Category Internet & IT Recruiting

Ericsson to hire more in China this year

Telecom giant Ericsson (ERICb.ST) may hire a few hundred more people in China this year, as it plans to shift some overseas operations to the country, a company source said on Tuesday.

Local media had earlier reported that the Swedish firm would axe 150 jobs, or 5 percent of its total workforce in China, as part of its previously announced global cutback of 5,000 employees, in an effort to curb cost.

But a source who works in the company’s human resources department said the firm was likely to hire, instead of firing, people in China this year.

“The technology unit would hire a few hundred staff this year and more people are needed in telecom service unit,” said the source who requested anonymity because of the lack of authorisation to speak to media.

A company spokeswoman in Beijing declined to comment on the hiring plan, but described the local media reports as a “rumour”.

Ericsson and its Chinese partners won about 26 percent of China Unicom’s (0762.HK) 3G network construction orders last month, totalling up to $2.3 billion, according to previous media reports.

Intel Closes Its Plant but Strengthens R&D in Shanghai

Intel is going to cease the operation of its factory in Pudong, Shanghai and transfer the production capacity to Chengdu or Dalian. Over 2000 employees may be moved to new positions. But Intel claimed that Shanghai office’s role in R&D and investment would be reinforced.

Intel will adjust its plan of production and operation in China, including three factories in Shanghai, Chengdu and Dalian. In the following 12 months, the company hopes to integrate the production capacity of Shanghai factory into the factory in Chengdu.

Intel explained that it did not intend to close the factory, but to optimize its manufacturing resources in China. The company’s production capacity will remain in China. And employees will not be dismissed, but will be offered to transfer to new positions instead.

But an Intel engineer who having worked in Intel’s Shanghai factory for more than three years said this was just same as dismissal, as it would be very inconvenient for many employees to move since they have been working in Shanghai for years and settled their families there. He himself has just got married and bought an apartment in Shanghai last year, and can’t move to other cities. He hopes the company to offer reasonable compensation according to the labor law. But Intel has not revealed how it is going to deal with this matter.

Even accepting job transfer, 2000 employees won’t be able to settle down immediately. Intel’s Dalian factory will be put into production in 2010 the earliest. One of the company’s equipment suppliers disclosed that the production of factory might be delayed by half year. As for the Chengdu factory, due to the global financial crisis, the capacity efficiency hasn’t increased much so that the demand for production expansion is also limited.

The Shanghai factory has been in operation for over 12 years, with a total investment of $539 million, including initial investment and additional investments. The company’s management has emphasized for many times that it would further increase its investment, and that the Shanghai factory is established in line with China’s strategy to develop Pudong.

Intel dismantled its channel platform department in Shanghai last December, and over 200 employees were affected. This department, previously one of Intel’s five global departments, was moved to Shanghai in August 2005, marking the first time Intel setting its global department overseas in the company’s more than 40 years’ history.

Shanghai, Dalian, and Chengdu have long been competing for Intel’s investment in China. This adjustment offended the Shanghai government. ??

Intel said the adjustment was made due to the “influence of the current economic situation”. Before the Chinese New Year the company decided to close five factories globally, including those in Malaysia, Philippines, Oregon, and Santa Clara, California, and about 6, 000 employees were affected. Founded in 1968, the factory in Santa Clara is Intel’s last factory left in Silicon Valley.

Paul Otellini, the president of Intel, said at an internal meeting that the company could not rule out the possibility of making a loss during the first fiscal quarter of 2009. Net loss has never occurred in the company since 1986. Some signs shown in its financial statement for the fourth quarter of 2008 indicated a 23% and 90% year-on-year decline in revenues and net profits respectively.

However, Intel also announced three investment plans, including $110 million additional investment into the registered capital of Intel China Ltd, a Shanghai based investment company, seemingly in order to offset the negative influence of the adjustment. Intel will keep its original plan for other business in China, including factories in Chengdu and Dalian, Intel China Research Center, and Intel Capital China Technology Fund Phase II.

“Shanghai will still be Intel’s most important R&D center and headquarters in China.” Intel emphasized.

Ericsson Will Recruit Hundreds Of New Chinese Employees To Support 3G Construction

While some companies around the world are responding to the financial crisis with job cuts, the newly issued 3G licenses in China have caused Ericsson to plan a hiring spree of several hundred new employees in China in 2009.

