IBM Or Tata - Who Is More American
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A business magazine had an interesting article recently that raised some pertinent questions about the nationalism of multi national companies and where do their core interests lie, given today’s globalized world.
Most of us are already familiar with the Accenture controversy regarding this. Even tough Accenture is considered a blue eyed US tech services company in popular perception, the company is actually incorporated in Bermuda. Basically a tax haven country which helped the company save big time in corporate taxes.
IBM is based in Armonk, US, but it employs more people outside US, and a substantial chunk of them in India. India is IBM’s hub for global delivery of software solutions template and it has about 80,000 IBMers on its payroll in this south Asian country.
TCS, based in Mumbai, India is the nation’s largest tech services company. It gets more than half of its total revenue (about 51%) from the North American region. Leaves no doubt about where its energies are focused even though its based more than 6000 miles away from its core market.
Not surprisingly, IBM gets a bigger share of its revenue from markets outside of US and has seen its bottom line improving even though the US is witnessing an economic gloom and doom of sorts. Its stock initially rose 3% and then by 25% since mid-February.
On the other hand, TCS witnessed a slight slide in its fortunes, its stock is down by around 10%. Putting all their big eggs in one market is going to make these companies vulnerable. Note, TCS is also one of tech India’s most geographically diversified company. Others are banking on US for almost 60 to 70% of their revenues.
But the situation is not that bad for Indian tech companies. With the US economy already in doldrums or veering close to it, depending on whom you believe, US is going to outsource-offshore more to cut costs and improve the bottom line. But at the same time, Indian companies should work on raising the bar and getting a better traction in the emerging markets like China, Russia, Mexico, Brazil etc.
IBM is now the numero uno seller of tech services in India, where its revenue grew by 41% in the last quarter.
American tech service have not only mastered the art of outsourcing but also beat their Indian compatriots it seems.
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China Outsurfs US - What It Means For American Startups
(Pic: A Chinese Web Cafe)
Blame it on population but China’s Internet users have overtaken the United States’ to become the world’s biggest with about 220 million web surfers according to BDA China, a Beijing based technology consulting and research firm.
Who’s Got The Visa Power
Businessweek has an interesting yet nothing-new story on visas for high-skilled workers in the United States. The program is known as H-1B visas and it was initially created to allow local American companies to hire talent from around the world in fields where the man power is in short supply.
Chrysler Outsources To India
India’s outsourcing firm Tata Consultancy Services (TCS) won a contract by Chrysler LLC for taking over IT work handled by separate IT service providers.
The agreement was made public recently where Tata would be responsible for a variety of IT systems at the automaker, including online vehicle ordering systems for the dealers and maintenance of the company’s dealer and brand websites. All this was divulged by the Chrysler spokesman David Elshoff.
The Dilbert Moment: India outsources to US
A website with a hifalutin sounding name called Intelligententerprise has published an article titled, India outsources to US tech workers. The author has basically gone ga-ga over a spate of recent business deals won by American companies in India and how this is “supposedly” going to benefit the US tech workers. And to totally rub it in, he is wondering if the American workers are up for this “cultural” and “geographical” challenge.
What a hoot.
40 Laid Off At Yahoo! India
More sacking news this season. Yahoo had announced some time back that because of an unhappy economic year, it is going to reduce its numbers and lay off about 1000 employees. Yahoo! India has taken the lead in this it seems by announcing the cuts. About 40 employees were given the pink slip.
Finding The Funny In Outsourcing - LA Times
LA Times has an interesting story on a newbie Indian cartoonist Sandeep Sood. He is the creator of Doubtsourcing, a comic strip trying to show the funny side of outsourcing. The fodder for the strip is the misunderstanding which usually takes place when the work is carried out thousands of miles away, culture clash etc. The strip itself is partially outsourced, Sandeep writes the dialogue and a friend in China does the illustration.