Intel is reportedly expanding its outsourcing of chip production to TSMC, including its new 3nm process node. The company is also outsourcing backend design and advanced packaging to Taiwanese companies like Egis, Shichixin, and KYEC, indicating a greater reliance on TSMC’s expertise as Intel struggles with its own advanced processes.
An Indian-origin software engineer in the US, who was laid off, has sparked a viral discussion after revealing that his job was replaced by Indians living in India. The engineer’s video rant highlights the complex issues of globalization, job displacement, and international competition. Netizens expressed mixed reactions, ranging from sympathy to criticism, as the video went viral online.
Google has recently dismissed its entire Python team, reportedly in favor of cheaper labor outside the United States. This move has drawn criticism from former team members, who have expressed disappointment and questioned the company’s values. Google is said to be establishing a new Python team in Germany and has made other job cuts in its real estate and finance departments.
Wipro, India’s fourth-largest outsourcing company, has announced that its CEO, Thierry Delaporte, will receive a substantial severance payout of ₹92.1 crore (approximately $11 million) following his departure from the company ahead of schedule. As per Delaporte’s employment contract, if his employment is terminated without cause, Wipro is obligated to provide him with a severance package equivalent to 12 months’ base salary, payable over a 12-month period following the termination date. This payout will cease if Delaporte secures new employment or becomes a consultant within the stipulated 12-month period.
Outsourcing is gaining momentum in the commercial real estate sector, offering entrepreneurs a smart solution to cut costs and boost efficiency. From marketing and sales to administrative tasks and human resources, outsourcing allows businesses to delegate non-core functions to virtual assistants. This frees up core teams to focus on strategic decision-making and drive business growth. With a global market valued at $280.64 billion in 2023 and projected to grow at 9.4% annually, outsourcing is a game-changer for businesses looking to maximize productivity and profitability in a competitive market.
Researchers have discovered that animation work for Amazon and Max was outsourced to North Korea, a country with a history of human rights abuses. Log files suggest that animators in China further outsourced the work to North Korea, unbeknownst to the American companies. This has raised concerns about the ethics of outsourcing work to countries with poor labor practices.
Heathrow Airport, the United Kingdom’s busiest, is facing major disruption as 800 members of the Unite union prepare to strike for a week. The industrial action, which is set to begin on Tuesday, May 7 and end on Monday, May 13, will involve firefighters and staff in airside operations, passenger services, trolley operations, and campus security. The dispute stems from the airport’s plans to outsource hundreds of roles in a bid to save £40 million. Unite, which represents the affected workers, has accused Heathrow Airport Ltd (HAL) of engaging in a “race to the bottom” and called for the introduction of multilateral collective bargaining. The airport, on the other hand, claims it has contingency plans in place and anticipates minimal impact on passenger journeys.
CGI Inc., a provider of consulting and outsourcing services, remains a Hold due to ongoing client hesitancy in the consulting industry. Despite its large outsourcing segment, which provides stability, CGI’s valuation appears full at its current price. M&A opportunities may emerge, but the slow current period persists, requiring careful management decisions. The global digital transformation consulting market is expected to grow significantly, but uncertain client spending limits short-term growth for CGI.
