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IBM loses chunky ATM contract, reaches for staff eject button

Booted bods urged to stay professional for 'future win back opps'

A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)
Pic: Shutterstock

IBM is to pull the flusher on Technical Support Services staffers in the UK after losing a meaty ATM maintenance contract with Produban, Grupo Santander’s tech arm, which designs and operates the bank's infrastructure.

In a note sent to staff - seen by us - Big Blue’s Tim Frisby, TSS UK service delivery business ops manager, confirmed that Produban had opted “not to renew” the deal “for reasons of cost” and instead “engaged” with NCR.

In the memo Frisby said:

The reduction of work load for our ATMs teams as a result of this loss has been considered and after extensive work from those in the ATM domain a plan has been set, individuals have been identified whose engagement in with IBM will be concluded on or around the 30th September.

If your employer (Manpower or IBM) has not made you aware that you have been identified for end of assignment then you are not in scope of actions to be taken as a result of this contract loss.

He said TSS workers should demonstrate “continued commitment and professionalism” during the last weeks of the contract “in order the relationship remains positive for future win back opportunities”.

No specific numbers were mentioned at this stage, but if IBM makes 20 or more staff redundant then it must follow collective consultancy rules.

Frisky said the ATM business remains a “key focus area” and “while this loss is a set back, our strategy remains for the ATM domain to be a cornerstone of our TSS’s future.”

IBM has run numerous redundancy programmes across the services divisions this year. GTS was hit hardest as revenues continued to slide for 17 consecutive quarters.

The cloud has distorted the types of services that customers are keen to buy and IBM has said it is remixing internal skills to fit with its commercial priorities - cloud, mobility, big data, social and AI.

As exclusively revealed by El Reg, eight in ten services personnel at IBM could be working in lower cost labour countries by the end of 2017, if the blueprint created by top brass is followed to the word.

El Reg asked IBM for comment and we'll update when it arrives. ®

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