Chinese PC maker Lenovo, which today announced a loss of $96.7 million for the quarter ended December 31, said CEO William J. Amelio resigned in a management reshuffle.
While Lenovo founder Liu Chuanzhi would return as the chairman of the company, present chairman Yang Yuanqing will return as CEO in the place of Amelio, Lenovo said in a statement.
Observing that the next several quarters will be "very challenging for Lenovo and the rest of the PC industry", Lenovo said the worldwide restructuring program announced on January 8 is expected to save the company approximately US$300 million in the 2009/10 financial year.
"In the past quarter, same as many other companies, Lenovo was deeply impacted by the global economic turmoil," said Lenovo CEO Yang Yuanqing. "We have taken actions to ensure that in an uncertain economy, our business operates as efficiently and effectively as possible, and continues to grow in the future."
The PC maker said its global sales of US$3.59 billion for the reporting quarter is 20 per cent less compared with the same period of 2007.
"The Group's results were impacted principally by slowdown of the Chinese PC market in which it has significant market share and demand reduction in the worldwide commercial PC segment," the company statement said.
On January 9, Lenovo had announced that the company is going tolay off 2,500 employees, nearly 11 per cent of its work force.
Monday, February 9, 2009
Sunday, February 8, 2009
Is LPOs set to ramp up headcount in India?
The global slowdown is keeping the legal process outsourcing (LPO) sector in India extra busy these days. With the sudden surge in business in the LPO space in the last one year, firms such as Pangea3, UnitedLex and Legal Circle are looking at ramping up headcount in the entry and mid-management levels over the next few months.
The turmoil in the financial services sector globally is driving more legal outsourcing to India both in the corporate and litigation space. Gurgaon-based UnitedLex’s vice-president HR, Rakhi Sharma, said, “We plan to hire 700 professionals in the next few months to keep pace with the work coming from the US and the UK.”
The firm has seen a significant jump in the number of outsourced projects over the last few months both in the corporate and litigation space. Bankruptcy filings in the US have gone up in the last couple of months raising demand for lawyers in India.
“Legal work related to bankruptcies in the global market has increased ,” said Pangea 3 Vice President Legal Services Antony Alex, adding that the law firm is set to recruit around 500 lawyers by the end of 2009. This includes campus placements across several law schools in the country.
Legal Circle, the LPO subsidiary of Delhi-based law firm Fox Mandal Little, too, is gearing up to ramp up headcount to take advantage of the booming time. “The demand for LPOs is on the rise and we have seen increased number of queries from the US to do litigation support from India,” said Fox Mandal Little managing partner Som Mandal.
According to research firm ValueNotes, the entire legal outsourcing industry in India reported revenues of $225 million in 2007, and is expected to generate revenues of around $640 million by the end of 2010. The sector reported a rise of over 200 per cent in revenues in the last 12 months.
Times of India
The turmoil in the financial services sector globally is driving more legal outsourcing to India both in the corporate and litigation space. Gurgaon-based UnitedLex’s vice-president HR, Rakhi Sharma, said, “We plan to hire 700 professionals in the next few months to keep pace with the work coming from the US and the UK.”
The firm has seen a significant jump in the number of outsourced projects over the last few months both in the corporate and litigation space. Bankruptcy filings in the US have gone up in the last couple of months raising demand for lawyers in India.
“Legal work related to bankruptcies in the global market has increased ,” said Pangea 3 Vice President Legal Services Antony Alex, adding that the law firm is set to recruit around 500 lawyers by the end of 2009. This includes campus placements across several law schools in the country.
Legal Circle, the LPO subsidiary of Delhi-based law firm Fox Mandal Little, too, is gearing up to ramp up headcount to take advantage of the booming time. “The demand for LPOs is on the rise and we have seen increased number of queries from the US to do litigation support from India,” said Fox Mandal Little managing partner Som Mandal.
According to research firm ValueNotes, the entire legal outsourcing industry in India reported revenues of $225 million in 2007, and is expected to generate revenues of around $640 million by the end of 2010. The sector reported a rise of over 200 per cent in revenues in the last 12 months.
Times of India
Is Infosys getting tougher on poor performers?
The economic slowdown has made Infosys Technologies, India’s second-largest IT services firm by revenues, take a harder look at employee performance. The firm has put 2,200 employees under the scanner for non-performance this year — more than double the number last year, a senior executive said.
Last year, about 1.5% of IT services staff or about 1,000 employees figured among the bottom performers. This year, the percentage has shot up to about 3.5%. About 600 of such non-performers have left the company already this year.
