The Eagle Blog

March 2006 Industry News

Each month I produce a newsletter that includes a roundup of significant happenings in the technology industry space. The following is a very high level synopsis. If you would like a little more detail you can find it at the Eagle website.

In March 2006 the offshore phenomena continues to be a big part of the landscape. While visiting India George Bush committed that the US would not take protectionist measures to save US jobs. Meanwhile IBM is moving all design and development of its business consulting offerings to India, Dell announced plans to double its Indian workforce to 20,000 and CapGemini is growing its Indian workforce from 4,000 to 10,000.

There were several very positive reports on the hiring landscape from Robert Half, Manpower and Spherion, along with some details of skills shortages in Australia. CGI and Lenovo Group each announced 1,000 layoffs. Project issues at the UK National Health Service deal is hurting Accenture’s financials to the tune of $450 million. Blackberry users had good news as RIM eventually managed to put its patent issues with NTP behind it, to the tune of $612.5 million.

On the M&A front there were many deals announced with companies like Google and Microsoft continuing to buy up smaller entities to beef up various divisions. There seems to be significant activity in the communications industry with Softbank buying the Japanese mobile unit of Vodafone for $15.3 Billion, a mega deal involving AT&T buying Bell South in a $67 Billion deal, and a pending merger of Lucent and Alcatel could create a $25 Billion company. Dell bought the gaming PC maker Alienware, EW Scripps bought online comparison shopping site uSwitch and there were a number of smaller deals.

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