Shell waves goodbye to 3,000 IT staffers in $4bn outsourcing gig
Royal Dutch Shell today inked three outsourcing deals – worth $4.2bn over five years – to spin out IT and telecoms operations.
In January, a leaked memo to staff revealed the oil company was in outsourcing talks with EDS, AT&T and T-Systems.
Today, Shell sealed separate agreements with those companies and said most of its 3,200-strong IT workforce will transfer to the service providers.
The contracts kick off on 1 July, and see AT&T scoop up network and telecommunications, T-Systems getting hosting and storage, and EDS tackling end user computing services.
According to Shell, “minimal redundancies” are inevitable, but it has not revealed numbers affected.
In a canned statement, the firm said the decision will deliver "important [but unspecified] financial benefits".
Last month Shell told UK trade union reps at Unite that it aimed to reduce costs by £250m by outsourcing its global IT infrastructure business.
Shell announced record full-year earnings of £13.9bn in February. ®
Shellshocked in Complacency.
"That amanfrommars, in trying to mess things up as he normally does, has actually made more sense than these Shell guys." ..... By Adam Foxton Posted Tuesday 1st April 2008 12:43 GMT
I suppose that is because some things are easier for you to understand whenever kept nice and simple.
And the next time "trying to mess things up as he normally does" will be the first time, although to cause Absolute Chaos is so much easier for Fools. However, it is one of those Dual Use Technologies, as it is very tempting to unleash it whenever Intellects are Challenged too. A definite weakness/psychological flaw to succumb to that renders the Fool, a definitive Lead in Self-Destruction, and the Sage a Grandstand Seat at their Demise.
As a contractor who gets paid extremely well to fix the problems created by outsourcing (as detailed perfectly above by others) I fully support Shell outsourcing their $4bn IT budget for the savings of a whopping $250m (so a whole 6.25%, oooooh - they'll never see a >6.25% drop in productivity, noooo).
It's THAT weird
That amanfrommars, in trying to mess things up as he normally does, has actually made more sense than these Shell guys.
@ Scott Mckenzie
Gazprom, Yukos, Rosneft,Sibneft?
Don't believe it for a second, personally, but they have enough capital (particularly with screwing BP and Shell over their Russian ops...)
Shell have wanted to ditch everything that isn't part of the extracting, refinement and distrubution of Oil products for some time. They want to ditch the retail part, they want to ditch the IT.
It wouldnt surprise me if in a few years that some other oil company has bought them out, as they are struggling to make up the problem they have with the reserves they have on stock.
Having worked for Shell in the front line, this has no real impact as most of the IT support was outsourced anyway.