Ericsson Australia has confirmed it let go of around 10 staff last week, but the industry is abuzz with speculation that hundreds more may follow as its biggest customer, Telstra, announced a $1 billion cut back in capital expenditure for the coming financial year.
The Australian division of Texan IT services giant EDS has sent its major local clients letters assuring them that its US$13.9 billion acquisition by Hewlett-Packard wouldn't result in a drop in service levels.
Tabcorp chief executive Elmer Funke Kupper today said the gambling giant's IT outsourcing contract with EDS has helped accelerate its multi-year IT transformation program and gain certainty about costs amidst tough economic conditions and natural disasters.
The Australian Tax Office is preparing to put the last and largest of its IT outsourcing contracts centralised computing up for grabs, worth around AU$160 million per year. This is EDS's last chance to retain work with the ATO and possibly its first bid since its proposed acquisition by HP.
Companies are shying away from outsourcing 'megadeals' in favour of spreading smaller contracts between several suppliers.
Software maker Oracle said on Monday it will acquire rival Siebel Systems in a deal worth US$5.8 billion, marking the second major competitor the company has targeted since mid-2004.
Wholesale outsourcing has fallen out of fashion in recent years, and organisations are now becoming smarter about how far they go outsourcing partners.
As mega outsoucing deals begin to lose their shine, is it time for selective sourcing to take centre stage?
The CTO of one of Britain's largest banks talks about how he made it to the top, and how Barclays is facing the challenges of technical innovation and corporate governance legislation.
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