They used to sorta make known what area/when was going to be "reduced." Now, one is sitting working away and they call everyone in and tell them to pack up...Trying to reduce the PR impact by doing it in small lots...Mgmt has no clue..Strictly attempts at short-term fixes...No pipeline, no effective mgmt, and unmotivated employees...a great investment. JP holding on to get big payout...Despite how shareholders voted....
All white collar workers are going to feel the pain for many...many years.
US Companies Moving More Jobs Overseas
NEW YORK (Reuters) - U.S. corporations are picking up the pace in shifting well-paid technology jobs to India, China and other low-cost centers, but they are keeping quiet for fear of a backlash, industry professionals said.
Morgan Stanley estimates the number of U.S. jobs outsourced to India will double to about 150,000 in the next three years. Analysts predict as many as 2 million U.S. white-collar jobs such as programmers, software engineers and applications designers will shift to low-cost centers by 2014.
But the biggest companies looking to "offshoring" to cut costs, such as Microsoft Corp, International Business Machines Corp. and AT&T Wireless, are reluctant to attract attention for political reasons.
"The problem is that companies aren't sure if it's politically correct to talk about it," said Jack Trout, a principal of Trout & Partners, a marketing and strategy firm. "Nobody has come up with a way to spin it in a positive way."
This causes a problem for publicly traded companies, which would ordinarily brag about cost savings to investors. Instead, they send vague signals that they are opening up operations in India and China, but often decline to elaborate.
Multinationals find that when they trumpet expansion overseas, they cause problems at home. When Accenture Ltd. executives in India this month announced plans to double their staff to 10,000 next year, they triggered a flood of calls to the company's U.S. offices about U.S. job losses.
Offshoring companies "are paying Chinese wages and selling at U.S. prices," said Alan Tonelson, of the U.S. Business and Industrial Council, a trade group for small business. "They're not creating better living standards for America."
The U.S. sales director for one of India's top computer services providers said his company has won business from customers such as Walt Disney Co., Time Warner Inc.'s CNN and the Fox division of News Corp. none of which want public disclosure.
In India, some technology companies have recently adopted lower profiles. Microsoft Corp. has been removing its name from minibuses used to ferry engineers on overnight shifts. Major Indian beneficiaries of U.S. business such as Infosys Technologies Ltd., Wipro Ltd. and Satyam Computer Services Ltd. have stopped identifying new customers.
While there have been reports that IBM intends to ship 4,700 high-end jobs to India and China next year, they mark a rare instance when figures "have been reported in black and white," said Linda Guyer, president of Alliance@IBM, a union that has tried to organize IBM employees.
Those numbers were not released by IBM, but rather disclosed by the Wall Street Journal, which had obtained an internal memo. The company has declined to comment.
Guyer believes as many as 40,000 of IBM's 160,000 U.S. jobs will be transferred overseas by 2005, a figure she says was gathered from phone calls by IBM employees.
Previously, IBM has pointed to a report by the McKinsey Global Institute that concludes the U.S. economy ultimately will benefit.
Recently, AT&T Wireless told the U.S. Securities and Exchange Commission that it would lay off 1,900 employees this year. Communications Workers of America members obtained an internal memo prepared by Tata Consultancy Services of India that discussed how it would assume those U.S. jobs.
Subsequently, AT&T Wireless officials acknowledged it was exploring the job shifts but didn't offer details.
While some companies, such as Electronic Data Systems Corp., CAP Gemini Ernst & Young and Sapient Corp., acknowledge they shift jobs abroad to exploit cost advantages and around-the-clock work, IBM asserts that it is not moving jobs but creating new ones.
as for morale, frod said in a "meet and greet" when asked about the rock-bottom state of morale, "your morale is not my problem." and in some ways, i can see that--if one person out of 1,000 is unhappy then its probably that one person who has the problem. but if 1,000 people have low morale, then i think frod does have a problem. but i'm sure he is working as we speak on some sort of "low morale metric"--a ratio of slit wrists against acts of sabotage? episodes of workplace rage against number of empty airplane mini-bottles of liquor found in the trash?
"yes, we are all struggling with TOO MANY resources!"
Yep -- I sure can hear ford say something like that...
As for moral -- the UK moral is most certainly down as the US is also. The two main reasons is the lack of direction for long term targets and the slow bleed of IT folks. There has been many news stories about company x leaving go 500 people and company y leaving go 2000 people but no real stories about GSK leaving go many folks. But gsk is doing the same thing 20 - 50 at a time. Just go to FP site on the 18th floor and let the echo tell the story.
P.S. The hoagie idea may work
i trust you are a gsk employee? if so, go to "mygsk" and then to the IT portal/community/tab/gadget and you will see Frod's blah blah blog. Only 2 entries I think--one where someone asked about when will IT outsourcing at gsk end and what can be done to improve morale. Frod answered with a "this question requires a 10 part answer, none of which will address your original question" and the other entry is an end of year message where he "jokes" about the business mgmt theory books we must all be lusting for this xmas. I think that might be what The Professor's problem is--he looks upon the IT org as a model upon which to try out various management theories and such. he made mention once of a book where a project leader said the best way to get a troubled project back on track was to remove a resource. so now when someone says to ford that they are having troubles with resources, he always says "yes, we are all struggling with TOO MANY resources!"
Companies make the India transition for two reasons.
Immediately cut "white collar" and/or IT labor and benefit costs.
Note: During the late 90's starting IT salaries were running 75 thousand and up. A starting six figure IT salary was common place at major companies.
Supply and demand take hold .... "If" positions return to USA they will be filled with IT employees in lower salary quartile and less benefits.
With major reductions in empolyee retirement benefits and the "phony" SS RX bill. Business saves billions of $$$$$$ in future retirement costs at USA employee and taxpayers expense.
With the abundance of IT perfessionals in the USA looking for work. Expect starting USA IT salaries at 1/2 or 1/3 there former salary ranges.
Wake up America.........
It's going to get much worse before it gets better. Promised savings are too significant for execs to pass up. No one has the balls to tell the emperor or develop a plan to deliver real savings. I had to call Dell last week for a tech problem. Could NOT understand the tech (India) at all switched to two other equally incomprehensible guys. Saw today that Dell is bringing all help desk calls back to US. So I think much will go offshore before we see any recovery. This is the result of IT not being able to reduce bloated infrastructure and Purchasing taking over.