IT vendors feel the heat
Indian IT vendors may see a decline in new client additions in the US, their largest market, ahead of the presidential elections, as potential customers delay their plans even as the anti-outsourcing rhetoric starts building up, reports The Hindu Businessline.
Analysts say the prevailing uncertainty due to the credit crisis and economic slowdown would intensify ahead of November elections as clients continue to postpone their spending plans, but large IT vendors such as Infosys Technologies and Wipro said such a delay would not have any material impact on them.
Democratic Party's presidential candidate, Barack Obama, said he would stop outsourcing of jobs overseas to other countries by ending tax breaks to companies.
HP completes deal
HP has completed its acquisition of Electronic Data Systems Corporation, creating a company that will provide hardware, software, services and outsourcing to both private and public sector IT departments, in competition with IBM, says Computer Weekly.
The $13.9 billion acquisition provides HP with EDS' capabilities in healthcare, government, manufacturing, financial services, energy, transportation, consumer and retail, communications, and media and entertainment.
Businesses that have previously bought outsourcing services from HP's Technology Solutions Group, will now be managed by EDS in Texas.
Europeans more open to outsourcing
Infosys Technologies' acquisition of UK's Axon couldn't have been better timed as a new study finds that Europeans are becoming more open to outsourcing, states The Economic Times.
Ernst & Young has completed an outsourcing study, which found that outsourcing was being used by 70% of the European firms surveyed.
The study is the first in recent times that analyses European openness towards outsourcing and the primary motivation to outsource comes from cost savings, which according to the study's authors' Thierry Muller and Paul Young, is not easy to achieve.
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