Skyline Global Outsourcing Update

Facing $4 billion in debt and negotiating with creditors, Canwest Global Communications Corp. informed employees last week that it will outsource some ad-production now performed in Calgary and Regina to Affinity Express, Elgin, Ill., which has facilities in Pune, India, and Manilla, the Philippines. The number of jobs the move will eliminate at the Winnipeg-based group is not yet known. A Canwest spokeswoman said the cost-cutting measure was taken in response to the industry's and the overall economy's downturn. The move follows similar outsourcing earlier this year at Canwest's Ottawa Citizen, as well as at numerous U.S. newspapers in recent years.

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INNODATA ISOGEN, INC. a leading provider of knowledge process outsourcing services, as well as publishing and related information technology services, today announced that it has signed an agreement to provide e-book production services to a new client. Innodata Isogen estimates that the agreement will generate approximately $4 million in revenue over a period of about two years. The agreement with this client requires that Innodata Isogen not disclose the client`s name.

The agreement calls for Innodata Isogen to convert thousands of titles from hard copy and various electronic formats - such as PDF, InDesign and Quark - to the EPUB format. EPUB, the official standard of the International Digital Publishing Forum, is an open standard for "reflowable" content, meaning that the text display can be optimized for almost any device, and is increasingly accepted as the leading standard for e-book production and publication.


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Spirit AeroSystems said Wednesday that it is outsourcing some of its IT work to IBM, a move that will result in the elimination of jobs for 37 Spirit employees and 15 contractors. Debbie Gann, Spirit spokeswoman, said the company would work with the employees to find them other jobs with Spirit, with IBM or in the community. She said the move came as part of an evaluation of "what we're good at, what other people are better at.

Though Spirit is based in Wichita, it has to be able to support its operations worldwide, she said. Spirit has seven facilities in five countries. In addition to the United States, Spirit has operations in the United Kingdom, China, Russia and Malaysia. The employees affected are among 455 Spirit employees and 22 contractors in IT. Gann said. Most were on Spirit's help desk.


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According to InformationWeek, Northrop Grumman has admitted that it is nine months behind schedule on revamping Virginia's information technology systems. Under the ten-year, $1.9 billion outsourcing deal, Northrop Gruman was supposed to complete the transition this past June. Now the contractor says the move won't be complete until at least March 2010.


The admission is part of a corrective action plan "the contractor submitted to the Virginia Information Technologies Agency. Says Tom Shelman, VP and general manager for the Civil Systems Division at Northrop Grumman Information Systems. Controversy reached a height in June when Virginia lawmakers began an investigation into the outsourcing deal. There has been at least one casualty of the deal: State CIO Lemuel Stewart, who was axed shortly after a presentation in which he claimed Northrop Grumman was not meeting its contractual obligations.


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Skyline College is a premium MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.

Volkswagen plans to manufacture more car parts itself rather than buying from outside suppliers as part of a bid to boost productivity, the German carmaker's head of production told a German newspaper. We are increasingly thinking about insourcing, production head Jochem Heizmann told daily Braunschweiger Zeitung in an interview provided to Reuters on Tuesday before publication on Wednesday.

It's about engineering, about jobs in production and about making prototypes. We could also intensify in-house tool making. And we will certainly make more components ourselves, he was quoted as saying.



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