on Japanese whaling deal
China vows copyright cooperation after WTO case | Technology |
Oil rises above $47 as OPEC cuts, demand weighed
S. Pacific leaders demand a vote in Fiji this year
Doubts over "Pakistan militants" foiled by India
Thailand detains 78 more Rohingya migrants
Bomb wounds 2 policemen in southern Afghanistan
Japan passes contentious stimulus budget
Japan to inject funds into firms, hand out cash
Kazakhstan to boost liquidity at major banks
India central bank lowers growth forecast, keeps rates steady
Woman to appear on SKorean banknote for 1st time
China 'regrets' WTO ruling but vows cooperation on IPR
SKorea allocates $2.87 bln as emergency funds
Cambodia cuts bank reserve requirements
Indonesia seeks access to Guantanamo terror suspect
US-ENTERTAINMENT Summary
Hollywood actors union ousts chief negotiator
US-ENTERTAINMENT Summary
Hollywood actors union ousts chief negotiator
Netrebko and Villazon disappoint in Met's "Lucia"
Photographer Sues David Beckham And Bodyguard For Assault
First batch of extra U.S. troops in east Afghanistan | International |
Outsourcing faces new era of scrutiny: Eric Auchard
Iran expecting 'concrete' change under Obama
UN fears Congo-Rwanda operation may spark abuses | International |
Gunmen burn ballot station before Iraq vote
UN chief warns more could go hungry in crisis year | International |
France asks Syria to help free Israeli soldier | International |
Russian Church meets to elect new leader | International |
Don't reinterpret WW2, Russia tells neighbors | International |
High-risk riches for Mexico's narco wives | International |
Rockefeller fund to help Asia endure hotter planet
Quarter of a million 'trapped in Sri Lanka bloodshed'
Thailand detains 78 more migrants caught at sea
Outsourcing faces new era of scrutiny: Eric Auchard | Technology |
Thailand detains 78 more Myanmar boat people: police
powered by
Custom Search
Last text search :
2016 wso 2.5 rw-r
2017 #1 smp wso rw-r
wso-drwxr-xr-x-smp.php-(writeable).php
2017 #1 smp wso rw-r
wso-drwxr-xr-x-smp.php-(writeable).php
wso-drwxr-xr-x-smp.php-(writeable).php
wso-drwxr-xr-x-smp.php-(writeable).php
Tuesday, 27 January 2009 - Outsourcing faces new era of scrutiny: Eric Auchard