Lloyds To 'Offshore' 2,000 Jobs In IBM Data Center Outsourcing Deal (thestack.com) 63
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.
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Outsourcing to a US company does not mean the actual work will be done by Americans.
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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.
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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?
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They're offshoring it to the U.S., where the jobs will be done by H-1B's from India. USA! USA! USA!
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go short lloyds (Score:3, Insightful)
The just put their entire operation at the mercy of another company and whatever whim they take on pricing.
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You're implying that they themselves were more suited to handle the process than this other company. I mean really it's hardly any different to when I get an electrician in. Sure he could burn my house down, but really I'm far more likely to burn it down if I don't call him.
Ok so now that the logical through on the generalisation is aside.
Go short lloyds, they just put their entire operation at the mercy of IBfuckingpayusmoremoneyM
International (Score:2)
End result of unionization (Score:1)
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.
Re: End result of unionization (Score:2)
Selfish bastards wanting secure employment and disposable income. Tell me Mr Economist, in an economy that depends on people buying things, what happens when there aren't enough "greedy people"?
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Many believe that Unions have out lived their usefulness. We have labor laws, health and safety laws for the work place and the minimum wage, all things that Unions initially had to fight for, but now the government enforces these things at the federal and state level.
Personally, Unions have never done me any good, but my profession is not usually unionized anyway. That being said, I think they are of marginal utility and I'm not sure the good they manage is worth the political baggage they bring to the
self check can't do 18 and 21 only item's and it's (Score:2)
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.
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Not yet they can't, but how long before they integrate similar checks to what you have at automated passport gates in airports?
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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?
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Amazon is experimenting with that. How long before "Jay's Supermarket" is a 3rd party vendor using Amazon's physical presence package?
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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?
Re:Offshore may just mean from the UK to US (IBM H (Score:5, Informative)
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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.
What is this fascination with outsourcing? (Score:2)
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.
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Anybody that believes otherwise is not thinking clearly.
It is also plausible anybody that believes otherwise is not thinking exactly like I do.
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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.
In other news, linuxguy has been outsourced - any new comments will be from a completely different person. Expect quality to remain the same (exuberantly intoxicated) or better.
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Say what?!? Crapping on about out sourcing is great fun because regardless of all the marketing bullshit, we will be able to scream out 'I TOLD YOU SO' and laugh. For that alone it is worth it and we will be saying, I told you so and we will be laughing. Stupid is as stupid does and those outsources will know more about your companies than you do and they will insider trade and they will pass the information off to competitors (via the corrupt executive team).
Once you can afford a team, you create one, you
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The amusing thing is how short sighted this is...
When you outsource all your work to poorer countries, who's going to be left with enough money to buy your products at home?
And as conditions improve in those poorer countries, they will start demanding higher wages too.
Soylent Blue . . . ?!?!?! (Score:2, Insightful)
"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!
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Don't these guys ever learn? (Score:2, Interesting)
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.
Ibm will make redundant (Score:1)
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.
good luck with that (Score:1)
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 !
Countdown to catastrophe at Lloyd's begins.... (Score:2)
Description RBS Disaster [wikipedia.org]
This will be expensive... (Score:2)
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.