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Lloyds To 'Offshore' 2,000 Jobs In IBM Data Center Outsourcing Deal (thestack.com)
In early January, IBM announced a roughly $1.6 billion outsourcing deal with Lloyds Banking Group. IBM would pay Lloyds for its data center assets and in return will charge the bank for ongoing management. Today, Lloyds plans to move almost 2,000 members of staff to U.S. tech giant IBM as part of the IT outsourcing deal. An anonymous Slashdot reader shares a report from The Stack: The seven-year deal hopes to save the bank close to $930 million in costs, streamline the business and make its IT services more agile. Lloyds Trade Union (LTU), which represents around 35,000 members of staff, now "derecognized" by the bank, claimed in a newsletter that once the deal is signed the jobs would be "offshored" over a four-year period. It added that most of the 1,961 positions would be cut. "1,961 staff will be transferred to IBM including permanent staff, contractors, 3rd parties and offshore suppliers. However after 4 years, only 193 of the staff transferred to IBM will still be working on the LBG contract," wrote LTU.
The just put their entire operation at the mercy of another company and whatever whim they take on pricing.
Business Machines. no lie.
Sometimes it takes a bit longer, but eventually greedy employees who unionize end up out of a job. Union employees spend half their workday calculating how many more sick days they're entitled to, and ironically discover that Indians don't get sick.
Wait a minute. Didn't Lloyds say they were offshoring *TO* the United States? I know offshoring usually is bad, but in this case it's good for the U.S., right?
Yep. Nothing but masters degrees as far as the eye can see.
Sure, until IBM offshores it.. (after taking their slice of the pie)
"File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
Outsourcing to a US company does not mean the actual work will be done by Americans.
How many outsourcing stories do we need?
Outsourcing is happening. Deal with it. Move on. Change plans if necessary. Complaining about it on Salshdot accomplishes nothing.
IBM outsources to low cost geos. And that is what will happen to Lloyds jobs. Anybody that believes otherwise is not thinking clearly.
Businesses will go where the costs of getting work done is lower. You can erect barriers all you want, but all of that is going to be temporary.
Nice try. IBM continues to cut US headcount like there is no tomorrow. I spent 11 years with them, this is their mode of operation. They sign a deal like this, agree to take the headcount and then rapidly move the work to low cost countries. Think about it - if the customer expects to see 40% savings, where do you think it comes from? Mark my word, IBM will transition the acquired employees as fast as they can in order to maximize profit. Lloyds has essentially traded their "known" for freshers in low cost countries and IBM is their hatchet man so they don't look bad to their customers/employees.
"1,961 staff will be transferred to IBM including permanent staff, contractors, 3rd parties and offshore suppliers. However after 4 years, only 193 of the staff transferred to IBM will still be working on the LBG contract,"
So, wait, what will happen to the other 1,768 . . . ?
Oh, no! Soylent Blue is made of offshored IT staff!
Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
No idea, it doesn't really say.
But if you're expecting an informative summary, you probably want room 12A. It's right next door.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
You'd think by now everyone would know better than to outsource to IBM. JPMorgan outsourced to IBM and then brought back support in-house not once, not twice but **THREE** times before they learned their lesson. I guess whomever got the kickback for those outsourcing deals is now working at Lloyds.
Besides, IBM is notorious for coming in cheap and then making back their money by nickel and dime'n you later once you request for things not in the original contract, all the while you suffer with poor service.
From the "Close cover before striking" School of IT Skills?
"File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
self check can't do 18 and 21 only item's without staff and it's very easy to shop lift and under ring at them.
Can't do wic or food stamps in some states.
Ibm has a long history of this. They will get the Americans to train the Indians on the promise they will be moved into other positions in the company. Little do they know..Ibm has no staff. They are all outsourced so the 100 jobs in IBM america available, for the 2000 staff won't work. So IBM will make them all redundant on packages for employment time with IBM....Not Lloyd's. Long serving employees will lose thousands of dollars.
I do not think so. They said that would take over managing the two bank data centers and then eventually offshore over a four year period.
But wait, there is a new IBM data center opening in India. Coincidence?
I have been involved 2 times with ibm and work that was outsourced to them.
Both times it was a total clusterfuck on all levels. All ibm seems to care about is sending out bills period. When contacted about subpar quality of work, missed deadlines or not delivering personnel with the expertise the customer required the customer fell into a swamp of petty excuses, changing service management and so on.
I do not want anything to do with ibm ever !
Not yet they can't, but how long before they integrate similar checks to what you have at automated passport gates in airports?
http://spamdecoy.net - free throwaway anonymous email - avoid spam!
When State Street Bank outsourced their IT division to IBM, the European IT staff became IBM employees whose first task was to train up teams in Poland and India to support European operations. Then they were up for "re-deployment". I'm not sure how many are still IBM employees, I know I'm not.
We can expect a replay of the Royal Bank of Scotland disaster. RBS got rid of 1500 staff who knew what they were doing, and replaced them with 750 outsourced amateurs. Result? A bollixed-up overnight batch, a fucked-up recovery, all banking services suspended for weeks, £56m fine, permanent loss of reputation.
Description RBS Disaster
"Cock Up Your Beaver" does not mean what you think. This sig is intended to clog filters and annoy do-gooders
Sure, the service will be cheaper, but all those wasted hours, because the IT does not really work anymore and all those competent people that will leave because of this...
Save a penny, lose a million.
Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
You think that jay's supermarket is going to pay the costs of a DB like that and what about if the sate laws say there must be a real person to do the checks on site?
They're offshoring it to the U.S., where the jobs will be done by H-1B's from India. USA! USA! USA!
SJW: Someone who has run out of real oppression, and has to fake it.
Amazon is experimenting with that. How long before "Jay's Supermarket" is a 3rd party vendor using Amazon's physical presence package?
Can you be Even More Awesome?!
and if the state Alcohol & Tobacco board say to save jobs that there must be someone on site to check ID's for them to be able to sell it?