IBM An Extreme View On Offshoring

The whole idea the IBM could cut its U.S. staffing level by 100,000 is not unbelievable.

Over at THE PULPIT, Robert X. Cringely penned his controversial view, that IBM is committed to building out its staff in India. He suggests that during that process IBM could be dumping as many as 150,000 jobs from the U.S. and other higher wage locations.

Mr. Cringely came to this number believing that a system wide reduction of 20,000, out of a staff of 355,000, would be more than reasonable. Add to that the offshoring of a good portion of their support positions it India, where wages are 25% to 30% of what they currently pay, and the U.S. could see a reduction of 100,000 jobs out of their current employment level of 135,000.

This article was posted May 5, and has received over 1,000 comments, quite a few from IBM staffers. One of these comments stated the IBM has dedicated $6 billion to the development of an infrastructure in India.

As I wrote in, How Fortune 500 Companies Can Save $58 Billion a Year -- Just Send 1.5 Million More Jobs Overseas:

“A Hackett Group research study that as much as $58 billion a year can be saved, by America’s fortune 500 companies, by sending back-of-the-house and administration functions overseas.”

The whole idea the IBM could cut its U.S. staffing level by 100,000 is not unbelievable.