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IBM Freezes Contractor Hires to Keep Full-time Workers Fully Occupied

posted by martyb on Thursday May 11 2017, @02:09PM   Printer-friendly
from the using-what-you've-already-got dept.

Phoenix666 writes:

More evidence that IBM is cutting costs in multiple ways: the company's Australian tentacle is making it very, very hard to hire contractors.

The Register has viewed emails sent among organisations seeking to place contractors with IBM Australia. The thread explains that IBM has not replied to offers of new contractors because of a freeze that means it can only hire temporary workers under limited circumstances, and even then after signoff by senior bean-counters.

We understand the freeze even applies to gigs at which IBM teams are relying on contractors to help the company meet looming deadlines.

IBM would not confirm or deny the freeze, but The Register has been led to understand that Big Blue is always "optimising" its workforce to ensure they're fully occupied and that no resources are wasted. We understand that optimisation process means the IT giant is ensuring its full-timers are kept busy.

The story continues:

Updated to add

Multiple sources now tell The Reg that the contractor freeze is global, with many finishing assignments last week and being told their services will not be required for the foreseeable future. We understand that the contractor freeze is a cost-saving measure and that projects that need extra hands will draw on internal resources to hit deadlines.

Original Submission

 
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  • (Score: 0) by Anonymous Coward on Thursday May 11 2017, @05:21PM (1 child)

    by Anonymous Coward on Thursday May 11 2017, @05:21PM (#508196)

    You missed the step before:

    1. First you lay off all the experienced employees that know how to get shit done.
    2. Then when you need to get something done (which the green newbies can't possibly figure out) you hire back the experienced staff as contractors.

    My guess is that IBM Oz is already past step 1. Now that step 2 is off the table, they proceed directly to:

    3. Missed deadlines and projects failing.

    Letting managers and other fluff go is never on the table (it seems), until the whole branch/division is closed?

  • (Score: 2) by kaszz on Friday May 12 2017, @11:57AM

    by kaszz (4211) on Friday May 12 2017, @11:57AM (#508566) Journal

    A large corporation like IBM can probably afford to slip up on deadlines and projects.

    Maybe DeathStar #75 were accomplished this way? :p