back to article Made for each other! IBM awarded $700m outsourcing gig to cut costs at transport giant

Beleaguered Canadian train and plane giant Bombardier has signed a six-year $700m contract with IBM to outsource tech management and, er, cut costs – something Big Blue has expended considerable effort doing itself. The aerospace and transportation business last year confirmed it was axing more than 14,000 staff worldwide, …

  1. Blotto Silver badge

    if they think outsourcing will save them money then either they are deluded or doing it really wrong.

    they will definitely end up paying more in the end.

    1. a_yank_lurker

      @Blotto, Now we see how Shrinking Blue plans to stave of bankruptcy; get some fool to buy into imbecile-sourcing detail. Shrinking Blue better hope that their sucker er client does not go broke first.

  2. Anonymous Coward
    Anonymous Coward

    Que the failure article circa 2019..

  3. Anonymous Coward
    FAIL

    Bombardier can learn lots from IBM!

    Hey Bombardier, you call that a layoff?....THIS is a layoff!!

  4. Anonymous Coward
    Facepalm

    Outsourcing management waffle

    "The tech deal includes IBM Services and IBM Cloud management"

    'Cloud management services', the same project management applications re-gigged to run on a remote virtual machine .. in the 'cloud' 'cloud' 'cloud' ..

    '"As part of our turnaround plan, Bombardier is working to improve productivity, reduce costs and grow earnings," said CIO Sean Terrain. The company said it expected "recurring cost savings" but didn't qualify them.'

    We're going to fire 14,000 staff, the reduction in payroll will artificially and temporarily boost revenue. Using this as evidence of innovative management, we then take the salaries and pay ourselves a big bonus. By the time the accounts stagnate we're be long gone.

  5. Anonymous Coward
    Anonymous Coward

    It won't last

    very long if Bombardier merges with Siemens. Talks are in progress. Then IBM will have another whole IT department to lay off.

  6. allthecoolshortnamesweretaken

    Yes. And to whom will IBM outsource this to? Because they will. Not the parts that "touch" Bombardier directly, so to speak - but everything else.

    1. Anonymous Coward
      Anonymous Coward

      IBM India or Cairo, assuming that Bombardier doesn't specifically buy USA based support. There aren't many contractors left, since IBM is more focused on keeping the hand full of IBMer/Staffers who are left, busy... The Bombardier execs with the pay increase could care less who answers the phone, whether they speak fluent English, or actually have the skills to do the job...

  7. jMcPhee

    Apparently these chowderheads missed what happened with project Phoenix. Or... maybe Bombardier hopes to save money with a system which doesn't pay their people

  8. JLV

    >funded by taxpayers in its homeland

    To be precise: Quebec played along with a bit of industrial policy and funded them. Not Canadians at large.

    Nice to know about the exec bonuses though. What a bunch of tossers. Ever increasing greed by execs is a pox in the face of workers, shareholders and in this case taxpayers.

  9. Denarius Silver badge

    on the upside

    Brazilians, Indians and Chinese aerospace will benefit eventually. Pity about Canada's aviation industry, they could make good utility aircraft, once. What is it with the pervasive PHB class death wish ?

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