Chrysler plans big tech job cuts - Hundreds to lose their positions in outsourcing (to Tata and CSC)

[Bozita]

Source: Detroit Free Press

Chrysler plans big tech job cuts

Hundreds to lose their positions in outsourcing

BY TIM HIGGINS • FREE PRESS BUSINESS WRITER • April 3, 2008


Several hundred computer workers at Chrysler LLC will lose their jobs in a move announced Wednesday by the automaker to outsource computer system support and maintenance.

This is yet another change by Chrysler as it leaves no stone unturned in its efforts to fix the first privately held major U.S. automaker in more than 50 years.

Chrysler information technology workers were told Wednesday that the company signed agreements with Tata Consultancy Services and Computer Sciences Corp. for the firms to maintain and support mainframe, servers and corporate computer applications, Jan Bertsch, Chrysler vice president and chief information officer, told the Free Press in an interview.

"This is really the next step in our continuous effort ... to operate more efficiently and effectively," Bertsch said. "This gives us, I think, more tools and flexibility to drive business growth and changes in our organization and not just react to it. ... I am kind of viewing this as part of Chrysler's journey toward our financial health and operational well-being. We do have the expectation of significant cost savings and that will allow future growth within this company."

Read more: http://www.freep.com/apps/pbcs.dll/article?AID=/20080403/BUSINESS01/804030419

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Don't miss the reader comments.

[Juche]

1. How do they save money

http://www.eweek.com/c/a/IT-Management/Offshore-Outsource-Savings-Can-Be-Elusive-Survey-Shows/

Instead, the Ventoro survey found that savings averaged slightly less than 10 percent for all the offshore outsourcing projects that Ventoro reviewed, Hatch said.

The average cost savings increased to 19 percent when Ventoro excluded offshore engagements that were deemed to be a failure by executives or engagements that didnt have a prior baseline to compare cost savings.


However, the report concluded that cost savings of 30 percent is a realistic target for well planned and managed offshore outsourcing projects.



Considering the decreasing value of the USD and the increasing value of the rupee (the above study was done in 2005) how do you save money on outsourcing?

[Bozita]

4. That link is interesting.

from the linked article:

"However, generating any cost savings proved difficult for more than 50 percent of the offshore engagements that Ventoro reviewed.

The survey found that 28 percent of the offshore outsourcing or offshore development project actually increased costs and 25 percent did not generate any significant saving"

[pattmarty]

2. Pretty soon there won't be any "consumers" left to buy their shitty cars.

[EnviroBat]

3. Chrysler can rot in hell.

fuck them.

[Kolesar]

9. Hey fool, Chrysler has a lot of employment in Ohio--your home state

[EnviroBat]

11. Apparently not in their I.T. department anymore...

[Lance_Boyle]

5. Wooo! Go Big Three! USA! USA! We're the BEST!

:eyes:

[BearSquirrel2]

6. But we need more H1-Bs ...

Hey, but Bill Gates said we need more H1-Bs!!! Can't we just subtract the number of computer layoffs from the H1-B ceiling!!!!

If the government dared to do a survey on people with CS degrees not employed in their field, they would find out we don't need ANY H1-Bs at all.

[Tandalayo_Scheisskopf]

7. They need those H1-B's in-country...

So they can train them to work on the outsourced jobs.

The simple sophistry of Gate's statements that is never mentioned.

[ramapo]

13. Exactly how much of the outsourcing got started

H1Bs come to US. Get experience. Make contacts. Jobs move offshore.

[eringer]

8. What's that Noise??? Oh, its nothing... just Chrysler Imploding again

What a mess they have one their hands over there. Maybe they should get out of the car business and back into the M1 tank business. We are going to need a lot of M1s to fight McBush's 100 year war in Iraq.

[Xithras]

10. Logic Bomb

Don't get mad, get even :evilgrin:

[ramapo]

12. It just gets better and better

This is yet one more outrage piled upon thousands and thousands that have taken place over the past 10-15 years. I could just throw up reading the comments from the Chrysler CIO.

One more fuck up to add to the pile folks. Is it any wonder we are short IT workers in the US? This is not a field that I would recommend and I've been in it for 25 years. Your chances of losing your job are pretty high and there's always an H1B holder who will fly in to take over whatever needs to be done here to support the company back home.

This is a monster created during the Clinton administration and supported by Democrats as well as Republicans. It is an outrage.

On edit: I mustn't forget to thank Ronnie Reagan, the first friend of the American worker (hey they were dumb enough to vote for him) who sold them out to his true corporate buddies.

[liberal4truth]

23. Bingo! Let us NOT forget the 1980's bailout of the Chrysler Corporation, thanks to Ronnie Raygun &

his good pal, the famous old FART, "mustang sally" AKA: Lee I-A-Cokehead!!

Karma is such a bitch, ain't it ?

[Yavin4]

14. Aren't Tech Jobs The Jobs That Politicians, Pundits, and Other Hacks

tell mfg workers to re-train for? If these jobs are gone, what jobs are left? And, can they pay enough to meet re-setting mortgages?

[Bozita]

19. Yes, train for what? They never say, do they?

Currently unemployed or underemployed American IT workers are an incredibly talented untapped resource.

It's the job of the govt to change that.

Always remember, it starts with ...

... "We, The People"

[aggiesal]

15. With all the layoffs occurring around the country, ...

Nobody will be able to afford to buy their cars!!!

But, we'll be more efficient.

Way to go, Chrysler.

[darue]

16. they're outsourcing their IT to another auto company? what is it they DO anyway?

why would a consumer even pay the crysler tax? Let's just buy a TaTa car to begin with. that's where this is going. Soon all these US companies that think they can outsource everything and just be a "Brand" are going to get a very fucking rude awakening. I will personally enjoy destroying these hollowed out "brands"

Why on the name of all that's holy shareholders are letting US companies get away with this wet-brain half-wit excuse for a strategy is a good question. these companies are not going to retain any share value.

[Amonester]

21. it's almost NOT a secret (anymore)...

Golden Parachutes for Execs

(and worthless paper for shareholders)

(and starvation for (ex-)workers)

it's getting soooooo obvious

[OhioChick]

17. So, now Chrysler

has hopped on that cheap-ass "get what you pay for" bandwagon, too.

How "American" of them.

[ihavenobias]

18. Yep n/t

[dysfunctional press]

20. drip...drip...drip- pretty soon ALL of the chrysler jobs except floor salesperson will be overseas.

nt

[darue]

22. FTW! the floor sales can go all robotic too, sales by Microsoft Surface

who needs americans for anything but purchasing? maybe at some point they'll have to just agree to pay us to shop? somehow I don't think that's in the plans, so what is?

[liberal4truth]

24. Well, tio be frank, they hope we spend every penny we have then f**k off and die.

I mean thats whats its all about. Money is the new God, folks.

What do we do?

Well, we can all refuse to by NEW products.

Let their frakking new cars, and other new crap _ROT_ on the damn shelves.

Give the FINGER to the shareholders, your new slave-masters!!