Archive for Outsourcing

IT Worker Files Class Action Lawsuit Against Outsourcing Firm

Posted in Commentary with tags on August 6, 2013 by itnerd

There’s been a lot of press in the Canadian media about companies, usually banks such as RBC, who downsize Canadian IT workers and replace them with cheaper imported workers via IT outsourcing firms. The same thing seems to be happening in the United States. But the difference is that they don’t get mad, they sue. Brenda Koehler is a VMware-certified professional network engineer with a master’s degree in information systems and 17 years of experience. You’d think that people would be lining up to hire her. But apparently that’s not the case. In particular Indian outsourcing firm Infosys didn’t hire her for an open position that she was qualified for. Koehler has filed a lawsuit alleging that Infosys ignored her qualifications and eventually hired a Bangladeshi worker to staff a position she was qualified for. On top of that, her lawyers are working to get the lawsuit certified as a class action.

Upon hearing about this, my first thought was that why doesn’t someone do something similar in Canada. I know a ton of skilled IT professionals who have lost their jobs in the last few years, yet Canada imports a ton of people from overseas to fill open IT positions. Clearly that’s the case in the US as well and that’s not right. Governments should tighten the requirements of foreign workers so that they don’t take a job that could be filled by a citizen of that country. But if that doesn’t work, maybe lawsuits will so that the message is sent loud and clear.

Bell Canada Stops Sending Tech Calls To India…. Not Satisfied With The Results…. Imagine How Customers Feel

Posted in Commentary with tags , on February 18, 2009 by itnerd

I have to go check the temperature in hell as this a reader pointed me towards this piece of news. Bell Canada will apparently stop sending tech support calls to India:

“Some of our offshore calling has not done what we’ve wanted it to do,” chief executive officer George Cope told shareholders.

I guess that means that going to India didn’t provide the same quality of technical support that in house people could do at a much lower price point.

The article also mentions this:

BCE declined to say how many calls are made to its call centres in North America and abroad, but said the decision would have no impact on jobs. The company has been shedding thousands of jobs as part of its effort to control costs.

Note the “no impact on jobs” part. Could that mean that Bell is going to contract out these services to a domestic or US call center? Perhaps. The article doesn’t really say, but I’d be shocked if they brought those jobs in house.

I’m guessing that customers of Bell who have been transfered to their tech support are jumping for joy right now.

Homeshoring: Because Offshoring Is So Last Year

Posted in Commentary with tags on December 1, 2008 by itnerd

There’s a new trend in setting up call centers. Instead of having a huge building of droids agents either in North America or in India (or Egypt for that matter), set them up at home and have them link in to the universe via broadband Internet and VOIP. This trend is known as Homeshoring according to a San Francisco Chronicle article:

“It gives us access to some high-quality labor that wouldn’t work in a call center,” said Andrea Ayers, president for customer management for Convergys Corp., an outsourcing company that is increasing the number of agents who work from home. “This gives us more staffing flexibility, and we can make it work with their lifestyle.”

That’s great. But before you say that this is a good idea, read this:

Home agents often start at $8 to $10 an hour, earning more depending on the skill and knowledge required for specific clients. Besides gas, home-based operators save on car maintenance and the cost of keeping up an office wardrobe.

The thought of some 250 lb soccer mom working for $10 an hour answering my phone call in her jammies is enough to tramuatize me for life. But I can see how this would be popluar in today’s economy.

I guess it gives the term “homework” a whole new meaning.

If You Want To Outsource, Go To Egypt…. Because India Is So Two Years Ago

Posted in Commentary with tags on November 18, 2008 by itnerd

There’s a very interesting press release that I just noticed today. Apparently the country of Egypt is trying to position itself as a hot destination for outsourcing. Why is that? There’s a bunch of reasons:

“With some unique advantages such as a multilingual workforce (fluent in English, French, German, Spanish, Portuguese, and Dutch); lower labor costs than in surrounding low-cost regions; time zone proximity with the West; and relative familiarity with Western culture over traditional outsourcing destinations like India and China, Egypt’s IT sector is forecasted to grow from $889 million in 2006 to $1.3 billion in 2011.”

Oh… There’s more:

“The Egyptian government offers tax breaks and other financial incentives to attract international companies to set up call/service center and business process outsourcing (BPO) operations in Egypt. It also supports the training of staff to handle multinational clients and maintain global standardized work ethics.”

Tax breaks and financial incentives are always a good thing. Given the current economic situation in America, I think you’ll see a few companies take advantage of those.

That’s got to suck for India.

The only question I have, will the quality of the staff be as good (or bad depending on your perspective) as India, or better?

HP Buys EDS For $14 Billion…. Dell Is Screwed

Posted in Commentary with tags , , on May 13, 2008 by itnerd

It appears that HP has picked up EDS $14 billion so that it can enhance it’s IT outsourcing business. This is a great move for HP as it now has the ability to go one on one with IBM for that market. The big loser in this has to be Dell who had been trying to make a move into that market, but with this purchase they might as well throw in the towel now as they have nothing that competes against IBM or “The New HP” as I am calling them. That’s because HP clearly made the decision to buy their way into that market rather than “roll their own” services arm like Dell has. And of course IBM has been in the services arena forever. That leaves Dell with nowhere to go IMHO.

Perhaps Michael Dell should go “old school” and make good computers for low prices and provide excellent customer service? Seeing that Dell has taken a major beating lately on that front, it might be a good strategy.

Oh, if you want some cheap entertainment, take a look at the e-mail sent to EDS employees. My favorite line is this one:

We are – and will remain – EDS.”

Sure. Until the execs cash out and HP “rightsizes” the company. Compaq employees know what that feels like.

AT&T CEO: We Can’t Bring Jobs Back Because We Can’t Find Skilled Workers In The U.S.

Posted in Commentary with tags , on April 1, 2008 by itnerd

Outsourcing (usually to the Philippines or India) is what all the cool companies are doing at the moment. Except when public perception turns against you, in which case you pledge to bring jobs that you’ve sent overseas back to home soil. That’s what AT&T wants to do, but they can’t find skilled staff to fill the 5000 jobs that they outsourced. According to AT&T’s CEO Randall Stephenson, it has to do with the fact that as many as 50% of Americans in high school drop out:

“If I had a business that half the product we turned out was defective or you couldn’t put into the marketplace, I would shut that business down.”

Ouch. That’s harsh. I don’t know much about the US education system, but if that’s true then America has a real problem if it wishes to stay competitive in the global marketplace. It could also be an excuse for AT&T not being able to bring jobs back. Who knows? I’d love to know for sure though. Any thoughts on this?