The Wall Street Journal has noted a phenomena that human resource managers have not heard in a while: Employees telling them that they are quitting. In fact, it was reported that the Bureau of Labor Statistics has determined that in February, the number of employees who voluntarily quit their jobs had surpassed the number being fired or discharged for the first time since October 2008. Moreover, a poll conducted by human-resources consultant Right Management at the end of 2009 had revealed that 60% of workers said they intended to quit their jobs when the job market got better. Read more
The global economic slowdown has forced many firms to cut costs and take a series look at cloud computing options – including Indian tier one outsourcers. In fact, Kris Gopalakrishnan, the CEO of Infosys, noted last August in the Financial Times that even they need to adapt to the changes that are occurring so as not to be caught out in the cold. However, he also added that there is still a question as to how much the market will move into the cloud computing space given that previously heralded technological changes had failed to happen as quickly as predicted. Read more
With uncertainty easing, attrition, the biggest nightmare for HR managers in IT services and outsourcing companies, is on the horizon while for some firms, it is already here. So just how are the big 3 IT services firms faring on the attrition and hiring front? Consider the following attrition rates (as of January): Read more
Despite media accounts and political initiatives to force companies to buy American services and not to outsource work offshore, believe it or not there are plenty of companies who are choosing to buy and/or hire Americans without being forced to do so. In fact, the LBO Wire recently noted that call center group CCT Group Ltd. (which owns Cyber City Teleservices and is backed by HSBC Private Equity Asia Ltd.) has bought fellow call center provider Interactive Response Technologies Inc. for the purposes of offering clients (CCT’s clients include DirecTV, Dell Inc. and Activision while IRT’s clients include T-Mobile, AT&T and Office Depot) what they are apparently happy to pay extra for: American voices and the perception of quality. IRT manages US-based call centers that employ Americans while CCT manages call centers based in the Philippines and Panama and according to a CCT representative, clients are willing to pay US$27-$28 per hour for a US-based service while an offshore service will cost them around US$13-$14 per hour. Read more
Buried among the headlines of job losses and jobs being outsourced overseas over the past few years, you might be surprised to hear who has been hiring or planning to hire or invest money in the USA – Indian outsourcers. In fact: Read more
Everest Group and Bernstein published a research report that discusses fundamental shift in IT consulting due to current economic conditions, globalization, and offshoring. According to this report, companies are looking for specialized vertical domain expertise in their projects; they also need skills in new technologies, business process reengineering, complex ERP implementation, etc. For the research report these two companies interviewed 15 IT consulting companies including Accenture, Atos Origin, CSC, Cognizant, EDS, Perot Systems, Genpact, HCL, Infotech, Patni, Sapient, Satyam, Softtek, Tata, and Wipro.
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