Sony to up outsourcing orders

Sony will increase its outsourcing orders to 50% of its total shipments, from the previous 30%, according to a Japanese-language Yomiuri Shimbun report, writes DigiTimes.

Due to the relationship between Foxconn Electronics (Hon Hai Precision Industry) and Sony, Chimei Innolux (CMI) will be the major beneficiary. Yoshihisa Ishida, president of Sony's TV business group, took over the management in April 2009. The report says under Ishida, Sony has gradually reduced its production costs and increased its outsourcing. Sony has reduced its assembly plants to four, from nine plants two years ago.

Due to weaker than expected demand in the US market, Sony says it will not be able to reach its shipment goal of 25 million units for the 2010 fiscal year ending 31 March 2011, but the vendor aims to ship 35 million units for the 2011 fiscal year.

An outsourcing conference in Seattle has been cancelled because of threats of union protesting, the conference's organisers, according to MexicoNow magazine, states The Wichita Eagle.

“It is sad that such threats take place in a free market where the focus needs to be on long-term competitiveness and lower prices for consumers,” MexicoNow editor Sergio Ornelas said in a statement.

The event has been cancelled because of the potential for disruption and concern for attendees, Ornelas said.

Electricity and gas utility E.ON has signed large IT outsourcing deals with HP and T-Systems, covering its infrastructure but not applications.

The deals total EUR2 billion, according to a source speaking to the Wall Street Journal, even though the original tender was for up to EUR3.3 billion. E.ON declined to confirm the value.

The deals are part of the utility's 'PerformToWin' strategy, which is aimed at improving processes. HP will support E.ON's data centres and PCs, while T-Systems will run networking.