Asia Pacific companies plan to increase their software budgets by 4.4 percent on average in 2010, while overall IT budgets was expected to decline by 3.1 percent on average, according to the latest survey by Gartner. More organizations in Asia Pacific (38 percent) expect to increase their software budgets in 2010 than their overall IT budget (31 percent).
"For most organizations, the budgeting process happens once a year, but adjusting the IT budget is a continuous exercise that is driven by economic conditions and changes in the business," said Gartner Research Director Yanna Dharmasthira. "In the midst of economic volatility, hardware budget allocation remains the top priority in most countries, but software budgets are a real bright spot and continue to demonstrate a positive outlook, although more cautious when compared with last year's survey."
The survey showed that the average expected increase in software budget of 4.4 percent in Asia Pacific is higher than all other regions surveyed including Europe, Middle East and Africa (EMEA), North America and Latin America. India-based respondents are consistently the most optimistic, with the highest number of respondents intending to increase their IT budget in 2010 (42 percent), followed by China (32 percent). On the other hand, Malaysia-based respondents remain pessimistic, with the largest number of respondents intending to decrease their spending (52 percent), followed by Singapore (48 percent of respondents).
The respondents of this survey were asked whether they expected their 2010 IT budget to be below, the same or exceed their IT budget for 2009. Gartner surveyed 323 IT managers in Australia, Singapore, Malaysia, China, India and Hong Kong, as part of a worldwide survey of 982 respondents, to help business and IT managers compare their enterprise IT spending with peer organizations.
Software is expected to represent the second-largest portion of the IT budget in most countries, with the exception of India (where software and hardware spend are roughly equal) and Australia (where spending is notably higher on IT staff). India is the most aggressive with the highest software budget allocation (26.9 percent), followed by Singapore (25.8 percent), Malaysia (24.1 percent) and China (23.1 percent).
India is also the most optimistic in software spending, with the average expected change in software budget of plus 10 percent. Dharmasthira said that vendors should revisit their potential customer list, as they may have shifted in terms of geography, as well as market segments. "Software vendors should not only focus sales efforts on traditional hot spots such as India and China, but look at opportunities in mature markets too. The intentions to increase software budget have become more varied among different countries and organizations, presenting good opportunities in a mix of developed and emerging countries," said Dharmasthira.
Agencies
Showing posts with label North America. Show all posts
Showing posts with label North America. Show all posts
Wednesday, September 9, 2009
Tuesday, March 10, 2009
Has IBM resorted to scattered layoffs globally?
Technology giant IBM is resorting to "scattered layoffs" and the total could be nearly 4,600 employees in North America even though the company has reported surprisingly strong quarterly profits in January, a media report says.
"Big companies also routinely carry out scattered layoffs that are small enough to stay under the radar... and IBM is one such company," the New York Times said.
Interestingly, after reporting strong quarterly profits in January, its Chief Executive Samuel J Palmisano in an e-mail message to employees said that while other companies were reducing jobs, his company would not. "Most importantly, we will invest in our people," he wrote.
But the next day, the New York Times said "more than 1,400 employees in IBM's sales and distribution division in the United States and Canada were told their jobs would be eliminated in a month. More cuts followed, and overall, IBM has told about 4,600 North American employees in recent weeks that their jobs are vanishing."
Quoting J Randall MacDonald, IBM's senior vice-president for human resources, the newspaper said "it was routine for the company to lay off some employees while hiring elsewhere".
IBM says it remains the largest high-tech employer in the US, with 1,15,000 workers. But IBM's American employment has declined steadily, down to 29 per cent of its worldwide payroll of 3,98,445 at the end of 2008.
However, experts have a different take on this. According to them, these unannounced cuts raise issues of disclosure and the treatment of workers.
The report cited Harley Shaiken, a labour economist at the University of California, Berkeley, as saying that "the issue becomes all the more pressing in this downward economic spiral."
