Outsourced Odyssey

A tech veteran explores the human impact of a bout with outsourcing.

Tuesday, May 22, 2007

Layoff volunteers - the end of a humane option

Talking to an old colleague today, the subject naturally turned to recent layoffs in her unit. She's 62, and would welcome a severance package. However, during recent reductions, they laid off another man, a few years younger, highly capable, but not ready by any means for retirement. Yet both would have cost the same amount of severance dollars.

In other words, our company could have chosen a more humane layoff decision at no additional cost. She was ready and willing. She would have gladly gone. All they needed to do was ask for layoff volunteers. Why would they not do that?

My friend had the answer. Last year they were briefed by management and asked that very question. The reason? The Bank was sued. And lost. No more layoff volunteers.

Apparently the issue concerned "preference" and the bank could not prove objectivity. Reading between the lines, someone sued - and won - for not getting laid off. Is this a great country or what?

As I have written earlier, it's hard to see how this is a great victory for The Workers. People willing and able to be laid off are not. Others - for whom a layoff will be a great hardship - get sacked.

One lawyer and their client hit the Legal Lottery. But the business was not the only one on the losing end.

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Tuesday, May 15, 2007

Our Outsourcing Continues

Three more senior-level programmers have been laid off from our West Coast offices. With this one move our organization let walk out the door 90+ years of specialized, highly valuable experience. Left behind in their place: two young, freshfaced Indians - and a number of their offshore compatriots - filled with several weeks of "knowledge transfer".

Our department a few years ago numbered 83. We ran the technical side of the organization's database marketing operation with great success. But now only 23 workers remain - a reduction of more than 70%.

Our workplace - so tightly packed at the peak that visitors needed to use cubicles of those out sick or on vacation - is now rather sparsely populated. Many aisles are deserted save for the window cubicle. Of the 36 available cubicles near me, all but two sit empty. I half expect to look up one day soon and see a tumbleweed blowing past.

Meanwhile the survivors soldier on. Why don't we just leave? Well, of course the younger and most marketable of us have moved on to greener pastures. Many of the remaining are over 50 and would prefer to put off the day when they put our open, diversity-loving society to the All Ages Are Equal test.

Unfortunately, that day has been coming all too soon for many of us lately.

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Friday, March 30, 2007

Famous economist: 40 million jobs at risk

Princeton economist and former Federal Reserve Vice Chairman Alan Blinder says the current one million jobs lost from offshoring is the "tip of the iceberg". In a page 1 Wall Street Journal article this week, Blinder says as many as 40 million American jobs could be shipped overseas in the next decade or two.

"A New Industrial Revolution" is the scale of change this nation faces, analogous to when workers left farms en masse and migrated to cities. This change set off massive shifts in "how and where people lived, how they educated their children, the organization of businesses, the form and practices of governments."

The changes we face in the coming generation are of this scale. We must recognize the dimensions of the problem and begin to prepare ourselves for it.

He says the most important divide is not, as commonly argued, between jobs that require a lot of education and those that don't. It's not simply that skilled jobs stay in the US and lesser-skilled jobs go to India or China. The important distinction is between services that must be done in the U.S. and those that can -- or will someday -- be delivered electronically with little degradation in quality. The more personal work of divorce lawyers isn't likely to go overseas, for instance, while some of the work of tax lawyers could be. Civil engineers, who have to be on site, could be in great demand in the U.S.; computer engineers might not be.


Our educational system must adapt. A college degree will not offer a worker protection if they have worked hard only to master a skill that is easily outsourced offshore.

Bottom line: jobs with person-to-person contact will survive; many others will not. The janitor's job is safe. But all you computer programmers...oh, well.

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Thursday, March 01, 2007

Still standing

It's been a long week. Just waiting for the East Coast head honcho to arrive, probably to lay people off. After all, she had said all "affected Associates" would be notified by end of February, and she was to be here the 27th and 28th. And with our unit being potentially redundant after the last internal organization, things weren't looking good.

But she has come and gone and I am still standing. I was sick yesterday and working from home, and spent the whole day checking voicemail every half hour. With each call I waited anxiously to see if a "summons" was on my voicemail; fortunately I always heard "no new messages" awaited me.

They have taken a new quiet policy and are not announcing layoffs, but I know something was supposed to happen yesterday. Of course word always gets around when people are let go, so our minds will not be eased just because a formal announcement is withheld.

Or maybe it's just not a big deal any longer. What a great topic for our internal corporate web site: "Click here for the latest layoff news!" "Check back often to see if your name is on the list."

Sometime ahead they will be analyzing in detail redundant positions after this reorganization is complete. That may be a hard exercise to survive. But for now I'm still here.

But each layoff round leaves one battered and bruised. How much can someone take without becoming perennially demotivated?

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Tuesday, February 20, 2007

Think I'll skip the welcome mat

I received an ominous e-mail this morning.

My manager’s boss is coming to town, for an in-person “all hands” meeting. We were told to reserve Tuesday, February 27th for a short meeting. Our manager said we shouldn’t worry, it’s likely just a “meet and greet” session.

Yeah, right. Managing 200+ employees, she’s going to drop everything, fly across the country from the East Coast, to have a “short meeting” with her 12 West Coast associates.

There can be only one reason for this trip: she will be laying off people. Per company protocol the news has to be delivered in person.

This is the same script from last year. The unexplained higher level East Coast manager visit. The advance note to make sure everyone is “available”. The promised “all hands” meeting as a cover.

The original performance was bad enough – was a sequel really necessary?

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