Source:blog.wired.com
Recalls are an inevitable byproduct when you're in business, but China's recent rash of export malfunctions in the past few months makes me wonder if doing business in China is worth the hassle, not to mention consumer deaths.
While for decades we've ignored poor work practices and horrendous environmental crimes in the country, we now can't ignore the dangerous products imported from them. How many more recalls need to happen before we realize that the money saved on outsourcing just ain't worth it?
It all started with bad gluten. This March, after family pets started dropping dead after scarfing down their meals, the F.D.A. found a poisonous food additive in millions of cans of popular pet food. The dangerous wheat gluten came from China, along with cyanuric acid, a chemical used in swimming pools, which may have also been added to the foods to increase profits.
In June came a recall of contaminated seafood. According to the New York Times:
The F.D.A. said it decided to take the action after years of warnings and even a visit to Chinese fish ponds that resulted in no signs of improvement. But Dr. David Acheson, the F.D.A.’s assistant commissioner for food protection, stressed that the seafood posed no immediate health threat, though long-term consumption could result in health problems.
Years of warnings?! Shouldn't the food have been temporarily banned once they found a potential problem? Wouldn't a halt in imports of the seafood by the US be the best way to convince these companies to clean up their act?
Then came light-truck tires made in China which were missing or had inadequate gum strips, which help keep tires on the road. The faulty rubber led to two deaths.
And now Mattel, who sent its Chinese manufacturer appropriate lead-free paint, found out their Cars toys were fully leaded, a second blow after recalling lead-tainted toys made in China earlier this month.
Why aren't US companies more involved with what happens once they send out their product schematics? Why are we importing from companies we know aren't producing food up to our regulation standards?
A few weeks ago Business Week ran a cover story on China's vulnerability as a rising superpower as a result of ignoring foreign relations issues regarding the environment and its business practices. I highly recommend it.
We are currently watching a country with so much potential squander opportunities because of greed. It's a lesson the US should take to heart.
Thursday, August 16, 2007
Outsourcing puts Asia at greater risk of slowdown, Citigroup says
Source:www.iht.com
Investors are overlooking the increasing risk in Asian markets from rising outsourcing and consumer debt, Citigroup said.
Outsourcing of manufacturing by companies in the United States, Europe and Japan to Asia has made the region "more sensitive" to a slowdown in global demand than at any time in the past 15 years, Citigroup analysts said in a research note. Demand could be hurt if central banks raised interest rates, it said.
Consumer debt is also rising, with domestic credit in 6 of 10 Asian countries equal to more than the gross domestic product. China, South Korea and India registered the fastest growth in domestic debt, the analysts said.
"If these concerns regarding credit quality persist, it would be heroic to believe that the consumer would be willing to take up more debt for consumption or that the loan providers would be willing to extend the loans," they said.
In 2006, domestic credit was at 99 percent of the $13.4 trillion U.S. economy. In China, it has risen to 138 percent from 84 percent in 1995. In South Korea, it jumped to 107 percent from 54 percent, while domestic credit in India rose to 64 percent from 44 percent, the report said. In the euro zone, the level is 153 percent.
One of the side effects of outsourcing has been a rise in the operating leverage of companies as fixed costs increase, the report said. Operating leverage is a measure that compares fixed costs to variable costs.
Investors are overlooking the increasing risk in Asian markets from rising outsourcing and consumer debt, Citigroup said.
Outsourcing of manufacturing by companies in the United States, Europe and Japan to Asia has made the region "more sensitive" to a slowdown in global demand than at any time in the past 15 years, Citigroup analysts said in a research note. Demand could be hurt if central banks raised interest rates, it said.
Consumer debt is also rising, with domestic credit in 6 of 10 Asian countries equal to more than the gross domestic product. China, South Korea and India registered the fastest growth in domestic debt, the analysts said.
"If these concerns regarding credit quality persist, it would be heroic to believe that the consumer would be willing to take up more debt for consumption or that the loan providers would be willing to extend the loans," they said.
In 2006, domestic credit was at 99 percent of the $13.4 trillion U.S. economy. In China, it has risen to 138 percent from 84 percent in 1995. In South Korea, it jumped to 107 percent from 54 percent, while domestic credit in India rose to 64 percent from 44 percent, the report said. In the euro zone, the level is 153 percent.
One of the side effects of outsourcing has been a rise in the operating leverage of companies as fixed costs increase, the report said. Operating leverage is a measure that compares fixed costs to variable costs.
