Chrysler outsourcing computer jobs

Chrysler outsourcing computer jobs

There are 28 comments on the Akron Beacon Journal story from Apr 3, 2008, titled Chrysler outsourcing computer jobs. In it, Akron Beacon Journal reports that:

DETROIT: Several hundred computer workers at Chrysler LLC will lose their jobs in a move to outsource computer system support and maintenance.

Join the discussion below, or Read more at Akron Beacon Journal.

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Traders

Akron, OH

#1 Apr 4, 2008
That's a Dam Shame
mtbblazr

Los Angeles, CA

#3 Apr 4, 2008
Unbelievable...I know several friends whose company did the same thing with the promise of major savings to their company. The only return on it was the company had to go back months later and try to re-hire the workers because the outsourced(offshore-India) IT workers not only couldn't handle the work, they never got a grasp of the complexity of the systems they had to support. When will American execs learn..?
mtbblazr

Los Angeles, CA

#4 Apr 4, 2008
OMG wrote:
My neighbor lost his $125,000 IT management job at Chrysler Twinsburg this week. He's devastated. He just built his $400,000 house a few years ago, bought a new BMW for his wife, and has a boat for summer pleasure boating. He has no idea how he will be making all his payments now. He will be joining the millions of unemployed people in foreclosure & bankruptcy.
I told him he can thank Bush_A$$ & his big business favorable offshore job policies for costing him his job. He told me most of the jobs will be outsourced to India at $10,000 a year in salary for his replacement. He was a strong GOP & Bush_A$$ supporter until now. He just shook his head. He's very upset now, and has no idea what will happen to his American dream now.
OMG - tell your neighbor to post the resume online.
I did that about 2 weeks ago just to start testing the waters because I think the same will happen to me and I've gotten literally almost 100 calls for contract (1yr or more) or contract-hire offers from all over..and all of these pay more than the average what we would see as a salary. Good luck to him.:)
IT Pro

Garden City, MI

#6 Apr 4, 2008
This is a big mistake with CSC... These deals always end up costing even more money.
Mars

Stow, OH

#7 Apr 4, 2008
How many times have you heard crime prevention people tell individuals to beware if a deal seems too good to be true? Companies should follow the same advice. Consulting companies or contractors will tell a company that they can do a job for a small fraction of the price. In many cases they do a small fraction of the job. Then the company wastes additional money trying to rebuild their IT department. You get what you pay for.
Emma

Cleveland, OH

#8 Apr 4, 2008
This is a crying shame. Outsourcing hurts everyone. I hope the workers are able to find jobs.
ramon

Canton, OH

#10 Apr 4, 2008
And of course where is Tata Computer Consultancy based? Can you say "What is my price off this price for this stereo"? Can you say "I am a doctor educated in your country"? Thats right if you said India. Don't worry I am sure Hodgie will solve all of Chrysler's problems and probably also get some great tasting mangos too. This is a VERY precise example of what activities should be subject to fines on corporate America. On the other hand if they would have kept the jobs in this country they should be given tax breaks. Wake up Congress!!!!!!
Alice

United States

#11 Apr 4, 2008
I was about to say the very same thing. And of course, everything that happens to everyone is President Bush's fault according to OMG.

His friend spends his income irresponsibly and that's Bush's fault. Um-uh.
Kent Dawg wrote:
<quoted text>
Your friend wasn't very bright to build a $400K house in a very expensive area and for buying a BMW with a $125K salary. Maybe if more of you bought american made cars, Chrysler wouldn't be sending jobs overseas. My wife and I make less than you. We have a $150,000 home, a car that is over 10 years old and I just bought a Caravan which is a Chrysler product. Don't blame the president because you friend is a irresponsible financial idiot. Tell him to burn his BMW for warmth until the weather improves.

