Friday, April 3, 2009

Today's News

Microsoft Applying for Fewer H-1B Visas
The Seattle Times reported that with ongoing layoffs and hiring slowed across the economy. Microsoft this year is applying for "substantially fewer" H-1B visas. But their General Counsel Brad Smith said that Microsoft "still sees the program as an important part of its strategy to hire the best people, regardless of their citizenship. Of the "new applications" the company is filing for the 2010 fiscal year ' a solid majority' are to convert existing employees working on so-called L visas to H-1B visas, rather than to make new hires"

Kaiser Outsourcing Deal Leads to Job Cuts
Kaiser Permanente announced March 16 that it would outsource the management and storage of most of its data to IBM, eliminating about 700 jobs at Kaiser. The same day the seven-year deal was announced, Kaiser said it would eliminate 160 other information technology jobs in more than 30 locations across the country "as part of a realignment of its information technology function," according to a company statement. None of the positions were in areas that would affect patients or physicians, Kaiser spokeswoman Laura Dunn said in an e-mailed statement.

Outsourcing 2.0: What's the new India?
A report was issued by the London School of Economics explaining that the global growth in IT and business process outsourcing (BPO) in various new countries across the globe will allow businesses to gamble on many different off shoring deals. The author states "Off shoring today is a transitionary phase in a much larger movement towards a global division of labor." The predicted growth in the global ITO and BPO markets with outsourcing revenue is set to grow between six and nine per cent each year. The UK is predicted to have a shortfall of more than 14,000 IT specialists by 2010 and the US a shortage of 15 million by 2025. For a full review of the article please use the above link.

Transparency in Outsourcing, Part 1: Silent Shrinkage
Sometimes when companies lay off thousands of workers, they actively publicize the action in order to appease investors. Other times, little to no fanfare is made at all. Often times, at least some of these eliminated positions are actually being outsourced -- are outsourcing firms cleaning up during an overall economic recession? This article posted in E-Commerce Times discusses the premise that concerns about public outcries due to offshoring is NOT inhibiting companies from continuing their efforts.

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