Chinese media previously reported that Ericsson China would cut 150 staff in March 2009, accounting for 5% of its Chinese employees. This was said to be a part of Ericsson’s global layoff of 5,000 people. However, a representative from the human resources department of Ericsson China denies the rumor and says their pressure now is from recruitment, not layoffs. Ericsson’s technology department in China will hire several hundred new employees this year and its telecommunications service department also needs new blood.

In China Unicom’s 3G network construction tender, Ericsson is one of the major winners. China Mobile’s chairman Wang Jianzhou also said at the end of January 2009 that the company planned to include Ericsson in the list of its 3G network equipment suppliers.

In its latest financial report published in January 2009, Ericsson said it was seeking to further cut costs by such measures as cutting 5,000 employees, aiming to save SEK10 billion annually before the second half of 2010.

China Unicom launches recruitment drive for new subsidiaries

China Unicom is looking to hire managers for three subsidiaries focused on the development of innovative value-added services, according to a company announcement on Jan. 21.

Unicom NewSpace, China Unicom’s subsidiary responsible for value-added service development and operations, and its two newly-established subsidiaries respectively responsible for music services and video services, will hire nine managers with experience in music services, video services, Internet advertising, IM and SNS.

By recruiting experienced managers, the company hopes to further develop its broadband, mobile and Internet services, particularly in time for its 3G launch.

China Unicom said previously that it aims to have a profitable WCDMA business by 2010, and innovative 3G value-added services will be crucial.

According to a CCID Consulting report, successful 3G operators will need to develop pioneering applications as well as provide individual and customized services for users.

Zhaopin.com Gains Investment From Macquarie Capital, Seek

Macquarie Capital and Seek, one of the largest Australian recruitment Internet companies, have jointly announced plans to invest money into the Chinese online job recruitment website Zhaopin.com, which was started by expatriates over ten years ago.

Macquarie will buy a 29.1% stake in Zhaopin.com, while Seek will pay USD45 million to increase its stake from about 25% to near 43% on a fully diluted basis. Early in 2006, Seek invested USD20 million into Zhaopin.com.

Liu Hao, CEO of Zhaopin.com, is quoted by the Reuters that this round of investment will meet the demand of Zhaopin.com for future development. Liu says that the investment is only a financial investment and Macquarie Group and Seek will not participate in the operation of the company. Zhaopin.com will maintain long-term independent decision-making power.

According to Zhaopin.com, the finances will mainly be used to hire new workers and to supply better services to customers, but it will not be used for acquisitions. In addition, it will expand its business in China’s second-tier cities is the company’s another focus.

Employers look abroad to plug IT skills gap

More than half (53 per cent) of UK managers are concerned they can find skilled staff to meet their business needs, according to research by the Confederation of British Industry (CBI) and exams body Edexcel.

The CBI/Edexcel Education and Skills Survey 2008, which covers 735 firms employing a total of 1.7 million people, found employers were concerned about employees IT skills as well as basic literacy and numeracy.

Fifty six per cent of employers are worried about employees’ ability to use computers and 69 per cent are investing in training to raise IT skills of existing staff.

By 2014 it is expected that the UK will need to fill 730,000 extra jobs requiring candidates with science, technology, engineering and mathematics skills, making a net total of 2.4 million of these jobs in six years.

Yet, 59 per cent are having trouble recruiting. CBI blamed the drop in student levels, and said there has been a 15 per cent slip in engineering and technology graduates over the past decade.

Employers are increasingly looking abroad to find technology skills. A third, 36 per cent are recruiting from India, and 24 per cent are looking to China. Another 35 per cent will look at hiring in Europe in the next three years. Larger firms are twice as likely as smaller ones to recruit from the expanded EU, such as Poland.

CBI deputy director-general John Cridland says: “A worrying number of employers have little confidence that they will be able to plug their skills gaps. Too many firms also say poor basic skills are hampering customer service and acting as a drag on their business’s performance.”

IT poster boy draws huge income at Newhuadu

TANG Jun, a poster boy of the Chinese IT industry, was appointed yesterday as the president and chief executive officer of South China-based private firm Newhuadu Industrial Group Co, after a 14-year career in Microsoft China and Shanda Entertainment.

He will be paid a record income package valued at one billion yuan (US$140 million), including shares and warrants, the former Shanda president said at a press conference in Beijing yesterday.

Tang, 46, replaced Fuzhou-based Newhuadu’s founder Chen Fashu as president and CEO and he will manage the company’s daily operations, strategic development, platform operations and external investment, Chen said.

“I will use my experience to make Newhuadu the most influential firm in China,” Tang said yesterday.