Since: Apr 08

Hudson, ohio

#12 Apr 4, 2008
if it isn't the offshoring to India, than it is the likes of all the others saving there is a talent drain in the US, and the government needs to increase the number of HB-1 visas.

picked up an India newspaper this week and there is an article front page on how the US Government is promoting Indian College students to apply for summer jobs in the US

oh and don't forget TATA just came out with the cheap car for 2k, and also bought Ranger Rover/?
Andy

Mansfield, OH

#13 Apr 4, 2008
I work for an American IT Outsourcing company. I am an Account Executive that is currently working for a local Cleveland client. The name of the game is to reduce the day-to-day operation cost of IT and push much of the computer programming and system support of to India and to Canada. The primary reason given is that the costs are lower, which isn't true. The learning curve for the outsourcer is tremendous, trying to understand the computer programs, IT processes and procedures of the client, and list goes on. The typical transition takes an average 18-24 months, which usually isn't enough time because of the learning curve. Ceberus will not realize any real savings other than any up front payments by the vendors for the IT assets. After transition, the outsourcer will reduce the support prices for the day-to-day stuff, but begin charging more for Help Desk support, desk top support, any system upgrades, customized programming, any new system development, any changes to IT stuff, and any telephones, computers, and users that are added or deleted from the contract besides charging for the support services.

If companies outsource all of their IT functions to another company is inefficient to begin with. Most larger corps, in general, spend less than 1% of their net profits on IT. They spend more on salary compensation for the executives. Most companies waste on poor planning than that.

What a shame!!!

“LeBron = Born-again Tribe Fan!”

Since: May 07

Tallmadge, Ohio

#14 Apr 4, 2008
Good points, Andy!

I'm retired from Dell I/T (working mostly under CIOs Jerry Gregoire and Randy Mott), and I retired early to avoid the standard practice of training the Indian or Brazilian who would be replacing me.

I've dealt with Tata. With Infosys.

I recall being in a stall in the men's room at Dell's offices. Two Infosys contractors walked in and started a conversation. It went something like this:

Guruprakash: These Dell I/T management people have little knowledge about their own systems.

Dave': That's very true. They have terminated much of the technical staff, and the remaining management have few technical skills and seem to only know project management.

Guruprakash: They believe anything we tell them. Yesterday I provided an estimate for the service tag expansion project which was padded by 200%, and they accepted it without question. Now, our company will be billing them for 18 month's worth of work for 10 consultants, and we lead a slice of the project.

Dave': That is wonderful! So, we will stay here for more than a year?

Guruprakash: Yes we will. We will interface with our team in Bangalore as local analysts and project managers. And we will most certainly succeed in delivering the project on-time and within budget, because I am sure we COULD complete this project within 6 months, with a team of 5.

Dave': This means that Dell management will report to their executives that they are realizing huge OpEx savings on this 18-month project, as compared to what it would cost them to develop it in the U.S.. And the executives, with no knowledge of I/T, will demand further projects be offshored, to reduce OpEx even further!

Guruprakash: Exactly! And with those figures, however misrepresentative of reality they may be, the management and executives will be maximizing their "bonus metrics" and will be compensated with an annual bonus of 20% or more of salary come the end of March.

Dave': Sounds like a win/win situation!

Guruprakash: With our increase in business for Infosys we will surely be rewarded for performing well. And the Dell execs and managers will be rewarded with large bonuses and stock options for meeting their goals of reducing Operating Expenses. Yes, life is good for us, my friend.
Still working for now

Dayton, OH

#15 Apr 4, 2008
I work in IT in my company. I am constantly in fear that the management will decide that my coworkers and I can be replaced via outsourcing. The people we support would surely be worse off for it if it happens, but if it has the appearance of being a money saving move, then it will be accepted as a good idea.
Black and Proud

United States

#18 Apr 4, 2008
WHY is he buying a BMW when he works for Chrysler that was dumb.When a company pays you that kind of money you should buy there products. Maybe he can go work for BMW now
OMG wrote:
My neighbor lost his $125,000 IT management job at Chrysler Twinsburg this week. He's devastated. He just built his $400,000 house a few years ago, bought a new BMW for his wife, and has a boat for summer pleasure boating. He has no idea how he will be making all his payments now. He will be joining the millions of unemployed people in foreclosure & bankruptcy.
I told him he can thank Bush_A$$ & his big business favorable offshore job policies for costing him his job. He told me most of the jobs will be outsourced to India at $10,000 a year in salary for his replacement. He was a strong GOP & Bush_A$$ supporter until now. He just shook his head. He's very upset now, and has no idea what will happen to his American dream now.
Robin Anderson

AOL

#21 Apr 4, 2008
Blood Racket Drained Poor Indians
By BISWAJEET BANERJEE,AP
Posted: 2008-04-03 18:16:54
Filed Under: World News

As posted on aol.com ...hmmm...

