IBM lands $1.1 billion IT services deal

CNS News ^ | July 28, 2003, 3:04 PM PT | Ed Frauenhiem

[softengine]

Go Blue.

[softengine]

Blue bump.

[JRandomFreeper]

The same stuff doesn't get done on time, or in budget, only now it's almost impossible to figure out who to blame. That's why I'm now.....

[Fifth Business]

Kudos, IBM!

[oceanview]

and those employees who "transfer" to IBM will be replaced by workers in India within 2 years. In fact, that is the only purpose and real objective of the companies signing these contracts, they bring in IBM to do their offshoring dirty work.

[lelio]

Outsourcing to IBM to save money? Did I just wake up in bizarro world?

[Blueflag]

My. Aren't we the cynic.

Commodity goods are commodity goods, even when it's labor.

If they can meet the service levels at a lower cost, why not let capitalism work?

I've survived 6 involuntary jobs changes. These folks can too.

[oceanview]

initially it costs more, but when the offshoring kicks in, that's where the real payoff is.

[Sunnyvale CA Eng.]

initially it costs more, but when the offshoring kicks in, that's where the real payoff is.

Yea, payoff - bonus time for the VP's that made the decision to $hitcan the Americans - especially those bastards with lots of experience, they just earn too much, right?

[Huck]

If they can meet the service levels at a lower cost, why not let capitalism work?

Oh boy, are you gonna get it.

[jla]

fyi

[oceanview]

I agree. don't take my post the wrong way, it was just an observation, I also think it stinks to high heaven.

[Pukin Dog]

It wont even cost more initially.

ABB saves 150% on getting rid of the employees, and the employee payroll costs; taxes, insurance, health, and so on. And true, 90% of these folks going to IBM will be out of work within 18 months. Information Technology in America is a dead career path.

[ItisaReligionofPeace]

If I run a business I want the best employees at the lowest price. In the long run this is the only way to go. If the executives don't do this, they won't have a company to run in a few years.

[battousai]

Good job IBM,

At the same time here we go again with the offshore bad stuff, please explain to me how exactly IBM will go offshore anyway? They are a global company they have branches in nearly every nation on the planet, and they have employees, mostly locals, at those branches... so by your definition if a PRIVATE company decides to use its OWN employees, say for example its programmers in India, to do work as they see fit this is somehow amoral?

Why not have the state take over IBM and dictate that unionised American workers with their ridiculous rules should work there. The big bucks IT job market burst along with the overhyped .com bubble, people need to get over this and come back to reality. There are still IT jobs in the US, just not for those people who suddenly wanted to jump onto the IT gravey train and came out in droves from all those "IT diploma" colleges, and now somehow expect to get the same high paying jobs that were arround when they first went in.

You cannot take away jobs that don't exist, find me an American programmer who will work for what an Indian one will? Its just good business sense buy low sell high.

As someone posted above let capitalism and the free market work, why are you guys sounding like those hippies who protest at every WTO meeting. trade is good for all concerned whether it be trade in goods or labour.

American workers will just have to adapt and move on to other types of work. The IT service industry is always doing well, as I can tell from collegues who run their own consulting businesses, so there is no lack of demand for IT work.

just my take on this whole offshore thing.

[oceanview]

then incorporate in India. IBM should be incrementally stripped of US patent protection as they offshore more and more jobs.

[vin-one]

been there doing that currently, but so far I have lasted over four years
others in my 5k group have not been so lucky.

[oceanview]

lets try and make it simple:

100 Americans working for the company are fired, and an office building is constructed in India, and 100 Indians are hired and given those exact same jobs.

next time you go for an XRAY, it will likely be read in India, and the Americans medical tech who had the job was fired to make that possible.

IBM is not EXPANDING into India, it is TRANSFERRING Americans jobs there.

[lelio]

As someone posted above let capitalism and the free market work, why are you guys sounding like those hippies who protest at every WTO meeting. trade is good for all concerned whether it be trade in goods or labour.

So trade with a communist country like China is good for everyone? What makes you think that they money sent over there isn't going straight into a nuclear weapon pointed at us?
Granted that's an extreme example, but I don't buy that unfettered trade with anyone is a good thing.

[oceanview]

where are your colleagues, in India? LOL....