Deloitte and KPMG warn: UK economy headed for recession

by Editor 7/30/2008 3:19:00 PM
Leading UK consultancy Deloitte has released its quarterly economic review, in which it examines the effect of the lower pound exchange rate on the British industry. The report concludes that the UK economy may be headed into a recession similar in proportion to the one in the early 1990s.

Economic adviser Roger Bootle explains: “While the sharp fall in the UK exchange rate seen since last summer should eventually lead to a period of better balanced growth, like that enjoyed in the mid-1990s, it won’t prevent the credit crunch and a sharp retrenchment in corporate spending from sending the economy into recession."

Deloitte’s report shows that quarterly growth has fallen to 0.2 percent in the second quarter. The consultancy says that a "technical recession" of domestic GDP declining for two or more consecutive quarters is now more than likely to occur. The report states: “A full-blown slump like the early 1990s is not impossible if the labour market crumbles or interest rates end up rising rather than falling.”

Deloitte’s quarterly review goes on to say that the Bank of England will have to cut interest rates to 3.5 percent in 2009, but this will nevertheless not result in an early economic recovery.

At the same time, KPMG has warned that 53 percent of UK businesses are planning to cut jobs. The consulting firm's quarterly national business confidence survey also shows that 60 percent of them plan to cut overall costs during the recession.

“The clouds that were on the horizon in early spring are now right overhead, with businesses feeling the impact of this so-called ‘perfect storm’ of rising inflation, tightening credit conditions and plummeting consumer confidence," concludes Malcolm Edge, KPMG's head of markets. To find the latest consulting jobs at Deloitte or KPMG, please visit our job board.

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

Capgemini buys Dutch IT services group

by Editor 7/29/2008 3:55:00 PM
IT consulting group Capgemini has announced that it has agreed to acquire Dutch IT services group Getronics PinkRoccade's (GPR) Business Application Services BV (BAS) unit in the Netherlands. The deal was reportedly worth $400.4 million in cash and will be finalized by the end of the year.

BAS' sales totalled about 300 million euros in 2007. Capgemini's finance director Nicolas Dufourq said that the French consultancy expected to generate 10 million euros in synergies and add five percent to earnings per share next year.

Capgemini CEO Paul Hermelin added that the Netherlands was one of the most profitable markets for the firm.

"Through this acquisition, Capgemini will reinforce its leadership position in one of its key markets, while developing a portfolio of long-term applications management contracts in the public sector," he said.

Getronics is part of the Dutch telecommunications group KPN since last October. KPN said that it would keep the company's business operations in the Netherlands, Belgium, the UK and North America and sell its non-core units.

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

Defence contractor offers £538 million for Detica

by Editor 7/29/2008 3:51:00 PM
BAE Systems, Europe's biggest defence contractor, has made an offer to acquire business and technology consultancy Detica at 440 pence a share. The price represents a premium of 57 percent to the company's 281 p closing share price on the day before the acquisition rumours emerged.

Detica is a leading data security group in Europe that specializes in IT security, technology to counter threats to public and national security, and data protection for government bodies – Ministry of Defence among others – as well as businesses in the private sector. If the deal with BAE Systems goes through, it will signify further expansion on the U.S. market for the Detica Group. BAE Systems, on the other hand, will fulfill its immediate goal, which is to establish a UK security business. The defence contractor believes that the UK government will be spending about £3 billion in the sector by 2011.

Detica was founded three decades ago as a software service provider to U.S. space agency NASA. Today, it has more than 1,500 employees. Its clients include both the British and American government, which earns the IT services leader more than 60 percent of its revenue.

The Detica Group announced its revenue for the first quarter to June 30 and is off to a good start this year, having chalked a 14 percent revenue growth. The company's expectations for this financial year have not changed as it still sees solid demand for its services, especially in the government sector. Find the latest job opportunities at Detica on our IT consultant job board.

BAE Systems' leading position in the defence sector was recently acknowledged by the U.S. Army, whent he contractor was honoured with two Top Ten Greatest Inventions Awards by the U.S. Army at the sixth Annual U.S. Army Top Ten Greatest Invention awards.

“This recognition shows our strong relationship with the U.S. Army and BAE Systems’ ongoing commitment to innovation. We will continue to offer new products to our soldiers and marines, ensuring that those who protect us are protected with the newest and latest technologies,” said Scott Leitch from BAE Systems Land and Armaments unit.

