Outsourcing

[der_kluge]

Well, I just found out yesterday evening, and got some more details on it today, that about 650 people where I work (big 3 phone company; not WorldCom) are going to be outsourced. Apparently, to either IBM or EDS.

Outsourcing, for those that don't know, is when they take white-collar jobs (programmers, accountants) and remove them from one company and send the jobs to a different company. When they move them overseas, it's called "offshoring". A lot of the big tech firms (Dell, Oracle, Microsoft) does this nowaday.

Apparently, in 6-8 months, the work my team has done will end up belonging to either EDS, or IBM. And I will either A) be hired by that company if they choose to hire me, if they believe my knowledge is valuable enough to them; B) be transitioned to another team within the company doing god-knows-what; or C) be laid off with a severance package.

Why am I writing this here? I don't know. Wanted to vent I guess. Since this is where I hang out most days anyway.

Anyway, anyone need a Unix/C programmer with 733t database skills?

 

[Desdichado]

That bites! Sorry, man. We offshored our Accounts Payables division not long ago, and in my opinion, it's a real pain in the kiester. But at least it wasn't me.

 

[Djeta Thernadier]

Yikes...

The place that MojoGM and I work recently laid off several people including all but one person in human resources. They might do some more. Several months ago we were up for sale (which they ended up not doing...thankfully) and several months before that , 1/2 of the Boston division was moved to NYC. It's rough. The worst part is the anticipation.

My best advice, keep working hard and make yourself valuable (I'm sure you do that already).

Keep us posted.

 

[Hand of Evil]

Yea, they have the idea here of going to India for support, which may affect my job, don't think so but it bites!

 

[Stockdale]

Die_Kluge, don't lose you head yet. I recently wrote an article on selling type of outsourcing for a project management client. (I'm in the business of writing marketing newsletters).

When an organization like EDS acquires a department from some other monstrous company, they generally take as many of the current people in that department as is economically sounds. After all, who know that department better than the people currently working in it? Therefore, you are more likely to be secure in the short term. Once EDS or whomever received the outsourcing contract has better analyzed the department and identified where they will be able to capture saving, then you can begin to worry.

For that matter, if its IBM and you are a good programmer, they may keep you around for some time. My mother-in-law programmed at NBD before the merger to Bank One. Her department was outsourced to IBM during or just prior to the acquisition. She stayed with IBM, working on different jobs for several years, before taking a position at Fords.

Don't worry yet. If the company that has received the contract is worth its weight, you will know a lot of details before too long. Communication with the outsourced department's personnel is a key factor to a successfully outsourced project.

 

[Ysgarran]

Worse than that, it is most likely that those outsourced jobs will be moving to India, China or one of the former eastern bloc countries.

I'll post the link to the article if I get the time.

Ysgarran.

http://www.csmonitor.com/2003/0729/p01s03-usgn.html

Well, I just found out yesterday evening, and got some more details on it today, that about 650 people where I work (big 3 phone company; not WorldCom) are going to be outsourced. Apparently, to either IBM or EDS.
<Snip>

 

[Desdichado]

Our payables did go to India. While it's good that EDS generally picks up as many heads as it can from it's client, die_kluge may not want to work for EDS. Personally, I never want to have to ask myself that question except on my own terms.

 

[Stockdale]

While it's good that EDS generally picks up as many heads as it can from it's client, die_kluge may not want to work for EDS.

Josh, you have a point. The corporate culture at EDS is a little ... shall we say .. strict. Nonethless, The immediate news that a department will be outsourced without more information is not in itself a cause for hystera. Some worry, maybe. Wait for more information, maybe circulate a resume, keep your options open.

Josh further wrote: "Personally, I never want to have to ask myself that question except on my own terms."

And I hope you never have to be faced with this situation, Josh. Die_Kluge is currently faced with it. The question that Die_Kluge will have to ask himself is "Is it better to be employed by the outsoucer if even for the short-term or be unemployed?" And quoting a maxim here "It's easier to find a job when you have a job."

 

[Ysgarran]

I would say in the short term, Stockdale is correct that you may not have to worry but in the long term there may be bigger problems.

What has happened to American manufacturing jobs is now happening to American IT jobs.

What sector are you in, Die_Kluge? From I can tell Financial Services is an area that is being particularly hard hit by this trend.

Ysgarran.

Forrester (Research, a high-technology consulting group,) also estimated that 450,000 computer industry jobs could be transferred abroad in the next 12 years, representing 8 percent of the nation's computer jobs.
...
''Once those jobs leave the country, they will never come back,'' said Phil Friedman, chief executive of Computer Generated Solutions, a 1,200-employee computer software company. ''If we continue losing these jobs, our schools will stop producing the computer engineers and programmers we need for the future.''

In the hourlong I.B.M. conference call, which took place in March, the company's executives were particularly worried that the trend could spur unionization efforts.
...
''You can get crackerjack Java programmers in India right out of college for $5,000 a year versus $60,000 here,'' said Stephanie Moore, vice president for outsourcing at Forrester Research. ''The technology is such, why be in New York City when you can be 9,000 miles away with far less expense?''

 

[Desdichado]

Oh, no doubt. I'd work for EDS before I stopped working entirely, but it's still not an ideal situation by any means.