Xerox employees who were due to move to IBM after the firm outsourced their jobs have been dealt a blow, with news that IBM plans to make them redundant. The outsourcing was part of a review of Xerox's operations that had been carried out by the document firm in a bid to control costs. Under the original plan, Xerox was to …
WElcome to the world of outsourcing.
This isn't new for IBM, CSC, etc ... when they take over your outsourced operation.
They bid for the work and then determine on how to do that work cheaper and with the greatest profit margin.
Looking over the history, outsourcing failed at Montgomery Wards in the 80's-90's, and more recently at Sears where they went from IBM to CSC and back to their own internal employees.
Lowest cost workers does not guarantee the best quality. So for example, your customer service goes from satisfactory to barely acceptable.
Too bad the person making the decision usually has no clue about how to run a proper IT shop. That's what got them in to the trouble in the first place.
Come now, is this supposed to be a surprise ?
I mean, really, it's not like this is the first time, now is it ? What would be much more surprising would be to learn that Xerox DID actually stay true to its word and relocated everyone.
In times of merger, restructuring or major strategic shifts, employees fear for their jobs with reason : because it has been proven time and again that even profitable companies have strictly zero compulsion to keep their employees.
Heck, the biggest ones have laid people off just to improve the year-on-year profit ratio.