the only problem
the only problem
Date: Sunday, April 13, 2003 1:38 PM
H-1B and JOB DESTRUCTION NEWSLETTER
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To find out what "the only problem" is, skip to the last part of the
article.
http://www.siliconindia.com/tech/tech_pgtwo.asp?newsno=19133&newscat=Technology
U.S. IT firm moves jobs to Hyderabad
IANS
Thursday, April 10, 2003
An American IT company has cut five positions and moved the work to a
new facility in the Indian city of Hyderabad where labour costs are
lower.
WASHINGTON: Click2Learn Inc. has cut the five positions in Bellevue and
Rochester, New York. The five were employed in quality control and
development jobs, says a report in the Seattle Post-Intelligencer.
Bellevue-based Click2Learn now employs about 75 people in India. The
company has continued to cut staff in the U.S. while adding software
jobs in India.
The 19-year-old company, which makes enterprise software, employs about
290 people worldwide.
Click2Learn CEO Kevin Oakes recently remarked that projects originating
in India have been "extremely successful and cost efficient".
J.P. Morgan Chase & Co., the second largest U.S. bank, too has moved
400 jobs to Mumbai, India, and Sydney, Australia, in the past year from
its offices in Europe, the U.S., Hong Kong and Japan, to cut costs in
view of the global slump in the banking industry.
The bank now has 325 people at a global service centre in Mumbai and as
many as 80 in Sydney, where they are managing the bank's back office
operations.
Standard Chartered Plc, HSBC Holdings Plc and Deutsche Bank AG have
also moved back office operations to India to reduce costs.
"The long term trend is more outsourcing," Sunil Garg, a banking
analyst at Fox-Pitt Kelton, Inc was quoted as saying. The only problem
is there may be a backlash in the U.S. and elsewhere against
outsourcing because it increases unemployment, he said.
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