#outsourcing

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AI is not your friend

If you work in the call center.. do not use AI call summarization. These tools flag your calls for review. They are trying to push people out on PIPs, leaving you without severance in this terrible job market. Don't believe the corporate lies. They do not give you AI tools to make your job easier, they give you AI tools to serve their agenda. Their Agenda: Outsource and Automate. We in the USA are all probably out of job soon, don't let it be without severance.


The Lay Off Waiting Room

It's an excellent point made by a poster below. Many are hoping to cash out for the severance and feel entitled to do so. There is no disagreement with that. The sturm und drang has been real. Employees have earned that money. Now, they weigh whether hanging on for it will result in actually getting it. With the advent of the Cognizent bait and switch, it's a hard calculation. One colleague decided to bail after being je-ked around long enough.


Frontier and Ireland

I think some have asked and didn't get answers but I just heard on an all hands call today that some at Frontier as well as some from Ireland were included the last round of cuts. I didn't work with them personally but a lot of people on the call did and said loosing them was hard after everything they had contributed. I don't know the details like whether the work was offshored or just not needed but it is what it is. Odd since a lot of what we did was offshored to Ireland over a year ago.


All IT outsourced to India

Level one support was outsourced several years ago. Now level two support is outsourced to India. They laid off 30 technical people who knew what they were doing. It is a total nightmare if you have a problem. No one can understand a word they are saying. My system has been down 3 days and I don't know what to do. All management says is keep calling until you get someone you can understand.


Leverage AI, Dan obviously is doing so...

Break down the remaining $2.6+ billion required to hit the full $5 billion operational goal

To bridge the $2.6 billion to $3.0 billion gap remaining to hit CEO Dan Schulman's full $5 billion OpEx reduction target by year-end 2026, Verizon and CFO Tony Skiadas have mapped out specific operational targets. These steps shift the strategy from immediate "people cuts" to long-term systemic and structural efficiencies.

The remaining cost-saving pipeline is split into four core operational areas:

  1. The Next Waves of Workforce Reductions (~$1.0 Billion to $1.2 Billion)

Wall Street analysts estimate that between 8,000 and 10,000 additional positions must still be eliminated or outsourced by the end of 2026 to hit the targeted headcount savings.

Target Areas: Mid-level corporate management, overlapping regional operational staff, and back-office administrative departments.

Severance Impact: Verizon expects to clear an additional $350 million to $450 million in short-term severance charges during the back half of the year to structurally lower future payroll.

  1. Full AI Scale Deployment (~$600 Million to $700 Million)Verizon is transitioning to an "AI-first company," utilizing its newly finalized AI automation stack to replace human tasks.

Customer Service Trimming: Transitioning basic billing inquiries, account plan upgrades, and routing calls directly to AI. AI customer interactions are scaling rapidly, yielding high customer satisfaction marks.

Contractor Spending Cuts: Drastically minimizing reliance on high-cost third-party customer service vendors and outsourced technical support agencies by automating workflows.

  1. Network Modernization & Copper Sunset (~$500 Million to $600 Million)Maintaining parallel networks is highly inefficient. Verizon is rapidly accelerating the decommissioning of its legacy copper infrastructure.

Copper Decommissioning: Sunsetting old copper lines slashes power usage, expensive physical maintenance, and field-technician dispatch costs.

IT Stack Consolidation: Migrating older, fragmented software networks into unified cloud platforms, eliminating redundant software license fees and data silo upkeep.

  1. Supply Chain, Real Estate, & Vendor Optimization (~$400 Million to $500 Million)

The final pillar targets overhead and procurement contracts across corporate and retail operations.

Real Estate Rationalization: Closing down corporate offices and shrinking administrative facilities to match hybrid-work realities.

Contract Renegotiations: Forcing major hardware, equipment, and network software vendors to lower pricing terms under the threat of supplier consolidation.