Such employees are put under a performance improvement plan, provided mentoring and their performance is reviewed for a quarter. “When the times were good, people got away with things. Our tolerance of non-performance has come down now,” Infosys director (HR, education & research and administration) TV Mohandas Pai said.
Meanwhile, the IT services major has made about 20,000 job offers to college students across the country for 2009-10. The company will honour the commitment made, Pai said.
However, there could be lower or even no wage increases at Infosys next fiscal. “Wage increase next year will be subdued, if there will be an increase,” the Infosys director said.
The IT services firm said it expects IT budgets of clients to be flat or may even reduce 5-10% next fiscal. “Clients are in pain and they want us to share the pain. Their ability to spend is lower,” he said.
Economictimes
Last year, about 1.5% of IT services staff or about 1,000 employees figured among the bottom performers. This year, the percentage has shot up to about 3.5%. About 600 of such non-performers have left the company already this year.
Such employees are put under a performance improvement plan, provided mentoring and their performance is reviewed for a quarter. “When the times were good, people got away with things. Our tolerance of non-performance has come down now,” Infosys director (HR, education & research and administration) TV Mohandas Pai said.
Meanwhile, the IT services major has made about 20,000 job offers to college students across the country for 2009-10. The company will honour the commitment made, Pai said.
However, there could be lower or even no wage increases at Infosys next fiscal. “Wage increase next year will be subdued, if there will be an increase,” the Infosys director said.
The IT services firm said it expects IT budgets of clients to be flat or may even reduce 5-10% next fiscal. “Clients are in pain and they want us to share the pain. Their ability to spend is lower,” he said.
Economictimes
Saturday, February 7, 2009
Japanese electronics major Sharp to layoff 1,500 jobs
Japan's Sharp Corp said that it would eliminate 1,500 domestic jobs as the electronics maker predicted its first-ever operating loss this year due to the recession.
"We have decided not to renew 1,500 contract workers in Japan," Tetsuo Onishi, the company's director for accounting, told a news conference.
"By doing so, we shall build a human resource structure that meets the size of sales," he said. Top managers will also accept pay cuts and forego bonuses, he said.
Agencies
"We have decided not to renew 1,500 contract workers in Japan," Tetsuo Onishi, the company's director for accounting, told a news conference.
"By doing so, we shall build a human resource structure that meets the size of sales," he said. Top managers will also accept pay cuts and forego bonuses, he said.
Agencies
Global crisis to hit China more than India, says ADB
Multilateral lending agency Asian Development Bank (ADB) on Saturday said that the impact of global financial meltdown will be much more on China than India as the Chinese economy is heavily dependent on exports.
"The extent of slowdown in China is much bigger than India because Chinese economy is more dependent on exports than Indian economy," ADB President Haruhiko Kuroda said in an interview to a news channel, adding that both China and India were not in recession.
Developing countries will have to restructure their economy and generate domestic demand besides sustaining high growth to avoid poverty, he said.
Even if the global economy recovers from the worst recession, global economic structure will be changed considerably and particularly Asian countries cannot rely on exports, he said.
Emerging economies will slowdown with negative impact on poor and Countries will have to sustain high growth to avoid poverty, Kuroda said.
The global downturn may be deeper and the recovery take longer than earlier expected, he said adding, developing Asia would not have miracle growth and further slowdown this year will be inevitable. However, Indian economy was expected to grow at around 7 per cent.
The Bank plans issuing 9-10 billion dollar bonds in the market this year. "In the next 12 months we can easily raise 9 to 10 billion dollar from capital markets Recently we issued one billion dollar bond and market response was very good", Kuroda said.
ADB yesterday announced stepping up its lending operations by several billion dollars to help Asian nations tide over the crisis.
In addition, the bank would increase the size of trade facilitation programme from $150 million to $1 billion in 2009.
The Manila-based bank facing resource constraint, however, has requested shareholders for an immediate and substantial capital increase for steps to mitigate the severity of the economic crisis in the region.
Agencies
"The extent of slowdown in China is much bigger than India because Chinese economy is more dependent on exports than Indian economy," ADB President Haruhiko Kuroda said in an interview to a news channel, adding that both China and India were not in recession.
Developing countries will have to restructure their economy and generate domestic demand besides sustaining high growth to avoid poverty, he said.
Even if the global economy recovers from the worst recession, global economic structure will be changed considerably and particularly Asian countries cannot rely on exports, he said.
Emerging economies will slowdown with negative impact on poor and Countries will have to sustain high growth to avoid poverty, Kuroda said.