Meanwhile, as part of a government filing last week, IBM said its workforce in Brazil, Russia, India and China had climbed to 1,13,000. These are markets with faster growth than the United States, and less expensive skilled labour.
"At IBM, the layoffs are coming swiftly, if with less disclosure. The estimate of 4,600 job cuts comes from adding up the itemised headcounts in information packages given to employees in each of the businesses," the report said.
NYT further added, "In its financial statements, IBM does report the cost of severance payments and outplacement counselling for layoffs about USD 400 million annually in the last five years but not head counts."
Meanwhile, IBM workers whose jobs are being eliminated have said the undisclosed cuts, and the timing, seemed to contradict the company's public statements.
Agencies
"Big companies also routinely carry out scattered layoffs that are small enough to stay under the radar... and IBM is one such company," the New York Times said.
Interestingly, after reporting strong quarterly profits in January, its Chief Executive Samuel J Palmisano in an e-mail message to employees said that while other companies were reducing jobs, his company would not. "Most importantly, we will invest in our people," he wrote.
But the next day, the New York Times said "more than 1,400 employees in IBM's sales and distribution division in the United States and Canada were told their jobs would be eliminated in a month. More cuts followed, and overall, IBM has told about 4,600 North American employees in recent weeks that their jobs are vanishing."
Quoting J Randall MacDonald, IBM's senior vice-president for human resources, the newspaper said "it was routine for the company to lay off some employees while hiring elsewhere".
IBM says it remains the largest high-tech employer in the US, with 1,15,000 workers. But IBM's American employment has declined steadily, down to 29 per cent of its worldwide payroll of 3,98,445 at the end of 2008.
However, experts have a different take on this. According to them, these unannounced cuts raise issues of disclosure and the treatment of workers.
The report cited Harley Shaiken, a labour economist at the University of California, Berkeley, as saying that "the issue becomes all the more pressing in this downward economic spiral."
Meanwhile, as part of a government filing last week, IBM said its workforce in Brazil, Russia, India and China had climbed to 1,13,000. These are markets with faster growth than the United States, and less expensive skilled labour.
"At IBM, the layoffs are coming swiftly, if with less disclosure. The estimate of 4,600 job cuts comes from adding up the itemised headcounts in information packages given to employees in each of the businesses," the report said.
NYT further added, "In its financial statements, IBM does report the cost of severance payments and outplacement counselling for layoffs about USD 400 million annually in the last five years but not head counts."
Meanwhile, IBM workers whose jobs are being eliminated have said the undisclosed cuts, and the timing, seemed to contradict the company's public statements.
Agencies
Monday, February 16, 2009
Will BMW layoff 850 workers at UK Mini plant?
BMW said on Monday that it will lay off 850 workers at its British factory which builds the Mini car to adjust to weaker demand.
The job cuts are the result of a review of operations at the factory in Cowley, near Oxford, where production will be suspended throughout this week and staff who currently work weekend shifts will be moved to weekday work, effective March 2.
BMW has 4,700 workers at Cowley, which can turn out 800 cars per day.
``While Mini has been weathering the economic downturn, it is not immune from the challenges of the current situation,'' BMW said in a statement.
``Against this backdrop the company felt that a review of its shift patterns was necessary. This decision has not been taken lightly. The plant's union representatives have, of course, been involved in the discussions.''
BMW reported earlier this month that sales of the Mini model rose 4.3 percent in 2008 to 232,425 cars. Overall, the company said sales dropped 5 percent across its product range.
In January, however, Mini sales were down 35 percent compared to January 2008. About 80 percent of the Minis built in Britain are exported.
Auto sales in Britain fell sharply at the end of the year because of the recession. Nissan has cut 1,200 jobs at its plant in Sunderland, England, while Honda has halted production at its Swindon plant for four months.
``Sacking an entire shift like this, and targeting agency workers who have no rights to redundancy pay, is blatant opportunism on BMW's part and nothing short of scandalous,'' said Tony Woodley, joint leader of the Unite union.
