Posted on 12/22/2007 10:48:10 PM PST by nwrep
New York, NY (AHN) - The Boeing Company announced on Thursday that it has signed a $1 billion agreement with Hindustan Aeronautics Limited (HAL) of India as a part of manufacturing outsourcing contract.
According to the 10-year pact, HAL will manufacture sub-systems of Boeing's fighter planes including F-18 Super Hornets and Apache Helicopters.
Initially, Boeing will invest around $20 million annually to increase its manufacturing unit size and complexity along with business opportunities in the sub-continent.
The Memorandum of Understanding (MOU) was signed between Jim Albaugh, President of Boeing Integrated Defense System and Chairman Ashok K Baweja, the Indian defense Public Sector Undertaking of HAL.
The Chicago-based Boeing said in a statement on Thursday that it will provide Bangalore-based HAL with its technology to develop manufacturing processes for the production of the sub-systems or hardware for Boeing.
"The agreement represents an important step in our efforts to build solid long-term partnerships in India to make Boeing products more globally competitive, while allowing HAL to grow and expand its potential market around the world," Jim Albaugh said in a statement.
HAL has 18 production units and nine research and design centers in India with 32,000 staff members.
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The slow suicide continues
Just for scale:
Boeing, Air India Celebrate Order Agreement for 68 Jets; Largest Commercial Airplane Order in India’s Civil Aviation History (Jan. 11, 2006)
The order, placed with Boeing in December 2005, is valued at more than $11 billion at list prices and deliveries are scheduled to begin in November 2006.
So would you prefer Airbus to outsource to India and later sell Airbusses to airlines in India?
I don't have my ping list available. So I can't send out a ping.
Yes, it does...and it will continue until Americans realize that they can't expect to be paid way far above global market wages.
There's no reason Boeing should have to try to sell products that are far more expensive than competitors' just because Indians are willing to get educated and work for less than spoiled Americans. All that adamantly staying onshore does is put US companies out of business when they can't compete with those who do go to the best value in labor.
This is the second part of the anti-immigration fight...recognition that Americans will have to boost their productivity, creativity, efficiency, etc., or reduce wages to compete with countries that have lower wage expectations and other considerations (taxes, etc.)
Businesses have forgotten Bohpal. India does not have the same kind of value system we have in the U.S.
Union Carbide is still being sued by victims due to the laxity of one of its Indian workers, who left a valve open at its chemical plant in that city. The accident occurred in 1984. Americans are seen as having deep pockets. How foolish, to move business there.
Yeah, it will be great when you and your kids and grandkids are working for 33 cents an hour. Won’t that be wonderful?
Care to substantiate the claim that somebody left a valve opened???It’s commonly known that Union Carbide’s plant in India was based on a design which was considered obsolete & unsafe in the US.
Right! Let's keep those damn Indians locked into poverty and unrest. How dare we create more consumers around the world with demand for our goods and services!
When manufacturing moved the US from other nations, that was OK. Now that the shoe is on the other foot.....WAAAAGH!
This comment is obscene and disgusting. I understand that people try to put their own nation first. Most of us do. Nevertheless the absence of security arrangements in the Bophal Union Carbide installation was simply criminal. The managers of Union Carbide accepted the possibility that thousands of people die just to save a few fu*king dollars. I do not know what happened to them, but if a Indian manager would have done the same in the US you guys simply would have executed him. Therefore it is fair that Union Carbide is paying for the damage it left behind. If you are thinking that a Indian life is less worth than a life in the US you are wrong.
“... if a Indian manager would have done the same in the US you guys simply would have executed him.”
Since you are not a citizen of the USA, it appears that your view of the USA is colored by Hollywood. That is a serious mistake. If you were a citizen, you would know that exoneration, prison term, or execution would depend on what part of the USA he was in when the event occurred. If the Indian manager was in California or New Jersey, he would have been granted citizenship and a million dollar reward for working under hazardous conditions (the valve was obviously faulty). In the mid-west, prison time for stupidity.
However, in the South, you would probably be right. But it would take 12 years to get it done.
I worked for a company that "went Indian". True, they work for less. We did a productivity study, and found out that 1 American engineer produced the work of 20 of our Indian staff, but since the Indians were paid 1/20 of the American worker, it was a wash. But factoring in the re-work the Americans had to do for the shoddy Indian work, we found it was cheaper to have "spoiled Americans" doing the work. Unfortunately, our new Indian VP saw it otherwise.
IBM sees India as its global hub by 2010
Monday, December 10, 2007 at 0000 hrs
NEW YORK:: Betting big on the ‘India advantage’, IBM, one of the world’s biggest information technology (IT) companies, eyes India as its hub for global delivery, providing research software, besides contributing significantly to the company’s revenue. Talking about its road map for 2010, IBM vice- president (financial management) Jesse Green said, “We think of India as a support to IBM. The country will be a hub of global delivery which will help us improve margin components and growth initiatives.”
The IT giant, which is already working with local telecom major Bharti Enterprises and has entered into pacts with some other Indian corporates, expects its revenue from the country to touch the $1 billion-mark by the end of the year. “We expect our revenues to reach $1 billion by the end of this calendar year, up from $700 million in 2006, driven by strong factors. In the first three quarters of the current financial year, our revenue has grown by over 39 per cent,” Green said. The recent deals with some of India’s big corporates are likely to contribute a good chunk to IBM’s revenues. Besides Bharti Enterprises, the IT behemoth has also entered into agreements with BSNL and Idea. Other big names to have inked pacts with IBM include realty major DLF, Central Board of Direct Taxes, Delhi International Airport, Financial Information Network and Operations and Apollo.
The $1 billion would include revenues from services and solutions provided by IBM to local clients and other global corporates operating in India, along with total revenues of IBM Daksh — its business process outsourcing unit. Green said factors such as competitive offerings, effective sales force, strong brand name, and technology base along with the ability to offer hardware and software combination would contribute to the expected figure.
Last year the company’s India revenue grew by 37 per cent against the same in 2005, while the compound annual growth rate from 2002 to 2006 is over 49 per cent. “The company experienced broad-base growth during 2002-2006 in telecom, financial services and small and medium businesses, growing at 58 per cent, 34 per cent and 35 per cent respectively,” Green said.
IBM brings world’s fastest chip to India
BANGALORE: IBM has launched the world’s fastest computer processor chip, called the dual-core POWER6, in India. With this launch, the company’s System p570 — which the company says is the world’s most powerful midrange consolidation machine — and bladeCenter JS22 servers, both powered by the new chip, would be available in the country, said IBM India and South Asia director (systems and technology group) Shashi B Mal. The POWER6 features virtualisation capabilities — a means of server consolidation — and is also the latest addition to IBM’s Project Big Green initiative. It allows “unparalleled power savings on mid-range servers,” Mal said.
A 4-plus-year 'hype' is a wee bit too long for it to be one, wouldn't you say?
Boeing is not doing this for good will. They are doing this to increase their profits! Cheap labor.
This is not commercial work, this is defense work—which is supposed to be done by US citizens. We will rue the day if we ever have to go to war against China and our supply lines stretch all the way to India. Free traders love to worship the almighty dollar, but there are real consequences to going cheap on national security. The problem with many Americans is lack of foresight: if you don’t see it happening right now, we dismiss the possibility. Unfortunately, we will likely learn that less too late and find out that the “bargain” we thought we got was prohibitively expensive.
How dare a company make a profit. If they have no profits, the company goes by by...
We been through these discussions for years. These third world countries have cheap labor and very few safety and environmental laws. Boeing is taking advantage of this.
The competition is not fair..period.
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