IBM Now Has More Employees In India Than In the US (newsindiatimes.com)
New submitter Zorro shares a report from The New York Times (Warning: source may be paywalled; alternative source): Over the last decade, IBM has shifted its center of gravity halfway around the world to India, making it a high-tech example of the globalization trends that the Trump administration has railed against. Today, the company employs 130,000 people in India -- about one-third of its total work force, and more than in any other country. Their work spans the entire gamut of IBM's businesses, from managing the computing needs of global giants like AT&T and Shell to performing cutting-edge research in fields like visual search, artificial intelligence and computer vision for self-driving cars. One team is even working with the producers of Sesame Street to teach vocabulary to kindergartners in Atlanta.
The work in India has been vital to keeping down costs at IBM, which has posted 21 consecutive quarters of revenue declines as it has struggled to refashion its main business of supplying tech services to corporations and governments. The company's employment in India has nearly doubled since 2007, even as its work force in the United States has shrunk through waves of layoffs and buyouts. Although IBM refuses to disclose exact numbers, outsiders estimate that it employs well under 100,000 people at its American offices now, down from 130,000 in 2007. Depending on the job, the salaries paid to Indian workers are one-half to one-fifth those paid to Americans, according to data posted by the research firm Glassdoor.
The work in India has been vital to keeping down costs at IBM, which has posted 21 consecutive quarters of revenue declines as it has struggled to refashion its main business of supplying tech services to corporations and governments. The company's employment in India has nearly doubled since 2007, even as its work force in the United States has shrunk through waves of layoffs and buyouts. Although IBM refuses to disclose exact numbers, outsiders estimate that it employs well under 100,000 people at its American offices now, down from 130,000 in 2007. Depending on the job, the salaries paid to Indian workers are one-half to one-fifth those paid to Americans, according to data posted by the research firm Glassdoor.
.... got fed up being put through to some idiot in Bangalore who couldn't solve his own shoelaces whenever there was an issue who then had to escalate it 3 levels up before there was even a satisfactory response, never mind a solution. Of course IBM arn't the only ones guilty of this. You'd think companies would have started to realise now that outsourcing isn't always the solution to their problems, sometimes it IS the problem.
Given this track record of revenue decline, shifting their workforce to india was perhaps not the best idea.. Companies that instead do make money don't do that.
So now it stands for Indians Become Managers?
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
*working* for ibm? entirely different story.
And how many of IBM's employees in the United States are immigrants from India and other countries?
currently, India is starting to lose employee count since it is no longer a "low cost" supplier.
I'd argue that it makes sense to offshore to India, to Lithuania, to Africa, to Brazil. This is an information industry, and it is eminently portable to anywhere with decent connectivity. If there are some presumably temporary currency exchange, living costs or lifestyle differences that some tech company will exploit, in the race for the bottom then all tech companies will need to consider it.
The difference for me is that we pay a high premium for IBM, and expect #1 performance for that premium. If we are getting also-ran kind of performance for premium dollar, then you'll gradually lose revenue quarter on quarter.
Dear IBM, you're playing a game you can't win. Change the rules. Deliver premium performance so your existing price points can be supported, and you have delighted customers. Or shut the doors. Your choice.
"One team is even working with the producers of Sesame Street to teach vocabulary to kindergartners in Atlanta. "
This may be the first phase of bringing 1st line technical support jobs back to the US.
/aisle seat
This issue is nothing particular to IBM. It is simply the way of Globalization.
It is a predictable and repeating pattern.
A company leaves an area with high standards of living for a 2nd or 3rd world country in order to save money and increase their profit margins.
Other companies do the same.
2nd world economy grows, wages increase, standard of living increases.
Company moves to the next 2nd or 3rd world country since the current one is too expensive.
After a few cycles, the wages and standard of living in the original country should have reduced enough due to goods no longer being produced there that the company can relocate back to country 1 and start the whole thing over again.
They are basically locusts. Moving from place to place until they have taken every ounce of profit they can.
