UPDATE Accenture layoffs in the Philippines

Tough news for Accenture, this centre has been around for years, a bit of a surprise to be honest http://tinyurl.com/dmsoya. It has been a real legacy centre for them, a lot of work done there.

Speaking with Accenture overnight the initial story was off, there have been reductions but not to the extent claimed by the government.
A not surprisingly speedy clarification by Accenture

4. March 2009 03:24 by Phil | Comments (0) | Permalink

HP Numbers

HP quartely results are out. Not surprisingly they have some ok points (services), but the product side of the business is badly hit.
AP was down, this would be in part due to Japan issues, but also I believe some internal distractions.
Key highlights from a macro point of view were the decline in shipments of desktop devices

Notebook Shipments down 13%

Printer device shipments down 33%

Interestingly volume is declining faster than revenue, looks like the low end part of the business (i.e. consumer) is really falling first

18. February 2009 17:02 by Phil | Comments (0) | Permalink

Nortel Hits Bankruptcy

I have been predicting this for some time now, not surprisingly Nortel has gone into bankruptcy, and is the first major IT company to do so, although it is not really true to say it is a direct result of the current circumstance, rather an ongoing issue, not helped by the current economic environment

14. January 2009 14:48 by Phil | Comments (0) | Permalink

There will be brands disappear with the downturn - Who will be first

It is clear that as in Banking and most sectors, one key outcome of the downturn is that brands will disappear. Banks have gone, and it is likely that one way or another GM and Ford will not both survive.
What does this then mean for IT. There will be brands that go out of business. It seems that Nortel will lead the way, perhaps the surprise is that it is still around. It sacked half its senior management and clearly has a focus on short term survival not long term investment. Whilst it is never nice to see enterprises fail, it is also a cycle of innovation and business that companies and markets evolve.
12. November 2008 15:15 by Phil | Comments (0) | Permalink

HP to shed 25,000 jobs with EDS integration

On today's security call from HP dealing with the EDS, the headline was saved until last with the announcement of approximately 25.000 jobs, or 7.5% of the workforce being reduced in politically correct terms, or fired in reality.
Before the headline number, HP announced its integration strategy, it is still a lot of slideware to consume at this point in time, however, the direction is not surprising or that dramatic, leverage of the mutual installed base is critical, and current overlap is minimal. Customers to date are happy, but staff in the HP Services and EDS business may not be so positive as they see the vacant seats around them increase. However this is a natural and whilst difficult, not unexpected outcome. It will likely be shaded by the job losses in the financial services sector as the Lehman, AIG and Merrill Lynch meltdowns continue.
From my point of view, I believe that countries such as the US, Australia, NZ and the UK will be heavily impacted, and will likely make up the overwhelming majority of losses. Clearly HP in the PSG, IPG and ESS group as well as software should be unscathed. I do expect however a heavy swathe through HP's outsourcing business.
On a positive note, the job re-positioning will result in additional jobs, but overwhelmingly this will be in low cost and emerging markets such as India, China and Brazil, not expensive markets such as the UK, US and Australia.
15. September 2008 17:06 by Phil | Comments (0) | Permalink


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