Tuesday, August 14, 2007
HCL Tech's Q4 net jumps, sees more growth
Source:in.reuters.com
Software services firm HCL Technologies Ltd. on Monday said its June quarter profit more than doubled as it won outsourcing contracts from firms seeking to cut costs, and it saw more growth ahead.
"We are quite optimistic on this year. IT outsourcing deals, engineering-based services and remote infrastructure management will continue to drive the growth," Vineet Nayar, president of HCL Technologies, told reporters.
HCL, India's fifth-largest software services exporter, said consolidated net income in its fiscal fourth quarter rose to 4.9 billion rupees ($121 million) from 2.33 billion rupees in year earlier under U.S. accounting rules.
The profit was bolstered by foreign exchange gains of about 2.5 billion rupees on increased currency hedging, Nayar said, adding the company had hedged $1.2 billion of foreign exchange exposures for the next six months.
HCL's revenue grew 28.6 percent to 16.12 billion rupees as it won more contracts in Europe, which accounted for 30.5 percent of its revenue up from 28.8 percent a year ago.
Ahead of the results, shares in HCL, which offers IT solutions and back-office services, had fallen 0.64 percent to 317.35 rupees in a Mumbai market that rose 1.0 percent.
The company, based on outskirts of New Delhi, added 8 new clients during the quarter, including film and camera maker Konica Minolta Holdings Inc. and New Zealand's biggest company and dairy exporter, Fonterra Co-operative Group Ltd.
India's large pool of English-speaking workers and cheaper wages, at nearly a fifth of western salaries, have helped attract outsourcing by overseas firms.
But the industry faces some obstacles -- a skills shortage and related wage rises of about 10 to 15 percent a year, inadequate infrastructure, and the rise in the rupee of nearly 7 percent against the dollar in the June quarter.
HCL competes with larger rivals such as Tata Consultancy Services Ltd., Infosys Technologies Ltd., Wipro Ltd. and Satyam Computer Services Ltd.
Software services firm HCL Technologies Ltd. on Monday said its June quarter profit more than doubled as it won outsourcing contracts from firms seeking to cut costs, and it saw more growth ahead.
"We are quite optimistic on this year. IT outsourcing deals, engineering-based services and remote infrastructure management will continue to drive the growth," Vineet Nayar, president of HCL Technologies, told reporters.
HCL, India's fifth-largest software services exporter, said consolidated net income in its fiscal fourth quarter rose to 4.9 billion rupees ($121 million) from 2.33 billion rupees in year earlier under U.S. accounting rules.
The profit was bolstered by foreign exchange gains of about 2.5 billion rupees on increased currency hedging, Nayar said, adding the company had hedged $1.2 billion of foreign exchange exposures for the next six months.
HCL's revenue grew 28.6 percent to 16.12 billion rupees as it won more contracts in Europe, which accounted for 30.5 percent of its revenue up from 28.8 percent a year ago.
Ahead of the results, shares in HCL, which offers IT solutions and back-office services, had fallen 0.64 percent to 317.35 rupees in a Mumbai market that rose 1.0 percent.
The company, based on outskirts of New Delhi, added 8 new clients during the quarter, including film and camera maker Konica Minolta Holdings Inc. and New Zealand's biggest company and dairy exporter, Fonterra Co-operative Group Ltd.
India's large pool of English-speaking workers and cheaper wages, at nearly a fifth of western salaries, have helped attract outsourcing by overseas firms.
But the industry faces some obstacles -- a skills shortage and related wage rises of about 10 to 15 percent a year, inadequate infrastructure, and the rise in the rupee of nearly 7 percent against the dollar in the June quarter.
HCL competes with larger rivals such as Tata Consultancy Services Ltd., Infosys Technologies Ltd., Wipro Ltd. and Satyam Computer Services Ltd.
Adecco North America Acquires Recruitment Process Outsourcing Firm TalentTrack
Source:businesswire.com
Adecco, the world leader in workforce solutions, has acquired the assets of TalentTrack, LLC, a recruitment process outsourcing (RPO) company based in Toledo, Ohio. This acquisition will further bolster Adecco’s already robust service delivery infrastructure for outsourced recruitment solutions in North America, continuing to enable Adecco to capture additional market share in this burgeoning segment of the HR services industry. The terms of the transaction are not disclosed.
TalentTrack has been a leading RPO service provider with numerous industry awards for service delivery excellence and high customer satisfaction. The company was formed in 2002 by Kim Davis who has more than 25 years of experience in HR services.
