Posted on 07/21/2011 11:53:25 AM PDT by massmike
State Street jobs are evaporating into “the cloud.”
The Hub money manager said yesterday it will cut 850 positions — including 558 in Massachusetts — from its information technology operations as part of a shift to so-called cloud computing technology aimed at saving as much as $625 million a year by 2014.
State Street said it will lay off 530 IT employees and transfer 320 others to IBM and Wipro in an outsourcing deal with the technology vendors.
State Street, which provides accounting, brokerage and other money management services, will focus on developing new IT products, “especially those that focus on data and analytics,” CEO Jay Hooley said on a conference call.
Massachusetts, where State Street has its headquarters and employs 12,669 people out of 29,450 worldwide, will bear the brunt of the job cuts.
“We remain committed to Massachusetts as our headquarters state,” said spokeswoman Marie McGehee. “Within the last five years our Massachusetts head count has grown by 24.6 percent.”
But State Street has been bleeding jobs since November when the custody bank announced 1,400 layoffs, 400 of them in Massachusetts. That downsizing is about two-thirds complete, while the latest is expected to stretch over the next year and a half.
(Excerpt) Read more at bostonherald.com ...
On top of that are the “security and copyright” issues.
How many times have IT managers told us that computers and software “cut jobs” only to later find they only rearranged the desks.
When IT goes off-shore, the quality always suffers. It is the human inter-phase issue not the programmer's abilities that cause it.
I’m starting to think that “Recovery Summer I” was actually better than “Recovery Summer II”.
The Great Recovery(tm) will not be mocked!
as horribly as I feel for anyone who loses their job, if these trends continue I have to admit I am really gonna enjoy watching Obama babbling incoherently in a cold sweat next summer
This company administers one of my pension programs (Quebecor Printing) and what a royal pain in the butt to get anything out of them. It took over 2.5 years to get them to return a call or respond to letters.
Only after getting the phone # of a very nice lady who was VP of something or other, was the paperwork started. Still took 3 months after that.
Others who worked for Quebecor are still fighting to get what was promised.
“The promises of “The Cloud” are about a fleeting as the whispy Sirius Clouds.”
I used to have major arguments with management and some of our Air Force customers about control of assets. I used to tell them. “Unless you can reach out and physically touch an asset that you rely upon to accomplish your mission, then you are automatically compromised. If it’s not yours then it’s someone else’s and they can deny you the use of it at a critical moment.”
Time eventually proved me right. And before I left they had started to re-evaluate how they were doing business.
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