21 quarters = 7 years, so revenue declined starting from 2010. "The company's employment in India has nearly doubled since 2007", some "smart" analysts could draw many conclusions from those figures...
Maybe IBM is aiming for workforce numbers scaled to the population size? India and China have three to four times the population to US and Europe, so the workforce will eventually mach that.
Revenue for their consultancy is down for one simple reason: it sucks. Everyone in the University sector in the UK knows now (after years of experience) that an IBM "partnership" means a lot of costs with little or no output after probably years of frustration.
They need to fix that, because no one works for so little that you can afford to have no business at all.
390000 ?
wow! what does IBM do?
>"One team is even working with the producers of Sesame Street to teach vocabulary to kindergartners in Atlanta."
Sheeeit. Y'all best be doin' the needful, muthafuckas.
Welcome to Big Blue, India!
Maybe revenues are down *because* the work is being done in India and the overall IBM value prop is no longer there. Did that ever occur to the bean counters?
there's no place like ~
Used to be International
...that all the outsourcing to India is why IBMs revenue is down.
And no manager at IBM is able to correlate the 5 years of decline with the 5 years of the move to India?
Fortunately I don't own shares in Indian Business Machines any more.
What's the surprise? US is 4% of the global population and 24% of global GDP. Why would you expect any worldwide company to have its workforce concentrated there based on those stats? Companies have no particular allegiance to the US, friends, and its a mistake to think they do anymore.
IT is a shitty job for shitty people. The fact that pretty much anybody can do your job should speak volumes about your skills, or lack of. Face it, nerds: computers are for chumps and you'll never be "our bosses". Now, empty the wastebaskets on your way out.
They'll never understand that it is in fact the outsourcing that is the problem. IBM has gone from a known expensive but best quality vendor: "nobody ever gets fired for going with IBM" used to be the logic. Now? Now you're a laughing-stock if you go with IBM. Now it's just a known quantity you'll deal with outsourced idiots who literally ask you to explain to them how to take screenshots of their desktop, but sign their emails with "SAN Administrator". IBM's revenue is shrinking because the market is reacting to its sliding quality and abilities, it's that simple, and they'll never understand it.
We've off-shored (not the same as outsourcing) to India for over 20 years or so. Your description was accurate back then but they have come a long way since then. Our guys are doing great - even better than most of our Americans - and we've haven't experienced any of the problems purported here on Slashdot.
Yeah, some companies are trying it and getting burned but it's no different than hiring Americans who went to DeGree Mill.
Read "The World Is Flat" (Thomas L. Friedman) sometime. It should be a wakeup call to us Americans.
You can choose to prepare or you can bury your head in the sand and end up at Starbucks or worse; IT support.
Indian workers are just as good, and often much better, than American workers and cost significantly less. Americans demand high pay (just look at all the minimum wage and labor regulation laws) for doing almost nothing, which is what makes them extremely undesirable. It's a free market, corporations aren't your slaves. Either work hard and prosper, or don't and skip that next iPhone.
WWII moved the industrial center of gravity from Europe to the US. This was good for the world and painful for Europe but it worked out.
Looks like globalization, enabled by a communication revolution (and a contrast of hungry and not workers), has moved the CG again. This means a harder life for my kids, but probably a better worldwide average life. I'm not sure that's bad, but it seems likely to work out.
I suspect that this time, the comm revolution has made the CG is less 'sticky'. Which means everybody is going to have to stay on their best game. It also means that multi-national exploitation ^H^H^H profits are easier, which may say some (trade?) rule adjustments are in order.
There are 1.3 billion people in India and 300 million in the United States so it shouldn't be surprising to anyone that a global company like IBM has more people there.
Headcount is a terrible metric of anything - how many western jobs were lost to exactly one person in the developing world? Yep, 0.3-0.5. Pretty much every time a team of 50 in the west gets replaced, it's by a team of 100 or more in India.
