Jobs Are Cut As Firms Look To Outsource Work

Jobs Are Cut As Firms Look To Outsource Work

By:


As a result of companies looking to outsource their work, weve seen more of them cutting jobs over the last week, with London-based Hedge Fund Man Group being an example of a company thats done exactly that.

As part of its plan to outsource and integrate function, Hedge Fund Man Group earlier revealed that the value of its assets slumped by $6bn in the last quarter, and is now poised to shed 400 people, which is 20 per cent of its workforce over the coming months. The firm had predicted around 200 redundancies at the time of its high-profile merger with rival GLG last year.

Fund management and research are expected to emerge unscathed by Mans latest round of cost-cutting, but sales and fund administration are expected to bear most of the brunt. Job losses at the company have already begun and it is anticipated they will be completed by the first quarter of 2012.

An outsourcing deal struck earlier in the year with Citigroup will see the US financial giant handle some back-office functions at Man, including valuation and IT.

Last week, a report conducted by Deutsche Bank and the Value Leadership Group warned that European third-party providers risked losing major banking clients to more flexible Indian competitors.

And whilst jobs are cut, more companies are planning to make the most of the benefits of outsourcing, such as construction services group Carillion. They issued a confident forecast for 2012, predicting that public sector outsourcing is poised to increase sharply. In its latest trading statement, the Wolverhampton-based group tipped its support services division to experience significant growth next year as local authorities across the UK look to adapt to central government spending cuts.

Outsourcing by public sector organisations continues to account for a major proportion of our current bidding activity and pipeline, consistent with our expectations that substantial growth as a result of increased public sector outsourcing would only come through during 2012 and beyond, the company stated.

Carillion also predicted that its earnings will grow strongly, largely driven by the acquisition of energy efficiency firm Eaga earlier in the year, and said it anticipates its year-end net debt will fall below 125 billion, on the back of solid cash flow from operations.

Last month, Kier Chief Executive Paul Sheffield gave a similarly bullish assessment of the groups prospects in an interview with Reuters, noting that there is a big squeeze in public spending, predicting that the outlook for the construction sector will improve from 2013 onwards.

Its interesting to see quite how many companies are intrigued by the concept of outsourcing, and how theyre keen to do everything in their power to ensure their company reaps the benefits, in particular the monetary ones.

About the Author:
So, with more freelance jobs being created, and with companies eager to find a freelancer to fulfill their needs, it certainly seems like in the future companies will have operations all over the world, rather than being confined to one particular building or location, for example.



Article Originally Published On: http://www.articlesnatch.com


Tags: , ,

|

Loading...
Related....
Videos...

Recent Business Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Site Navigation:

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.