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

Electronic Data Systems (EDS) acquisition approved by the European Commission

by Editor 7/28/2008 4:08:00 PM
IT consultant,ITjobs,computer jobs
Hewlett-Packard announced on Friday that its plans to buy Electronic Data Systems Corp. (EDS) for $13.9 billion have been approved by the European Commission, which serves as the antitrust regulator of the European Union. The EC has not imposed any conditions on the world's leading computer company before approving the acquisition. 

EDS and HP said that the merger would not happen before August 18. EDS has also confirmed that it will pay its Q3 dividend ($0.05 per share) on September 10.

Hewlett-Packard, a company that has about 2.5 billion shares of common stock outstanding, has declared a regular cash dividend (0.08 per share), payable on October 1.

HP's acquisition of EDS was originally agreed upon in May 2008. With EDS under its wing, HP will be able to better compete with IBM on the market of technology consulting, customer support and other services. It has already usurped IBM as the world's leading technology company in terms of revenue.

The deal has yet to be approved by EDS shareholders, who will have a vote on July 31, and to obtain regulatory clearance from other non-U.S. jurisdictions.

If the acquisition is successful, HP is likely to win more government contracts in the future, since EDS is one of the leading government contractors in the technology sector. The deal will also probably more than double HP's services revenue and be the company's biggest acquisition since Compaq in 2002.

Find the latest job opportunities at EDS and IBM on our IT consulting job board

 

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

SAP recognized as top employer in Europe, India, Mexico and China

by Editor 7/24/2008 3:39:00 PM
Global business software leader SAP AG reports that it has received several recognitions as a preferred employer in Europe, China, India and Mexico. These are just the most recent in a long line of acknowledgments of SAP as a top employer and career destination on a global scale. Earlier this year, the company received similar acknowledgments in Japan and Germany.

SAP was recognized as one of the “Best Workplaces” in India by the Great Place to Work Institute. SAP Labs India is included among the top 50 workplaces in the country and is one of the best five employers in the information technology software category.

In China, SAP was named an IT Industry Employer of Choice at the first award ceremony of its kind in the country, the Top Chinese IT Employers of 2007.

SAP Mexico was ranked as a “Super Enterprise” in TOP Companies’ “The Companies Everybody Wants to Work For” ranking. SAP was ranked fourth in the IT & Services Segment.

Finally, SAP was ranked 16th in the survey “50 Best Large Workplaces in Europe to Work for,” conducted by the Great Place to Work Institute, immediately after being recognized as “Germany’s Best Employer” in the category of companies with over 5,000 employees for the fourth year in a row in 2008.

Claus E. Heinrich, executive board member, SAP AG, said: “Today’s world-class talent expects a world-class working environment. We have the highest appreciation for our team members across the globe and we are honoured to be recognized in turn as their preferred employer. The contributions from our diverse employee base continue to drive the innovation and entrepreneurial spirit that sets SAP apart as a company.”

SAP provides business applications and services that help companies in more than 25 industry sectors become successful businesses. The company has more than 47,800 clients in over 120 countries across the globe.

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

IBM’s consulting and outsourcing units report strong growth

by Editor 7/24/2008 3:17:00 PM
IBM’s main global services units – consulting and outsourcing – ones that bring in more than 50 percent of the company's revenue – have reported strong growth in the second quarter. Their sales numbers rose 16 percent, to $15.2 billion, writes Information Week.

The IBM Global Technology Services outsourcing unit posted 15 percent growth, with its sales leaping to $10.1 billion, while the Global Business Services consulting unit reported 18 percent growth, with sales totalling $5.1 billion.

The value of services contracts rose 12 percent, to 14.7 billion, in Q2 and IBM’s backlog of contracts is currently worth about $117 billion, which is a billion more than in the same period last year.

See the latest job opportunities at IBM on our IT job board.

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

Deloitte reports £13.6 billion global revenue

by Editor 7/24/2008 2:34:00 PM
Deloitte jobs,consulting jobs
Consulting giant Deloitte has announced that its revenues worldwide in the fiscal year 2008 rose to £13.6 billion ($27.4 billion). At the same time, the number of Deloitte employees grew by 15,000 people. The company’s offices in Russia, Brazil, China and India reported 90 percent growth.

