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Satyam announced on Wednesday that SAP application development, enterprise application integration and testing services for the European wing of the Japanese electronics giant will be carried out at the Indian outsourcer's new offshore-development center (ODC) in Bangalore.
According to Satyam, the move will "enable the Sony Infrastructure Services team to focus on core activities such as platform enhancement, optimization and innovation" while Satyam handles IT development for Sony sales and distribution, warehouse management, finance and business intelligence systems.
Satyam's European vice president, Som Sarma, said on Thursday that the company had been "setting up development centers for companies of Sony's stature for several years," citing as an example a deal struck seven years ago with General Electric.
Sarma called the Sony deal a "milestone" for ODCs. "The fact that Sony has decided to go ahead with an investment inside Satyam shows the maturity of offering such a service at such a high level," he said. He added that the center was expected to employ between 55 and 80 staff by the end of the financial year.
"The larger the ODC gets, the more (cost) benefits the company gets from a risk management on the people perspective," Sarma said, adding that a growing ODC operation would mean that Sony "would not feel the pinch" if a staff member leaves.
Sony has had a poor year financially, largely caused by the delayed release of the PlayStation 3 console and the hugely expensive recall of millions of computer batteries after some caught fire.
A Sony representative told ZDNet UK on Friday that the Satyam deal is "not something that Sony wants to comment on."
David Meyer of ZDNet UK reported from London.
See more CNET content tagged:
Satyam, India, Sony Corp., information technology, development
Should be:
"A boost for India's offshore-development industry, move is intended to help Sony's European wing cut staff"
Lets outsource even more IT to India
Lets let foreign firms buy even more of our natural resource companies and rights.
North America is going to wake up one day to realize that all we have left are
- Sales&Marketing people
- Retail clerks
- Executives
The executives are going to retire with their huge payouts after selling off every asset we have. Meanwhile our kids can look forware to work at starbucks and walmart.
StupidScary.
Its been years since this trend has started and so has the the voice of group who opposes it (see other comments !). But what has been the final outcome, more jobs being outsourced. So instead of mindless backlash, try to understand the root cause.
The reason our economy is doing a bit better and has good forecast is becasue of these steps.
Grow up !
The corporate big-wigs get huge raises and bonuses, advertise like madmen, and cause prices to go up. All the while, many average people see little to no raises and small bonuses if any. The result? People have a harder time affording the now more expensive goods.
If you rate our economy by the stock market alone, you might think we're doing fine. If you look at how people are doing, it doesn't quite match. The stock market is a game for people with money, not an indicator of the real economy.
However, I have yet to see outsourcing or offshoring produce anything other than promises that never seem to materialize.
There's no reason to believe this will be any different. This is a bad move for Sony.
Charles R. Whealton
Charles Whealton @ pleasedontspam.com
all you will see is - success stories of offshoring to INDIA.
- Grow up
- by prinks December 9, 2006 10:16 PM PST
- I really think its a case of sour grapes for your lot. Maybe you should do some serious homework before you make comments like that.
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