I had a strange feeling today reading the org charts (interim heads) that a large chunk of the technology organisation (e.g. implementation, Delivery...) could be outsourced ... thus leaving the dirty job to Tata or others. That could represent a large number of jobs, without counting them in the numbers of people made redundant by refinitiv (hence 5%) ...
Any views?
TR did this two years ago when they forced most, if not all, of the data center proximity staff to move to CBRE and become CBRE employees contracted to TR. And they also forced many development groups to become Tech Mahindra employees. That way they could still keep their jobs and TR would not have to give them severance. I don't know about those who moved to Tech Mahindra, but I heard from many who went to CBRE that they were treated horribly and ended up leaving anyway within a year.
The team responsible (vendor management) for outsourcing the field engineering function to futjitsu / computacenter etc, have been asked to do the same for the frontline team in Manila. This means the staff there will be doing the same thing (first line telephone response), but be employed by the company the function is being outsourced to, I don't know if there will be a reduction in staffing numbers at this stage.
@ggz can you expand on this
the front line was being outsourced
I heard from a very reliable source that the front line was being outsourced, this is the Manila helpdesk staff.
This is 99% - just my gut feeling too
That would explain why those organizations (delivery, implentation) have interim management positions while others required to control suppliers have not (service management, sourcing...)
As said by someone good way to manage the cost reduction and the decline of those activities without quoting those jobs moving elsewhere as redundancies.
It sounds possible. In the CTO’s previous role he was in charge of radical cuts and outsourcing in a different company (experian). Colleagues who used to work there under him groaned when he joined us about 3 years ago, expecting the same again. Apparently, Experian have since brought much of their work back in-house. None of this proves anything though.
This is very likely, and it falls with the past strategy they started in 2016 as well!
But as far as I know most of delivery and inplementation has been going to vendors so far, what is oeft to send!?
That's exacetely what Verizon did in September. They basically re-badged 90% of the IT staff, moved them to Infosys and Infosys is doing the cleanup.
The clean up is done by dropping quality (less heads per unit of work) and hiring foreign nationals (mostly India) on work visas (H1B in the US). Since they are on visa's they have to stick with Infosys for a number of years, therefore they have no leverage when it comes to total comp (so, in general they get paid peanuts)...
This is how the game played today... This improves cash flow and that improves exec bonuses.
I would not be surprised if your gut feeling turns out to be correct (re Impl., Delivery, etc.)