T-Systems, Phillips prep for deal
T-Systems, Deutsche Telekom's corporate customers arm, has signed a preliminary outsourcing contract with Dutch electronics company Koninklijke Philips Electronics, a spokesman for T-Systems told Dow Jones Newswires, states Wall Street Journal.
The letter of intent was signed on 7 October, Philips spokesman Joon Knapen said. He added the companies are currently in the last stage of negotiations with the works council and expect to finalise the deal between within a month.
Philips will outsource IT operations, such as the data room, to T-systems. No jobs will be lost at Philips due to this outsourcing contract and the personnel involved will transfer to T-systems, Knapen noted. Neither T-Systems nor Philips gave financial details of the deal.
Infosys cashes in on M&As
Infosys Technologies, India's no 2 outsourcer, is pursuing 12 to 15 outsourcing deals, according to Reuters.
The outsourcer is getting work as mergers and acquisitions activity picks up around the world, its chief executive said last week.
It was also looking at acquisitions of companies with revenues of about $400 million, S. Gopalakrishnan said.
Chip design outsourcing takes dive
Chip design outsourcing growth fell to 6.5% last year, down from nearly 34% the year earlier, and the number of chip design starts are expected to fall another 18% this year, analysts at Gartner have warned, says EETimes.
"While the recession has spelled doom for many small design service providers, for large and midsize vendors, it has brought to the fore three key challenges that will impact their growth substantially," said Ganesh Ramamoorthy, senior analyst at Gartner.
These are: a shrinking available market for chip design outsourcing; lagging design productivity growth; and a growing shortage and rising cost of a skilled high-end workforce.
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