Hmmmmmm. . . Now I wonder why Big Blew would be leasing a bunch of empty space at a location in India?
https://www.business-standard.com/article/companies/ibm-to-cognizant-global-tech-firms-ink-large-leasing-deals-in-bengaluru-120031000819_1.html
4 replies (most recent on top)
The real question is how much work moves to Cognizant. From the previous poster it appears 6000 jobs will reside in India. How many will remain in Europe/USA and just shift to Cognizant management. Then there is the 64 million dollar question. At what price. DXC just offloaded their medicare processing business at more than 3x of yearly billing. (5 billion for a 1.4 billion per year business) I would not expect to see that kind of premium as IBM carries a lot of debt for some of its services business, but if Cognizant absorbs some of that debt, the business of IBM certainly would look better when it comes to their “enterprise cloud” business moving forward
GTS folks are going to Cognizant. That is pretty clear. IBM has known for some time they need to rid themselves of all the legacy and shrinking deals they've accumulated over the past decade or more. Sending the problem to an Indian offshore company solves that problem for them.
If you think the 30-90 etc plan was unfriendly, wait until you see how US workers will be treated by their Indian bosses. I know from experience, it won't be pretty.
Given the industry average of 120 square feet per employee (its what amazon rented for last year in the same town), you are looking at Approx 6000 employees being added
IBM has a fetish with blowing money on office space while competitors telecommute and save.