IBM to cut jobs

International Business Machines Corp (IBM) will cut about 5,000 jobs in United States. This figures comes to 4% of the total work force in IBM, USA.

IBM is in talks to buy Sun Micro Systems Inc. If comes true, IBM will be clear leader in the high-end computer server market. IBM now earns 2/3 of its revenue from outside USA and is expanding its work force in emerging markets like Brazil, Russia, India and China. The work force in the above four countries totals 1,13,000.

IBM is hit by slower US technology spending and its fourth quarter revenue fell 6.40 % from a year ago, although revenue is better than many companies in the same field thanks to its global footprint and decreased emphasis on hardware sales. IBM affirmed its full-year forecast of $ 9.20 earnings per share.

America - Super Power?

China - Baap of USA:

Once America was considered super power. It can either destroy or support any person, group or country. It has destroyed Iran and Afghanistan and supported Pakistan. Even recently when USA is badly trapped in recession, Obama has declared help to Pakistan.

But now the scenario has changed. USA is facing the worst recession ever experienced. But China is heading in right direction. Since November, the Sanghai Index has has outperformed the S&P by about 75%. China's banks are more solid than those in USA as the banks in China are not loaded with sub-prime toxic loans.

China has been buying up US $s. China owns 10% of the US public debt, in other words, China has 1 US $ against every 10 US $. China maintains the world's largest cash reserves of roughly $ 1.9 trillion. And China is buying up oil assets.

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Infosys eye for buying a foreign buy.

Despite the global slowdown, Infosys Technologies Ltd is investigating for acquiring firms in the consulting and business process outsourcing space in Germany, France, and Japan. The company, which has cash reserves to the tune of over Rs 7,000 crore, aims to boost its market share in these regions from the current market share of 28%.

Disclosing the plans for acquisitions during the sidelines of CII's annual meeting of South India@75, CEO Kris Gopalakrishnan said the process is still in the initial stages. "We are in discussions with a few companies. We will take it forward once we find a complimentary partner and there is no fixed timeframe or fixed budget." He added that Indian IT Industry will recover in next 12-18 months and hiring in the IT sector would be slow for next 2 years.

Gopalakrishnan, however, ruled out any salary cuts. "But broadly there may not be any pay hikes this year." Senior officials of the company have taken a 40% cut in variable pay and the staff's variable pay may be on the basis of performance, he said.