Headcount might be a headline-grabbing metric, but it's pretty terrible for anything else. How about revenue? That would probably be a better metric - and for the US, how much of that money earned internationally made it back to the US? With your crazy tax rules, not much, I'd guess.
This was probably true 6-8 years ago, when I still worked there. IBM's business model is to buy companies with mature products and use them as cash cows to buy more companies, while the previous acquisitions depreciate in value.
Maybe what they are doing just isnâ(TM)t working.
Is it 1983? Who cares about IBM?
"One team is even working with the producers of Sesame Street to teach vocabulary to kindergartners in Atlanta. "
It's not saying much about India.
It's not saying much about Atlanta either.
It's *certainly* not saying much about IBM...
I can tell you, living in Atlanta now, this is an improvement.
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The hollowing out of IBM is proceeding as described in Bob Cringely's book "The Rise and Fall of IBM. IBM is sacrificing everything for the sake of "shareholder value" including customer satisfaction, retention and long-term growth. The folks in the C-suite are counting their cash and packing their (platinum) parachutes..
Found the union scumbag.
Of course, depending on your perspective of *marker*, this is suspect.
From a "market to sell services to", certainly IBM is doing some stuff to India, but by and large it's using India workforce to support companies in other countries. While this can serve well when expertise happens to be in an inconvenient place to the customer, what IBM is doing is seeking lowest possible pay to even vaguely appear to be able to support their clients. Note this is *not* an indictment of India, wherever IBM went it would be seeking the cheapest, not the best that job market has to offer. So while very good India tech skill does exist, it's also beyond IBM's willingness to pay. When they do by luck get a good employee, they will lose them in a few months to a company willing to pay local talent what they are worth. Combining it with Offshoring is a way to smokescreen things so the client is either unable to tell what is happening, or would be accused of being racist at suggesting the reality.
If the situation were reversed and IBM were sourcing talent from the US to non-US customers, IBM would be pursuing 20 year olds barely able to get degree-mill credentials in the US. They can't do so now because that would just be *too* obvious to american companies without the distance and culture gap to obscure things.
XML is like violence. If it doesn't solve the problem, use more.
After all the talk about "America First". Trump is definitely not making that happen. Whether it's because he doesn't know how to work the political scene, or he doesn't care when it comes to major corporations (even declining ones), it isn't happening. The irony is no matter how many times IBM tries to marginalize their operations, they seems to go further into decline, certainly in comparison to their glory in the sun during the home computer wars back in the 80's. What is likely to happen (as it's happened before) is IBM gets poor code for it's consultancy business, either because of poor communication or poor code from junior cheap developers (subcontracted at least once from India) and they have to resort to nearshoring (say people in Kansas) to fix the poor code they get back. This happened once already. Will be fun to see how this turns out.
"Imagination is more important than knowledge" - Einstein
Found the retard.
Indian workers *can be as good or better*. However the ones IBM hires are *mostly* the ones who are note the best the labor market has to offer.
Not just IBM, generally any company going offshore (to any geo) is looking for cheap, and they forget that if you look *anywhere* for cheap, you won't get the best. When they offshore, they don't recognize realistic labor rates for the region, they don't recognize obvious degree mills and they chalk up any hard to ignore deficiencies during skill assessment to language or cultural gap.
XML is like violence. If it doesn't solve the problem, use more.
IBM Global Business Services is a GLOBAL business. It's in their name. It's their mission.
Locustlike? IBM, like any very large corporation, is intent on dominating their market. Domination. Not just success. Because if you don;t dominate, some other organization will. And they will take from you. Just the way it is.
Now, the question is how you choose to succeed at your mission - exceptional customer service? Scraping the value out of every transaction? Underpricing the competition? Driving costs down to force profitability out of a mundane market offering?
