IBM to move jobs
THE ASSOCIATED PRESS: Dec. 16,
ARMONK N.Y. - IBM Corp. plans to move up to
several thousand skilled software jobs from the United States to India, China
and other countries, which could amount to one of the biggest such actions yet
in the technology industry.
IBM documents obtained by The Wall Street
Journal said about 4,700 programming jobs could be shifted overseas to save
costs, a growing high-tech industry trend known as "offshoring."
than 900 people are scheduled to be told of the move in the first half of 2004,
and 3,700 more jobs have been identified as having the "potential to move
offshore," the Journal said yesterday.
IBM already has hired 500
engineers in India, the Journal reported.
The division affected is
IBM's Application Management Services group, part of Big Blue's technology
services division. The IBM facilities where workers could be replaced include
offices in Dallas: Southbury, Conn.; Poughkeepsie, N.Y; Raleigh, N.C.; and
IBM spokesman James Sciales noted that most of IBM's
work force, which now totals 315,000, has been overseas for years. Sciales also
released a statement saying IBM expects that U.S. hiring next year will match or
exceed 2003 levels.
While companies long ago began moving blue-collar
work to Asia, big business is now increasingly shifting skilled work there as
well. According to International Data Corp., foreign workers performed about 5
percent of information technology services for U.S. companies this year, but by
2007, that share will grow to 23 percent.
Often, the U.S. workers
being replaced are called upon to train their overseas - replacements. The same
will be expected of IBM employees whose jobs are being transferred, said the