EDS Shrinking U.S. Workforce

Ann All

For some time now, India has been a compelling locale for companies seeking to capitalize on its low labor costs -- and that includes the Big Six outsourcing firms.


We've blogged before about the hefty investments made by Big Six companies like IBM and Accenture in India. Add to that list EDS, which pumped up its presence there last summer by spending $380 million for a majority stake in India's MphasIS.


And now comes word that EDS is trying to get up to 12,000 American employees to take early retirement. While it is eliminating jobs in the U.S. and Europe, reports Forbes, it is adding them in India and other low-cost locales. The company will take a $70 million to $130 million charge against fourth-quarter earnings.


Big Six competitor IBM earlier this year announced plans to lay off 1,300 U.S. workers.


Even as the Big Six send more work offshore, Indian outsourcing firms are expanding their operations in Europe, Asia and the U.S. Just last month, Wipro said it is opening a software development center in Atlanta, where it expects to employ up to 1,000 American workers.

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