IBM says Australian job cuts part of business transformation

Vendor would not confirm how many jobs will be cut but media reports put the number at 1500

IBM has responded to media reports that it will be cutting up to 1500 Australian jobs by saying that transformation is an “essential feature” of its business model.

The Sydney Morning Herald reported on June 19 that jobs would be sent offshore to New Zealand and Asia. According to the SMH report, Australian executives were told by the company's New York office they needed to cut approximately 10 per cent of the Australian workforce this year following disappointing global first-quarter results.

IBM reports sluggish quarter; Australia performs badly

An IBM Australia spokesperson told Computerworld Australia that change is constant in the technology industry and transformation is an “essential feature” of its business model.

“Consequently, some level of workforce remix is a constant requirement for our business,” said the spokesperson.

“Given the competitive nature of our industry, we do not publicly discuss the details of staffing plans.”

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2 Comments

Craig

1

10% is the new 'some level' godda love corporate speak

Yeah Right

2

I've seen Australian teams in IBM decimated to the point where they are now no longer able to keep up with their workload and then told that if they don't work extra to get their workload under control then more will go offshore. Damned if you put more time in (as you are seen as less productive as the labour costs are up) and damned if you don't (we'll move more of your work to India etc because your team can't manage it's workload.)

There are teams who spend more time trying to fix problems caused by "Global Delivery" resources than they did before the work was offshored while management types up above report "Global Delivery is performing well." Because the local resources are fixing these problems to maintain customer satisfaction or SLA's then it looks like it is working well.

Projects are falling apart because many local contractors were let go and now experienced permanents are also going, replaced by inexperienced offshore resources who in some cases create more problems than they solve. Solution - throw more offshore project managers at the project and they end up with 3 times as many PM's as there are people who are there to implement the work.

In some cases there are education sessions being run on how to manage critical situations (CritSits) and the brief was that with more offshoring they expect more critsits to occur. The expectation is that local resources in Australia will then end up moving from one crisis situation to the next rather than working on a specific customer's account.

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