Total Remaining 2026 OpEx
Workforce Downsizing - Corporate & back-office cuts (8k–10k roles) $1.1B
AI Stack & Automation - Automating routine customer workflows & vendor cuts $650M
Network & IT Evolution - Copper network decom & software consolidation $550M Vendor & Real Estate - Lease terminations & procurement contract revisions $450M

Total Remaining Target~$2.75 Billion(Note: These figures exclude the separate $1 billion in annual cost synergies Verizon expects by 2028 from its ongoing Frontier Communications acquisition integration).


Merit Doesn't Care About Your Nationality.

I'm tired of hearing the same lazy narrative that Indian H1B IT professionals are "stealing jobs."

Let's settle a few things.

Indian IT professionals didn't invent the global labor market. Companies did.

If an employer in the U.S. hires someone from India, it's because they believe that person delivers better value , not because someone stole a seat at the table.

Many Indian engineers work 12–16 hour days, often across multiple time zones, while being paid significantly less than their counterparts in the West. That isn't exploitation by Indian workers; it's a business decision made by the companies doing the hiring. Or Companies wisely hiring 6 people in India instead of 1 person in west for same budget.

So here's my question: Why do some people assume they're entitled to earn five or six times more simply because they were born in a different country? In a capitalist market, compensation follows perceived value, skills, demand, and business economics—not nationality.

Another claim I constantly see is that Indians are somehow less capable. Yet if you look across the global technology industry, you'll find Indian-origin leaders running some of the world's most influential companies. That didn't happen because of charity. It happened because they proved themselves.

No one is forcing companies to hire Indian engineers. No one is forcing founders or executives to build engineering teams in Hyderabad or Bengaluru. Those decisions are made because businesses believe they're getting exceptional talent and results.

If you believe someone is taking your job, perhaps the better question isn't "Why did they hire them?" but "Why did they choose them over me?"

That's how competition works.

You don't have to like globalization. You don't have to like outsourcing. But blaming individual engineers who accepted opportunities offered to them misses the point entirely.

If you disagree, explain why. I'm interested in arguments based on facts and economics—not stereotypes.


AI that makes the foreign employees sound worse than their actual voice.

I am so tired of this AI cr-p. Customers hate the customer service reps that are outside of the US and they make that clear every day! But now AI is covering up their voices. Their pitch changes every few moments and their voice goes fast then slow and changes from male to female and back. Outsourced reps spend minutes circling between saying “oh, by the way…., with this one”, and multiple phrases that make no sense over and over again. All our customers want is to have a comfortable conversation with someone they CAN relate to, someone that IS familiar and close to home. The company needs to respect customers and their needs by only offering native home speakers in the customer’s home language. If you are a global company then you have the ability to do that. There are plenty of US employees that don’t need to be RIFed and would love to have the position. Just like we send a lot of Spanish calls to MX, those customers should speak with someone that has no “gr---o” accent so it’s more comfortable for them. AI can detect the accent and place them with the correct dialect.


Comcast stats —> Layoffs/H1-Bs/Offshoring

COMCAST CABLE COMMUNICATIONS, LLC ranks #62 of 9,347 employers tracked on layoff notices in 2026. New titles have been slapped on old, “cut” positions in order to recruit throughout tech hubs overseas. Comcast has 6,740 LCA filings (H1-Bs/offshoring) from FY2015 through FY2026. This isn’t even all of them as more have been done. The median reported wage across these filings is $111,163. Its largest state footprint is Pennsylvania with 3,909 filings. The most common job title on its filings is Software Developers but many tech positions have been hit hard.

Apparently no unemployed, laid off or talented Americans could fill these jobs nor would they appreciate a salary of $111,000 (sarcasm).


Managed Failure

So management remove decent people, remove decent tools and cripple processes - the activity fails - they then use that as an excuse to cut the activity back to the minimum and send the work to India - they move on to the next activity and repeat. No idea what they're throwing away as they grind on towards mediocrity. Senior management in EM are driving the organisation into the ground.


