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Tuesday, May 13, 2008


HP acquired EDS for $ 13.9 billion. This will really push HP up in the services sector to #2 spot behind IBM. But what I want to see is how this will affect EDS's operation in "lower-wage" zones. Out of the 139,000 employees, more than 43,000 are based in such zones. That is just 30% of the total workforce. I believe HP employs around 150,000. I don't know how many of them are in India, but anyway it will come to 20,000. So, the combined one, HP-EDS, will have around 21% from "lower-wage" zones. Well, that is very close to IBM's count of 388,000. IBM India employs around 75,000(<20%). Anyway, the divide is closing on IBM now.

So, are we going to see another massive cut-down in US and a rush in off-shoring? Wait and watch.

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