The following is my introduction to the October Industry News which can be found at Eagle’s website. Each month I identify the articles that catch my eye in the technology world and collate them into a “Coles Notes” of technology news for the month. Hope you find it interesting!
The big news for October had to be the sale of YouTube for $1.65 billion to Google. A company that was less than two years old and was created by a couple of twenty-somethings! Definitely reminiscent of the dot.com boom era!
There was an interesting report from the US Conference Board about the shortfall in basic skills amongst new grads, (the subject of a recent entry on my blog). India seems to pop up in the news very regularly, this month there was a strike in Bangalore (but it only lasted one day), IBM continues to invest there and a report from the Hackett Group identifies $58 Billion in potential savings for US companies by offshoring back office jobs to India. Capgemini made an Indian acquisition spending $1.25 Billion to acquire Kanbay International to give it offshore capability. On the subject of offshoring, IBM is also investing in its Philippines capability, adding 15,000 jobs. There were a number of employment reports from various sources and with mixed results, generally the US economy is suffering and IT employees are in demand but their confidence is not as strong as it has been.
Computer Horizons sold off its Chimes division for $80 million, plus a Federal division for $15 million as it tries to get back to profitability. Kforce paid $73 million to grow its federal government business, McAfee bought a small Israeli company, Microsoft added a desktop management software company and Yahoo bought a multimedia company for advertising software.
There were a couple of scandals emerge, one at McAfee that cost the President, CEO and Chairman their jobs over a stock option investigation. The other was at Sapient where the CEO and CFO resigned again over stock option issues, which is a hot button for the SEC these days!
All in all a relatively quiet month as the business community focused on execution in one of the more productive months before heading into the holiday season.