UnityPoint Health Cuts Over 200 IT Jobs

UnityPoint Health is eliminating more than 200 IT positions as part of a revenue cycle outsourcing initiative. The healthcare system will transition certain revenue cycle functions to Omega Healthcare. Affected employees received notification on July 7th. This reduction impacts less than one percent of UnityPoint's total workforce. Patient care and clinical operations are not expected to be affected by these changes.

Des Moines, Iowa

https://www.kcci.com/article/unitypoint-health-layoffs-revenue-cycle-omega-healthcare/71867892


Tool of the Board

I've always believed Dan was brought in to be the fall guy for what the board really wanted to do. At least from a reduction standpoint. I think the never ending focus on AI is more him than the board because he sees himself as a visionary. Or he wants to be seen/remembered as a visionary. That said, the one thing I heard consistently (in addition to being a hatchet man), was that Dan was not a fan of outsourcing, yet we continue to do it. Why?

So has he really changed his methods or is this more the board's decisions and he's just the face of it now...? Did AI make him do it?


They hired McKesson and still failed the lesson

Source: https://seekingalpha.com/news/4612389-medicare-advantage-bonus-payments-exceed-13b

There’s a difference between cutting costs and building capability. Lay off enough institutional knowledge and eventually the people who know how to improve quality, member experience, and operational execution are gone too.

The consequences don’t show up in the next town hall. They show up later on the scorecard.

Sarah said it loud and clear: ”When the market changes, we change.”

CMS had a different way of measuring change and just released its annual performance review.

UnitedHealth: $3.9B in Medicare Advantage quality bonuses. CVS: $2.0B. Humana: $1.5B. Kaiser: $1.2B, with virtually 100% of Medicare Advantage members in bonus-eligible plans.

Centene: $21.5M (yes MILLION) Just 6% of Medicare Advantage members are enrolled in bonus-eligible plans. Approximately 882,000 members are not.

Industry average: 68%
Kaiser: 100%
Centene: 6%

Overall Rating: Needs Improvement.
Performance Improvement Plan: Recommended.

Free advice to management: Organizations get exactly what they optimize for. If every decision favors short-term margins over long-term capability, don’t be surprised when competitors outperform you on the metrics that actually matter. You can’t outsource institutional knowledge or lay off your way to operational excellence. Institutional knowledge isn’t overhead. It’s the capability that drives quality, operational excellence, and sustainable results.


A bit of a late post but here it goes

I was cut after 15 years at Centene. I was in a specialized department and fully expected to retire there, but corporate decided our roles are likely being outsourced. Shoutout to our director for actually being VERY transparent about it instead of bullsh-tting all of us. The exit package was $56k, 8 months of COBRA, and 3 months of career placement help (for most of us it's useless)... it felt pretty fair and I signed the docs... now it's time to look for the next thing


NS IT at Risk: Repeating a Failed Playbook

Verizon's decision to move the majority of NS IT work to TCS and Infosys is a high-risk mistake that appears to ignore the hard lessons from previous transitions. The last major Infosys-led engagement created significant disruption, operational challenges, and loss of momentum, yet leadership is choosing to repeat the same strategy without addressing the root causes of those failures.
This decision reflects a growing disconnect between executive leadership and the realities experienced by delivery teams, system owners, and business stakeholders. Instead of learning from past outcomes, leadership is reverting to a familiar outsourcing playbook and hoping for a different result.
The consequences could be severe—loss of critical domain knowledge, deterioration in service quality, slower execution, and increased operational risk across NS systems. What is most concerning is that these risks are well known and have been experienced before. Ignoring those lessons today will likely create far greater costs and disruption tomorrow.


Rebadging

Rebadging is where Company A sells part of its business (for example software delivery) to Company B for a hefty sum and some guarantee Company A will continue business for some time with Company B.
Under this arrangement Company A avoids severance pay by requiring that Company B offers displaced workers a job with Company B.
This gets company A paid for worker displacement when ordinarily they would have to pay to displace those workers.
Company A also continues to have access to those workers and their skills through Company B.

