IBM denies report of planned 299,000 job cuts.. Liars
Ringo said using contractors would lower IBM costs substantially.
“There would be no buildings costs, no pensions and no health care costs, making huge savings,” Ringo said. Employees would be fired and rehired as contractors for specific projects, working collaboratively as part of a “crowdsourcing” strategy.
Crowdsourcing involves the use of several people working on tasks that would normally be fulfilled by a full-time employee, based on how Personnel Today defined it.
Asked by the publication how many people IBM could employ by 2017, Ringo replied: “100,000 people. I think crowd sourcing is really important, where you would have a core set of employees but the vast majority are sub-contracted out.”
Ringo said IBM was considering the move but the company “was not about to cut 299,000 jobs, as staff would be re-hired as contractors,” Personnel Today said.
Full article HERE
Aside from the misuse of the term “Crowdsourcing” this report rings true because I have had internal sources tell me two weeks ago that this was happening. My source told me that recently people in the old group I was in and other areas within IBM had been let go and then re-hired as contractors at lesser rates to work on contracts. This was done to reduce the costs to IBM and to not have full time employees that cost too much.
Whats more. the source told me that they had seen a trend in laying off/firing higher band individuals (senior folks) as well as sending unqualified individuals to contracts (lower band level employees) as replacements for more senior and competent individuals. So, in place of say a “band 9” person the management at IBM would send two “band 4” employees to work on a contract thinking two fours equals a 9… Wrong.
The writing has been on the wall a long time with IBM, but not only with them…. So now its not “outsourcing” it’s “crowdsourcing”
Nice move IBM. Glad I left when I did.