Earlier this year, IBM announced that it planned to lay off about 4,700 workers from its Global Business Services division and outsource their jobs to India. Within the past few days, it’s been learned that they plan to outsource another 5,000 jobs from the same division to India. This division employs about 180,000 workers distributed throughout the world.
In February, in response to outsourcing complaints, IBM magnaminously announced that outsourced American workers could relocate to India to resume their old positions — at a reduction in pay to the Indian pay scale. Trying to put a happy face on this dismal news, IBM dubbed this plan, “Project Match”. IBM is willing to assist with relocation costs of laid off American workers to other countries as well: Brazil, China, and supposedly Czech Republic, Mexico, Nigeria, Russia, South Africa, and the United Arab Emirates. Salaries for all of these jobs are based upon the local pay scales (read: a fraction of US salaries).
My, how IBM has changed!
Until the late 1980s, IBM never laid off workers. A programmer friend said that as one IBM project was completed, if there weren’t a need to hop right on a new project, her boss would tell her to spend her slack time learning a new language or system, until more programmers were needed . . . while remaining on the payroll. Those days are gone.
Read the Barron’s article (I like the comments): http://blogs.barrons.com/techtraderdaily/2009/03/25/ibm-cutting-some-service-jobs-moving-work-to-india/
I know that we’re approaching April Fool’s day. You may have thought that this news was a joke. Sorry: it is not a joke.