AT&T Wireless Services has begun plans to outsource some of information technology work to lower-cost operations overseas, according to people familiar with the situation and documents obtained by the Seattle Post-Intelligencer.
"The marching orders are that we are going to do it," said one employee who expects to receive his layoff notice in January. "Now we are just trying to figure out the mechanics of how to do it." He said as many as 70 percent of the IT staff could lose their jobs.
Tata Consultancy Services and Wipro, outsourcing companies with large operations in India, have consultants working on the AT&T Wireless campus in Bothell, said the employee, who requested that his name not be used. That is creating an awkward situation for some AT&T Wireless employees who believe that they are essentially training their replacements.
AT&T Wireless has initiated a plan called "Project Pinnacle," a companywide effort to cut costs while boosting profit margins to as high as 40 percent. Part of that plan includes 1,900 job cuts, which were disclosed last week in a Securities and Exchange Commission filing. Those cuts will occur throughout the company. The Wall Street Journal reported yesterday that an additional 3,000 jobs could be cut, with the work being sent overseas.
http://seattlepi.nwsource.com/business/149035_outsource20.html