I'm pretty fortunate, working for a Fortune 100 company that thrives by delivering exceptional customer service, making prudent but fearless cost decisions to drive profitability *AND* enable development of new and better product and services, and is lead by clear headed, fearlessly honest leadership at (almost) every level. No, I do not work for IBM, nor GM, nor any Internet company. But I remember a former employer who did business with IBM in the 80s, and he remembers meeting with submanager after submanager, in windowless offices, pleading for approval so he could GIVE IBM HIS MONEY. When Fat Lou Gerstner took over at IBM, he turned the elephant on a dime, and most of those submanagers disappeared. Shrinking the management force, for one thing, put IBM on a leaner cost footing, and that started the, for me, second heyday of IBM, when a small-mid businessman could get an IBM salesman pitching the System/3x, another one pitching the RS/6000, a third pitching their PC systems with Windows NTAS (or Novell, they weren't picky). And the RS/6000 guy would show you file serving to your PC users, and the System/3x guy would pivot to an AS/400 and include the PC Server card. Tough for a local VAR to get wedged in and make their pitch. Now IBM is pitching what, cloud services, like AWS? Azure? You can make your own 'cloud' in the telco room, since that's empty now.. I don't hear about much innovation from IBM GS, but that's because I work in an environment where IBM delivers open source platforms with expensive and obtuse management layers. Feh, we could have gone with Red Hat, but we would have bought them outright - cheaper in the long run.
IBM is gone mediocre on a global basis. They can make a profit until someone finds a way to overwhelm them. In the interim they cut costs and pretend to harness energy overseas they cannot find in the US. And they may be right, because the energy in the US is focused on exciting cool things, and IBM is now just one voice among many shouting 'I'm cool! I'M COOL DAMMIT!'.
deleting the extra space after periods so i can stay relevant, yeah.
The "I" stands for international
Yet their payroll in India is a quarter of that of the US employees. Yee-haw.... More money for IBM. Lay off those US based moochers :) you can do it ! On the more serious side where or when this will end ?
__________
The more I know people, the more I love animals
The interlaced lines have been converted to stink lines with flies buzzing around it
So IBM is now India Business Machines?
And there is no abuse of the H1-B system at all, right?
"The work in India has been vital to keeping down costs at IBM", and at the same time so many in the states are struggling to find this type of work that pays a living wage.
It's five for the price of one!
India Business Machines? Didn't they used to be a technology company or something?
Tired of FB/Google censorship? Visit UNCENSORED!
It was IBM that enabled the Nazis in World War II to exterminate six million people. Read about it in "IBM and the Holocaust: The Strategic Alliance Between Nazi Germany and America's Most Powerful Corporation".
When a company is mostly in another country should it not receive that same tariffs by treaty as a "foreign" corporation would?
Indian
Bowel
Movements
This may be the first phase of bringing 1st line technical support jobs back to the US.
When IBM bought Tivoli they implemented a level 1 support team to answer the phone and open cases for us. And we started seeing cases with shit like "yowzij" (usage) and "dragon drop". And this is why I.B.M. is S.H.I.T.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
They are doubling down on stupid. They are losing business because of the Indians.
But hey, this is better business for me... I get called to fix their crap..
They're also at about peak irrelevancy.
Why should a company purporting to be an "international" company not have the option the expand wherever it deems fit?
Good as I am sure now we are going to see cheaper rates now from IBM .... BAHAHA who am I kidding
http://saveie6.com/
Let the Market sort this Out. RIP, IBM.
Dragon Drop sounds like something you download to your iPad to keep your toddler busy while he is on the potty.
So of course they have more of them than us.
Sell the stock
Depending on the job, the salaries paid to Indian workers are one-half to one-fifth those paid to Americans,...
As most of us know, dealing with India-based help desks is among the worst experiences ever!
So, it seems that IBM would be rendering services/products with the same relative, considerable low quality.
It's a shame to have to subject clients to the torture of India's workforce output.
Given their proclivity to butcher any second language, imagine what IBM documentation will look like now!
Self-importance and self-indulgence is the root of ALL evil.
Computerworld had the story: https://www.computerworld.com/...