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Wednesday, June 23, 2004

EDS heading for Malaysia

EDS, one of the largest IT companies in the world, might move hundreds of jobs offshore from Australia to Malaysia, under the company's best shore policy.

The Australian newspaper reports that "an employee told AustralianIT that staff had been asked not to discuss the matter externally but indications were that within 12 months most people not directly servicing the South Australian Government contract would be made redundant."

While this is good news for Malaysia, it is hard for Australia which is also hit by the debate about the impact of offshoring of jobs - however the company needs to make it clear in communications - and not secrecy (pst, don't tell anyone) - that jobs will remain in Australia, and that this is a chance to focus on the creation of high value jobs. But this is the problem and challenge that many companies engaged in offshoring business processes face.