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Black & Blue: IBM hires Bain to cut costs, up productivity

Anonymous Coward
Anonymous Coward

It would match what I'd heard from a manager last year - the IBM is planning to offload GTS but first they need to cut costs via headcount to make it attractive to a 3rd party. Most teams I know haven't had any replacements come in when someone has left - it's taken as a cost saving then they still come looking to cut another body even if they've saved $ from people leaving and not replacing them.

The customer was so concerned that we had so few people left locally they formally raised it as a contract breach (they have to have a minimum level of people onshore for regulatory purposes.) Upper management's response was to fly offshore staff on 6 month visas and reclassify them as 'local' while they are here (and bill the customer for a 'local' resource while still saving costs as they don't pay them everything to which a local resource would be entitled.) The 'offshore staff located here' apparently don't count as 'offshore' while they are here (the funding coming out of yet another bucket of money so to a bean counter it looks like the offshore team has saved money (and avoid cuts.) I've heard they might cut us locals again because our costs have gone up because the overall 'local' costs have gone up due to the presence of the offshore staff being included in local numbers...

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