It was the financial advisory service that chalked the biggest growth, 26.6 percent, with consultancy following at 22.2 percent.

Deloitte CEO Jim Quigley said that the company’s “strong global culture unites all of our people,” adding:

“Our results show that our client-centric business model built upon a global culture of consultation and collaboration – and delivery through strong member firms with global connections – is a winning strategy.”

Browse and apply for the latest Deloitte jobs on our IT consulting job board.

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

IT jobs to drop in 2009 – Goldman Sachs staffing survey

by Editor 7/23/2008 4:04:00 PM
IT consultant,computer jobs,tech jobs
IT jobs will most likely drop in 2009, both for in-house staff and contractors, according to the new CIO survey conducted by Goldman, Sachs & Co and released last week. The goal of the study, which included 100 CIOs and other strategic decision makers at multinational Fortune 1000 companies, was to find out about the executives' IT staffing and spending plans for 2009.

Information executives plan to significantly reduce the number of contractors they employ, as well as of staff in professional services and hardware, and invest next to nothing in cloud computing, which is in line with the efforts to economize measures over investments in new technologies.

"In a cost-restrained IT budget scenario, CIOs will most likely look to cut their resources first from lower-value augmented [contract] IT staff," states the report, which Goldman Sachs describes as an “early warning flag” for services providers’ bookings of new projects in 2009.

The survey suggests that cost cutting will be felt the most in basic PC and network hardware and professional services providers. 47 percent of the managers said that spending would slow down the most in the area of purchases of personal computer systems, servers and storage. 42 percent said that they are "reluctant to spend money on third-party professional services."

The Goldman Sachs report also says that the “demand for discretionary IT projects dropped to its lowest point” in the history of the staffing survey.

The most significant change since October, however, relates to in-house staff. Last year, when asked which area of IT service delivery resources they would be willing to cut for application-related development or maintenance work, none of the respondents said that they would cut any of the in-house IT staff. In February, the number rose to eight percent and then to 15 percent in April. In the most recent survey (June), 11 percent of the managers said that they would cut in-house staff.

The survey shows where CIOs’ priority currently lie: in the areas of server virtualization and server consolidation, followed by cost cutting, application integration and data centre consolidation. Cloud computing is the last on the list.

Pund-IT analyst Charles King says: “The message here is CIOs are looking primarily to tested, well-understood technologies that can result in savings or increased business efficiencies, whose support can be argued from a financial point of view.”

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

More IT jobs going to foreign staff

by Editor 7/23/2008 3:53:00 PM
IT consulting jobs,IT careers
IT jobs in the UK are opening to a growing number of foreign professionals with the right technology skills, reveals a new study released by the Confederation of British Industry (CBI).

The study that included 500 British companies reveals that 59 percent of them recruit IT workers from other countries. This is a seven percent rise since 2006.

Only 13 percent of the respondents said that inadequate skills were the reason why their companies had not hired British staff for the jobs.

The majority (61 percent) said that international growth was the main reason for recruiting intenational workers, while 46 percent said that the requirements of the projects had in fact called for international IT staff.

“At a time of tougher economic conditions and ever-increasing international competition, it is vital that all firms understand how they can use IT to drive performance and create goods and services customers want,” said John Cridland, deputy director-general of the CBI.

A quarter of the foreign IT workers in the UK come from India and 11 percent of them are from China.

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

Accenture & Atos Origin partner up with Michelin

by Editor 7/22/2008 4:22:00 PM

Consulting firms Accenture and Atos Origin have announced that Michelin, global leader on the tire market, has given them the applications' management of its core business, R&D, Manufacturing and Business Intelligence. The consultancies will build, support, develop and implement the strategic applications across the globe over the next three years. 

Michelin's goal in teaming up with Accenture and Atos is to improve its operating efficiency and get more flexible information systems, as well as improve cost efficiency and quality performance. 

Didier Zeitoun, CEO of Atos Origin in France, and Sergio Colella, Products Lead for Accenture in Europe, said in a statement:

"We are very proud to have been selected by Michelin as strategic partners in charge of the applicative areas of its core business. Our business skills, our innovation capabilities, our worldwide presence and our industrialized approach for the development and support of applications will help Michelin to develop worldwide and reach its objectives." 

Browse the latest job opportunities with Accenture and Atos Origin on our IT job board.

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList