Feeds

Shell waves goodbye to 3,000 IT staffers in $4bn outsourcing gig

Oil-y company

High performance access to file storage

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. ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.