The business scope of Newhuadu, founded in 1997, covers retail, real estate, mining, high-tech and tourism industries. It has invested in firms like Zijin Mining, the country’s No. 1 gold miner. Newhuadu aims to list the firms it had invested in on the domestic market, including Zijin Mining, by the end of this year, Chen said.

Zijin is set to debut its shares in the domestic market this month and Tang’s income package includes Zijin’s shares.

Tang, who studied in Japan and the United States in his 20s, joined Shanghai-based Shanda four years ago after working as Microsoft China’s president for 10 years.

Tang helped Shanda go public on Nasdaq in May 2004, which made the game firm’s founder Chen Tianqiao the richest man on the Chinese mainland that year. Tang also helped Shanda to find partners like Intel, Hewlett-Packard and Changhong.

During his four-year tenure, Tang bought out Sina.com and acquired South Korea’s Actoz Soft by paying US$91.7 million for a 29-percent share.

The battle for Asia’s tech talent

By Sol E. Solomon, ZDNet Asia
Monday, February 11, 2008 09:05 PM

Skills in business application and software development, amongst other fields, are expected to be in high demand across the Asia-Pacific region’s more developed markets. However, it could take as long as three years in some countries to train enough talent to meet today’s demands, according to industry watchers.

As the region sees increased development work, and with more functions being undertaken in-house by companies, there will be further boost in demand for .Net and J2EE developers, networking engineers and professionals with SAP enterprise resource planning (ERP) implementation skills, DP Search director Andrew Sansom said in an e-mail interview.

Kelly Chua, consultant for IT and telecommunications (IT&T), Hudson Singapore, said the country’s hot IT jobs continue to be in the field of business applications.

“The high demand for SAP expertise and business-specific applications is mainly due to the constant need for organizations to align their businesses to market changes. This, in turn, affects the related IT applications,” Chua explained.

According to Roger Olofsson, associate director at RobertWalters recruitment services’ IT division, regional growth has further spurred more organizations to upgrade older ERP systems.

“Most firms were holding back in the difficult years [of] 2003 and 2004,” Olofsson said in a phone interview. “When the economy recovered, they found they needed to expand [their IT capabilities] to compete [since] IT raises their competitive advantage.”

“In Singapore, demand for IT expertise is growing as greatly as it did in the 1990s. Lots of companies are moving from the United States, Tokyo, Europe and other higher-cost areas,” he said.

Big demand in big money
The region’s financial sector continues to be a big employer of tech professionals.

In Hong Kong, for example, IT roles that specialize in investment banking such as frontoffice support, risk management, business analysis, development and project management, are high in demand, said Ellis Seder, manager for IT&T, Hudson Hong Kong.

“Increased volatility in the banking world will lead banks to review market- and credit-risk processes and systems,” said Seder. “As such, they will invest heavily this year to update risk systems.

In Japan, sales and pre-sales roles are also highly sought after by both local small and medium businesses (SMBs) as well as multinational corporations.

“We forecast that in 2008, we will see steady demand for candidates strong in pre-sales, sales and project development,” Mike Armstrong, head of IT&T for Hudson Tokyo said in a phone interview.

“There is still a war for talent,” he added, noting that for candidates, “being bilingual in English and Japanese would help” secure their ideal jobs.

As for China, jobs in OS (operating system) kernel development with low-level system programming such as C coding, look set to be high in demand this year, said Raymond Wong, general manager for Tony Keith, a subsidiary of Hudson China. “An increasing number of kernel and system-level projects are being moved to China from the R&D (research and development) headquarters of major multinational companies,” said Wong.

“In the early days of software development in China, most development projects coming from overseas were limited to application-level or quality assurance and localization projects. The kernel technical aspects were controlled and finished in the home countries,” he explained. “Now, due to the maturity of the Chinese IT environment and current availability of IT talent in China, more OS kernel development projects are being transferred to China.”

Competing for talent
However, Chua noted that the supply of IT expertise in the region is unable to meet the current demand. “It is always a challenge to find individuals with specific application background,” she said.

Singapore, for example, is not producing enough IT professionals, Olofsson said. “Our clients in Singapore are recruiting more from overseas.”

Chua added that Hudson is seeing demand for candidates in the financial services sector, with companies competing with Singapore, Hong Kong and Tokyo for the limited talent pool.

Wong said the job market in mainland China, too, lacks enough suitable technology candidates to satisfy employer needs.