``BMW's parent company couldn't attempt this in Germany because it would be illegal to do so. It is a disgrace, therefore, that workers in this country can be so casually thrown to the dole.''
BMW acquired the Mini, a symbol of the swinging 1960s, when it bought the Rover car company in 1994.
Agencies
The job cuts are the result of a review of operations at the factory in Cowley, near Oxford, where production will be suspended throughout this week and staff who currently work weekend shifts will be moved to weekday work, effective March 2.
BMW has 4,700 workers at Cowley, which can turn out 800 cars per day.
``While Mini has been weathering the economic downturn, it is not immune from the challenges of the current situation,'' BMW said in a statement.
``Against this backdrop the company felt that a review of its shift patterns was necessary. This decision has not been taken lightly. The plant's union representatives have, of course, been involved in the discussions.''
BMW reported earlier this month that sales of the Mini model rose 4.3 percent in 2008 to 232,425 cars. Overall, the company said sales dropped 5 percent across its product range.
In January, however, Mini sales were down 35 percent compared to January 2008. About 80 percent of the Minis built in Britain are exported.
Auto sales in Britain fell sharply at the end of the year because of the recession. Nissan has cut 1,200 jobs at its plant in Sunderland, England, while Honda has halted production at its Swindon plant for four months.
``Sacking an entire shift like this, and targeting agency workers who have no rights to redundancy pay, is blatant opportunism on BMW's part and nothing short of scandalous,'' said Tony Woodley, joint leader of the Unite union.
``BMW's parent company couldn't attempt this in Germany because it would be illegal to do so. It is a disgrace, therefore, that workers in this country can be so casually thrown to the dole.''
BMW acquired the Mini, a symbol of the swinging 1960s, when it bought the Rover car company in 1994.
Agencies
Sunday, February 15, 2009
Alcatel to cut 1,000 manager jobs
Franco-American telecoms gear maker Alcatel-Lucent said it plans to cut 1,000 managerial posts from its global workforce will see 198 positions in France eliminated.
Alcatel-Lucent managers in France told a works council meeting on Wednesday that 450 managerial posts would go in North America and 450 in Europe, of which 198 in France, the CFDT union said in a statement.
The company announced the decision to trim its executive ranks on Dec. 12 as part of a strategic plan aimed at cutting cut costs by 750 million euros by the fourth quarter of 2009, but did not say where the cuts would fall.
An Alcatel-Lucent spokeswoman said: "I can confirm the figures for France, but we are not making a statement on the other numbers."
According to the CFDT, 1,602 posts are classed as managerial in France, and while France makes up 10 percent of Alcatel-Lucent's workforce, it will bear 20 percent of the job cuts.
Alcatel-Lucent, the No. 3 player worldwide in terms of market share, behind Sweden's Ericsson (ERICb.ST) and Finnish-German joint venture Nokia Siemens Networks [NSN.UL], employs 77,000 worldwide and 11,000 in France.
The company, formed by the merger of Alcatel and Lucent in 2006, saw its share price fall 70 percent in 2008 after a string of profit warnings and last week posted a 5.2 billion euro loss for the year amid a record 4.7 billion euros in depreciations.
Since June, its share price has dropped more than 70 per cent.
Agencies
Alcatel-Lucent managers in France told a works council meeting on Wednesday that 450 managerial posts would go in North America and 450 in Europe, of which 198 in France, the CFDT union said in a statement.
The company announced the decision to trim its executive ranks on Dec. 12 as part of a strategic plan aimed at cutting cut costs by 750 million euros by the fourth quarter of 2009, but did not say where the cuts would fall.
An Alcatel-Lucent spokeswoman said: "I can confirm the figures for France, but we are not making a statement on the other numbers."
According to the CFDT, 1,602 posts are classed as managerial in France, and while France makes up 10 percent of Alcatel-Lucent's workforce, it will bear 20 percent of the job cuts.
