VideoTim Reason, CFO.com | US
July 23, 2008
- Don't be Fooled
Interesting how D&T again experiences double-digit percentage growth, yet is currently going through a series of layoffs to cut 2% of their workforce (http://www.webcpa.com/article.cfm?articleid=28993) as part of a "cost-containment program". How can you possibly say "Part of the plan is to align our headcount according to current and projected revenues. Like our competitors, we are affected by a number of economic events, including the overall slowdown in the U.S. and global economies" (see the linked article) when you have just released seemingly stellar returns. What a joke.
The real reason for D&T's growth is because they have been required to move a certain percentage of their hours over to India, inconspicuously dubbed "Region 10" so as not to alert clients to the practice, where billable hours are charged at a rate of about 1/4th of those charged by US employees. It's no surprise that the largest share of Deloitte's revenue comes from its audit business, where jobs are easily outsourced to inexpensive employees while clients are billed as if they were not.Posted by Culligan Man | Sep 4, 2008 11:37 AM ET
- ironic
i find it mildly amusing that D & T et al do not report in GAAP or IAS
Posted by rick macchiarulo | Jul 23, 2008 9:11 AM ET