The global downturn may be deeper and the recovery take longer than earlier expected, he said adding, developing Asia would not have miracle growth and further slowdown this year will be inevitable. However, Indian economy was expected to grow at around 7 per cent.
The Bank plans issuing 9-10 billion dollar bonds in the market this year. "In the next 12 months we can easily raise 9 to 10 billion dollar from capital markets Recently we issued one billion dollar bond and market response was very good", Kuroda said.
ADB yesterday announced stepping up its lending operations by several billion dollars to help Asian nations tide over the crisis.
In addition, the bank would increase the size of trade facilitation programme from $150 million to $1 billion in 2009.
The Manila-based bank facing resource constraint, however, has requested shareholders for an immediate and substantial capital increase for steps to mitigate the severity of the economic crisis in the region.
Agencies
Is IBM offering jobs in India for sacked staff?
IBM is offering its recently laid-off employees jobs in “growth markets” like India and Russia through a new programme and will help with moving costs as well as provide visa assistance, media reports said.
Through the ‘project match’ programme, IBM is offering its outgoing workers in the US and Canada a chance to take an IBM job in India, Nigeria and Russia, CNN quoted an IBM internal document. The company would help exemployees “locate potential job opportunities in growth markets where (their) skills are in demand ...
“Should (the employees) accept a position in one of these countries, IBM offers financial assistance to offset moving costs, provides immigration support, such as visa assistance, and other support to help ease the transition of an international move,” the document read.
Agencies
Through the ‘project match’ programme, IBM is offering its outgoing workers in the US and Canada a chance to take an IBM job in India, Nigeria and Russia, CNN quoted an IBM internal document. The company would help exemployees “locate potential job opportunities in growth markets where (their) skills are in demand ...
“Should (the employees) accept a position in one of these countries, IBM offers financial assistance to offset moving costs, provides immigration support, such as visa assistance, and other support to help ease the transition of an international move,” the document read.
Agencies
Friday, February 6, 2009
iGATE Pulls Out of Race to Acquire Satyam
With Satyam's financial statement still not available and government yet to cap its liabilities, iGATE has all but given up its interest in Satyam.
With Satyam's financial statement still not available and government yet to cap its liabilities, iGATE has all but given up its interest in buying stake in Satyam. The new Satyam board has recently appointed a new CEO and CFO.
The company had earlier said it was waiting for the new financial statement before deciding its next step, as the Satyam board had ruled out any part buy option.
Talking to CXOtoday, Phaneesh Murthy. CEO of iGATE, said, "Our interest in Satyam is weaning now. If a portion of the company is not being sold, then it does not attract me."
Over the last few weeks, reports indicate that Satyam has lost several of its top employees and many clients are also moving away, thereby making the value proposition no longer interesting for iGATE. "I believe that delay in decisions will erode the value of the company because of migration of customers and employees," said Murthy.
It is believed that iGATE was keenly looking at acquiring the manufacturing and EPR verticals of Satyam that were dominant over the years. But with the board not likely to issue Satyam's financial restatement in the near future, many of the other suitors are likely to pull out as well.
iGATE was among the early prospects, along with Larson & Turbo (L&T) and Essar, to express interest in acquiring the fourth largest software service provider. Since then the board has received three Expressions of Interest (EoI) from Mahindra Group, Hindujas and Spice Communications.
CXOtoday.com
With Satyam's financial statement still not available and government yet to cap its liabilities, iGATE has all but given up its interest in buying stake in Satyam. The new Satyam board has recently appointed a new CEO and CFO.
The company had earlier said it was waiting for the new financial statement before deciding its next step, as the Satyam board had ruled out any part buy option.
Talking to CXOtoday, Phaneesh Murthy. CEO of iGATE, said, "Our interest in Satyam is weaning now. If a portion of the company is not being sold, then it does not attract me."
Over the last few weeks, reports indicate that Satyam has lost several of its top employees and many clients are also moving away, thereby making the value proposition no longer interesting for iGATE. "I believe that delay in decisions will erode the value of the company because of migration of customers and employees," said Murthy.
It is believed that iGATE was keenly looking at acquiring the manufacturing and EPR verticals of Satyam that were dominant over the years. But with the board not likely to issue Satyam's financial restatement in the near future, many of the other suitors are likely to pull out as well.
iGATE was among the early prospects, along with Larson & Turbo (L&T) and Essar, to express interest in acquiring the fourth largest software service provider. Since then the board has received three Expressions of Interest (EoI) from Mahindra Group, Hindujas and Spice Communications.
CXOtoday.com
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