Alcatel-Lucent, the No. 3 player worldwide in terms of market share, behind Sweden's Ericsson (ERICb.ST) and Finnish-German joint venture Nokia Siemens Networks [NSN.UL], employs 77,000 worldwide and 11,000 in France.
The company, formed by the merger of Alcatel and Lucent in 2006, saw its share price fall 70 percent in 2008 after a string of profit warnings and last week posted a 5.2 billion euro loss for the year amid a record 4.7 billion euros in depreciations.
Since June, its share price has dropped more than 70 per cent.
Agencies
Saturday, January 24, 2009
Toyota considers layoff of 1,000 full-time jobs
Toyota Motor Corp is considering cutting more than 1,000 full-time jobs in North America and the United Kingdom to cope with faltering global demand, a news report said on Friday.
The details of the job cuts will likely be finalised by the end of the month, said the Nikkei, Japan's top business daily, citing an unnamed senior company official. Japan's top automaker could slash more jobs in other regions if global auto sales continue to slump, the daily said.
Toyota spokesman Yuta Kaga declined to confirm the report, saying nothing had been decided.
Mike Goss, a spokesman for Toyota's North American manufacturing operations, said Toyota is considering "additional steps" after making several production adjustments in recent months, but no decisions have been finalised.
"Current business conditions are not forcing us to make involuntary reductions of Toyota team members," he said in a written statement.
Hit by the collapse in demand for cars, Toyota is expecting to incur its first operating loss in 70 years. The company on Tuesday tapped Akio Toyoda, grandson of the Japanese automaker's founder, as president, paying homage to its roots amid a deepening global downturn.
The US-educated Toyoda, 52, is the first founding family member to take the helm at the Japanese auto giant in 14 years.
Like other Japanese automakers, Toyota has been reducing temporary workers at its auto plants in Japan to curb production amid the global recession.
Harley said its fourth-quarter profit fell 58 per cent to $77.8 million, or 34 cents per share, for the quarter ended Dec. 31, compared with $186.1 million, or 78 cents per share, in the same quarter last year.
Revenue fell 6.8 per cent to $1.29 billion from $1.39 billion in the year-ago quarter.
The results fell short of Wall Street estimates. Analysts surveyed by Thomson Reuters expected 57 cents per share on sales of $1.29 billion, on average.
Harley said its financial-services division swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million. The company said it is evaluating ``a range of options'' to provide funding for the ailing Harley-Davidson Financial Services. Many analysts have suggested the lending unit may have to be sold because it has been unable to unload its debt in the financial markets.
For the full year, Harley said its earnings fell 30 per cent to $654.7 million, or $2.79 per share, from $933.8 million, or $3.74 per share, in the same quarter last year. Sales fell 2.3 per cent to $5.59 billion from $5.73 billion in 2007.
Analysts expected $3.02 per share on sales of $5.61 billion in revenue for the year. Harley said it would not provide earnings guidance for 2009, but analysts call for $2.15 per share.
Agencies
The details of the job cuts will likely be finalised by the end of the month, said the Nikkei, Japan's top business daily, citing an unnamed senior company official. Japan's top automaker could slash more jobs in other regions if global auto sales continue to slump, the daily said.
Toyota spokesman Yuta Kaga declined to confirm the report, saying nothing had been decided.
Mike Goss, a spokesman for Toyota's North American manufacturing operations, said Toyota is considering "additional steps" after making several production adjustments in recent months, but no decisions have been finalised.
"Current business conditions are not forcing us to make involuntary reductions of Toyota team members," he said in a written statement.
Hit by the collapse in demand for cars, Toyota is expecting to incur its first operating loss in 70 years. The company on Tuesday tapped Akio Toyoda, grandson of the Japanese automaker's founder, as president, paying homage to its roots amid a deepening global downturn.
The US-educated Toyoda, 52, is the first founding family member to take the helm at the Japanese auto giant in 14 years.