If under this scenario Company A desires to behave in this manner, a manner with no honor or respect for those that built and maintained said company.

The obvious thing to do for anyone impacted is, develop amnesia when it comes to how Company A’s systems even work. If you no longer remember how Company A’s systems work when you resume employment at Company B. Company A will have to pay a lions ransom to Company B in perpetuity to make changes to Company A’s systems. The initial pay Company A receives from Company B for the sale will be eaten away in billable’s in short order eroding any financial gains from selling off their employees like cattle.
This operating procedure is especially impactful if Company A has no internal documentation surrounding how it’s systems work.

TLDR:
If you find yourself being rebadged in 2026, it’s best to forget everything you know about your former companies systems. Let them provide documentation for you if there is no documentation spin your wheels churning out bug riddled AI slop ad nauseam, and lining your new companies pockets with all the billable hours for your bug infested code delivery.


They can be outsourced right NOW

The CEO/BOD - all those 'leaders' can be outsourced right now. It would save on the salaries and corporate taxes for their bloated salaries.

There are many overseas 'consulting' companies that have teams that can do the same jobs - and probably do it better, while delighting the customer and shareholders. If various technology/support groups can be outsourced - no reason why the bloated fat cats can't also be.

The shareholders win as a huge bloated chunk of change isn't allocated for the golden parachutes, but instead invested in the company itself. Don't believe the crybabies when they say 'they have to be in the US' to offer their leadership knowledge to just get their executive bonuses for slurping coffee.

Cut the fat, have some leaders with knowledge run the company.


4th July 🇺🇸

If I bet my life on anything, it’s American Exceptionalism rooted in integrity, excellence, and courage.
Working alongside our global teams has only reinforced it: no other country comes close.

Yet stepping back, it’s clear how offshoring and outsourcing to low-cost, low-capability paired with unchecked onshore importing,
has frayed the very fabric of this nation.

These are people who haven’t invented or dominated in any meaningful field beyond cheap IT services.
What the he-l are we doing?
These jobs belong to American workers.
Have we done nearly enough to build the skills of those in weaker economic corners? There are proven ways to give back: rigorous education, hands-on training, community engagement . Lift them into the middle class and show them how capitalism actually works: through merit, productivity, and upward mobility.
Instead, too many short-sighted, narcissistic managers chase RSU windfalls by flooding teams with cheap bodies, piling up technical debt and hollowing out our edge.
Enough. Everyone must do their part,whatever it takes. No excuses. . It’s now or never.


Nothing is getting outsourced

The plan made by the leadership is insane. In the name of outsourcing to India, VZ is cutting jobs and restructuring work among the existing employees. In India, we have only a very, very limited number of team members, and even among them, many employees have been let go.


Hiring practices are wild.

With all the H1Bs and outsourced roles (totaling millions of jobs), no wonder the job market is “down”. Not to mention, I know several people in office who got their children internships and full time roles here. This cr-p is ridiculous and all companies who partake in undermining American opportunities should be fined heavily and required to hire locally. Dont start with “lack of talent”. Thats a lie. We have more than enough, these companies just don’t want to train or pay Americans when they could do it for a fraction with foreigners.


BAT Announces Major Workforce Reduction and AI Integration

British American Tobacco is undertaking a major workforce restructuring. Approximately 5,500 positions will be eliminated, and 3,500 roles moved to third-party providers. The company aims to reduce costs and improve profitability through AI and outsourcing. This overhaul responds to declining traditional tobacco sales and increasing regulations. BAT expects to generate £600 million in annual savings by 2028.

https://anz.peoplemattersglobal.com/news/strategic-hr/ai-driven-layoff-one-of-the-worlds-biggest-cigarette-makers-is-cutting-5500-jobs-50587