“We forecast that it will take two to three years to train enough talent to meet the demands we face today,” he said. “China is largely short of suitable talent for more senior positions, especially candidates with strong English skills and related experience in their fields.”

Because of a lack of available talent in China, some organizations have had to recruit people with technical skills that are related, but not specific, to their roles.

Companies have also taken to hiring candidates who have potential and training them on the job, Wong said. “This creates more openings for tech talent who would not ordinarily find jobs,” he noted.

In addition, China companies have often resorted to recruiting candidates overseas for senior positions.

“This can present a good opportunity for local engineers to gain knowledge and experience from their foreign counterparts,” Wong said. “It is also a challenge as they are forced to integrate and work closely with foreign supervisors and colleagues.”

“[At the end of the day], more [work] experience is what’s required to bring our domestic talent up to speed, and this is something that will only improve with time,” he added.

And while DP Search’s Sansom noted that the current demand-supply situation is “balanced right now”, he added that high-quality hires are not available on the market for long “so employers have to be quick to catch the good ones”.

Asia Favours SAP with Record Growth in 2007

SAP Asia Pacific and Japan (APJ) finished the year strongly with fourth quarter software revenue sales growth of 44 percent in constant currencies, compared with the previous corresponding period, to Euros 18 billion.

According to the German software behemoth, APJ remained its fastest growing region with software revenue rising 32% year-on-year in constant currencies to Euros 482 billion.

Total revenues for SAP APJ grew 20% year-on-year in constant currencies to Euros 1.275 billion.

“2007 was a terrific year for SAP Asia Pacific Japan, with revenue growth in India, Greater China, Japan and South East Asia providing key impetus for the region,” said Geraldine McBride, President and CEO, SAP Asia Pacific Japan.

“We are continuing to invest in this region, hiring more than 3300 new people in 2007 to help take our exciting array of products and services to market.”

“Our customers in this region remain motivated to grow their businesses and need to derive real value from the systems they implement,” added McBride.

“In 2007, we expanded operations into new markets in the region and are on track to grow consistently over the next two years,” McBride continued.

For the full year of 2007, SAP APJ’s software and software related service revenue grew 24% in constant currencies to Euros 959 billion, while Q4 software and software related service revenues grew 32% in constant currencies to Euros 304 billion.

SAP said it continues to invest in maintaining its leadership position in the fast growing Asian region, adding 3384 full time employees in 2007, bringing the regional total to more than 9500 full-time equivalent employees.

In the fourth quarter, SAP also established its first sales operations in Cambodia working with an SAP Business All-in-One partner in Phnom Penh. This follows SAP APJ’s expansion into Vietnam in both Hanoi and Ho Chi Minh earlier in 2007.

SAP India, the fastest growing country for SAP globally, continued to expand operations in 2007 with the acquisition of YASU Technologies and the SAP Executive Board’s continued commitment to invest USD1 billion in the country by 2010.

“SAP Asia Pacific Japan also remains the leader in SAP’s fastest growing customer segment: SME,” said McBride.

“SME delivered a strong performance each quarter in 2007 and grew at more than ten new names per working day. SME customers now make up nearly 70% of SAP’s customer base in the region.”

Success for SME in Asia Pacific and Japan will continue to be driven by a strong partner ecosystem and an innovative solution portfolio.

In 2008 SAP will continue to roll-out its latest innovation for the lower midmarket, SAP Business ByDesign, a software-as-a-service solution specifically designed for SMEs. Successfully launched in 2007 in China and recently in Singapore, SAP believes its Business ByDesign portfolio will add to the SME momentum in Australia and India in 2008.

IBM on a hiring spree in India, China

Washington: International Business Machines Corp is increasing its employee count, with most of the growth coming in India and China, as well as other emerging markets, The Wall Street Journal reported Monday.

The IBM has been hiring steadily in emerging markets, and its total work force in the BRIC countries – Brazil, Russia, India and China – will approach 100,000 people by the end of the year, up from about 85,000 at the end of 2006, the report quoted a source familiar with its hiring as saying.

At the end of 2006, IBM employed 355,000 people around the world. A forecast of the worldwide employment total for the end of 2007 wasn’t available.

This year, the IBM’s employment in India is likely to reach 73,000 people, up from 52,000 last year. Employment in China will top 13,000, up about 30 per cent from 10,000 last year, the source said.

IBM spokesman Edward Barbini confirmed the accuracy of the numbers. He said some of the emerging markets’ employment reflects outsourcing of services, software development and manufacturing work that used to be done in Europe and the US, according to the report.