Headcount: Offshoring, Dude!

More Jobs go overseas, Onetta loses a CEO, Photuris furloughs, Riverstone turnover is not a kind of dessert

November 20, 2003

4 Min Read
Headcount: Offshoring, Dude!

Headcount is intrigued by strong hints that outsourcing -- or "offshoring," as the kids call it -- is more than just a temporary blip.

Case in point:

  • Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) is outsourcing its international product manufacturing to Elcoteq Network Corp., a move that affects 300 jobs.

  • At least 1,000 jobs are being affected by Sprint Corp.'s (NYSE: FON) decision to move some applications development overseas, according to a report in the Kansas City Star. The outsourcing deals are old news, but now there's an inkling of how many jobs are cut (see Sprint Springs Outsourcing Deals).

  • AT&T Wireless Services Inc. (NYSE: AWE) is making plans to lay off more than 10 percent of its 30,000 workers over the next year as it farms out jobs overseas, according to a Wall Street Journal report.

  • Infosys Technologies Ltd., an outsourcing beneficiary based in India, is worth $1 billion more than its U.S. competitor Electronic Data Systems Corp. (EDS), even though EDS has about 121,000 more employees and more than 20 times the revenues.

  • Would it be wrong to bring up the Montreal Expos here? Why does a Canadian team play "America's pastime" so close to the equator for so much of the year?

Okay, Headcount will cease the outsourcing observations for now. Better yet, we'll hire a room full of wise-cracking columnists in Beijing to handle next week's column duties. And we're not giving them bathroom breaks, either. Until then, there are plenty of hirings and firings to ponder this week:

  • Maryland-based Sentito Networks is in the hunt for a VP of product marketing, according to sources close to the company. A job description handed to candidates reveals some interesting bits about the 85-person voice switch vendor. Privately held Sentito tells candidates it has landed 15 customers and trials with three RBOCs since releasing its product four months ago. Its revenues this year are projected to reach $3 million, climbing to between $80 million and $100 million in 2005, sources say.

  • Riverstone Networks Inc. (Nasdaq: RSTN) says Peter McGann, its executive VP of sales, has left the company after his job was made redundant. Regional VPs who once reported to McGann now report directly to Riverstone president and chief executive officer Oscar Rodriguez. Suresh Gopalakrishnan, formerly the executive VP of engineering, has also left the company this year, according Riverstone's filings with the Securities and Exchange Commission (SEC).

  • Components vendor Onetta Inc. confirms that its CEO, Orlando Reyes, has left the company. Until a replacement is found, his duties will be handled by founder and CTO Yan Sun and finance VP Allen R. Morton. Reyes took over for former CEO Dennis Barsema in January, according to Onetta founder and VP of product management Robert Macdonald (see Barsema to Leave Onetta).

  • Photuris Inc. has furloughed a number of its staff, putting them on unpaid leave while they retain employee status, chief operating officer Bill Gartner says. The metro WDM company has made sales to Verizon Communications Inc. (NYSE: VZ) and is in trials with two other RBOCs and an IXC. It has completed the third release of its product but has to make a tradeoff between future product development and conserving cash, Gartner says.

  • Sprint's annual Thanksgiving Day charity run begins at the company's Overland Park, Kan., headquarters at 9 a.m. on Nov. 27. The run is open to the public, and the first 3,700 entrants get a commemorative T-shirt. But if you send some funny or embarrassing photos from the event to [email protected] –- photos so good that we publish them -- we'll send give you a Light Reading T-shirt to add to your collection.

    And now here's a rundown of some other notable appointments (and disappointments) from the past few days:

    • Broadwing Names New CIO

    • Global Crossing Names CMO

    • Syrus Madavi Joins Avanex Board

    • Yipes Switches CEO Again

    • Riverstone Hires New Finance VP

    • Albis Appoints CEO

    • Santur Names VP of Operations

    • Ciena Names Worldwide Sales SVP

    • Zhone Gets a Symbol (and Layoffs)

    • Ricochet: Dead Again?

    That's all for this edition of Headcount. We may be able to get in one more column before Headcount goes offshoring for the Thanksgiving holidays, so don't be shy about sending your tips to [email protected]. Gobble. Grobal.

    — Phil Harvey, Senior Editor, Light Reading

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like