Since: Mar 07

Danville, CA

#22 Apr 4, 2008
mtbblazr wrote:
Unbelievable...I know several friends whose company did the same thing with the promise of major savings to their company. The only return on it was the company had to go back months later and try to re-hire the workers because the outsourced(offshore-India) IT workers not only couldn't handle the work, they never got a grasp of the complexity of the systems they had to support. When will American execs learn..?
They'll never "learn" because that isn't the idea.

Corporate America only cares about "beating the Street" and collecting that big, fat bonus at the end of the year. It's been that way for about twenty years now, really bad since the beginning of the nineties.

The outsourcing isn't so bad in industries that aren't already in trouble because of foreign competition. His job was in danger five years ago or more and he apparently didn't see it coming.

Tell him to relocate. He'll get a job, but the problem will now be selling his house.

Since: Mar 07

Danville, CA

#23 Apr 4, 2008
Kent Dawg wrote:
<quoted text>
Your friend wasn't very bright to build a $400K house in a very expensive area and for buying a BMW with a $125K salary. Maybe if more of you bought american made cars, Chrysler wouldn't be sending jobs overseas. My wife and I make less than you. We have a $150,000 home, a car that is over 10 years old and I just bought a Caravan which is a Chrysler product. Don't blame the president because you friend is a irresponsible financial idiot. Tell him to burn his BMW for warmth until the weather improves.
That's a stupid thing to say. It's a global economy now, and if BMW builds a better car than the Americans do, more power to them.

Tell him to relocate to Georgia or North Carolina, or possibly Dallas or Phoenix.
CANKRON

Richfield, OH

#26 Apr 4, 2008
Funny. I read that people buy "AMERICAN" cars such as CHRYSLER and claim them to be MADE IN AMERICA.(read the fine print...the car was not made in the usa. it was fabricated in the states, shipped to mexico or canada, assembled by non american workers, and shipped out to some moron in Idaho who thinks that since Chrysler is an American name, it's an American Product. My toyota was built in the south by AMERICAN WORKERS. American Workers. Not Mexicans, Not Asians, Not even our buddies to the North. This is a global economy. Accept it or not, facts are facts.

So, How american is you FORD, DODGE, CHEVY? About as American as Taco Bell is Mexican Food.
George N

Fountain Inn, SC

#28 Apr 4, 2008
Black and Proud wrote:
WHY is he buying a BMW when he works for Chrysler that was dumb.When a company pays you that kind of money you should buy there products. Maybe he can go work for BMW now
<quoted text>
BMW is here in Greenville. The avoid most former "Detroit 3" workers like the plague. Too spoiled.
OH WELL

Strongsville, OH

#29 Apr 4, 2008
OMG wrote:
My neighbor lost his $125,000 IT management job at Chrysler Twinsburg this week. He's devastated. He just built his $400,000 house a few years ago, bought a new BMW for his wife, and has a boat for summer pleasure boating. He has no idea how he will be making all his payments now. He will be joining the millions of unemployed people in foreclosure & bankruptcy.
I told him he can thank Bush_A$$ & his big business favorable offshore job policies for costing him his job. He told me most of the jobs will be outsourced to India at $10,000 a year in salary for his replacement. He was a strong GOP & Bush_A$$ supporter until now. He just shook his head. He's very upset now, and has no idea what will happen to his American dream now.
Tell your neighbor that he better sell his boat, house and fancy car because he was living beyond his means.$125K is not enough money to afford all of those payments. Fool

Since: Apr 08

Philippines

#30 Apr 9, 2008
Hi!!! I'm now currently working for a Philippine Outsourcing Service Company. Who says the cost on outsourcing isn't lower? And who says the learning curve for an outsourcer is tremendous, trying to understand the IT processes and procedures of the client and so on? Why have you actually worked for an outsourcing service company to know it all? It is actually true that outsourcing could lower the cost. Why? There are services offered by an outsourcing service company which only cost lower than a thousand dollar but will cost them thousands and thousands of dollar when being paid in your area. So, who says it isn't true offshore outsourcing isn't cost saving? And do you think outsourcing service company would hire agents or workers who are idiot? It is a known fact that competitive ITs nowadays came from other countries even from third-world countries. Try to really dig in how outsourcing really works.
And by the way, for the one commented about his friends losing his job $125,000 IT job. Is it the company who should be blamed for how he leaves? He was only earning $125,000 and yet bought a house, a car and a boat more than what he is actually earning? Why not advice him to live within his keeps so when drought came he still have savings to keep him going.:)

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