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11 November 2014

IBM India staff reductions are sign of shift in outsourcing sector

Talk of IBM reducing its India-based workforce by 50,000 over the past three years, with more to come, is a reflection of the diminishing importance of low-cost operatives. The reported reduction in staff in India, although unconfirmed, is in line with changing IT-outsourcing demand and delivery models. One source claimed India's Tata Consultancy Services (TCS) is now IBM Global Service's biggest competition. According to a report from India, the IT giant has reduced its India-based workforce from about 165,000 in 2011 to 113,000 in 2014. The report quoted sources close to IBM’s plans who said this number will be down to 100,000 in 2015. The firm’s global workforce is made up of 431,212 employees. In IBM Global Services, the company boasts the world’s biggest IT services firm. It is often referred to as an IT bellwether and its every move is scrutinised by IT executives at enterprise users and at its competitors. When the offshore-IT services delivery model was at its peak, the firm was the biggest IT employer in India. More on ...

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