Math is simple. Around 600 people moved to Coforge. News says this is 13 year, 1.56 billion deal. Which means 120 million dollars per year. Divide it to 600, it is 200K per person per year. So Sabre is paying 200K per year for every moved person, including for people from low cost countries.
How come this is a good deal for Sabre? I am not making 200K at Sabre. Not even close. Am I getting ripped off?
Sabre also moved the risk inherent in the MFOL project to Coforge. Sabre moved the bulk of the traffic, but can't turn off those big expensive boxes until 100% is done, and the remaining parts won't be easy. Meanwhile, TPFers have retired, been laid off, or left. Now it's someone else's problem.
Coforge is here to move workforce from S to C without need of paying severance. Someone did the math, in KRK during layoffs they had to pay something like 10 months salary to some people with seniority. Now they can move you to C and due to Polish regulations you can't really say "no". All you can do is to accept or leave with something like 2 week notice period instead of 3 months.
So yeah, it's a neat way of saving money short term. And short term is what's mattes for S right now - they don't really care about what will happen in 3+ year cause maturities are in coming 2.
@cj That's the part not mentioned, future Moves not just the 600 now. Its Coming....
The math will make sense when you increase the number of people moved to Coforge.
Good or not is debatable. Sabre is trying to get as much cost off its books as possible. However, 1. It is just not your salary but overall cost which includes insurance, desk, training, etc., 2. By adding additional resources, it is expected that Coforge will help with product innovation and delivery. Now how much of that actually happens, no one has a clue!