Like other Japanese automakers, Toyota has been reducing temporary workers at its auto plants in Japan to curb production amid the global recession.
Harley said its fourth-quarter profit fell 58 per cent to $77.8 million, or 34 cents per share, for the quarter ended Dec. 31, compared with $186.1 million, or 78 cents per share, in the same quarter last year.
Revenue fell 6.8 per cent to $1.29 billion from $1.39 billion in the year-ago quarter.
The results fell short of Wall Street estimates. Analysts surveyed by Thomson Reuters expected 57 cents per share on sales of $1.29 billion, on average.
Harley said its financial-services division swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million. The company said it is evaluating ``a range of options'' to provide funding for the ailing Harley-Davidson Financial Services. Many analysts have suggested the lending unit may have to be sold because it has been unable to unload its debt in the financial markets.
For the full year, Harley said its earnings fell 30 per cent to $654.7 million, or $2.79 per share, from $933.8 million, or $3.74 per share, in the same quarter last year. Sales fell 2.3 per cent to $5.59 billion from $5.73 billion in 2007.
Analysts expected $3.02 per share on sales of $5.61 billion in revenue for the year. Harley said it would not provide earnings guidance for 2009, but analysts call for $2.15 per share.
Agencies
Saturday, January 17, 2009
Citi posts $8.29 bn loss, splits up company
Citigroup Inc unveiled a broad restructuring plan designed to shed weaker businesses and troubled assets, and also reported an $8.29billion fourth-quarter loss, its fifth straight quarterly loss.
The company also said on Friday that it anticipated more departures from its board, which is losing Robert Rubin as a director later this year. Nevertheless, Citigroup shares rose 8.6 percent to $4.16 in premarket trading.
Citigroup's fourth-quarter loss equaled $8.29 billion, or $1.72 per share, and compared with a year-earlier loss of $9.8 billion, or $1.99 a share.
"I think people knew it was going to be bad, but I'm surprised it's this bad," said Matt McCormick, portfolio manager at Bahl & Gaynor Investment Counsel in Cincinnati.
The bank said it was splitting into two operating units, one of which will focus on universal banking, the other on brokerage and retail asset management, local consumer finance, and a pool of assets that require special management.
Revenue fell 13 percent to $5.6 billion, reflecting weak capital markets. The company's global credit card business saw revenue decline 27 percent on weakness in North America.
Consumer Banking revenues declined 22 percent, driven by a 47 percent drop in investment sales. And its institutional clients group, securities and banking revenues were negative $10.6 billion, mainly due to net losses and write-downs of $7.8 billion.
"Our results continued to be depressed by an unprecedented dislocation in capital markets and a weak economy," Chief Executive Vikram Pandit said.
Agencies
The company also said on Friday that it anticipated more departures from its board, which is losing Robert Rubin as a director later this year. Nevertheless, Citigroup shares rose 8.6 percent to $4.16 in premarket trading.
Citigroup's fourth-quarter loss equaled $8.29 billion, or $1.72 per share, and compared with a year-earlier loss of $9.8 billion, or $1.99 a share.
"I think people knew it was going to be bad, but I'm surprised it's this bad," said Matt McCormick, portfolio manager at Bahl & Gaynor Investment Counsel in Cincinnati.
The bank said it was splitting into two operating units, one of which will focus on universal banking, the other on brokerage and retail asset management, local consumer finance, and a pool of assets that require special management.
Revenue fell 13 percent to $5.6 billion, reflecting weak capital markets. The company's global credit card business saw revenue decline 27 percent on weakness in North America.
Consumer Banking revenues declined 22 percent, driven by a 47 percent drop in investment sales. And its institutional clients group, securities and banking revenues were negative $10.6 billion, mainly due to net losses and write-downs of $7.8 billion.
"Our results continued to be depressed by an unprecedented dislocation in capital markets and a weak economy," Chief Executive Vikram Pandit said.
Agencies
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