TalentTrack’s unique business model is built around its Talent Discovery Center, which is staffed by certified colleagues who deliver comprehensive recruitment solutions including research, sourcing, candidate mining, screening, assessment, selection, offer management and on-boarding. TalentTrack has dramatically reduced the time to fill open vacancies, thereby giving its customers a competitive advantage in their respective marketplaces.
“This is an exciting time for our combined organizations as we look to grow and expand our footprint in the recruitment process outsourcing arena,” said Kim Davis, former president of TalentTrack. “Adecco’s market-leading position and a host of world-class resources will enable us to capture new opportunities and continue delivering best-in-class solutions to our current and future clients.”
Davis will report to Adecco Senior Vice President of Business Development Michael Beygelman.
Tig Gilliam, CEO of Adecco North America added, “Multinational companies are rapidly adopting RPO as an efficient approach to dealing with global labor shortages, while at the same time improving the effectiveness of their corporate recruitment function and reducing costs. TalentTrack’s highly-successful service delivery model makes it an ideal addition to Adecco’s RPO platform.”
ADECCO WORLDWIDE:
Adecco S.A. is a Global Fortune 500 company and the world leader in workforce solutions. The Adecco Group network connects over 700,000 associates with business clients each day through its network of over 33,000 employees and 6,600 offices in over 70 countries and territories around the world. Registered in Switzerland, and managed by a multinational team with expertise in markets spanning the globe, the Adecco Group delivers an unparalleled range of flexible staffing and career resources to corporate clients and qualified associates.
ADECCO NORTH AMERICA:
Adecco is the workforce solutions leader in the United States and Canada, with a comprehensive service offering that includes temporary and contract staffing, permanent recruitment, outplacement and career services, training and consulting. In addition to its core competency in administrative, clerical and light industrial staffing, Adecco operates the following specialty divisions: Engineering & Technical; Finance & Accounting; Information Technology; Medical & Science; Legal; Human Capital Solutions; Government Solutions; and Transportation.
Adecco, the world leader in workforce solutions, has acquired the assets of TalentTrack, LLC, a recruitment process outsourcing (RPO) company based in Toledo, Ohio. This acquisition will further bolster Adecco’s already robust service delivery infrastructure for outsourced recruitment solutions in North America, continuing to enable Adecco to capture additional market share in this burgeoning segment of the HR services industry. The terms of the transaction are not disclosed.
TalentTrack has been a leading RPO service provider with numerous industry awards for service delivery excellence and high customer satisfaction. The company was formed in 2002 by Kim Davis who has more than 25 years of experience in HR services.
TalentTrack’s unique business model is built around its Talent Discovery Center, which is staffed by certified colleagues who deliver comprehensive recruitment solutions including research, sourcing, candidate mining, screening, assessment, selection, offer management and on-boarding. TalentTrack has dramatically reduced the time to fill open vacancies, thereby giving its customers a competitive advantage in their respective marketplaces.
“This is an exciting time for our combined organizations as we look to grow and expand our footprint in the recruitment process outsourcing arena,” said Kim Davis, former president of TalentTrack. “Adecco’s market-leading position and a host of world-class resources will enable us to capture new opportunities and continue delivering best-in-class solutions to our current and future clients.”
Davis will report to Adecco Senior Vice President of Business Development Michael Beygelman.
Tig Gilliam, CEO of Adecco North America added, “Multinational companies are rapidly adopting RPO as an efficient approach to dealing with global labor shortages, while at the same time improving the effectiveness of their corporate recruitment function and reducing costs. TalentTrack’s highly-successful service delivery model makes it an ideal addition to Adecco’s RPO platform.”
ADECCO WORLDWIDE:
Adecco S.A. is a Global Fortune 500 company and the world leader in workforce solutions. The Adecco Group network connects over 700,000 associates with business clients each day through its network of over 33,000 employees and 6,600 offices in over 70 countries and territories around the world. Registered in Switzerland, and managed by a multinational team with expertise in markets spanning the globe, the Adecco Group delivers an unparalleled range of flexible staffing and career resources to corporate clients and qualified associates.
ADECCO NORTH AMERICA:
Adecco is the workforce solutions leader in the United States and Canada, with a comprehensive service offering that includes temporary and contract staffing, permanent recruitment, outplacement and career services, training and consulting. In addition to its core competency in administrative, clerical and light industrial staffing, Adecco operates the following specialty divisions: Engineering & Technical; Finance & Accounting; Information Technology; Medical & Science; Legal; Human Capital Solutions; Government Solutions; and Transportation.
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