Feeds

EDS to offshore 15,000 jobs

Eyeing up cheaper workers

The essential guide to IT transformation

EDS is to move up to 15,000 jobs to cheaper locations over the next "couple of years", according to the company's CEO Michael Jordan, bringing the total number of "offshore" employees to around 45,000.

The company has already cut around 1,000 jobs this year, but Jordan told The FT he wants to lose another 4,000 from the developed world by the end of 2006.

These cuts will be a combination of moving jobs to countries with lower hiring costs, and through deploying new technology tools designed to improve productivity. Layers of unnecessary management would be stripped out, he said.

The company also had to increase productivity by three to four per cent every year, he added.

While jobs are being slashed in the developed world, the company is losing no time picking up the slack in cheaper locations. EDS said it plans to open a new centre in China, with 1,000 employees, and it recently bought Mphasis, an Indian IT services firm employing some 12,000 people.

But all these cuts don't come cheap. The FT notes that with so many redundancy payments owing this quarter, the company had to issue a warning that its profits would not meet Wall Street expectations. ®

Boost IT visibility and business value

More from The Register

next story
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?