UK firm to reattach amputated IT limb to IBM in outsourcing deal

Summary:Reuters: UK cable company NTL  reported a small first-quarter operating profit on Tuesday and announced plans to reduce its workforce by about a third following its merger with rival Telewest....Of the 6,000 job cuts, mostly in back-office operations, roughly half will be outsourced to companies including IBM Chief Executive Steve Burch said in a conference call....

Reuters:

UK cable company NTL  reported a small first-quarter operating profit on Tuesday and announced plans to reduce its workforce by about a third following its merger with rival Telewest....Of the 6,000 job cuts, mostly in back-office operations, roughly half will be outsourced to companies including IBM Chief Executive Steve Burch said in a conference call...."Those jobs aren't going away, those people will continue to work for NTL, but under the auspices of IBM," he said on a conference call with reporters, adding that none of the outsourced jobs are expected to be located outside the UK.

Advantage Big Blue.  This sort of business practice where limb of some company is ampuated and reattached to IBM Global Services is becoming a commonplace practice.  I keep hearing about it.  My college roomate nearly ended up as an IBM employee in the same way but dodged that bullet (to him, it was a bullet) when he found a job with another company (see Some solace in outsourcing: Not all jobs can be moved offshore).

Meanwhile, if you're thinking about outsourcing, here's a post that was inspired by ComputerWorld's Seven Deadly Sins of Outsourcing.

Topics: Outsourcing

About

David Berlind was fomerly the executive editor of ZDNet. David holds a BBA in Computer Information Systems. Prior to becoming a tech journalist in 1991, David was an IT manager.

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